EXIT OF GSK: A NEW CHALLENGE?

 The exit of GSK may be challenging, but it opens up a space for local manufacturers to fill and excel, writes

Ade Shodeinde

When a national newspaper published “GSK’s industrial exodus: Effects, lessons, and solutions,” it ignited a vital conversation about Nigeria’s healthcare sector, particularly in the wake of GlaxoSmithKline’s (GSK) exit. While the article delves into the complexities faced by multinationals, it overlooks the burgeoning local manufacturing landscape. This rebuttal builds upon the discourse started in my prior article, “Investing in Local Manufacturing,” weaving in recent global initiatives like the Global Fund and PEPFAR’s audacious manufacturing targets for Africa. The objective? To offer a nuanced perspective that underscores the untapped potential of local manufacturing.

 Multinational companies like GlaxoSmithKline (GSK) have contributed greatly to Nigeria’s healthcare sector. The exit of such companies, while challenging, opens up a space that local manufacturers are not only capable of filling but also excelling in. It’s a call to recognize and seize the unprecedented opportunities that lie ahead for local manufacturing in Nigeria. By saying “Let Them Go,” we are not closing a door but opening a new one, welcoming a future where local manufacturers take the lead in providing sustainable, high-quality healthcare solutions.

The Untapped Potential of Local Manufacturing: A Global Context Let’s set the record straight: the narrative in the “GSK Industrial Exodus Article” paints local manufacturing in Nigeria as a pipe dream. The reality? It’s a burgeoning field, gaining both momentum and credibility. Companies like Ash Biomedical Diagnostics Ltd and Codix Pharma are not outliers; they’re pioneers. They’re crafting affordable, high-quality in-vitro diagnostics (IVDS) and medical devices, and they’re doing it right here in Nigeria. It’s worth noting that these companies are mentioned not for promotional purposes but because they stand alone in doing what they’re doing in the Nigerian healthcare landscape.

While the departure of GSK has garnered significant attention, it’s almost incredulous that the spotlight hasn’t equally shone on local trailblazers who have been making remarkable strides in the healthcare sector. Take, for instance, Emzor Pharmaceutical Industries Limited, which has evolved from a modest retail chemist’s shop to a multi-billion-naira enterprise, manufacturing over 140 high-quality pharmaceutical products. It’s not just a business; it’s a commitment to affordable healthcare and job creation in Nigeria.

Similarly, Fidson Healthcare PLC stands as a testament to local ingenuity and quality. As one of the few Nigerian pharmaceutical manufacturers in line for WHO GMP certification, and the largest employer of pharmacists outside the government sector, Fidson’s contributions to healthcare in sub-Saharan Africa are nothing short of remarkable

By focusing solely on the exit of multinationals like GSK, we risk overshadowing the value and potential of these local giants who are not just surviving but thriving in the same landscape. It’s high time we shift the narrative to include these vital contributors to our healthcare ecosystem.

Global Initiatives: The Wind Beneath Our Wings. But this isn’t just a local phenomenon; it’s part of a seismic shift. Organizations like Manufacturing Africa are extending their support across the continent. And let’s not forget the recent collaborative efforts by the Global Fund, PEPFAR, and Unitaid. Their mission? To accelerate the manufacturing of health products in Africa, starting with HIV rapid diagnostic tests (RDTs). This isn’t just a nod to local manufacturing; it’s a clarion call for diversification and resilience in the supply chain-a call that companies like Ash Biomedical Diagnostics Ltd are well-positioned to answer.

Government Policies: The Two Sides of the Coin. The GSK article doesn’t shy away from highlighting the pitfalls of government policies. But what it fails to mention are the strides being made in the right direction. Take the Nigerian Economic Sustainability Plan or the “Buy Nigerian, Save the Naira” campaign. These aren’t just slogans; they’re targeted initiatives aimed at bolstering local manufacturing and job creation while reducing our import dependency.

The Third-Party Distribution Model: A Closer Look. The original article takes a swipe at GSK’s third-party distribution model, labelling Nigeria a “dumping ground.” But let’s pause and consider the regulatory frameworks that could turn this model into an opportunity rather than a threat. With the right policies, third-party distribution can empower local distributors and stave off monopolistic tendencies.

Beyond Multinationals: The New Frontier of Capacity Building. GSK’s exit might seem like a setback for healthcare education, but it’s far from a dead-end. Local companies can and are filling this void through partnerships, grants, and educational initiatives. Take Ash Biomedical Diagnostics Ltd, for instance. We’re not just committed to capacity building; we’ve secured regulatory approvals, laying the groundwork for a future replete with high-quality, affordable healthcare products.

Quality Assurance: The Bedrock of Local Manufacturing. Quality isn’t a luxury; it’s a necessity. And local manufacturers like Ash Biomedical Diagnostics Ltd are meeting global standards by adhering to international quality protocols. Our regulatory approvals aren’t just stamps on a paper; they’re a testament to our commitment to excellence.

The Road Ahead: A Ten-Year Vision for End-to-End Manufacturing Global organizations are setting the stage for local manufacturers to achieve end-to-end production within the next decade. This vision dovetails with the long-term aspirations of local manufacturers in Nigeria, many of whom are already investing in cutting-edge technology and capacity building.

GSK’s exit from Nigeria may pose challenges, but it also unveils unprecedented opportunities for local manufacturers. By shifting our focus from the exodus of multinationals to the ascendancy of local manufacturing, we can rewrite the narrative. With the backing of global initiatives and supportive government policies, Nigeria is well on its way to building a resilient sustainable healthcare sector – one that not only serves its people but also contributes to global health objectives

 Shodeinde is the Managing Director of Ash Biomedical Diagnostics Ltd based in Abuja