Health tech company mPharma set to invest US$43 million in new QualityRx program

NIGERIA – Pan-African health tech company mPharma is investing US$43 million in Nigeria to build out its QualityRx program.

This new investment is set to upgrade previous Nigerian facilities – including local community pharmacies – and establish new centers across the country, growing its network from 364 to 1,424 health facilities.

This expanded matrix of top-quality health centers is extending mPharma’s reach from 12 to 25 of Nigeria’s states, bringing increased access to primary care to even more patients.

In September 2022, mPharma acquired a majority stake in HealthPlus, the leading pharmacy chain in Nigeria.

This new acquisition and subsequent investment are increasing its footprint across the continent through its fast-growing conversion franchising model, QualityRx. CitiBank and the U.S. Development Finance Corporation have supported this expansion with long-term debt financing.

The investment will increase the capacity of the Nigerian healthcare system to provide formal healthcare services to an additional 750,000 patients each month. It will also create jobs for 11,782 healthcare workers.

Pharmacy partners will generate cumulative revenues of US$153 million during the duration of the investment. This will especially impact rural areas that have experienced a sustained decline in the doctor-to-patient ratio, currently at 1:10,000.

mPharma’s tax contributions

mPharma paid the Kenyan Government KSh30.2 million (US$0.25m) in taxes between January-October 2022 period.

Its tax contribution was the third highest on the African continent after Ghana (US$0.97m) and Nigeria (US$0.93m).

Other jurisdictions including Zambia (US$0.24m), Uganda (US$0.10m), Rwanda (US$0.076m), and Malawi (US$0.012m).

mPharma helps pharmacies and medical suppliers manage stocks. The company’s founder in October added that plans were underway to open extra six outlets to reach 23.

mPharma’s system is now used by 850 pharmacies and drug stores in nine countries such as Ghana, Zambia, Zimbabwe, among others. It also partners with 155 hospitals and 2 million patients.

Early this year, mPharma raised KSh4.3 billion (US$35 million) to build a network of community hospitals in Africa.

“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 talents like doctors and nurses, professionals that are critical in the work we do,” mPharma co-founder and CEO Gregory Rockson said.

“​​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 added.