mPharma , a pan-African healthcare technology company, has launched a new customer-centric product, Facility Insights, on its proprietary data management and pharmacy transformation tool, Bloom. This product empowers Pharmacy owners with tailored data-driven pharmacy insights to solve operational problems and make more informed pharmacy management decisions.
Facility Insights is now launched in 300+ pharmacies across Ghana, Nigeria, Zambia, Kenya, Malawi, and Rwanda, and is expected to be fully operational in all mPharma-partner pharmacies in nine African countries in the coming 3 months. The module is designed to solve the deep-rooted problem of pharmacies having limited data, and manually generating needed reports for decision making, contributing to error-prone data and poor user experiences. The easy-to-use platform allows Pharmacy owners to self-serve accurate and updated pharmacy data 24/7, generate cross-cutting sales, profits, and product reports over specific date intervals, measure highest and lowest selling products by months, obtain insights into mutti member retention, registrations, and more.
Dan Shoukimas, Chief Product Officer of mPharma
Facility owners are already engaged with this new product, and are using it to generate relevant reports and insights for their pharmacies:
“With the launching of the Facility Insights module in Bloom, we enjoy having all the necessary highlights and analytics of our transactions, and this helps us to know how much our work is progressing. The analytics therein are accurate and on-point. In a single click, I am able to get an interface showing charts, percentages, and progress levels of the activities as I compare them in certain periods of time.” said Jacques Tuyishimire, RPh, Pharmacist and Managing Director of Siloam Pharmacy, Kigali, Rwanda. He went on further to add “I mostly enjoyed the feature of being able to trace the comparative levels of sales, profits and the fast-moving products in different courses of time. This is amazing!”
Dan Shoukimas, Chief Product Officer of mPharma, who helped in the engineering of this feature, had this to say: “Pharmacies today suffer from two problems at opposite ends of a spectrum. Either they lack the data and analytics tools they need, are hungry to get it, but don’t have the tools or training necessary to get it, or they have a glut of data but cannot leverage it to make better decisions. Facility insights is a key step forward in solving these and many other gaps in the pharmacist’s data toolbelt. With key reporting in place, there will be plenty of opportunities for us to uncover actionable insights that help our pharmacists provide the best care possible.”
The Facility Insights team is keen on releasing products that directly solve the problems and hurdles of pharmacy management, and has a series of products in its roadmap that responds to this mission. Beyond reporting, the team will be working on tools that assist pharmacies to forecast future performance from past usage trends and provide intelligent recommendations that power pharmacy growth.
mPharma is driven by its mission to build an Africa in good health. One key way it does this is by releasing technology-powered tools that directly solve the needs of its customers, partners, and clients. It has recently launched a Last-Mile Delivery platform that improves vehicle allotment efficiency and monitoring of driver delivery patterns, a Co-Insurance system that allows payments for patients with partial insurance cover in Gabon, and an e-commerce platform (https://MyMutti.com/) that provides access to quality medicines and healthcare services at affordable prices in Ghana and Nigeria.
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
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.
Gregory Rockson, chief executive officer (CEO) of mPharma.
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.
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
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.
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
April 2019. Gregory Johnson, the co-founder of mPharma, a startup that runs inventory management for healthcare practitioners, was at one of the highest peaks of his life. An important deal was about to be sealed in Kenya with Haltons Pharmacy, just six years after he ditched the last lap of a series of employee interviews with the global tech giant, Google.
A major trail blazer, the deal is one of the very rare occasions when a six year-old startup would be swallowing a major pharmacy chain, Kenya’s second largest to be precise.
It didn’t last up to two more years before Rockson returned to Ethiopia, Africa’s second-largest country by population size and a country he had visited four years ago in 2018, again, to seal a follow-up, backed by a humongous $17m in funding raised at the peak of the coronavirus pandemic a year before in 2020.
Gregory Johnson is the CEO and co-founder of mPharma
Ethiopia’s deal was easy but symbolic in many ways. It was easy because the coast had been cleared and insights gleaned from Haltons’ success in Kenya. In fact, Rockson’s mPharma noted that since the acquisition of Haltons, the number of Haltons’ pharmacy outlets in Kenya had increased from 20 to 30, a figure more telling when it is remembered that before mPharma’s acquisition, the Kenyan pharmacy chain had sliced the number from 50 to 20 as a result of poor financial standing.
The symbolism in mPharma’s Ethiopian inroad stems from the fact that in a notoriously closed economy, a smart strategist must find a wide gaping hole in the legal system to wing on. And so, Belayab Pharmaceuticals, a subsidiary of Belayab Group, one of Ethiopia’s biggest and most diversified conglomerates, presented a partnership opportunity for mPharma to hammer a bolder franchising presence in the country.
But perhaps what is even more surprising is that mPharma meanders through Africa acquiring, partnering and launching out new products with relatively meagre funding.
Doctolib in France, comparably, has a war chest of $267m in equity funding. mPharma has less than $50m, to-date. And even more surprising is the fact that with Ethiopia’s latest addition, mPharma is now present in eight African countries, of Zambia, Zimbabwe and Rwanda (via the Kumera pharmacy retail chain), Nigeria (via GoodHealth pharmacy chain) as well as Kenya, Cote d’ivoire, and of course Ghana, its home country.
While the seven year-old company continues its high-growth explosion on the continent, a few insights may be gleaned from its journey so far.
Tracking the major activities of mPharma and the lessons to be learned by startups
Replicating The Franchise Model In A Sector As Closed And Unpenetrated As Healthcare
Perhaps, mPharma’s most notable signature model is not its vendor-managed inventory of prescription (although it is part of the entire story) but its retail pharmacy operations, most notably done through the QualityRx franchise model.
Launched in November, 2018, QualityRx (which goes by GoodHealth in Nigeria) has single-handedly ensured that the startup has been on a rollercoaster ride of international expansions.
The QualityRx franchise model, which repeats similar features seen with co-operative retailers in the US and Europe, employs common branding, inventory systems and collective purchasing for all pharmacies enlisted in the QualityRx franchise chain.
To tell a better story of how the QualityRx franchise model works: in 1996, Mr. Amankwah founded Fresh Spring Chemists in Tema, Ghana. It used to be Tema’s largest pharmacy, but it went through a difficult time in which it lost business to new pharmacies. Mr. Amankwah was on the brink of shutting his pharmacy when he learned of mPharma’s new QualityRx programme for neighbourhood pharmacies. Fresh Spring was refurbished and restocked at no expense to Mr. Amankwah thanks to QualityRx. As a result, Fresh Spring is now regaining all of its lost clients and supplying them with decent service.
From a more complex and profit-making perspective, mPharma takes over inventory procurement of retail pharmacy and hospital chains within its franchise using its supply-chain software while remotely running pharmacy operations using proprietary technology infrastructure.
The software generates data that is then used to forecast demand. Because it owns a large network of hospitals and pharmacies, the information helps it negotiate lower prices with suppliers (distributors and manufacturers).
Aside from that, mPharma provides medications on consignment to all of its franchised clinics. As a result, income is determined from direct prescription purchases to customers rather than what is sold to hospitals on a regular basis. Because it differs from the traditional “pay-for-supplies” model offered by distributors, this creates a disruptive business model for hospitals and pharmacies.
mPharma makes money by charging a fee on the medications it buys. It also sees an opportunity to benefit from the selling of its data on drug use.
This explains why the startup was on an acquisition expedition in Kenya recently, and why it launched out the Haltons Brand in Ethiopia. Ownership of its own pharmacies will give it a bigger shot at profitability. To show the extent of the profit it could make if it runs its own pharmacy chain, Kenya’s Haltons, for instance, raked in $1.5 million in revenue in 2018, alone.
“We’ve not always been able to control the customer experience and fully address the issue of drug affordability with our pharmacy clients particularly because they manage their profit margins,” says Greg Rockson.
“Through our QualityRx service, we’re starting to invest in improving the customer experience and pricing that patients get from pharmacies. Haltons will serve as a testing ground for us to develop patient-centered services we can provide to our franchise pharmacies. This way we can encourage lower margins and pass the savings on to the customers.”
Raising Enough Funds At The Beginning, Then Raising Only Strategically When There Is Need For It And It Has Become Relatively Easier To Raise
mPharma seems also to be strategic with its funding, only raising on major acquisition, partnership or expansion needs. For instance, the $9.7 million Series B round it raised in January, 2019 from investors such 4DX Ventures, an Accra/San Francisco venture capital firm, and Nairobi-based Novastar Ventures, was used for the acquisition of Kenya’s Haltons later in April that year. And although, Rockson described its $17m fundraising in May, 2020 as “opportunistic”, the startup had already drawn out detailed plans on how to launch operations in Ethiopia, launching there only in March this year, immediately countries began announcing extensive Covid-19 vaccination programmes.
It could be argued that while mPharma spent its earlier fundraising of $6.6 million raised in Nov, 2017 and a seed round of $5 million raised in 2015 on building out and scaling in Ghana, Rwanda, Zambia and Zimbabwe, its subsequent fundraising had been driven by expansion or partnership plans.
Courting In Strategic Investors After Series B Round
Another interesting insight into mPharma’s funding activity is that while its earlier investors had stemmed from the need to justbring in investors, its subsequent fundraising tilted towards strategic investors. For example, although the startup had settled for investors such as 4DX Ventures, Gold Palm Investments, Breyer Capital, Olive Tree Ventures, Social Capital, The Skoll Foundation, etc. for its earlier fundraising, its subsequent fundraising, especially its last funding in May 2020 had seen it bring in key industry leaders such as the CDC Group (the UK’s development finance arm); ex-chief executive of Novartis, Silicon Valley investor Jim Breyer; and Dompe Holdings, the family office of the Italian pharmaceutical giant.
Predictably, the strategic investors may play huge roles towards the startup’s exit.
Filling The Company’s Board With Influence, Experience And Leadership, And Then Using Those To Its Advantage
mPharma has also been strategic about who it brings onto its board. Last year, when it raised its $17m, it announced the appointment to its board of Helena Foulkes, former president of CVS, the largest pharmacy retail chain in the United States. The appointment to the board added to existing board members such as early Facebook investor Jim Breyer.
Disrupting The Supply Chain Is Key In An Industry As Secretive As Healthcare
Perhaps mPharma’s biggest industry is participating in each of the levels of African healthcare supply chain. Even Rockson was quick to admit that his startup would have been long dead if they had not pivoted to different products targeting the entire healthcare industry.
“We processed almost 6000 prescriptions in our database in the past three months,” Rockson said in an interview with Eva Nean of Startupbrics. “But our mission is much more complicated than just giving software. We invest in the hospitals we select. We realized that if we wanted to bring onboard health facilities we had to go beyond just thinking about software; we had to look at the whole ecosystem. So we connect hospitals and pharmacies to our network and we bundle connectivity, device and the application as a service.”
Its sudden orientation towards a more comprehensive coverage of the entire African startup ecosystem led it to launch its famous QualityRx franchise model in 2019. It also launched a pharmacy management software called Bloom (as AWS is to Amazon). The Bloom technology creates an operating system that can enable the startup to transform community pharmacies into primary healthcare providers. It also now allows shop owners to monitor daily revenues and keep track of inventory.
The Bloom allows you, for instance, to monitor the popularity of goods through different facilities over time. Source: mPharma
“We want QualityRx to represent the best pharmacy in the neighbourhood. To do this, we are challenging what it means to be a pharmacy by enabling QualityRx members to proactively provide basic healthcare services in their neighbourhoods,” Rockson noted in a Medium article he wrote at the launch of QualityRx.
The QualityRx model also goes by the name GoodHealth Shops in Nigeria where it is funded by the Bill and Melinda Gates Foundation. The GoodHealth Shops pilot scheme, launched in 2019, hoped to expand mPharma’s QualityRx model to 20 Patent and Proprietary Medicine Vendors (PPMVs) in Lagos, Nigeria. The model had been largely successful as indicated, partly in the diagram below.
The GoodHealth Shops, a type of the QualityRx model, helped fastrack major improvements in foot traffic and revenues for participants. Source: mPharma
“I have opened my shop for over 30 years, but only a few people in my area patronize me. My business wasn’t growing and there were days when I didn’t make any sales at all. Partnering with mPharma changed everything for me. I became more popular, and a lot of people now patronize me’’ —said Bolanle, a Patent and Proprietary Medicine Vendor (PPMV) based in Lagos, Nigeria.
Apart from enlisting retail pharmacies, mPharma sought a way to significantly alter the customer experience previously available in the healthcare industry.
To that effect, it launched Mutti, a health membership programme. Mutti members receive discounts on their medications as well as funding options to assist with healthcare expenses. Mutti is particularly beneficial to uninsured patients who pay for their medications out of pocket and therefore bear the brunt of high drug prices. For every pharmacy chain mPharma maintains, it attaches the Mutti brand to it.
“The significant revenue growth at the GoodHealth Shops have been driven by Mutti members who account for 65% of total sales,” noted Weiwei Bi — Country Lead, QualityRx Retail (Franchising) at mPharma.
Mutti membership is positively associated with basket value and purchase frequency, according to mPharma’s data, and has risen over time. Source: mPharma.
The success of the QualityRx franchise model has been phenomenal for mPharma, and with the launch of its own retail pharmacy chains — either by acquisitions (Kenya’s Haltons) or otherwise (Zambia and Rwanda’s Kumera and Ethiopia’s Haltons) — the startup now looks fully set to conquer its last territories in the African healthcare industry.
Source: mPharma
Finally, mPharma’s entire coverage of the healthcare industry may not be complete if it does not include hospitals in its chain of focus. Through its mClinic, doctors prescribe medication and send a prescription code to a pharmacy and the patient’s mobile phone. Once a patient is registered in the system, their doctor can easily access their information and prescription history. Doctors may also view stock details for all of the partner pharmacies, allowing them to avoid sending patients to pharmacies where medications are not accessible. Lastly, mPharma’s messaging system allows doctors and pharmacists to communicate directly.
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
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.
Gregory Rockson, chief executive officer (CEO) of mPharma
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
The saying that health is wealth has never been as true as being manifested since the outbreak of the Covid-19 pandemic as businesses, and venture capitals look towards healthcare manufacturing firms, and ancillary products manufacturers as the most stable investment. This shows in the number of health start-ups that have attracted huge attention in the last three months. A great example is Ghanaian startup mPharma, which manages prescription drug inventory for pharmacies and their suppliers. The start-up killed two birds with a stone by raising $17 million in its latest funding round and announced the appointment to its board of Helena Foulkes, former president of CVS, the largest pharmacy retail chain in the United States.
chief executive officer at mPharma, Greg Rockson
The Accra-based company, founded by chief executive Greg Rockson seven years ago, has received the funding from CDC Group, the UK’s development finance arm, alongside several of its previous investors including Dr. Daniel Vasella, ex-chief executive of Novartis, Silicon Valley investor Jim Breyer and Dompe Holdings, the family office of the Italian pharmaceutical giant. Rockson described the round as “opportunistic” as the company was keen for the chance to work with a development finance institution with deep roots in Africa like CDC. He says mPharma’s work sees it increasingly interacting with government agencies on the continent. “Bringing a DFI with extensive government contacts across Africa would improve our appeal and help strengthen our corporate governance because of the ESG [environmental, social and governance] rules under which they operate.”
CDC has typically acted as a “fund of funds”, by putting its cash into large funds, such as private equity, working in developing countries, but the Catalyst Fund, previously under auspices of its sister UK development agency DfID, has been investing directly in businesses. To date, mPharma has raised over $40 million since its seed round in 2015. Last year, it used some of those funds to acquire Kenya’s second largest pharmacy chain, Haltons. Rockson says it has expanded the number of outlets to 30 from 17 at the time of acquisition and seen revenue double. “We had mapped out a plan for expansion when we bought Haltons and soon paid off its debt and owed salaries to build trust with the staff, but the lockdown has cut our hours and slowed growth.”
mPharma was started to significantly improve the efficiency of pharmaceutical supply chains in African countries. Its proprietary Vendor Management Inventory (VMI) system is already being used in over 250 pharmacies in Ghana, Nigeria, Kenya, Zambia and Zimbabwe. As mPharma’s retail roots deepened, Rockson says getting retail experience on the board had been one of his priorities and had been aware of Foulkes ever since reading a Fortune magazine about her work at CVS.
“I was intrigued by the role she played in banning the sale of tobacco at CVS. This is a decision that cost the company over $2 billion in sales but was important if CVS was to put the health of consumers first,” Rockson wrote in a company post. Foulkes, who was introduced to Rockson by board member and early Facebook investor Jim Breyer, spent 25 years at CVS, before she left in February 2018 to run Hudson Bay, the North American retail group parent of Saks Fifth Avenue. She stepped down from the role in March. “The mission of mPharma to make pharmaceuticals more affordable and accessible is striking,” says Foulkes. CVS is well known in the US for its rewards loyalty program and using customer retail data to target promotions. “I’m interested in the different ways this young company can grow, they have their own chain, loyalty programs, there’s plenty of potential,” says Foulkes.
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
mPharma, a leading health startup in Ghana and one of the most valuable health startups in Africa has secured $17 million in its latest funding round. The Accra-based company has also announced the appointment to its board of Helena Foulkes, former president of CVS Pharmacy, the largest pharmacy retail chain in the United States.
chief executive officer at mPharma, Greg Rockson
“Bringing a DFI with extensive government contacts across Africa would improve our appeal and help strengthen our corporate governance because of the ESG [environmental, social and governance] rules under which they operate,” said chief executive officer at mPharma, Greg Rockson.
Investors in this round of funding include the CDC Group, the UK’s development finance arm, alongside several of mPharma ’s previous investors including Dr. Daniel Vasella, ex-chief executive of Novartis, Silicon Valley investor Jim Breyer and Dompe Holdings, the family office of the Italian pharmaceutical giant.
According to Rockson, this round of funding was nothing short of “opportunistic” as the company had been looking for a chance to work with a development finance institution with deep roots in Africa like CDC.
Rockson says mPharma’s work sees it increasingly interacting with government agencies on the continent.
mPharma has raised over $50 million since its seed round in 2015.
Last year, barely six years old, mPharma, which manages prescription drug inventory for pharmacies and their suppliers, acquired Kenya’s second-largest pharmacy chain, Haltons.With that transaction, mPharma entered the East African regional market for the first time, meaning that the young Ghanaian company would now control 20 Haltons stores spread across Kenya’s capital Nairobi and the second most populated coastal city of Mombasa.
Rockson said it has, however, expanded the number of outlets to 30 and seen revenue double.
“We had mapped out a plan for expansion when we bought Haltons and soon paid off its debt and owed salaries to build trust with the staff, but the lockdown has cut our hours and slowed growth,” he said.
With this round of funding, mPharma hopes to reduce this.
Why The Investors Invested
CDC Group, the lead investor in this round has been through the Catalyst Fund been investing directly in businesses.
“The mission of mPharma to make pharmaceuticals more affordable and accessible is striking,” says Foulkes. CVS is well known in the US for its rewards loyalty program and using customer retail data to target promotions. “I’m interested in the different ways this young company can grow, they have their own chain, loyalty programs, there’s plenty of potential,” says Foulkes
Foulkes was introduced to Rockson by board member and early Facebook investor Jim Breyer. He had prior to this present role spent 25 years at CVS, before she left in February 2018 to run Hudson Bay, the North American retail group parent of Saks Fifth Avenue. She stepped down from the role in March.
A Look At What Startup 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.
“We processed almost 6000 prescriptions in our database… But our mission is much more complicated than just giving software. We invest in the hospitals we select. We realized that if we wanted to bring onboard health facilities we had to go beyond just thinking about software, we had to look at the whole ecosystem. So we connect hospitals and pharmacies to our network and we bundle connectivity, device and the application as a service,’’ Rockson told Startupbrics.
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.
He could be contacted at udohrapulu@gmail.com
Barely six years old, Ghanaian pharmacy start-up mPharma, which manages prescription drug inventory for pharmacies and their suppliers, is sealing a deal on Kenyaan second-largest pharmacy chain, Haltons.
With this transaction, mPharma is entering the East African regional market for the first time, meaning that the young Ghanaian company will now control 20 Haltons stores spread across Kenya’s capital Nairobi and the second most populated coastal city of Mombasa. Baring any last minutes changes and subject to Kenya’s Capital Markets Authority’s approval, the deal would be sealed for a whopping a $12 million Series B funding round led by 4DX Ventures, an Accra/San Francisco venture capital firm, and Nairobi-based Novastar Ventures.
Greg Rockson of mPharma
So far, the sum of $9.7 million has been paid and the full round is expected to be completed in a couple of weeks with other investors including Unbound Ventures, the VC arm of India’s Bharti Mittal Family office, early Facebook investor Jim Breyer and former Novartis chief executive Daniel Vasella, who has joined MPharma’s board.
Key Facts To Note About The Deal
The startup raised $6.6 million in Nov 2017 after raising a seed round of $5 million in 2015.
MPharma was founded by Greg Rockson to primarily improve the efficiency of pharmaceutical supply chains in African countries.
Its proprietary Vendor Management Inventory (VMI) system is already being used in over 250 pharmacies in Ghana, Nigeria, Zambia and Zimbabwe.
Rockson said the unusual deal came about as part of conversations to market its VMI platform to the chain, but realized there was an opportunity to prove just how much the efficiencies of managing both front end and back end could help African pharmacies drive down their biggest costs: inventory.
The startup is taking control of Haltons from Fanisi Capital, a Mauritius-based private equity firm, but senior management at Haltons will retain a stake in the business.
Last year, Haltons raked in $1.5 million in revenue, Mary Ngige, Haltons’ managing director said.
mPharma is expected to meet a tough game in Kenya from the much bigger Goodlife Pharmacy which has 47 stores and is owned by South African investor Leapfrog Investments, which invested $22 million in 2016.
At one point in its history, Haltons was the biggest pharmacy chain in the whole of Kenya with more than 50 stores but slimmed down, closing unprofitable stores and working on improving its service delivery.
Ngige says the aim is for its new ownership and better systems to work on methods to bring back to Haltons’ past glory.
Ngige also says Haltons was attracted to the deal because the pharmacy desires to improve efficiency within its supply chain using better inventory management software which ultimately aligned with Halton’s own mission to improve drug accessibility and affordability. Consequently, they hope on mPharma’s business and their technology to help Haltons fine-tune their model and improve competitively.
In the short term, mPharma’s team is focused on expanding its VMI and QualityRx platforms to over 14,000 community pharmacies in Ghana, Nigeria and Kenya, using those platforms to leverage more market power with pharmaceutical companies and also use its “‘just-in-time” inventory management to lower prices for its retail customers.
mPharma is also preparing to partner with African governments in order to help improve drug availability through better centralized systems, in the long term.
Rockson Is Using the QualityRx Franchise Model.
Using the 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.
“We’ve not always been able to control the customer experience and fully address the issue of drug affordability with our pharmacy clients particularly because they manage their profit margins,” says Greg Rockson.
“Through our QualityRx service, we’re starting to invest in improving the customer experience and pricing that patients get from pharmacies. Haltons will serve as testing ground for us to develop patient-centered services we can provide to our franchise pharmacies. This way we can encourage lower margins and pass the savings on to the customers.”
Charles Rapulu Udoh
Charles Rapulu Udoh a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.
