1. Product description: Basic pharmaceutical products are medicines considered essential for meeting the basic health needs of a community in the context of the health care standard of our country. The list of these essential medicines or popularly known as essential drugs are usually prepared by the Ministry of Health. In the importation of pharmaceutical products, priority is given to these essential drugs. Drugs can be classified on the basis of medicinal uses or on the basis of their sources of origin. Based on their medicinal use, drugs are classified into twenty-eight groups. On the other hand, drugs are classified into five groups based on their sources of origin. These are (a) drugs of vegetable and plant origin (b) hormones and glandular products (c) antibiotics (d) synthetic drugs and (e) vitamins and biologicals. The essential drugs are composed of the various groups of drugs just mentioned.
2. Rationale: For a long time the country has had one pharmaceutical factory which is located in Addis Ababa. This factory was supplying part of the drug requirement of the country. Like other regions, the Amhara Region was getting its domestic drugs from the
Addis Ababa factory. During the last ten years, a number of pharmaceutical factories have been established the Country. Some Region’s have in fact been self-sufficient in the production of some essential drugs. However, the Amhara Region is still dependent on other regions for the supply of basic pharmaceutical products. Since the Amhara Region contains about 26 percent of the country’s population, one could have expected that at least 25 percent of the drugs are produced in the Region. But this is not the case. Drugs are one of those basic and essential products on which the health and welfare of a people depend on. Any region should strive to be self-sufficient in the production of basic drugs. The Amhara Region should promote the establishment of a pharmaceutical factory to make itself self-sufficient in the production of essential drugs.
3. Market Potential: Domestic production of drugs in the country between 2000 and 2004 was as follows
As shown above, among the various medicines required for health care services, only six types were being produced in the country and the production volumes were not sufficient to meet domestic need. This has to be argumented by imports every year. Of the total production of each type of drug, about 25 percent was assumed to be consumed by the people in the Amhara Region. This consumption share is sufficient to absorb the production of a medium scale pharmaceutical factory in the Region.
4. Raw Material Source: The chemical industry is the basis for the development of a pharmaceutical industry. In the absence of a well- developed chemical industry, the alternative to operate a pharmaceutical factory is to import the various inputs from abroad.
5. Process & Technology: The manufacturing processes of drugs differ on the basis of their sources of origin or medium use. Different approaches of formulations and manufacturing are used for different groups of drugs. Presenting the various processes involved in the preparation of various drugs is beyond the scope of this project idea. Specific processes for specific drugs will be presented when project profiles are prepared.
6. Estimated Investment: For a pharmaceutical factory which will produce 150 kgs ampiciline, 500,000 capsules, 37500 tablets, 200 liters of syrup, 1000 bottles dextrose (50%solution) and 2400 tubes of ointment/day, the estimated investment will be as follows:
n Building/ 1650m2 at Birr 3000/m2 = Birr 4,950,000
n Plant & Machinery = Birr 4,500,000
n Working Capital = Birr 2,700,000
12,150,000
7. Benefits: Promotes self-sufficiency in the area of health-care, saves regional financial resources, introduces new skills and technology to the Region, and creates export potential to other parts of the country.
8. Location: Combolcha, Bahir Dar.