COVID-19 and universities’ commercial appetites

Even before COVID-19, universities were facing dwindling governmental financial support and corporate donor fatigue. The combination of these two forces was leading to a situation in which universities were compelled to adopt more entrepreneurial and market-focused approaches to develop products and services that could be commercialised and turned into revenue and profit centres for universities.

Perhaps the best example of market-focused universities are the ‘Stanfords’ and ‘Caltechs’ which innovate and create research outputs that are critical inputs in new venture creation in the Silicon Valley area. Industry can fund innovative university outputs in collaboration to optimise societal impact.

In Africa, Silicon Valley-type ecosystems might not be commonplace but there are good examples of how industry and universities are collaborating in forging innovation pipelines and securing funding for talent development to feed these pipelines.

This article showcases the steps the University of Ghana’s School of Pharmacy (UGSOP) took to launch a new sanitiser product in response to COVID-19.

The market need

COVID-19 has compelled universities globally to fashion new routines for service delivery, with the vice-chancellors of Ghana urging their communities to develop systems to enhance Ghana’s epidemic and disaster preparedness and management. In the wake of this charge, the Trades Unions Congress of Ghana also alerted the president, Nana Akufo-Addo, to the short supply of hand sanitisers across the country.

A survey conducted by the University for Development Studies in Ghana also revealed that 54% of hand sanitisers sold on the Ghanaian market were ineffective against microorganisms. According to that study, 43% of the sanitisers had minor effectiveness against microorganisms, with only 3% being effective. Aware of the disruptions caused by COVID-19 in higher education, and in response to a clear market need, UGSOP took the step to develop a sanitiser product and promote it in the country.

This article delineates the steps UGSOP took from ideation to product launch. The launch meant having to navigate a range of challenges at three levels – regulatory, institutional and commercialisation-marketing. Herein, we highlight lessons from the product launch case study with the overarching goal of inspiring other African universities to take more commercial approaches in their service delivery and product development routines.

Product issues

UGSOP joined in the collective efforts of the nation in helping to curb the spread of COVID-19 by producing alcohol-based hand sanitisers that meet World Health Organization (WHO) recommendations. The school released its newly manufactured products (in 200 ml, one litre and four litre units) on 30 March 2020.

The current marketing strategy is to run two parallel production lines: one for the purposes of small wholesale and retail distribution, and the other for contract manufacturing. The first relies on word-of-mouth, mass media and social media advertisements. The second relies on engagement with entities to offer competitive pricing, possible co-branding and sustained supply.

The new sanitiser, known as Pharmol, has leveraged the credibility of the University of Ghana brand to penetrate the market. Before the product was launched, the marketing team engaged with companies to discuss contract-manufacturing terms. Fan Milk Danone was the first company to agree to bulk production for onward distribution to three teaching hospitals in Ghana.

Process issues

Pharmol has been approved and registered by Ghana’s Food and Drugs Authority (FDA). The preparation of the product is under strict hygienic conditions and in accordance with WHO recommendations. Pharmol comes in two forms: liquid and gel. It is formulated for maximum penetration into the skin and therefore offers maximum protection. A moisturiser has also been incorporated to confer a soothing effect on the skin.

The process included a ‘discovery’ and ‘design’ stage. At the discovery stage, hand sanitisers were surveyed for their quality and acceptability. Findings from the University of Development Studies research described above were relied upon. Consumers were reportedly embracing liquid sanitisers over gel sanitisers.

At the design stage, UGSOP sought to come up with a product that would meet the highest standards of the regulator. Importantly, the product needed to be economically viable while being economically accessible to the public.

The department of pharmaceutics and microbiology of UGSOP was tasked with the responsibility of generating a prototype for testing, iteration and validation. To that end, the pharmaceutics laboratory was repurposed as the production unit for Pharmol. A dossier was generated for both gel and liquid-based products and subsequently submitted to the FDA for approval.

Beyond the need to meet the regulatory requirements of the FDA, the production and marketing of the sanitisers had to conform with the internal policies of the University of Ghana, which has a fiduciary responsibility for all products emanating from its outfit. The branding policy of the university impacted upon the design of labels for the product.

Pricing

Pharmol, also known as UG Sanitiser, prompted the finance unit of the university to vet the business continuity case for the product, and secure approval of the School Management Committee over the production and procurement plans.

Consequently, the UG sanitisers are now available for bulk purchase at competitive wholesale prices. However, although the products were initially available for wholesale purchase, they are now retailed to the university community and the public at a unit cost of GHS15 (US$2.6) for the 200 ml hand gel, and GHS40 and GHS150 for the one litre and four litre spray sanitiser respectively.

Next steps – Commercialisation of university products

Several lessons have been gleaned within the two months of this venture. The major hurdle was the conversion of the school’s laboratory into an industry-scale production unit. Since most of the equipment available to the team was only primed to meet small-scale production, there was a need to retool the laboratory.

Thanks to the ingenuity of the pharmaceutics and microbiology department, coupled with the relationship of UGSOP and major pharma companies in Ghana, large-scale equipment was recently mounted. This has shortened the production time and improved efficiency. The release of funds from the finance department of UGSOP has also facilitated bulk acquisition of consumables. This will help cushion the products against price volatility.

Some of the constructive feedback received thus far includes the need to promote re-use and recycling of containers; product placement across the country; use of digital channels for sale and delivery of products, among others.

UGSOP has been buoyed by the success story of Pharmol and plans are afoot to expand the school’s product range to include hand rub (PharmRub) and detergent (PharmaDet). Beyond meeting a critical need in the country, the venture promises to enhance the fortunes of the school’s internally generated funds.

The initiative was presented in the recently launched “Student Business Fiesta Seminars”, a virtual seminar for deliberations on COVID-19. Debates and suggestions were held with over 90 participants from all corners of the world on 1 May.

One overarching theme was the need to renegotiate with the relevant authorities to align the regulatory framework of the FDA with the institutional requirements of the university and to forge a spinoff organisation that could become an enterprise bringing together the expertise of different players from the School of Pharmacy, School of Public Health and College of Humanities – notably the department of marketing and entrepreneurship.

Professor Robert E Hinson is the Acting Director of Institutional Advancement at the University of Ghana; Dr Paul Owusu Donkor is a lecturer at the School of Pharmacy at the University of Ghana; and Dr Nnamdi Madichie is currently Visiting Professor of Marketing & Entrepreneurship at the Unizik Business School, Awka, Nigeria.