Business News

Sanofi changes business model in Nigeria as exit concerns mounts  

Sanofi-Aventis Nigeria Ltd, the Nigerian arm of the global pharmaceutical company, has announced a major shift in its business strategy in the country.  

In a letter to its partners and seen by Naijaonpoint the company stated that from February 2024, the commercialisation of the Sanofi portfolio of medicines will transition to a third-party distribution model. 

The correspondence clarifies Sanofi’s intention to reconfigure its approach to the Nigerian market. This move signifies a strategic pivot from direct sales to a model where a yet-to-be-named third-party distributor will handle the commercial aspects of Sanofi’s medicinal products. 

This decision is a significant one, marking a departure from the traditional business model employed by Sanofi in Nigeria.

It reflects the company’s attempt to adapt to the evolving business climate and economic realities facing multinational companies in the country. 

Sanofi has expressed that this restructuring is underpinned by a commitment to enhancing the accessibility of its medicines and ensuring the continued provision of quality healthcare services to the Nigerian populace.  

In a hint that this could be a potential sign for a wider restructuring, the company said it has already begun engaging with its employees, partners, and other key players to maintain transparency throughout this transition phase. 

The intricate dance of adapting to economic headwinds while ensuring the uninterrupted availability of healthcare services presents a nuanced challenge for Sanofi and other players in the healthcare space. 

Sanofi was the first worldwide supplier of the injectable polio vaccine followed by the first influenza, meningitis, and rabies vaccines.  

Sanofi-Aventis Nigeria would be the second pharmaceutical company to announce its plans to leave Nigeria and use a 3rd party distributor to commercialise its medicines.