Analysis of counterfeit- drug-prevention strategies on financial performance of Nairobi’s drug retailing pharmacies
Kenya Association of Manufacturers indicates that up to 40% of the medications in circulation are falsified. The main implications of this high proportion are the ineffective treatment of the population and disruptions in the pricing mechanism of medicines in the country. These concerns are of pertinence to private pharmacies seeking to avail medication to the population; inefficacious medication results in a loss of trust by patients. This reduces customer flow whereas ineffective pricing results in unjustifiably low costs by competitors sourcing products from competitors’ falsified outlets. Both these concerns have implications for the financial performance of pharmacies. The study is guided by Reasoned Action and Planned Behaviour's theory with the assertion that an understanding of the merits of the anticounterfeiting approaches would inspire action towards proper implementation. Implementation of the approaches would serve to improve the performance of the pharmacies. The general thrust of extant empirical findings was that anticounterfeiting approaches positively impact the performance of pharmacies. The central objective of the research was to examine the anti-counterfeiting strategies employed by retail pharmacies in Nairobi County and their impact on the financial performance of the retail pharmacies. The population of the study consists of pharmacies in Nairobi County. Therefore, the specific objectives were to establish the effect of chemical-physical anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. To establish the effect of tracking anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. To establish the effect of supply chain integration anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. Data was collected from retail pharmacies in Nairobi County through the use of questionnaires. An Ordinary Least Square regression model was then used to address the objectives of the study. Findings indicated that none of the approaches had a bearing on the financial performance of pharmacies in Nairobi. Therefore, the conclusion was that current anti-counterfeiting approaches were inefficacious in impacting the performance of pharmacies. The recommendation forthcoming from the finding is that pharmacies should assess their rigor in implementing anticounterfeiting approaches as extant literature indicates that there is a link between proper utilization of the approaches and performance of pharmacies.