Africa: A ripe opportunity - IMS Health

WHITE PAPER | AFRICA
With comparable economic profiles to other dynamic pharmerging cities, the
economic potential and health outcome improvements in some of these urban centers
surpasses and will continue to surpass that of countries in which they are situated.
For example, whilst being located in an economically weaker country, Khartoum will
be comparable to cities in stronger economies like Casablanca and Lagos by 2020,
based on forecasted consumption trends. This is because Khartoum’s wealth is
concentrated by the geographic proximity of oil refineries and a thriving food
processing, textile and glass manufacturing industry.
There are obvious short-term benefits to cities: a concentrated wealthy and educated
population, and stronger health system infrastructure and distribution channels.
However, long-term sustainability will necessitate consideration for other parts of the
country. As countries gain economic strength, the urban versus rural divide is
expected to reduce and other locations, including rural areas, will be increasingly
important. 36
Existing hurdles in the path to market and path to patient help inform
location assessment. Across all geographic tiers, companies seeking a sustainable
business must assess the existing capabilities across the path to market and path to
patient (Figure 6).
Hurdles across both pathways will make some markets less attractive than others
because they will determine the level of investment companies will need to make to
overcome them. Weak regulatory mechanisms and prevalent poverty are the primary
drivers of these hurdles and are more pronounced in Africa relative to other parts
of the world. Opportunities are greater in countries with minimized hurdles along
these pathways.
FIGURE 6: GREATER OPPORTUNITIES ARE LIKELY IN COUNTRIES WITH WELL-DEVELOPED PATHS TO
MARKET AND PATIENT
Countries differ
with respect to
ease of market
entry
Countries with
stronger health
systems will
ensure a
smoother path
to patient for
the product
Registration
Process
Pricing &
Reimbursement
Source: IMS Consulting Group analysis
PATH TO MARKET
Distribution
Variation in development exists between public and private markets
Patient
Awareness
*
PATH TO PATIENT
Healthcare
Access
Marketing &
Sales
Diagnosis Treatment
Limited variation between public and private markets
Post-Launch
Pharmacovigilance
IMS HEALTH | AFRICA: A RIPE OPPORTUNITY 12