mPharma, a Ghanaian healthtech startup, has expanded into Uganda with the acquisition of a controlling stake in Vine Pharmacy.
mPharma now has 55% in the Uganda pharmacy which was previously held by the Abraaj Group, a private equity firm that collapsed after investors, including the Bill and Melinda Gates Foundation, raises some concerns about the administration of its $1 billion healthcare fund. Abraaj bought Vine Pharmacy in 2013 when it was the largest pharmacy chain in Uganda.
The Vine Pharmacy take-over comes two years after the health startup bought Kenya’s Haltons Pharmacy for $5 million marking mPharma’s entry into the East Africa region.
Founded in 2013 by Gregory Rockson, Daniel Shoukimas and James Finucane, mPharma manages prescription drug inventory for pharmacies and their suppliers. It currently runs retail pharmacy operations and provides market intelligence to hospitals, pharmacies and patients.
Earlier this year, mPharma launched in Ethiopia after entering a franchising deal with Belayab Pharmaceuticals through its subsidiary, Haltons Limited. The startup now has operations in Ghana, Nigeria, Gabon, Kenya, Zambia, Malawi and Rwanda.
Commenting on the acquisition, co-founder and CEO of mPharma, Gregory Rockson said: “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.”
Rockson said that he plans to restore Vine Pharmacy to its former glory when it held the position of the biggest retail pharmacy chain in Uganda. Vine Pharmacy had 20 branches across Uganda when Abraaj took over and embarked on an aggressive growth plan that involved doubling its branches by 2018 – a feat it accomplished until the PE collapsed leading to the shutdown of several outlets. Abraaj also grew the pharmacy’s wholesale business, supplied government agencies and health institutions, and expanded to include personalized patient care through home visits.
