mPharma Expands Telehealth Reach with 100 Virtual Centers in Africa

Telehealth Expansion Potential in Africa

The expansion of telehealth throughout Africa presents significant opportunities, particularly as mobile connectivity improves and solutions emerge to address the existing disparity in doctor-to-patient ratios, as highlighted in a recent Deloitte report.

mPharma's Initiative

mPharma, a Ghanaian health tech startup, is poised to lead this expansion of telemedicine across the continent. The company intends to establish 100 virtual centers within seven African markets over the coming six months, responding to the ongoing COVID-19 pandemic.

mPharma aims to deliver high-quality primary care to the communities it serves. This will be achieved through the provision of medical examinations, a crucial service often absent in conventional telemedicine models, according to co-founder and CEO Gregory Rockson.

Unique Telemedicine Approach

“Our strategy involves utilizing our existing pharmacies as virtual doctor’s offices, allowing patients to undergo remote examinations during virtual consultations,” Rockson explained to TechCrunch. “This distinctive approach sets mPharma’s telemedicine offering apart.”

Currently, mPharma facilitates approximately 10,000 physician consultations for patients at its pharmacy network. The new system will extend this capability electronically, broadening its reach to a larger population.

Company Background and Funding

Initially focused on managing prescription drug inventory for pharmacies and suppliers, mPharma now encompasses retail pharmacy operations and provides valuable market intelligence to hospitals, pharmacies, and patients.

Established in 2013 by Gregory Rockson, Daniel Shoukimas, and James Finucane, mPharma has secured substantial funding, exceeding $50 million since its inception. This includes a $17 million Series C round led by the U.K.’s CDC Group last year.

Additional investors include Jim Breyer of Breyer Capital, Shravin Bharti Mittal of Bharti Global Limited, Social Capital, and Golden Palm Investments.

Expertise and Technology

mPharma benefits from the guidance of seasoned pharmaceutical professionals, including Helena Foulkes, former president of CVS, and Daniel Vasella, ex-CEO and chairman of Novartis, both serving on the company’s board.

The startup intends to leverage its pharmacy network to create a comprehensive digital primary care service. This will incorporate all-in-one diagnostic tools, including a digital stethoscope, otoscope, thermometer, and examination camera with integrated illumination for high-definition skin and throat imaging, powered by Tytocare.

Remote Diagnostics and Healthcare Professionals

Physicians will have the ability to request rapid diagnostic tests, supported by licensed community health nurses during remote consultations.

Patients in Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda, and Ethiopia, where mPharma operates, will gain access to these virtual consultations. The company is actively seeking further funding to accelerate its growth across the continent.

Expansion Plans and Current Progress

“We currently operate five centers and have assessed all our pharmacies to identify the optimal locations for establishing Mutti Doctor locations – our virtual centers – based on community needs,” stated Rockson. “We have already pinpointed the initial 100 locations.”

Competitive Landscape

mPharma’s efforts complement those of numerous other startups across Africa offering diverse telemedicine solutions. Examples include Vezeeta, an Egyptian doctor appointment booking platform, which expedited the launch of home-visit solutions, teleconsultations, and online pharmacies following a $40 million Series D funding round.

Quro Medical, a South African startup, provides home care integrated with telemedicine, a strategy adopted in response to the COVID-19 pandemic to minimize exposure risks for patients and healthcare providers. The company received $1.1 million in April to expand its reach and enhance patient care.

Rocket Health, operating in Uganda and Kenya, offers consultations, pharmacy services, and lab tests electronically, and through a USSD service, extending accessibility to individuals without internet access.

Industry Growth and Challenges

The telehealth industry is projected to continue its growth trajectory, particularly in emerging markets with inadequate healthcare infrastructure and a significant doctor-to-patient ratio imbalance compared to developed nations.

According to the World Health Organisation, sub-Saharan African countries average 0.23 doctors per 10,000 people, contrasting sharply with the highest ratio of 84.2 doctors in some developed countries.

Bridging the Gap and Fostering Innovation

Telemedicine is expected to mitigate this gap and stimulate partnerships, fostering the emergence of startups like Bima, which provides health insurance policies and other services. This Europe-based startup recently secured $30 million in funding.

The African pharmaceutical market is also anticipated to experience substantial growth alongside population increases, creating opportunities for innovation and mobile health solutions.

Regional Opportunities and Strategic Partnerships

Deloitte’s report identifies East Africa as the most promising region for healthcare investment, driven by its integration and economic growth, supported by sectors like agriculture and tourism. Increased consumer spending power will also boost healthcare and telecom expenditures.

A market intelligence report by Salient emphasizes the need for startups to prioritize customer retention and develop strategic partnerships, potentially with e-commerce companies, to streamline product distribution and establish digital ordering, payment, and fulfillment systems.

Deloitte’s Recommendations

“To fully capitalize on mHealth’s potential, stakeholders must proactively pursue strategic partnerships, whether public-private or otherwise, and establish cooperative and sustainable business models,” the Deloitte report asserts.

Deloitte remains optimistic about the industry’s prospects and recommends that companies like mPharma leverage data for improved public health supply chain planning, partnership development, and informed company growth.

Future Outlook and Collaboration

Rockson envisions other telemedicine services utilizing the infrastructure mPharma has established to enhance their patient offerings.

“Our aim is not to directly compete with existing telemedicine providers but to enable them to integrate their services with our remote medical examination solution, addressing the current limitations they face in providing teleconsultations.”

Job Creation and Market Expansion

Employing 400 individuals, mPharma anticipates creating an additional 340 job opportunities over the next six months, recruiting a diverse range of specialists, including engineers and clinicians.

The company recently secured a contract with the Gabonese government to build a drug supply chain infrastructure, following its entry into the Ethiopian market with plans to franchise its brand and refine its sourcing and distribution systems. This aims to resolve challenges within the African pharmaceutical market, including unpredictable supply chains, inflated prices, and limited order volumes.