Pharmacists Launch Company To Sanitise Drug Distribution | Independent Newspapers Limited
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Pharmacists Launch Company To Sanitise Drug Distribution

Posted: May 23, 2015 at 12:01 am   /   by   /   comments (0)

By Yinka Shokunbi


As a step towards sanitizing the chaotic drug distribution in the country, the Pharmaceutical Society of Nigeria (PSN) has at last floated a limited liability company, UltraLogistics, that would operate a modern mega distribution network.

At the official launch of the company profile and private placement memorandum recently held in Lagos, President of the Society, Olumide Akintayo described the venture as a step towards realizing a dream that had been on the front burner for Pharmacists since 1988.

According to Akintayo, “For too many years we’ve always come up with stop gap mechanisms to redress the myriad of challenges in the drug distribution sector and at some point we just wanted to move beyond that level and we needed to come up with solutions that are pro-active and this was why we partnered with the federal government to come up with the national distribution guidelines.

“One of the fundamental fall-outs of that drug distribution guideline is the need to embrace the concept of mega wholesaling or mega distribution wholesaling.

“And so what we are doing with Ultralogistics, is actually the very epitome of that gospel and philosophy that we have been preaching; and it is a PSN promoted company but which PSN would not be managing because it is purely a business outfit that would have all the appendages of a truly commercially inclined establishment”. Akintayo explained.

He said all the state branches and technical interest groups in Pharmacy have been given the opportunity to buy-in into the project with the aim of making it a frontline distribution company that would be able to make available to Nigerians and consumers of drugs, safe, efficacious and affordable medicines.

Akintayo noted that the concept of floating the company has been worked out to ensure it works saying, “At Ultralogistics, there would be a chain of warehouses in particular locations and because it is PSN promoted company, it would not be difficult working with manufacturers, importers and key players in the industry hence we expects any serious minded pharmaceutical manufacturer would like to do business with the company

“We are working with all federal, state and privately owned health institutions who naturally have Pharmacists in their enterprise to show some loyalty and affiliations in terms of patronage”, said Akintayo.

He noted that the beauty of the project is that for too long Pharmacists have eulogized on good manufacturing practices and the new project is a great opportunity to showcase how Pharmacy should be practiced.

Also speaking on the spirit behind calling for private placement and sales of shares the Managing Director of the company, Dr Lolu Ojo told Daily Independent that the idea is simply to mobilize the community and stakeholders in the country to form an organisation called, Ultralogistics Company which would fulfill the role of a mega distribution centre.

According to him, “Recently, government introduced new policy on the new drug distribution guideline which will effectively take off in July of 2015 as drugs would no longer be sold the way we do now.

“It is therefore expected that the importers and manufacturers would sell to organisations called Mega Distributors (like Ultralogistics) which in turn would sell to wholesalers and they would then sell to retailers; so that we can actually monitor the trajectory of the drug from manufacturers or importers to retailers unlike what we have at present”, Ojo noted.

He explained further that the idea of inviting private placement in the company “is to avoid the situation in which just one or two organisations or individuals would seize the entire system.

“Apart from being a business we (PSN) would be doing social enterprise to be able to protect the interest of the public and the nation because we shall have offices nationwide and distribute rightly as well monitor the distribution lines to ensure only genuine and good drugs are sold in Nigeria while stakeholders cut across every sphere of society”.

The offer for private placement of 92m shares of N25 each at a minimum of 4000 offer and multiples of 2000, was opened on November 4 2014 and closes on June 30 2015