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How to Setup a Pharmaceutical Company in Nigeria
A pharmaceutical company is a company that produces, markets and
distributes medical drugs to patients, with the aim to cure
them, vaccinate them, or alleviate the symptoms.
The law that provides for the registration and regulation of the
pharmaceutical industry in Nigeria is the Pharmacist Council Of
Nigeria Decree 1992 Nigeria.
The Pharmacist Council of Nigeria (PCN)is the
self-regulatory organisation that regulates the licensing,
operations and monitoring of Pharmaceutical business in Nigeria.
A pharmaceutical company can either be registered as a private
limited company or a public limited company. However, the
preferred choice for registration would be to register as a
private limited company. Also, there are three categories of
pharmaceutical companies that can be registered in Nigeria. The
categories include pharmaceutical retail, wholesale and
manufacturing.
This type of company imports and distributes drugs, poisons and
devices.
This type of company only requires at least one registered
pharmacist on the Board of Directors of the Company. However,
the business must be carried out under the direct personal
control and management of a Superintendent Pharmacist.
A Pharmaceutical Manufacturing Company
A pharmaceutical
company can be into the business of manufacturing of drugs.
In order to register this type of business,
there must be at least one registered pharmacist on the
Board of Directors of the Company. The business must be carried
out under the direct personal control and management of a
Superintendent Pharmacist.
Step 1: Company
Registration
As stated earlier, before starting a pharmaceutical business, it
is advisable to register as a private limited company. A private
limited company is the most preferred choice for a business
start-up due to the ease of registration in terms of costs and
requirements.
Step 2: Application
for inspection of premises
After registering the company, it is important to take steps
towards getting the business license which comes after the
inspection and approval of the premises to be used as the
business premises.
What this means is that before you commence the pharmaceutical
business, the Pharmaceutical inspectors from the PCN would
physically visit the business premises and inspect to ensure due
compliance with the provisions of the Regulation.
According to the law on the inspection of premises of
pharmaceutical companies, the following guidelines must be
strictly adhered to.
The pharmaceutical premises must not be located in a motor park,
environment close to a location where commercial activities and
enterprise are standing and growing;
Must not be a market place including kiosks and roadside retail.
Pharmaceutical premises within a shopping centre shall not be
more than three and they shall be well spaced out.
Pharmaceutical premises shall be sited not less than two hundred
meters from each other.
If the pharmaceutical premises is surrounded or covered
completely by a growing market or standing close to it, then the
business must be moved to another suitable location two years
after formal notification to do so by the Council.
Application for the registration of a new pharmaceutical retail,
distribution or importation premises is to be submitted to the
Registrar, of the Council, through the Director of
Pharmaceutical Services of the State where the premises is to be
operated.
Pharmaceutical distribution companies can most easily be
described as the middleman between the drug manufacturing
company and the retail pharmacy or end user. This industry is
recession proof, making it an incredibly advantageous venture
for any savvy entrepreneur. But it can be difficult to
understand exactly how to start a pharmaceutical distribution
company, navigating details right down to which pharmaceutical
conveyors to use. That’s why we’ve put together a condensed,
easy-to-understand guide for starting a safe pharmaceutical
distribution business that can be successful long-term.
There are many steps and considerations involved when starting a
pharmaceutical distribution company. The following is a brief
overview:
Hire a business consultant and determine your niche, Create a
successful business plan, Research competitors, Determine
company structure, Choose the right equipment, Establish roles,
Conduct SWOT analysis, Verify license requirements, Establish
your brand
Stack The Deck In Your Favor: This is the first stage in
planning your pharmaceutical distribution system and thus is
twofold. This is when you build the true foundation of your
company, which means having the right person (or people) in your
corner and the right business in place.
Start by hiring an experienced business consultant who fully
understands the pharmaceutical industry. This person will be
responsible for examining your overall business concept and
determining if it would survive and thrive as it should.
The second part is to thoroughly evaluate your business options.
There are three routes you can take when starting your
pharmaceutical distribution company:
Begin a pharmaceutical business with a manufacturing unit
Market medicines under your new brand name
Team up with an established drug manufacturer
Keep in mind that whichever option you go with will fully depend
on your overall budget and business goals.
Research Potential Competitors: Research is a key step in the
process of setting up your business. Knowing your competitors
will give you a good idea of where and why they excel — and what
they could improve upon. By studying their business model,
you’ll be better equipped to come up with something even better.
Identify Upfront Expenses: Crunch the numbers and determine the
total investment that will be required to start a pharmaceutical
distribution company. This includes deciding whether steps like
manufacturing, trials or pharmaceutical distribution will happen
in-house or will be outsourced. Plan out everything that will be
needed, including (but not limited to):
A production facility: An office space or building, Utilities
(electricity, gas, water, Wi-Fi, etc.)
Lab equipment, Office supplies, Furniture, Machinery, Employee
wages, Pharmaceutical industry conveyors, Pharmaceutical
conveyor belts
Choose the Right Equipment: As mentioned above, choosing the
right equipment is vital to running a reputable pharmaceutical
distribution company. That includes any manufacturing and
packaging equipment, including the appropriate conveyor belts
for pharmaceuticals.
The best pharmaceutical conveyors will not only help ensure
safety but also enhance efficiency. For example, you can
eliminate potential tracking issues with the Span Tech EZSpan
Belt Conveyor system and sort and merge with ease with the High
Speed Switch.
You’ll also need to ensure your equipment doesn’t damage your
product. The MiniLink chain conveyor system was specially
designed to move small, delicate pills or packaging with care.
These and all of Span Tech’s conveyors were thoughtfully
designed and can be fully customized to alleviate potential
manufacturing risks while improving overall workflows.
Establish Roles And Responsibilities: Running a pharmaceutical
distribution company is not something that can be done with just
a handful of people. You’ll need a full staff of qualified,
knowledgeable and enthusiastic employees who have the same
vision for the company as you do. This needs to be factored into
your business plan and your total investment. Some roles that
are vital to starting your business include:
A chief executive officer, A human resources manager and/or
department, An inventory manager, A purchasing manager, A
customer service executive and/or team, An accountant or
accounting department, Various marketing and sales executives,
Floor manager(s), Floor employees, Janitor(s)
Security guard(s), Truck driver(s)
It takes a lot of people to run a company. But by having the
right team in place, you’ll alleviate a lot of the stress that
can come with starting your own business.
Establish Your Brand: Once you’ve started your company, it’s
time to take the proper steps to promote it by establishing a
brand. Breaking into the pharmaceutical distribution industry
and getting your products in front of the medical community can
feel like a Herculean task. But by doing your research and
investing in advertising and marketing, you’ll be one step
closer to building a successful company. Advertising and
marketing companies can help you create everything you need to
get your name out there: A logo, A brand image, A company
mission, A website
Get our training guide on how to set up a lucrative
pharmaceutical business in Nigeria. The information will provide
you with the essential steps and resources needed to get your
business up and running. With a proper guide on how to break
into the market and start a successful pharmaceutical business
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