Gregory Rockson - Afrikan Heroes

Ghanaian Health-tech mPharma Raises $35m In Series D Funding Round

January 6, 2022

Gregory Rockson, chief executive officer (CEO) of mPharma.

mPharma, a leading health startup in Ghana and one of the most valuable health startups in Africa has secured $35 million in a Series D round. The transaction consists of $30 million in equity and $5 million in debt from CitiBank, bringing mPharma’s total funding to $65 million.

JAM Fund, a venture capital firm founded by Tinder co-founder Justin Mateen, Unbound, a growth investment firm founded by Shravin Mittal, managing director of Bharti Global Limited (Bharti family investment arm), and Lux Capital, a New York City-based VC firm investing in science and tech ventures, were among the investors in the round. Northstar, Social Capital, Novastar, and TO Ventures are among the other investors.

Using the additional funding, mPharma wants to expand its community pharmacy by tenfold over the next three years, from the present 200 facilities. The business also intends to use the funds to expand its data infrastructure, increase its talent pool over the next three years, and support current and future market expansion objectives. It’s also launching a pharmaceutical e-commerce platform.

“We are hiring over 100 engineers to build all our technology in-house and this includes a massive data infrastructure we are creating. We are also investing in other skilled talent like doctors and nurses, professionals that are critical in the work we do,” Gregory Rockson said in a statement.

“Bloom, our pharmacy management software, will allow us to build structured population health data sets that enable Mutti pharmacies to provide better care pathways to the community they serve,” he said.

Why The Investors Invested

Since its last financing, mPharma has seen continuous growth. MPharma has also engaged on diversification, collaboration, and expansion plans to help the company thrive in recent months. It bought a 55 percent stake in Uganda’s Vine Pharmacy, which was formerly owned by the Abraaj Group, a few months ago. It also entered Ethiopia in March of last year through its subsidiary, Haltons Limited, which signed a franchise deal with Belayab Pharmaceuticals.

The startup also enjoys strong backing industry experts in the pharmaceutical industry, including Helena Foulkes, former president of CVS, the largest pharmacy retail chain in the U.S.; and Daniel Vasella, ex-CEO and chairman of Novartis; both of whom are members of the board.

The startup’s other investors include U.K.’s development arm CDC Group, Breyer Capital and Golden Palm Investments, a factor which further convinced investors about investing in this round.

A Look At What mParma Does

Rockson, Daniel Shoukimas, and James Finucane launched MPharma in 2013 with the goal of managing prescription medicine inventories for pharmacies and their suppliers, retail pharmacy operations, and providing market intelligence to hospitals, pharmacies, and patients.

The Ghanaian startup, is establishing a network of community pharmacies across Africa with the goal of becoming the region’s primary healthcare provider. MPharma intends to expand its community (Mutti) pharmacies across eight African markets in order to provide patients with the first point of care. Mutti pharmacies are essentially mini-hospitals that provide a variety of services such as medical consultation, diagnostics, and telehealth. All of this is done while improving quality pharmaceutical access and affordability.

As it prepares for the next phase of growth after funding, the company has set out to activate more Mutti pharmacies in order to expand its reach and build out its software infrastructure.

To provide a full range of services, mPharma recently launched an ecommerce portal, the Mutti Online Pharmacy, which allows its users to buy for pharmaceutical products. They are now just dispensing over-the-counter medications in Ghana, but have ambitions to expand to include prescription drugs in the near future. MPharma’s Mutti Online Pharmacy is currently one of a small number of completely digital pharmacies with operations in Africa, including Kenya’s MyDawa.

mPharma also added telehealth services to its portfolio in October of last year, capitalizing on the telemedicine boom that followed the COVID outbreak.

The virtual services are now available to patients in Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda, and Ethiopia, where mPharma has a presence. MPharma also has a presence in Gabon, where it has a government contract to establish a pharmaceuticals supply chain infrastructure.

“COVID showed us that the best form of care is local, it is in the community, and the closest thing in communities are pharmacies. We believe that the pharmacy of the future, which is what we are creating, is one built around longitudinal care not episodic care,” said Rockson.

“We are transforming community pharmacies into the foundation of a modern health system in Africa. We will have a Mutti pharmacy in every community on the continent, guarantee the availability and safety of medicines for each community and utilize the physical infrastructure of Mutti pharmacies to expand Mutti Doctor (the telemedicine service), creating the largest network of doctor offices and diagnostic centers.

mPharma health mPharma health

Lessons From How Ghanaian eHealth Startup, mPharma, Is Conquering Older Incumbents In Africa

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Ghana’s Health-tech Startup mPharma Expands To Uganda Via Vine Pharmacy Acquisition

October 28, 2021

For an undisclosed sum, mPharma, a Ghanaian health startup, has acquired a majority interest in Uganda’s Vine Pharmacy, marking the company’s debut into its latest African market.

The deal with Vine Pharmacy, according to mPharma, involves the acquisition of a 55 percent stake previously held by the Abraaj Group, a private equity firm that went bankrupt after investors, including the Bill and Melinda Gates Foundation, raised concerns about the management of its $1 billion healthcare fund. Abraaj purchased Vine Pharmacy in 2013, when it was Uganda’s largest pharmacy business.

*mPharma co-founder and CEO Gregory Rockson*

“Vine used to be the biggest pharmacy chain in Uganda. At its peak, it had about 36 stores spread across the country. But with Abraaj as its largest shareholder, the business had to resize once there wasn’t any more capital available for growth. We are buying out the stake that Abraaj held,” mPharma co-founder and CEO Gregory Rockson said.

The Vine Pharmacy acquisition comes two years after mPharma purchased Kenya’s Haltons Pharmacy for $5 million, marking the company’s first push into the East African market.

Rockson stated that he hopes to restore Vine Pharmacy to its former glory, when it was Uganda’s largest retail pharmacy business. When Abraaj took over, Vine Pharmacy had 20 branches across Uganda and set out on an aggressive growth plan that included doubling its branches by 2018 — a feat it achieved until the PE collapsed, resulting in the closure of numerous shops. Abraaj increased the pharmacy’s wholesale business, supplying government organizations and health institutions, and personalizing patient care through home visits.

A Look At What mPharma Does

MPharma tracks which drugs are available at any given time and where, giving patients reliable access to medicines and — with better inventory management — more competitive pricing. Using its proprietary Vendor Management Inventory (VMI) system and QualityRx franchise model, which replicates similar features seen with co-operative retailers in the US and Europe, employing common branding, inventory systems and collective purchasing, mPharma is attempting to shake the market up a bit. Both proprietary rights are already being used in over 250 pharmacies in Ghana, Nigeria, Kenya, Zambia and Zimbabwe.

mPharma entered Ethiopia earlier this year through its subsidiary, Haltons Limited, after striking a franchise deal with Belayab Pharmaceuticals. Belayab Group, an Ethiopian franchisee of firms such as Pizza Hut and Kia Motors, owns the Ethiopian pharmaceutical company.

Last month, the startup also launched operations in Gabon after the West African country hired the firm to create drug supply chain infrastructure, expanding the startup’s reach in the continent’s pharmaceutical systems and distribution networks. Other markets in which the tech startup operates include Ghana, Nigeria, Kenya, Zambia, Malawi, and Rwanda.

In November 2020, the company teamed with Mt. Meru Group, a Rwandan gas station operator, to open pharmacy branches within its stores.

“Within less than a year, we’ve been able to rapidly build the largest retail platform in the country. Today, Rwanda is a very promising market for us,” he said.

mPharma Uganda Vine Pharmacy mPharma Uganda Vine Pharmacy

Lessons From How Ghanaian eHealth Startup, mPharma, Is Conquering Older Incumbents In Africa

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

How mPharma helped Ghana’s government secure COVID-19 vaccines

April 21, 2021

Ghanaian healthcare startup mPharma has highlighted its role in helping the governments receives and handle the COVID-19 vaccines. This announcement made mPharma the first company to do this in Ghana and possibly Africa. In African countries, the procurement process for vaccines has typically been the sole responsibility of the government. This announcement raised questions on why and how mPharma were involved.

According to mPharma CEO Gregory Rockson, “we started by looking at how to improve the testing process, about 40% of healthcare delivery takes place in the private healthcare sector so while the testing was being done for free by the government, it was clear the government couldn’t do this alone.”

To help support the testing process, mPharma established a $3 million molecular diagnostic fund. The purpose of this fund was to invest in private hospitals in Ghana and Nigeria, helping to equip their existing laboratories with necessary molecular diagnostic equipment to test for COVID-19.

“The biggest gap we saw at the beginning of the pandemic was that our laboratory infrastructure did not have a diagnostic capability. Beyond testing for COVID, most molecular diagnostic work was not happening in Ghana. For example tests like the HPV DNA test and hepatitis viral test only took place in the public sector,” he said.

mPharma created a risk-sharing agreement where the necessary equipment was given to the companies at no cost and no liability to pay back. In exchange, a revenue split was agreed upon for every test done using the equipment.

“So if we provided the equipment and the private hospitals made zero revenue, we got nothing. Back then the government was testing everyone for free. In February, in response to the decision we made, people were saying, are we really going to have people pay for the COVID test when the government is doing it for free. Now everyone goes to private labs,” he said.

When the second wave of the pandemic hit, over 60% of all COVID tests done in Ghana were done on the infrastructure that mPharma built in the private hospitals according to Rockson. He pointed out that before these labs were equipped, the cost of an HPV DNA test for cervical cancer was $80. This was because the samples had to be taken to South Africa for two weeks and the results sent back but today the cost of that test is $30.

The success of the $3 million molecular diagnostic fund showed that a public-private partnership could work. While still a bit reluctant to get into another public-private partnership, in November, when it became clear from different reports that the vaccination process was at risk of failing because of the lack of funding, mPharma saw another gap to be filled.

“For example, Ghana would need over $200 million to be able to vaccinate about 70% of its population and that’s just for year one. What happens if COVID becomes endemic? What if every year we need booster shots? What happens with all these new variants that are coming up,” he said.

Those were some of the questions that spurred Rockson and his team to get involved in the vaccination process. Fortunately for mPharma, many business leaders were uncomfortable waiting for the government. The unexpected outbreak of the coronavirus meant that businesses incurred high costs in their race to keep their employees safe and productive. Some industries were more adversely affected than others; for example, factory workers weren’t able to work in large numbers anymore. And oil rig workers were forced to quarantine for two weeks before they could return to their desks.

A consortium made up of all banks, telecommunication companies, and some FMCG and oil companies in Ghana decided they would fund the vaccination of their employees. Beyond paying for only their employees, the consortium also agreed to match the number of employees they vaccinated by giving the same number of free doses to the government.

When the first batch of doses arrived in Ghana, mPharma and the consortium agreed to give all the doses to the government for vaccinating health workers. Putting the public interest before theirs.

Unlike the molecular fund which brought financial returns for mPharma, Rockson said the vaccination program was done as a contribution to society without any financial gains. He expects that mPharma would be able to build some relationships and credibility with companies and communities through this program.

For mPharma, which has a presence in eight sub-Saharan African countries, Rockson hopes that this framework which has proven to be successful in Ghana would be adopted in other countries to increase financing capacity for more vaccination.

“We need to think of how we can mobilise domestic financing in a period where several countries’ budgets are under severe strain because of the pandemic. If the government uses all its funds to buy COVID vaccines, what are they going to use to improve the education sector or to build roads?”

“We need to remember that ‘free’ is not a strategy,” he added.

While 45 African countries have received vaccines and 43 have started the vaccination process, less than 2% of Africans have been vaccinated. Compared to over 60% in other major economies, it shows that there’s still more ground to be covered. The framework mPharma has introduced might be the missing link in accelerating vaccination in Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ghanaian e-health Startup mPharma Opens Shop in Ethiopia

March 17, 2021

Following its aggressive expansion drive to at least have presence in all the key regions of the continent before further unit expansion, the Ghanaian e-health startup mPharma in partnership with Belayab Pharmaceuticals has launched a new pharmaceutical franchise in Ethiopia called Haltons Pharmacies. This new opening makes it the sixth of such franchises across the continent.

mPharma which was founded in 2013 is a technology-driven healthcare company that specialises in vendor-managed inventory, retail pharmacy operations, and market intelligence serving hospitals, pharmacies, and patients. With headquarters in Ghana, mPharma which is a venture-backed startup has expanded its operations to four other African countries, namely Nigeria, Zambia, Kenya, and Rwanda, and currently has a network of over 300 pharmacies serving more than 100,000 patients each month.

In 2019, mPharma acquired Kenya’s second-largest pharmacy chain Haltons, and the new franchise agreement with Belayab will see Haltons launch in Ethiopia, mPharma’s sixth market in Sub-Saharan Africa and third in East Africa.

Through the franchise, mPharma and Belayab Pharmaceuticals will open two operational pharmacies in Addis Ababa this year. Each pharmacy launched will offer Mutti – mPharma’s health membership programme – to patients in Ethiopia. Patients will benefit from discounts on their drugs and financing options that can help alleviate the costs of healthcare. Mutti will particularly benefit uninsured patients in Ethiopia who pay out-of-pocket for their medication and therefore bear the brunt of high drug prices.

“mPharma is connecting and empowering an inclusive universal medical coverage that benefits everyone in Africa by making access to healthcare affordable and safe. We are excited to be entering the Ethiopian market in partnership with Belayab Pharmaceuticals as we continue to build our long-standing commitment to partnerships for the good health of patients,” said Gregory Rockson, chief executive officer (CEO) of mPharma.

“This is an opportunity to develop a commercially-sustainable and scalable health impact in Ethiopia by improving access to quality essential medicines that will help the society-at-large so that everyone can benefit from affordable and safe treatment.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry