Abstract:
The pharmaceuticals industry is defined as all those who contribute to the discovery, creation
and supply of pharmaceuticals products. Multinational companies are those engage in
international business when it conducts any business functions beyond its domestic borders.
Since countries vary in terms of their market size, growth trajectory, macroeconomic
landscape, legal structure, and political complexities, multinational companies need to know the
real challenges and opportunities of every country. The general objective of the study was to
assess challenges and prospects of multinational pharmaceutical companies operating in
Ethiopia. Since the numbers of employees in these companies are few in numbers census
technique was used. The study used questionnaires and key informant interview to collect the
data from 45 respondents. Data was analyzed and presented using descriptive statistics.
Accordingly, the findings of the study revealed that tedious process of getting marketing
authorization; serious shortage of forex allocation, bureaucratic procedure and extended paper
work in banks, unethical pharmaceutical product promotion, weak government support for
brand products importation and some supply chain related problems have been identified as
major challenges. The study also indicated that growing population size, increased burden of
non-communicable diseases, expansion of health care services, emerging middle class groups,
who can afford innovative treatments and the progressive economic growth of the country as
areas of opportunities for MNPCs. Based on the findings and conclusions made, the following
recommendations have been given: the authority/ EFDA has to set clear time table indication for
market authorization process, better forex allocation for pharmaceutical sectors from the
government, strict follow up and controlling mechanism to ensure ethical pharmaceutical
products promotional practice in the country and government support for multinational
companies
