The soaring cost of antibiotics has added to the woes of Nigerians following the exit of GlaxoSmithKline (GSK) from the country.

One year after the departure of GlaxoSmithKline (GSK) from Nigeria, the cost of antibiotics once produced by the British pharmaceutical giant has tripled, compounding the financial burden on Nigerians.

Market findings by BusinessDay reveal that prices for GSK’s popular antibiotics, Augmentin 228mg and 475mg, have surged by 307 percent and 328 percent, respectively, between August 2023 and August 2024. Augmentin 228mg, which was sold for ₦2,950 a year ago, now costs ₦12,000, while the 475mg variant has jumped from ₦4,200 to ₦18,000.

The price of the Seretide inhaler, an anti-asthma product from GSK, saw an even more dramatic increase, rising from ₦7,000 in the first quarter of 2023 to a peak of ₦70,000 in November of that year. As of August 2024, the price has slightly decreased to ₦51,300, representing a 632 percent increase from its August 2023 price.

Similarly, Amoxyl 500mg, another commonly used antibiotic, has experienced a 3.5-fold price increase, from ₦950 in 2013 to ₦3,400 in August 2024. However, the price of Augmentin 625mg has seen a slight decrease, dropping from ₦14,000 in August 2023 to ₦13,400 in August 2024. The price of the Ventolin inhaler, another anti-asthma product, has also decreased marginally from ₦9,100 to ₦8,700 due to an increase in supply from distributors.

These price hikes have significantly impacted Nigerians, many of whom are already struggling with limited purchasing power. Following GSK’s announcement of its withdrawal from Nigeria and its intention to rely on a third-party distributor, product shortages quickly emerged. Suppliers and retailers began stockpiling goods, driving up prices further.

In the first quarter of 2023, Augmentin 1g was sold for around ₦5,000, while the 625mg variant was ₦4,000, and the 475mg variant was between ₦2,700 and ₦3,000. However, during the peak of hoarding and price gouging in November 2023, Augmentin 625mg prices skyrocketed by 525 percent to ₦25,000 in some pharmacies. The 475mg and 228mg variants were sold between ₦8,000 and ₦9,000, while the 1g variant reached ₦40,000.

Large pharmaceutical chains sourcing from fulfillment centers (FCs), typically third-party suppliers, managed to maintain prices close to their first-quarter 2023 levels. However, the market also saw a rise in parallel imports and counterfeit products, as unscrupulous individuals sought to exploit the situation.

Samuel Okwuada, CEO and co-founder of Remedial Health, cautioned that while the supply of antibiotics may have increased, the influx of counterfeit products poses a significant risk. “When the effects of GSK’s exit and inflation became apparent, antibiotic prices skyrocketed to as much as ₦45,000. Soon after, we saw similar products being sold for ₦10,000 to ₦15,000, but these were likely counterfeits. The real issue is that people are buying these cheaper alternatives, but they may not be genuine,” Okwuada warned.

Nigeria’s pharmaceutical sector has faced numerous challenges over the past year, exacerbated by inflationary pressures and exchange rate volatility. GSK’s exit followed years of declining profit margins and difficulties in accessing foreign exchange through official channels, which severely hindered its operations.

In response to GSK’s departure, MeCure Industries has attempted to produce amoxicillin-clavulanic acid tablets locally as a potential substitute for Augmentin 625mg. Fidson Healthcare Plc had already been manufacturing Panadol under contract before GSK left Nigeria.

Analysts believe that Nigeria’s high exchange rates, elevated interest rates, and challenging operating environment have discouraged investors from entering the pharmaceutical sector. Patrick Ajah, CEO of May & Baker, emphasized that fixing the exchange rate is crucial to resolving these issues. He also called on the government to provide targeted support, such as intervention funds, to pharmaceutical companies.

Ajah explained that many local companies with the capability to produce antibiotics like ampicillin and cloxacillin have either shut down or paused operations due to a lack of support. “The devaluation of the naira has made it nearly impossible for us to proceed with plans to build new facilities. The government must address the exchange rate issue to reset the pharmaceutical sector and prevent further exits by multinational companies,” Ajah said.