Zimbabwe pharmaceutical company losses widen and cheap imports flood the market

Pharmaceutical products distributor Medtech losses grew to $305 000 in the six months to June 2016 from $90 000 in the prior year due to subdued demand.

Revenue fell 32 percent to $4.4 million driven by increased competition from unregistered operators and smuggled products, the company said.

Selling and distribution and administration costs decreased by $544 000 due to costs cutting measures, inclusive of salary and benefits cuts.

“Further reduction in staff numbers is currently under way and savings in salaries benefits and other related costs will be noticed in H2 2016 and H1 2017,” said group’s chairman Rose Mazula in a statement.

Medtech distribution and smart retail sales were 44 percent down due to suspension of trading at Smart Retail in February 2016.

Accounts receivable were at $3.5 million from $3.1 million.

Total assets stood at $7.3 million.

The company did not declare dividend due to loss.-The Source

Ed: Zimbabwe companies need to review their pricing as recent reports have indicated that costs of medical services in Zimbabwe are too high. Local companies will never run out of excuses to justify the high costs but it is costing them business. As an example some medical aid societies in Zimbabwe are opting to have their members treated in India to evade prohibitive costs in Zimbabwe. The report said some societies are sending up to 20 patients a month to India because service providers charge between $6 000 and $8 000 for knee replacements instead of $13 000 in Zimbabwe. Appendectomy surgery costs at least $800 in India and double that in Zimbabwe. Cataract surgeries are pegged at $800 in India and $1 775 in Zimbabwe. Treatment of cancer costs an average of $10 000 in India as opposed to about $25 000 in Zimbabwe. A full body scan costs about $5 000 in Zimbabwe but in India it is as low as $500.

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