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Pharmaceutical Production

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Pharmaceutical Production

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Biotechnology and Pharmaceuticals
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)

Business Model Description

Manufacture pharmaceutical products in solid, semi-solid, liquid and other dosage forms, especially antimalarial and AIDS prevention and treatments. These can be marketed nationally or exported in the sub-region drawing upon provisions of the African Continental Free Trade Area (AfCFTA).

Expected Impact

Lower costs and improve access to essential treatments, particularly for rural populations, controlling the spread of epidemics and strengthening public health resilience, and resulting in job creation.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: District Autonome d'Abidjan
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: District Autonome de Yamoussoukro
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Health Care

Development need
Côte d'Ivoire is struck by several epidemics, including malaria, tuberculosis, and AIDS, resulting in a high child (below 5) mortality of 74 per 1000. The Universal health coverage (UHC) remains inoperant in several areas, as the UHC card usage rate was 7.96% in 2023 (1, 12, 13).

Policy priority
Aligned with the National Development Plan (2021-2025), the National Health Development Plan (PNDS) aims to halve infant and maternal mortality rates and increase the average life expectancy from 57 to 62 years by 2025. It plans to meet its objectives by building 376 new health establishments, including university hospitals and regional health centers, and rehabilitating existing facilities (2, 8, 11).

Gender inequalities and marginalization issues
Certain diseases, such as AIDS, disproportionately affect young women and female teenagers, increasing the risk of transmission to children. In Côte d'Ivoire, young women aged 15-24 are nearly twice as likely to be living with HIV compared to their male counterparts, with 2.7% of young women affected versus 1.4% of young men. The cost of health services and medicines impedes the treatment of vulnerable populations (3, 6).

Investment opportunities introduction
Côte d'Ivoire imports over 90% of its pharmaceutical consumption, indicating high potential for a domestic industry. In addition, the roll-out of the Universal Health Insurance and pledged increase in government health expenditures would lead to increased health affordability, thereby expanding the market (7, 12).

Key bottlenecks introduction
The governance of the health system faces challenges due to fragmented efforts and overlapping responsibilities across various levels. Additionally, limited enforcement of legislation can sometimes lead to inefficiencies (11).

Sub Sector

Biotechnology and Pharmaceuticals

Development need
Côte d'Ivoire's demand for pharmaceutical products represents a third of the ECOWAS's region and grew by 11.4% in 2023. However, medications are priced higher than international levels, resulting in limited access, with only 1 in 2 Ivorians having access to the pharmacy network (5, 10).

Policy priority
The National Health Development Plan aims to increase local pharmaceutical manufacturing, targeting 100 million euros (USD 108 million), to reduce dependency on imports, enhance regulatory frameworks to ensure the quality and safety of medicines, and improve the supply chain to ensure efficient distribution of essential drugs (2, 9).

Gender inequalities and marginalization issues
The PNDS 2021-2025 provides a policy of targeted free healthcare for pregnant women and children under the age of five. However, empirical evidence suggests that households are still the main source of funding for healthcare, exacerbating inequalities in access to pharmaceuticals (7).

Investment opportunities introduction
Although Côte d'Ivoire has several pharmaceutical manufacturing facilities, their capacity falls short of meeting growing demand and market expansion, leading to an annual pharmaceutical trade deficit of USD 1.6 million. The government's ambition is to increase national drug coverage from 6% to 30% by 2030 (10).

Key bottlenecks introduction
Pharmaceutical manufacturing in Côte d'Ivoire faces challenges such as regulatory delays, supply chain inefficiencies, and a deficit of qualified health workers, with only 0.78 providers per 1,000 inhabitants. The input supply chain managed by the state is fragmented, leading to frequent stock-outs and a lengthening of transport. In addition, the sector is vulnerable in supply chain disruptions impacting imports of active pharmaceutical ingredients (4).

Industry

Biotechnology and Pharmaceuticals

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Pharmaceutical Production

Business Model

Manufacture pharmaceutical products in solid, semi-solid, liquid and other dosage forms, especially antimalarial and AIDS prevention and treatments. These can be marketed nationally or exported in the sub-region drawing upon provisions of the African Continental Free Trade Area (AfCFTA).

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

10% - 15%

The market for pharmaceuticals in Côte d'Ivoire was estimated to be about USD 600 million in 2023, growing by more than 11% year-on-year. 90% of the consumed pharmaceuticals are imported (10).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

Equity placements in the impact investing landscape in West African region imply that domestic pharmaceutical manufacturing would generate at least 12% in IRR (50).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

Pharmaceutical production is a capital-extensive industry, with payback periods over 5 years for companies designing their own technology platforms and engaging in research and development. However, companies producing generics have lower levels of investment and exhibit shorter payback periods (51, 52, 53).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Market - Highly Regulated

Setting up a plant requires a number of government authorisations, including a production license from the Autorité Ivoirienne de Régulation Pharmaceutique. Production and marketing are then subject to national and sub-regional (WAEMU) standards (30).

Capital - CapEx Intensive

Building pharmaceutical production centers requires high levels of investment in land, equipment and inputs.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Over 90% of pharmaceutical products consumed in Côte d'Ivoire are imported. This creates vulnerabilities in supply chains, leading to potential shortages of essential medicines during crises. This dependence also makes pharmaceutical products more expensive for consumers (10).

Only 50% of the population has access to pharmacy networks, notably due to the price of pharmaceuticals, which are higher than international reference prices (10).

The government has identified priority disease groups with epidemic potential or key zoonotic diseases, which include Mycobacterium tuberculosis, brucellosis, rabies, viral haemorrhagic fevers such as Ebola and Marburg, and respiratory illnesses such as highly pathogenic avian influenza. As a result, the population has a strong need for preventive and therapeutic medicines (42).

Gender & Marginalisation

Epidemics struck more severely rural communities. Tuberculosis, for instance, is more prevalent in Northern regions and Abidjan has the lowest prevalence rate. Other epidemics such as AIDS affect young women over twice as much as young men (2.7% versus 1.2%) (2, 6).

Noncommunicable diseases (NDCs) represented 36% of deaths in 2019, mainly affecting vulnerable populations. NDCs such as diabetes, cardiovascular diseases, and cancers, require continuous treatment, often involving long-term medication regimens, and dependence on imported medications creates cost barriers (43).

Expected Development Outcome

Increasing local production can improve the availability of medicines and guarantee their quality through enhanced monitoring (47).

Increasing the supply of generic drugs would bring down costs by avoiding import-related expenses and improving supply chain reliability, thereby benefiting the population at large, and particularly poorer patients (47).

Increased local production of medicines means that epidemics can be treated more effectively, and their spread slowed or prevented (19, 48).

Gender & Marginalisation

The availability of medicines enhances access to treatment, especially for vulnerable populations, and supports the prevention and management of epidemics, including AIDS (54).

Local pharmaceutical production ensures stable supply of treatments for noncommunicable diseases (NCDs) like diabetes, cardiovascular diseases, and cancers, which are provided on a long-term basis. Due to the nature of these diseases, regular long-term supply appears crucial for the patients.

Primary SDGs addressed

Good health and well-being (SDG 3)
3 - Good Health and Well-Being

3.8.1 Coverage of essential health services

3.b.3 Proportion of health facilities that have a core set of relevant essential medicines available and affordable on a sustainable basis

Current Value

The universal health coverage service index for Côte d'Ivoire was 41% in 2019 (16).

In 2020, the tracer drug availability at the national level was 67.4%. Tracer products are key medical supplies selected to monitor and reflect the broader availability and reliability of essential medicines within the healthcare system (2).

Target Value

The National Health Development Plan 2021-2025 aims to increase the number of health centers and clinics covered by the Universal Health Coverage to 80% by 2025 (2).

The National Health Development Plan sets the target to increase the availability rate of tracer products at the central purchasing office to 85% by 2025 (2).

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.2.1 Manufacturing value added as a proportion of GDP and per capita

Current Value

In 2021, the industrial sector's share of GDP amounted to 21.2%, and manufacturing value added represented 14.2% of GDP (17, 55).

Target Value

The National Development Plan 2021-2025 sets the target to increase the industrial sector's share of GDP from 21.2% in 2019 to 28% by 2025 (11, 55).

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

The Ivorian population benefits from improved access to affordable, high-quality medicines. In particular, regions exposed to the AIDS and malaria epidemics will benefit the most.

Gender inequality and/or marginalization

Women, particularly pregnant women and mothers, and children will benefit significantly from better availability of essential medicines, leading to reduced maternal and child mortality rates.

Corporates

Local pharmaceutical companies and foreign groups will benefit from increased investment, which will enable scaling up operations and diversifying product lines.

Public sector

The government benefits from an improvement in the balance of trade due to lower imports of medicines and an expansion in the fiscal base. Increased local production also aligns with the objectives set out in the National Health Development Plan to increase pharmaceutical manufacturing (2).

Indirectly impacted stakeholders

People

The general public will benefit from positive health externalities, with greater welfare, lower productivity loss associated with health issues, and a higher economic growth.

Gender inequality and/or marginalization

Increased availability of medicines would benefit proportionately more pregnant women and participate in the promotion of gender equality.

Corporates

Global pharmaceutical companies and investors might find new opportunities for partnerships and market expansion in Côte d'Ivoire.

Outcome Risks

Without a system for monitoring the quality of medicines, there is a risk that less effective or potentially dangerous medicines will be placed on the market, posing a threat to public health.

Improper disposal of pharmaceutical waste or byproducts could lead to environmental harm, such as contamination of local water sources, causing unintended negative consequences for both communities and ecosystems. Manufacturing medicines requires vast quantities of solvent (80-90% of the product's mass), which cause damages to the ecosystems if discharged improperly (56).

The establishment of local pharmaceutical production facilities may have a negative environmental impact due to high energy consumption (56).

Instances of low-quality or unsafe medicines could erode public confidence in locally produced pharmaceuticals, reducing demand and undermining public health efforts.

Impact Risks

A lack of skilled personnel to operate and maintain high-quality pharmaceutical production may hamper productivity and lead to lower product quality and difficulties in reaching output targets.

Disruptions in the supply chain due to global supply shortages or local logistical challenges can affect the stability of production and alter the population's access to medicines.

Limited access to essential patents or advanced technologies could limit the types of medicines that local producers can manufacture, leading to a restricted range of products (57).

Gender inequality and/or marginalization risk: If locally produced pharmaceuticals are not distributed equitably, particularly in underserved areas, the most vulnerable populations may not benefit from improved access to medicines.

Impact Classification

C—Contribute to Solutions

What

Investments in local pharmaceutical production facilities would result in increased availability of medicines at a cheaper price and reduced dependency on imports.

Who

The entire population, particularly the most vulnerable segments exposed to AIDS and malaria, with a high price-elasticity of demand for drugs.

Risk

Operational challenges and supply chain disruptions in pharmaceutical production could hinder healthcare improvements and market growth by delaying plant construction, compromising quality, and limiting product delivery.

Contribution

Pharmaceutical production replaces imports, which may prove more costly and expose the country to trade shocks.

How Much

Côte d'Ivoire aims to strengthen its local pharmaceutical production to meet 20% of national demand by 2025 and 30% by 2030, against less than 10% currently (9).

Impact Thesis

Lower costs and improve access to essential treatments, particularly for rural populations, controlling the spread of epidemics and strengthening public health resilience, and resulting in job creation.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

The National Health Development Plan 2021-2025 outlines initiatives to improve health and reduce maternal and infant mortality. These include building a domestic pharmaceutical sector to expand the coverage of national medication needs from 6 to 12%. 14 industrial units producing generic drugs, phytomedicines, and cosmetics are being established (2).

The National Development Plan 2021-2025 outlines the government's health strategy, with pharmaceutical industry highlighted as a priority sector. In addition, it aims to help improve access to essential medicines and presents ongoing reforms in the health sector, including the creation of the Ivorian Pharmaceutical Regulatory Authority (AIRP) (11).

The National Strategic Plan for the Integration and Development of the Private Health Sector 2021-2025 (Plan Stratégique National d'Intégration et de Développement du Secteur Privé de la Santé or PSN-IDSP) aims to improve the healthcare system in Côte d'Ivoire, notably by improving access to healthcare services and promoting public-private partnerships. Increasing local pharmaceutical production is a key objective to improve accessibility of quality medicines (31).

Côte d'Ivoire's National Pharmaceutical Policy (2023): aims to enhance the availability, geographical reach, and financial accessibility of high-quality essential medicines, vaccines, and other key health interventions for the entire population of Côte d'Ivoire (38).

Financial Environment

Fiscal incentives: The 2018 Investment Code considers health as a priority (Category 1) sector. This designation allows investors to benefit from partial or total exemptions from corporate tax for a period of 5 to 15 years, partial exemptions from customs duties, exemptions or suspensions of VAT, and the provision of tax credits (39).

Other incentives: In 2020, the European Investment Bank launched a 50 million euros (USD 54 million) fund to support the establishment of pharmaceutical production units in Africa (18).

Other incentives: Multilaterals offer various financing mechanisms for the private sector. For instance, the International Finance Corporation announced a 50 million euro (USD 54 million) financing package to support group Fosun in the construction of the country's largest pharmaceutical production plant (9, 32).

Regulatory Environment

Decree No. 2013-792 requires public primary care establishments in Côte d'Ivoire to source all medicines through the state-controlled Nouvelle Pharmacie de Santé Publique. It aims to centralize the procurement and distribution of medicines and strategic inputs to ensure accessibility (10, 27).

Pharmaceutical supplies are regulated by Law No. 2015-533 of 20 July 2015, which outlines provisions for import, export, re-export and removal. It enshrines the pharmacist's monopoly (unless otherwise provided by law) on activities related to medicines and other health products (23).

Loi no 2019-677 "guiding public health policy in Côte d'Ivoire" acts as a new public health code. Article 19 stresses the importance of the availability and affordability of essential medicines, Article 20 delineates prescription standards and Article 22 mandates strict quality control of pharmaceuticals (28, 29).

Loi no 2019-677 "guiding public health policy in Côte d'Ivoire": reinstates the principle of establishing, by decree, a list of essential medicines, to be updated every 2 years. This measures aims to ensure their supply and availability in public health services (28, 38).

Law No. 2017-541 "relative à la régulation du secteur pharmaceutique" enforces measures aimed at ensuring the safety, quality, and accessibility of medicines. The law mandates that all pharmaceutical establishments, including manufacturers and importers, must receive prior authorization from the Ivorian Pharmaceutical Regulatory Authority (AIRP) (30).

Marketplace Participants

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Private Sector

Tridem Pharma, Cipharm, Pfizer, Sanofi, Novartis, Pharma 5, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Shanghai Fosun Pharmaceutical, Royax Medical Solution, OLEA Lab.

Government

Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI), Ministry of Health and Public Hygiene, Ministry of Economy, Ministry of the Economy, Planning and Development, Direction de la Pharmacie, du Médicament et des Laboratoires, Nouvelle Pharmacie de Santé Publique, Ivorian Pharmaceutical Regulatory Authority (AIRP).

Multilaterals

International Finance Corporation (IFC), United Nations Development Programme (UNDP), Joint United Nations Programme on HIV/AIDS (UNAIDS), World Bank, World Health Organization (WHO), European Investment Bank (EIB).

Non-Profit

Fondation Mérieux, PATH, Médecins sans frontières, Jhpiego, Elizabeth Glaser Pediatric AIDS Foundation, Clinton Health Access Initiatives.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
urban

Côte d'Ivoire: District Autonome d'Abidjan

As the economic capital, Abidjan offers unique opportunities in terms of logistics, infrastructures (with the largest port in the country) and reliable utilities, all of which are necessary for pharmaceutical production. Pharmaceutical firms such as Tridem Pharma have production plants in the city. In addition, it hosts several medical schools and universities, including the Institut Universitaire des Sciences de la Santé de Côte d'Ivoire (IUSS-CI), providing a skilled labor pool (45, 58).
semi-urban

Côte d'Ivoire: Bas-Sassandra

San Pedro is home to the second-largest port in Côte d'Ivoire, facilitating easy import of raw materials and export of finished products and offering dual transport through road and sea. In addition, the city hosts an industrial zone and public authorities actively encourage the development of industry in San Pedro (21, 24, 44).
urban

Côte d'Ivoire: District Autonome de Yamoussoukro

The Yamoussoukro autonomous district has a central location, which provides strategic access to various parts of the country and can ensure fast delivery of essential medicines to rural northern populations, which are particularly vulnerable. In addition, the presence of educational institutions (INP-HB, Université des Lacs) supports workforce development (2).

References

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