Akums Pharmaceuticals, a prominent player in the pharmaceutical manufacturing sector, has recently forged a strategic partnership with the Government of the Republic of Zambia (GRZ) to inaugurate a cutting-edge manufacturing facility in Zambia. This collaboration aims to provide the local population with access to high-quality and cost-effective generic medications, catering to the healthcare needs of the region. The joint venture between Akums and the Zambian government will see the establishment of a state-of-the-art manufacturing plant within the country, with plans to not only serve the domestic market but also expand into neighboring African nations like Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique.
The newly formed Joint Venture company will be headquartered in Zambia, with Akums holding a majority stake of 51% while the GRZ, represented by its nominated state instrumentality, will possess 49% ownership. This partnership signifies a significant step towards enhancing local pharmaceutical manufacturing capabilities and reducing the reliance on imported medicines, which currently constitute over 75% of Zambia’s essential pharmaceuticals. By bolstering the country’s healthcare infrastructure through domestic production, the collaboration aims to foster self-sufficiency in healthcare and contribute to the economic growth of Zambia.
The planned manufacturing facility is expected to commence commercial operations by Q3 FY28, pending regulatory approvals and the timely establishment of the infrastructure. It will focus on producing a diverse range of pharmaceutical products including tablets, capsules, liquids, injectables, and beta-lactam items. Both Akums and the Zambian government will actively participate in the development and operation of the facility based on their respective shareholdings, ensuring a collaborative approach towards achieving the common goal of advancing healthcare accessibility in the region. Additionally, the GRZ has committed to procuring essential medicines from Akums’ facilities in India, with an annual supply commitment of at least USD 25 million for the years 2026 and 2027 to meet the immediate healthcare requirements of Zambia.
In light of Zambia’s robust economic growth forecasted to surpass 6% in 2025, the pharmaceutical market in the country is poised for significant expansion, with projections indicating a growth rate exceeding 10% annually over the next five years. By 2030, the pharmaceutical market in Zambia is anticipated to exceed USD 300 million, underscoring the immense potential for local manufacturing and export opportunities within the African continent. This partnership not only addresses the current healthcare demands of Zambia but also positions the country to become a key player in the regional pharmaceutical landscape, leveraging its export potential to serve the Southern African Development Community (SADC) countries with burgeoning pharmaceutical markets.
Sanjeev Jain, the Managing Director of Akums Pharmaceuticals, expressed pride in the collaboration with the GRZ, emphasizing the shared commitment to delivering superior quality and affordable medications to bolster the Zambian healthcare system. This venture marks Akums’ inaugural manufacturing partnership outside of India and aligns with their strategic vision of evolving into a global Contract Development and Manufacturing Organization (CDMO). With a robust portfolio of over 4,000 formulations spanning across 60 dosage forms and a strong research and development infrastructure, Akums is well-positioned to drive innovation and enhance healthcare accessibility not only in Zambia but across diverse geographies.
Key Takeaways:
– The partnership between Akums Pharmaceuticals and the Zambian government aims to establish a state-of-the-art pharmaceutical manufacturing facility in Zambia to address local healthcare needs and reduce import dependency.
– By 2030, Zambia’s pharmaceutical market is projected to exceed USD 300 million, offering substantial growth opportunities for local manufacturing and export to neighboring African countries.
– The collaboration underscores the commitment to fostering self-reliance in healthcare, economic development, and enhancing healthcare accessibility in Zambia and the broader African region.
– Akums Pharmaceuticals’ expansion into international markets signifies a strategic move towards becoming a global Contract Development and Manufacturing Organization (CDMO), leveraging its expertise in formulation development and manufacturing.
Tags: pharmaceutical manufacturing, regulatory, formulation
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