Cost benefit of investment on quality in pharmaceutical manufacturing: WHO GMP pre- and post-certification of a Nigerian pharmaceutical manufacturer

• Published in: BMC health services research 2017-09, Vol.17 (1), p.665-665, Article 665
• Main Authors: Anyakora, Chimezie, Ekwunife, Obinna, Alozie, Faith, Esuga, Mopa, Ukwuru, Jonathan, Onya, Steve, Nwokike, Jude
• Format: Article
• Language: English
• Subjects: Africa; Case studies; Certification; Cost benefit analysis; Costs; Discount rates; Drug Industry - economics; Drug Industry - standards; Executives; Fines & penalties; Good manufacturing practice; Health services; International economic relations; Investments; Licensing, certification and accreditation; Litigation; Manufacturing; Monte Carlo simulation; Nigeria; Pharmaceutical companies; Pharmaceutical industry; Pharmaceutical Preparations - economics; Pharmaceutical Preparations - standards; Prequalification; Preventive maintenance; Product development; Quality Control; Quality Improvement; Quality management; Regulatory agencies; Sales; Sulfates; Surveillance; World Health Organization; Zinc Sulfate - economics; Zinc Sulfate - standards
• ISSN: 1472-6963; 1472-6963
• DOI: 10.1186/s12913-017-2610-8

Pharmaceutical companies in Africa need to invest in both facilities and quality management systems to achieve good manufacturing practice (GMP) compliance. Compliance to international GMP standards is important to the attainment of World Health Organization (WHO) prequalification. However, most of the local pharmaceutical manufacturing companies may be deterred from investing in quality because of many reasons, ranging from financial constraints to technical capacity. This paper primarily evaluates benefits against the cost of investing in GMP, using a Nigerian pharmaceutical company, Chi Pharmaceuticals Limited, as a case study. This paper also discusses how to drive more local manufacturers to invest in quality to attain GMP compliance; and proffers practical recommendations for local manufacturers who would want to invest in quality to meet ethical and regulatory obligations. The cost benefit of improving the quality of Chi Pharmaceuticals Limited's facilities and system to attain WHO GMP certification for the production of zinc sulfate 20-mg dispersible tablets was calculated by dividing the annual benefits derived from quality improvement interventions by the annual costs of implementing quality improvement interventions, referred to as a benefit-cost ratio (BCR). Cost benefit of obtaining WHO GMP certification for the production of zinc sulfate 20-mg dispersible tablets was 5.3 (95% confidence interval of 5.0-5.5). Investment in quality improvement intervention is cost-beneficial for local manufacturing companies. Governments and regulators in African countries should support pharmaceutical companies striving to invest in quality. Collaboration of local manufacturing companies with global companies will further improve quality. Local pharmaceutical companies should be encouraged to key into development opportunities available for pharmaceutical companies in Africa.