French Biogaran acquires Swipha

Despite recent difficulties on the Nigerian economy Nigerian is still attractive investment destination as Biogaran, a subsidiary of Servier, the number 2 French pharmaceutical group, that specializes in generics, announced the indirect acquisition of Swiss Pharma Nig Ltd, commonly referred to as Swipha, one of the oldest Nigerian drug production and distribution company, incorporated in 1976.
Biogaran is interested in developing Swipha’s portfolio, which is mainly focused on three areas; anxiolytics and tranquilizers, antimalarials and antibiotics, which treat the most common infections and health problems in Nigeria.
“Swipha’s know-how, network and reputation immediately convinced us that it was the right partner for us,” says Pascal Brière, President of Biogaran.
Biogaran also declares it has chosen Nigeria to realize its first investment in Africa because of the many long-term opportunities offered by the country, which is Africa’s most populous (184 million inhabitants in 2016 according to the IMF). “Nigeria quickly established itself as the best point of entry on the African continent, with 184 million potential consumers and strong economic fundamentals, including a dynamic market economy,” comments Pascal Brière.
Biogaran says it intends to build on existing distributions networks and relations with clients and suppliers so as to increase the production level and make the expected sales happen by growing its presence on the Nigerian territory. It also aims at developing five to ten products a year and become the 2nd or 3rd biggest market player in the next five years.
“Our first aim is to help Swipha navigate tough market conditions and face growing competition on a very dynamic market. In the medium term we will commit what is necessary to allow Swipha to uphold and strengthen its position as a true Nigerian leader on its sector. We are also planning on sharing expertise and know-how, which is of utmost importance to reach these goals,” says Pascal Brière.
Biogaran’s strategy is also a bet on Nigeria’s longer-term industrialisation. “Manufacturing locally is a real advantage compared to imports from outside. Not only is it a hedge against currency gyrations. There is also a huge opportunity in Africa for pharmaceutical companies. According to the UN, Africa manufactures only 2% of the drugs it consumes, so the scope for progress is almost unlimited,” adds Pascal Brière.
Biogaran also mentions health challenges among its motivations to invest in the country. Despite the huge progress made by the National Agency for Food and Drug Administration and Control (NAFDAC) in its fight against counterfeit medicine, there are still important volumes of fake drugs in circulation. Producing locally is also a good way to reduce dependence on imports, which are the main source for counterfeits. This goes without mentioning the pressing need for the effective, high quality and cheap medicines that generics can provide. “Supplying the citizen of Nigeria with reliable and locally manufactured medicines is a guiding principle for our long-term involvement in the country,” concludes Pascal Brière.
Swipha is famous for the quality of its products and has a strong track record to prove it. It was the first Nigerian pharmaceutical company to obtain “ISO 9001:2008” certification in 2007. Swipha was given WHO GMP certification by the World Health Organization (WHO) in 2014, first among its West-African peers.
The company employs 300 people locally and had a turnover of NGN 4 billion before the crisis. Beyond its production unit, the company also controls an extensive distribution network, covering most parts of Nigeria.