mPharma, a Ghanaian-based health-tech startup that offers solutions to health insurance and pharmaceutical companies, has laid off 150 employees, as it navigates tight economic conditions.
The company announced that the difficult decision was taken to right-size the team which was attributed to the current macroeconomic conditions driven by the devaluation of the Naira.
Announcing the layoff, the company CEO Gregory Rockson said, “We took the difficult decision to right-size the team. The layoffs are in the light of the current macroeconomic conditions driven by the devaluation of the naira”.
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mPharma disclosed that severance packages were provided to support the affected employees. The company also demonstrated its commitment to their well-being, allowing them to keep their health insurance and extending the period for exercising their stock options from 90 days to 3 years.
As mPharma parts ways with some of its employees, this will enable the company to double down on its main healthcare business, Mutti. Mutti is mPharma’s online pharmacy, catering to over 200,000 patients each month.
With a renewed focus on Mutti, mPharma aims to establish the product in every community across the African continent.
Notably, mPharma has been successful in securing significant investments, raising a total of $90 million, including a $35 million series D funding round last year. In line with its expansion strategy, the company acquired a majority stake in HealthPlus, a leading pharmacy chain in Nigeria, and bought stakes in Vine Pharmacy in Uganda and Halton’s Pharmacy in Kenya.
Currently, the health-tech startup partners with over 150 hospitals, and operates in nine African countries, which include Nigeria, Rwanda, Ghana, Kenya, Gabon, Zambia, Malawi, Ethiopia, and Uganda.
Since its inception in 2013, mPharma has evolved from managing prescription drug inventories to offering a range of services, including retail pharmacy operations and market intelligence for hospitals, pharmacies, and patients.
By using the technology infrastructure it has built, the company connects patients, pharmacies, and hospitals through cloud-based software. The system enables doctors to track in real-time which drugs are available and at which location, thus giving patients reliable access to medicines.
In response to the COVID-19 pandemic, the company expanded its offerings to include telehealth services. Additionally, mPharma played a crucial role in facilitating the procurement of vaccines for the Ghanaian government in 2020.
By harnessing technology to eliminate the inefficiencies and price fluctuations that prevent drug prescriptions from reaching sick people, mPharma has helped 400,000 patients make savings on high-quality medicines.
The health-tech startup envisions an Africa that is in good health and has ensured that it will not cease until every person on the continent has access to safe and affordable medicine.