The Best Pharmaceuticals for Africa’s Animals: Generic or Brand Name?

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The African market for medicines for animals has seen tremendous growth. Although this market is still in its infancy, there are some bright spots that bode well for the future. Different segments of this market have grown at different rates and show different growth trajectories. For example, vaccines represent one of the fastest-growing segments in terms of value sales but a relatively small segment in volume sales. Similarly, branded drugs account for about half of the market share in value but less than a fifth in volume sales. A lot of research is being done to understand animal pharmaceutical markets more deeply and uncover trends that will shape it in the coming years. In this article we discuss both generic and brand name drugs, applications, usage patterns, distribution channels and what all these things mean to manufacturers looking to enter the market as well as those already operating there.

What is a generic drug?

A generic drug is a medication that is bioequivalent to a brand-name drug that has gone off patent. This means it has the same dosage, effectiveness and safety as the brand-name product, but is much less expensive. In other words, a generic drug is a copy of a branded drug, produced and sold after the patent on the original has expired. Generic drugs are generally, but not always, less expensive than the branded equivalents, and can be a valid option for patients in need of low-cost medications.

What is a brand name drug?

A brand name drug is a medication that has been manufactured by one company and has a unique name. The company that makes the drug is responsible for the quality of the medicine and can only use the name of the drug that they produced. After the medicine has gone off patent, other companies can make the same medicine, but they must use a different name. The name of a branded drug is often a combination of the active medicinal ingredient, the chemical name for the drug, and the manufacturer’s name.

Which drugs are most popular in Africa?

– Veterinary Vaccines – Vaccines are one of the fastest-growing segments of the market in value but a relatively small segment in volume sales. The market leader here is SAVA, followed closely by Merial. This is not surprising, given Merial’s long-standing presence and reputation in the African market. SAVA has also enjoyed some success and is growing at a healthy rate, given that it has only been in the market for a few years. – Antibiotics – The battle for market leadership among antibiotics is much more competitive. Zoetis, Boehringer, Merial and SAVA are all strong players in this segment. This is a very important market segment for a number of reasons. First, antibiotics are essential for both human and animal health and therefore critical for the African market as a whole. Second, given the increasing prevalence of antibiotic-resistant bacteria in animals and humans, new antibiotics must be developed. – Nutritional Supplements – Nutritional supplements are a relatively small but growing market segment, though it is still dominated by Zoetis, Merial, Boehringer and SAVA. This segment has been growing in volume sales, despite the overall downward trend in the market as a whole. It is expected to continue to see growth as animal owners in Africa become more aware of the importance of nutrition in their animals’ health. – Pharmaceuticals – A number of major pharmaceutical manufacturers are present in this market, including Zoetis, Merial and Boehring- er. Given the relatively small size of this segment in value sales, however, it is clear that it is not the focus for most of these companies. – Pain Relief – Pain relief is the largest market segment in volume sales, but only about half the size of the next largest segment. While a number of companies are present in this market, Boehringer is the clear market leader in value sales.

Why are generic drugs so popular in the Africa market?

There are several factors that explain the popularity of generic drugs in the African market, many of which are related to the state of animal health in the region. The sectors and subsectors of the market, the products within them and the companies that offer the products. The veterinary industry is in the nascent stages in Africa and the rest of the developing world. As it grows, it will need to confront a number of challenges that stem from the very nature of Africa as a market. Specifically, the market is very diverse in terms of ownership and animal species. – Few Owners Own More Than One Animal – In many developed countries, most households have at least one pet. In Africa, however, this is not nearly as common. This means that there is less demand for the products and services that the veterinary industry provides. When people do own animals, they are more likely to own just one or two, and less likely to own a large number of animals.

What’s driving the demand for brand name drugs?

There are a number of reasons why the demand for brand name drugs is growing. – Increased Awareness of the Benefits of Brand Name Drugs – There is a growing awareness among veterinarians, regulators and consumers of the benefits of brand name drugs. Specifically, the quality of a brand name drug is better understood, as is the mechanism for a government-approved generic equivalent. – Veterinary Education and Training – In developed countries, veterinary schools have long been a major source of information about animal health, the diseases and conditions they cause and the drugs used to treat them. In Africa, veterinary schools are relatively new and, therefore, have less of an established reputation. As they become better-known sources of information, they are likely to drive the overall preference for brand name drugs. – Stronger Regulatory Framework – The regulatory framework for the veterinary industry in Africa is relatively new, but there are signs that it is improving. This can be seen in the growing number of drug approvals in recent years and the establishment of the African Center for Disease Control and the Veterinary Authority of Zambia.

Are branded drugs still worth investing in then?

Brand name drugs are still worth investing in and are likely to continue to be the dominant source of revenue for pharmaceutical companies in Africa for at least the next few years. – General Trends in the African Market – A number of general trends in the African market are likely to continue in the coming years. These include the rising demand for veterinary products as more Africans become pet owners, the increasing awareness of the benefits of brand name drugs, and the increasing strength of the regulatory framework. – Specific Trends in the Pharmaceutical Market – The specific trends in the pharmaceutical market in Africa that are likely to persist are the relatively small size of the market in value, the dominance of vaccines in the market in volume and the growing demand for nutritional supplements. – Growing Demand for Animal Products – Notably, there is also expected to be a growing demand for animal products in Africa. This is due to the fact that the consumption of animal products is increasing globally, and African consumers are expected to follow suit.

Summary

The African market for medicines for animals has seen tremendous growth. This market is still in its infancy, but there are some bright spots that bode well for the future. Different segments of this market have grown at different rates and show different growth trajectories. For example, vaccines represent one of the fastest-growing segments in terms of value sales but a relatively small segment in volume sales. Similarly, branded drugs account for about half of the market share in value but less than a fifth in volume sales. A lot of research is being done to understand animal pharmaceutical markets more deeply and uncover trends that will shape it in the coming years.