Prospects and Challenges in product Registration, Importation, Distribution and Marketing of Multinational Pharmaceutical Companies in Ethiopia: The Case of Sanofi, Novartis, Bayer, AstraZeneca and Pfizer

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