Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, says it will adopt a third-party model for the distribution of its products in Nigeria.
In a letter to customers, dated November 7, 2023, the company said the “exciting transformation of its business model in Nigeria”, would take effect in February 2024.
Sanofi is a major supplier of injectable polio vaccines, as well as influenza, meningitis, and rabies vaccines.
According to the letter, signed by Folake Odederin, general manager (general medicines) and country lead, the third-party distributor will be announced on a later date.
“In our new model, commercialisation of Sanofi’s portfolio of medicines will be driven solely by a 3rd party distributor to be named soon,” the statement reads.
“This strategic move represents a significant milestone for our organisation and is driven by our commitment to continually improve access to our medicines and to better serve our patients and the Nigerian health system.”
The company also said it is engaging with its employees, partners, and key stakeholders “to ensure full transparency”.
“In the coming days, it will make a public announcement through the media,” the firm said.
“However, we recognise that our relationship with our stakeholders is of paramount importance, and we wish to share this information with you in advance.
“While details of our new business model will be made in our media announcement, be assured that this transformation is rooted in our commitment to providing more value to patients.
“We understand that you may have questions or concerns, and we are committed to addressing them as much as we can.”
This development will lead to the end of Sanofi’s direct operations in Nigeria.
Sanofi’s head of communications and corporate social responsibility (CSR), Africa, Aziz Yousfi Malki, confirmed that the firm is ending its direct operations in the country but will partner with a third-party firm to make its products available to Nigerians.
“Yes, all the Sanofi operations will be transferred to one Healthcare partner,” he said, confirming the organisation’s plan to stop direct operations in Nigeria.
“Sanofi will partner with one healthcare partner for its operations in Nigeria: promotion, medical, quality, distribution… activities”
Malki blamed Nigeria’s economic situation for the decision, stating that the foreign exchange crisis in the country makes it hard to import medicines.
“Divestment in some established products (to another pharmaceutical company) which have impacted many countries, Nigeria included,” he said.
“Economic situation in Nigeria. The foreign exchange crisis makes it difficult to import medicines into the country.”
However, he said the new model, when effective, would help the firm “increase efficiency to reach patients and medical community in a sustainable way by selecting one strong partner with high geographic coverage”.
Malki added that Sanofi will continue to work closely with this healthcare partner to make treatments available to Nigerians.
Meanwhile, the European drugmaker, in 2019, had signed a partnership agreement with May & Baker Nigeria to produce four of Sanofi’s brands.
The drugs included Flagyl tablets, Suspension and Tarivid tablets, anto-infective medicines, and Malareich — an anti-malaria drug.
Commenting on the deal, Malki said that the agreement was meant for the production of Flagyl, which has now being divested from by the parent company — Sanofi Global.
“To respond to our question about May & Baker: this deal was about manufacturing one product which is Flagyl. This product has been divested by Sanofi Global and sold to another Pharmacompany. It is not a Sanofi product anymore. So the deal will end with May & Baker.
Sanofi will be the second pharmaceutical company to adopt a third-party distribution business model this year.
In August, GlaxoSmithKline (GSK) Consumer Nigeria Plc announced plans to cease operations, transferring its business activities to a third-party organisation.
The two companies, in 2022, introduced clinically tested COVID-19 vaccines.