From the market perspective, the historic merger and listing of three pharmaceutical firms on the Ghana Stock Exchange will significantly grow and transform the Ghanaian pharmaceutical industry.

According to the Head of Research at Databank, Alex Boahen, the GHS33 million capitalisation of Dannex, Ayrton Starwin Plc will attract many investors into the pharmaceutical industry.

He is in good company with many other analysts. 

The pharmaceutical industry’s contribution to GDP is less than 1%.

BMI, the research arm of international rating agency Fitch, also forecast pharmaceutical sales of $365 million in 2019.

Mr Boahen tells Class Business that the listing of Dannex Ayrton Starwin will reposition the pharmaceutical industry as an attractive business.

“From the market perspective, I will say it will also provide investors some level of options in terms of investments in the pharmaceutical sector because when you look at it historically, Ayrton and Starwin are relatively small companies listed on the Ghana Stock Exchange; and with this, their market capitalisation will give the pharmaceutical sector some kind of prominence, some kind of visibility on the market.”

He added that the merger of the three pharmaceutical companies will enhance growth and increase profitability.

The pharmaceutical sector in Ghana comprises both public and private interests.

The Ghanaian pharmaceutical market is made up of approximately 30% locally-produced drugs and 70% imported products; the latter originating mainly from India and China.