By Adedapo Adesanya
One of Nigeria’s health tech companies, Remedial Health, has raised $4.4 million in seed funding to accelerate expansion across the country.
The funding support was provided by Global Ventures, Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures, True Capital Management, and prominent angel investors such as Mr Guillaume Luccisano and Mr Christopher Golda.
The new capital will also provide access to credit for inventory purchases for its growing customer base of neighbourhood pharmacies, Proprietary Patent Medicine Vendors (PPMVs) and hospitals in the country.
Since launching Remedial Health in 2021, the company has focused on delivering solutions for neighbourhood pharmacies and PPMVs responsible for more than 80 per cent of the retail medicines sold in Africa.
According to Mr Samuel Okwuada, CEO and co-founder of Remedial Health, “The funds that we have raised and the strategic support from our investors will enable us to deliver the solutions to address various challenges that have hampered these businesses’ growth for many years, and make it easier to safeguard lives and livelihoods across the continent for years to come.”
Remedial Health provides various solutions, including its digital procurement and PMR (patient medication records) platforms that make it easier for neighbourhood pharmacies, PPMVs and hospitals to access affordable and authentic retail medicines.
Healthcare providers can source vetted medications at prices the same or better than open-air medicine market prices – with 24-hour delivery to their practice via Remedial Health’s logistics network.
In addition to procurement, pharmacies and PPMVs can access credit to fund inventory purchases and provide loans and salary advances for employees.
Since January 2022, Remedial Health has seen a 600 per cent increase in sales volumes, and the company now covers 16 of Nigeria’s 36 states. This new funding will support the rollout of its services across the rest of Nigeria and lay the groundwork for expansion across Africa in 2023.
The impact of various global events over the last three years – from the COVID-19 pandemic to rising inflation – has led to a sharp increase in the price of medicines in Nigeria.
For neighbourhood pharmacies and Proprietary Patent Medicine Vendors (PPMVs) that represent the main source of medicines for most Nigerians, these price increases mean there is added pressure to balance the need to provide lifesaving medicines to their communities and the need to run their businesses effectively.
There is also the challenge of an opaque supply chain where manufacturers have limited or delayed visibility into what is happening on the frontlines, which means pharmacies and PPMVs are often left to make do with what they can get rather than what they need.
By leveraging Remedial Health’s tech-enabled platform, neighbourhood pharmacies, PPMVs and hospitals can benefit from group/bulk buying discounts, time-saving and improved efficiency, access to credit to improve their earnings, and additional revenue from providing financial services and other primary healthcare services.
Manufacturers also benefit from an efficient supply chain, a clear and instant route-to-market for their products and real-time intelligence on product utilization to improve decision-making on forecasting, production and distribution.
Speaking for the participants, Sacha Haider, Principal at Global Ventures, said, “The team at Remedial Health is proactively addressing challenges including price opacity, poor drug quality control and a very fragmented supply chain, head on to create a tech-enabled, pharmacy-centred healthcare network that has allowed over 25 per cent in cost reductions at the point of care.
“We are excited to partner with Sam on his mission to improve access to quality and affordable healthcare in Africa through optimized pharmaceutical supply chains.”
Stanbic IBTC Pushes for Innovative Financing Solutions for Healthcare
By Modupe Gbadeyanka
The healthcare industry in Nigeria can compete with others in advanced countries if stakeholders work together to create innovative financing solutions.
The Head of Specialised Sectors at Stanbic IBTC Bank, Ms Jane Ike-Okoli, said the market is big enough to attract more investors.
A few days ago, Business Post reported that a global research firm, Agusto & Co, projected that an increased foreign interest would drive growth in Nigeria’s healthcare system, especially through the acquisition and establishment of health facilities in the medium term, helping to bridge the healthcare infrastructure deficit estimated at $82 million.
For Ms Ike-Okoli, this goal can be achieved as Nigeria is Africa’s largest healthcare market. She said the country only needs an effective collaboration among stakeholders to boost the sector.
Speaking during the panel session at the Medic West Africa Conference, Ms Ike-Okoli argued that effective collaboration between the financial industry and healthcare organisations was key to advancing Nigeria’s health sector.
She also mentioned that the sector is yearning for innovative financing solutions to address the nuances of lending to healthcare businesses.
“Nigeria is Africa’s largest healthcare market, and despite this, we have inadequate healthcare infrastructure, which gives rise to weakened health systems.
“It is in response to this that Stanbic IBTC has decided to partner with key players in the healthcare sector to improve access to healthcare finance and provide robust yet flexible funding options for healthcare businesses and providers.
“Our healthcare solutions are tailor-made for players in the sector who need working capital to expand healthcare operations, acquire medical equipment, facilitate medical research, and grow their healthcare businesses.
“One of such solutions is the recently launched unsecured short-term loan with a 12-month tenor, which is aimed at directly supporting providers with funds to improve their offerings and, by extension, grow the healthcare sector in Nigeria,” she stated.
Other panellists featured at the event included Dr Folabi Ogunlesi, Managing Partner Vesta Healthcare; Dr Idorenyin Oladiran, Medical Consultant, Human Resources, MTN Nigeria; Dr Leke Oshunniyi, CEO, Health and Managed Care Association of Nigeria (HMCAN) and Professor Akin Abayomi, Commissioner of Health, Lagos State.
Pharmaceutical Company Introduces Affordable Blood Tonic for Nigerians
By Aduragbemi Omiyale
The harsh economy in Nigeria caused by high prices of items amid low purchasing power has made it difficult for Nigerians to afford the basic needs of life, especially drugs to replenish their body system.
As a result, the rate of suicide triggered by depression and others has increased. Also, the number of people falling sick in the country has skyrocketed.
But things may soon change for the better as a pharmaceutical firm, Sterling Biopharma Limited, has introduced a new product called Fejeron Blood Tonic into the Nigerian market to support the country’s about 66.8 per cent economically active population.
Fejeron Blood Tonic contains iron, Vitamin B12 and folic acid, all essential components that help to facilitate adequate blood supply and replenishment to the body with vital vitamins while enabling a strong immune system.
“Fejeron Blood Tonic is the latest proof of our commitment to this mission. Despite its premium quality, Fejeron, at the moment, is one of the most affordable blood tonics you will find in the Nigerian pharma market, and this is deliberate. All Nigerians should be able to take care of themselves,” the chief operating officer of Sterling Biopharma, Mr Adebayo Adepoju, said at the unveiling of the product in Lagos on Thursday, September 15.
He said the drug was formulated due to the nature of stress and fatigue that Nigerians encounter daily, which requires that their physical and mental well-being is well supported to function at its best.
“At Sterling Biopharma, we believe that everyone deserves to be able to buy simple prescription drugs without breaking the bank. This is why from the moment we entered the Nigerian market. With our wide range of products, we have made our intentions clear, and that is to make quality pharmaceutical products affordable for all Nigerians,” he stated.
Since its market introduction, Fejeron has quickly become one of the well-sought-after new brands in the pharmaceutical category. The Product Manager, Olumide Ogunremi, linked the warm embrace of the product to its quality and appeal to the needs of Nigerians.
“The quick acceptance of Fejeron Blood Tonic in Nigeria is not surprising. The enthusiasm to try out the product and the return purchases across the biggest pharmaceutical markets in Nigeria validate the quality of the product and timeliness of its emergence.”
On what makes Fejeron Blood Tonic unique, Mr Ogunremi promised that both the young and old would love the taste of Fejeron, adding that extra effort has also been put into ensuring that the product has fewer chances of causing common side effects like metallic after-taste, staining of the teeth; constipation, diarrhoea, nausea and others.
Agusto Foresees More Foreign Investments in Nigeria’s Healthcare System
By Adedapo Adesanya
Global research firm, Agusto & Co, has forecast that an increased foreign interest will drive growth in Nigeria’s healthcare system, especially through the acquisition and establishment of health facilities in the medium term.
Agusto said in a report that these foreign investments would help the country bridge the healthcare infrastructure deficit estimated at $82 million.
According to data, Nigeria is largely underfunded in terms of its health system and, as a result, is faced with a significant infrastructure gap.
The industry is currently challenged by outbound medical tourism, deteriorating medical infrastructure, low government budget allocation, and poor compensation for public healthcare workers, all of which have prompted many skilled medical practitioners to relocate overseas in search of better employment opportunities.
In addition, brain drain is also contributing to this as approximately 2,000 doctors leave the country each year, and at least 266 Nigerian doctors were licensed in the United Kingdom between June and July 2022, according to the National Medical Association (NMA).
Nigeria has also not been playing its part, with the health sector receiving only about 4 per cent (N546.98 billion) and 5 per cent (N724.6 billion) of the total budgetary allocation in Nigeria’s 2021 and 2022 budgets. This undershoots the 15 per cent expected by the World Health Organisation (WHO) and African Union (AU).
Agusto noted that the emergence of COVID-19 in 2020 saw an increase in diagnostic facilities and, albeit insufficiently, an increase in public investments in the health sector with efforts from the Central Bank of Nigeria (CBN).
Despite this, there remains more to be done, especially with the country’s large population facing a high burden of communicable and non-communicable diseases, resulting in many people constantly seeking treatment.
Foreign investors have found the Nigerian healthcare system to be an attractive investment opportunity, and in 2021, the healthcare industry attracted around $2.3 million in foreign direct investments (FDI).
For instance, in February 2021, Evercare Group, through its emerging market health fund, established Evercare Hospital Lekki, a 165-bed multispecialty tertiary care facility.
Agusto predicts that the industry’s contribution to gross domestic product (GDP) will reach N480.6 billion by 2022 from N470.5 billion, based on the country’s high birth rate and the spread of communicable diseases as well as other common ailments such as malaria and respiratory tract infection.
It also expects that a lower rate of outbound medical tourism, as a result of the naira’s continued depreciation, will boost the industry’s contribution to GDP in the medium term.
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