Drug exports to Africa fall

Even as the domestic pharmaceutical industry is exploring new markets in Latin America and the Commonwealth of Independent States (CIS), exports to countries in Africa are declining.

An important reason for the decline is blacklisting of small- and medium-scale pharma companies by authorities in Nigeria and other African countries for alleged supply of unregistered drugs by these companies.

According to government data, export growth to Nigeria, the seventh largest market for drug exports from India, was 10.7 per cent in 2005-06 compared with a 21.42 per cent growth during 2004-05.

In value terms, drug exports to Nigeria grew from $84.47 million in 2003-04 to $102.87 million in 2004-05, and to $113.82 million in 2005-06.

Shipments to countries such as Mozambique, Rwanda and Morocco have also declined. Exports to Morocco grew at 49.59 per cent in 2005-06 against 393.75 per cent in 2004-05, to Mozambique at 3.80 per cent against 15.06 per cent in 2004-05 and to Rwanda at 3.2 per cent against 211.85 per cent in 2004-05.

Comet Pharmaceuticals, Coral Laboratories, Kamala Overseas Export, Medico Remedies, Milan Medical Stores and Mission Pharmaceuticals are some of the Indian firms that figure in Nigeria's blacklisted companies. Indian firms continuing to figure in the blacklist has brought bad reputation to the country's drug exporters.

According to industry sources, repeated pleas and interventions from various government agencies have had little effect in this regard. Various offices from central and state drug administrations, have taken up the issue with the National agency for Food and Drug Administration and Control (NAFDAC) in Nigeria.

"Pharmaceutical Export Promotion Council has also been active in addressing the issue. However, the issue remains unresolved and we continue to be blacklisted," said a spokesman of a blacklisted company.

"Nigerian authorities consider all drugs that are not registered in their country as spurious or substandard. The Nigerian drug authorities found some such products of Indian origin and unilaterally decided to blacklist them. The fact, however, is that these products were exported to neighbouring African countries, from where they illegally got entry into Nigeria, thanks to its porous borders," P V Appaji, Executive Director, Pharmexcil said.

He added some unscrupulous elements also managed to duplicate Indian brand names thus maligning the genuine drug makers. "The chemical ministry is also examining the case as it is affecting the reputation of the country's pharmaceutical exporters in general", he said.