Sanofi starts work on ‘largest African facility’
pharmafile | September 30, 2013 | News story | Manufacturing and Production, Sales and Marketing | Africa, Sanofi, algeria
Sanofi has started construction of a €70 million manufacturing facility in Algeria that will be the company’s largest site in Africa when it comes online in three years’ time.
The move reflects the emerging importance of Africa as a long-term growth prospect for even big pharma companies, as economic development in the region spawns greater spending on healthcare by governments and the public alike.
The plant will be located on the Sidi Abdellah industrial site in Algeria and will primarily produce dry and liquid pharmaceutical formulations, whilst also serving as a regional distribution centre.
When complete it will have capacity to make 100 million dosage units a year – equivalent to around 80% of the total volume of drugs sold by Sanofi in Algeria – and employ around 133 people.
The African pharma market is predicted to be worth around $30 billion by 2016 – dwarfed by established territories like the US, Europe and Japan, according to IMS Health figures, but with the potential to leap forward thanks in no small part to high levels of Foreign Direct Investment.
Most interesting to the drug industry is its potential for growth, which at around 10.6% a year is ahead of Latin America and second only to the Asia-Pacific region, currently running at a compound annual growth rate (CAGR) of around 12.5 per cent.
That momentum could drive the market towards $45 billion by 2020, according to IMS Health, which also sees a shift in the market from acute medicines used for communicable diseases to chronic care drugs for conditions such as cancer and cardiovascular disease.
In recognition of that trend, Sanofi has also announced a partnership with the Algerian Health Ministry that would see the drugmaker provide screening and assessment services for cardiovascular risk, diabetes, and high blood cholesterol, along with influenza monitoring.
“We are aware that drugs alone are not enough to fight cardiovascular diseases, which is why Sanofi, in collaboration with the health authorities, will be providing solutions for public prevention, screening and education,” commented the company’s chief executive Chris Viehbacher at the groundbreaking ceremony for the new plant.
“This investment crowns more than 20 years of our commitment to Algeria,” he added. Sanofi claims to be the largest pharma company in the Algerian market and already operates two manufacturing sites in the country.
Business Monitor estimates that the Algerian drug market was worth a little over $3 billion last year, with growth of 11.5% despite ” import restrictions and volume control policies [which are] having a negative effect on local medicines supply”. It is estimated to be the second-largest pharmaceutical market in Africa.
Meanwhile, domestic manufacturers are also raising their game in Algeria. Earlier this year, Algerian drugmaker Saidal signed contracts for the construction of three new production units for generic medicines at Zmirli, Constantine and Cherchell, with a total investment of around €100 million.
Phil Taylor
Related Content
Sanofi and Regeneron’s Dupixent receives CHMP recommendation for chronic spontaneous urticaria
Sanofi and Regeneron have received a positive opinion from the European Medicines Agency’s (EMA) Committee …
Sanofi’s treatment granted orphan designation for rare chronic inflammatory condition
The European Medicines Agency has granted orphan designation to Sanofi’s investigational Bruton’s tyrosine kinase (BTK) …
Sanofi completes acquisition of Vigil Neuroscience to early neurology pipeline
Sanofi has announced that it has finalised its acquisition of Vigil Neuroscience, a US-based biotechnology …
