Indian pharmaceutical company pulls out of Ghana
An Indian pharmaceutical company that bought about 51% shares in a Ghanaian company has pulled out of the joint venture because it could not make inroads into the West African market as it had originally planned information available to ghanabusinessnews.com indicates.
An official of the company, Alok J Saxena, director – international division, was quoted in the Indian media saying, “We have exited from the tie-up with Wincom Pharmaceuticals in Ghana on the back of low sales volumes and a substantial drop in demand. Also the plan was delayed a lot. It was taking too long so we decided to call it off,”
Elder Pharmaceuticals entered into the joint venture with Wincom Formulations of Ghana in 2005. Elder which specializes in the production of anti-depression, nutraceuticals and women’s health segments at the same time also bought a 51% stake in a Bulgarian company Biomeda OOD Ltd.
However, in a statement in reaction to reports of its pull-out from Ghana, Elder said “Our Company through its Dubai subsidiary had entered into a joint venture in Ghana. However, for the reasons mentioned therein the same has been terminated.”
Elder said it was terminating its business in Ghana to concentrate on its operations in Bulgaria and in Nepal where the company has 49% in Elder Universal Pharmaceuticals.
It however indicated that it will remain in the West African market through exports.
It is however surprising that the company has not been successful in West Africa’s growing pharmaceutical industry. Indeed, a good number of indigenous Ghanaian pharmaceutical firms have been successful in the country and have moved on to gain market shares in the sub-region.
By Emmanuel K. Dogbevi