Why We Invested in Drugstore Nigeria

By Christine Namara

Venture Partner at The Baobab Network

In January 2021, we invested in Drugstore Nigeria (Drugstore) – a PharmaTech company that is digitising the pharmaceutical supply chain from manufacturer to your doorstep.

Why did we invest in this? We like them. Their vision aligns with our expertise. The team is focused and passionate on the problem and the product solves a series of layered problems on the continent.

Market opportunity:

A 2017 McKinsey study says that the value of the Nigerian pharmaceutical market could rise by as much as 9% a year over the next ten years to reach $3.6 billion by 2026. This increase would make the Nigerian market as large as the South African Market today. As a result of that growth, Nigeria could contribute between $1.9 billion and $2.2 billion to pharmaceutical sales growth; 55% percent of which is prescription drugs.

Nigeria Pharmaceutical opportunity

Source: Winning in Nigeria: Pharma’s next frontier, McKinsey 2017

The Problem:

Drugstore Nigeria problem statement

Access:

As is the case for most African countries, finding drugs, particularly for specialised treatment, is hard. It is difficult to find them, especially because pharmacies are only able to stock up to 30% of registered drugs in the country.

Counterfeits:

In Nigeria’s predominantly informal distribution and retail networks, counterfeit and parallel medicines are often difficult to distinguish from the genuine article.

Cost:

The affordability of medicines is an issue, only the most affluent in the society are able to consistently afford the drugs they need on a regular basis. A McKinsey report estimates that fewer than 5 percent of households can afford to pay for ethical drugs entirely through out-of-pocket spending or private health insurance.

Delivery channels:

There is inadequate infrastructure: challenges span from having limited resources for hospitals in the form of beds and ICU space, to having limited access to delivery channels. This is made more problematic since most medication is imported.

These challenges mean that the pharmaceutical supply chain is costly and difficulty in access – problems that passed on to the consumer in terms of high prices and decreased accessibility.



The Solution:

Drugstore is an online marketplace where pharmacies can list and sell their drugs and medical equipment directly to patients. The platform is secure, compliant and holds privacy as a critical part of their development process. Drugstore also offers consultation, prescription refills with a pickup and door delivery option across the country.

Customers, which includes both patients and pharmacists, order drugs online. Drugstore then sources medicine, and delivers the product to their doorstep.

With this process, Drugstore facilitates greater accessibility by aggregating sources of medicines. The platform is able to create efficiency in the value chain from manufacturers, thereby reducing the cost of medication via economies of scale.

Drugstore.ng Screenshot


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We believe in the team!

Drugstore.ng

A self proclaimed team of serious people, led by the very organised and driven CEO and co-founder, Adeyemi Olutoye.

Yemi, has extensive experience in digital marketing and product management, from a family of pharmacists and medical practitioners, Yemi felt ready to dive in the space whose challenges he had become familiar with.

He joined hands with an always joyful Ademola Tikare, well known as TK who is the CTO and co-founder. TK, has a wealth of software engineering experience and a degree in Electronic and Electrical Engineering.

A much needed medical practitioner also came on board, Omoyeni Olutoye, she is a pharmacist by profession and has years of experience in the space, she joined the team to provide the very needed layer of providing the best care to their customers, and remaining compliant with pharmaceutical regulations.

Our innovative online platform has impacted thousands of Nigerians and non-Nigerians in various health categories living in Nigeria. Drugstore have delivered life saving and other essential medicines to patients in almost all health categories. We believe in the next 5 years, our business will be processing more requests online than an average pharmacy, which will also translate us as Nigeria’s largest online pharmacy

Adeyemi Olutoye, CEO and co-founder at Drugstore


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Why we invested in Drugstore

By Christine Namara

Venture Partner at The Baobab Network

In January 2021, we invested in Drugstore Nigeria (Drugstore) – a PharmaTech company that is digitising the pharmaceutical supply chain from manufacturer to your doorstep.

Why did we invest in this? We like them. Their vision aligns with our expertise. The team is focused and passionate on the problem and the product solves a series of layered problems on the continent.

Market opportunity:

A 2017 McKinsey study says that the value of the Nigerian pharmaceutical market could rise by as much as 9% a year over the next ten years to reach $3.6 billion by 2026. This increase would make the Nigerian market as large as the South African Market today. As a result of that growth, Nigeria could contribute between $1.9 billion and $2.2 billion to pharmaceutical sales growth; 55% percent of which is prescription drugs.

Nigeria Pharmaceutical opportunity

Source: Winning in Nigeria: Pharma’s next frontier, McKinsey 2017

The Problem:

Drugstore Nigeria problem statement

Access:

As is the case for most African countries, finding drugs, particularly for specialised treatment, is hard. It is difficult to find them, especially because pharmacies are only able to stock up to 30% of registered drugs in the country.

Counterfeits:

In Nigeria’s predominantly informal distribution and retail networks, counterfeit and parallel medicines are often difficult to distinguish from the genuine article.

Cost:

The affordability of medicines is an issue, only the most affluent in the society are able to consistently afford the drugs they need on a regular basis. A McKinsey report estimates that fewer than 5 percent of households can afford to pay for ethical drugs entirely through out-of-pocket spending or private health insurance.

Delivery channels:

There is inadequate infrastructure: challenges span from having limited resources for hospitals in the form of beds and ICU space, to having limited access to delivery channels. This is made more problematic since most medication is imported.

These challenges mean that the pharmaceutical supply chain is costly and difficulty in access – problems that passed on to the consumer in terms of high prices and decreased accessibility.



The Solution:

Drugstore is an online marketplace where pharmacies can list and sell their drugs and medical equipment directly to patients. The platform is secure, compliant and holds privacy as a critical part of their development process. Drugstore also offers consultation, prescription refills with a pickup and door delivery option across the country.

Customers, which includes both patients and pharmacists, order drugs online. Drugstore then sources medicine, and delivers the product to their doorstep.

With this process, Drugstore facilitates greater accessibility by aggregating sources of medicines. The platform is able to create efficiency in the value chain from manufacturers, thereby reducing the cost of medication via economies of scale.

Drugstore.ng Screenshot


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We believe in the team!

Drugstore.ng

A self proclaimed team of serious people, led by the very organised and driven CEO and co-founder, Adeyemi Olutoye.

Yemi, has extensive experience in digital marketing and product management, from a family of pharmacists and medical practitioners, Yemi felt ready to dive in the space whose challenges he had become familiar with.

He joined hands with an always joyful Ademola Tikare, well known as TK who is the CTO and co-founder. TK, has a wealth of software engineering experience and a degree in Electronic and Electrical Engineering.

A much needed medical practitioner also came on board, Omoyeni Olutoye, she is a pharmacist by profession and has years of experience in the space, she joined the team to provide the very needed layer of providing the best care to their customers, and remaining compliant with pharmaceutical regulations.

Our innovative online platform has impacted thousands of Nigerians and non-Nigerians in various health categories living in Nigeria. Drugstore have delivered life saving and other essential medicines to patients in almost all health categories. We believe in the next 5 years, our business will be processing more requests online than an average pharmacy, which will also translate us as Nigeria’s largest online pharmacy

Adeyemi Olutoye, CEO and co-founder at Drugstore


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