Mojisola Adeyeye, director-general, Nationwide Company for Meals and Drug Administration and Management (NAFDAC), says the rise in drug costs shouldn’t be linked to the pull-out of GlaxoSmithKline (GSK) from Nigeria.
In August 2023, GSK Nigeria knowledgeable shareholders that it was shutting down operations as a result of its largest shareholder and dad or mum firm, GSK UK, plans to discontinue its manufacturing licence and companion with one other native entity.
There have been fears that the event could result in a rise within the costs of medicine.
Nonetheless, in accordance with Adeyeye, GSK Nigeria’s shutdown shouldn’t be answerable for the current surge in drug costs, somewhat, the naira devaluation is driving the hike.
“The primary motive for the increment within the costs of drug is that the worth of naira has depreciated,” NAN quoted Adeyeye as saying.
“Earlier than the deliberate exit of GSK from the nation, costs of commodities normal had gone up and a number of the merchandise GSK produced have decreased
“From the regulatory perspective, we encourage native manufacturing and GSK have collaborated with native producers. So it’s not like they import all the things.”
Adeyeye mentioned international trade shortage has additionally had vital impression on worldwide pharmaceutical firms.
“The problem of international trade is big for a number of the multinational firms,” she mentioned.
“They generate funds and it turns into tough to repatriate the cash again to their dad or mum firm the place different developments will happen.”
GSK UK is planning to transition to a third-party direct distribution model for its pharmaceutical merchandise in Nigeria, ending its direct manufacturing and commercialisation of its prescription medicines and vaccines.