Axmed Cuts Drug Costs by 37% — And It's Just Getting Started

"I was 14, studying in Nigeria, when I learned that one of my classmates had died from malaria. I was shocked. A girl lost her life simply because she didn’t have access to medicine," Emmanuel recalled. "People can’t get the drugs they need simply because they live in the wrong place."

That experience planted a question in his heart: "What can I do about this?"

In pursuit of an answer, Emmanuel joined global pharmaceutical giant Novartis in 2019, tasked with reshaping its strategy for sub-Saharan Africa (SSA). He later became the region’s Chief Commercial Officer, leading a team of over 100 to improve access to medicines across 47 countries.

But after years of effort, he realized that the market for low- and middle-income countries—home to 6.5 billion people and accounting for nearly $500 billion in pharmaceutical spending—remained deeply fragmented. Complex regulations, inefficient supply chains, weak infrastructure, and limited funding made it difficult for even giants like Novartis to gain meaningful traction.

Still without a solution, Emmanuel returned to school—this time to Harvard Kennedy School for a Master’s in Public Administration.

$7 Million Startup

In 2022, Sofía left GlaxoSmithKline after seven years to pursue an MBA at Harvard Business School. There, she met Emmanuel, who shared her passion for equitable access to medicine.

"If life-saving drugs can’t reach the people who need them most, what’s their value?" Sofía asked. "Innovation doesn’t equal impact. Accessibility, affordability, and implementation are just as important."

In August 2023, Sofía, Emmanuel, and former Novartis colleague Felix co-founded Axmed, an AI-powered, bilateral B2B medicine procurement platform.

Sofia Radley-Searle（COO）、Emmanuel Akpakwu(CEO) 、Felix Ohnmacht (CCO)

By working with governments, NGOs, and global health agencies, Axmed aggregates demand and connects directly with pharmaceutical manufacturers—streamlining procurement, improving efficiency, and reducing prices. In a way, it's similar to China’s volume-based procurement model, but tailored for low-governance environments like those in many African nations.

"For low- and middle-income countries, it’s a win-win," said Sofía. "Suppliers gain market access, and buyers gain bargaining power. Technology unlocks economies of scale."

Emmanuel added: "We knew this path would be hard—but the urgency for change is far greater."

Two Major Investments in 18 Months

In November 2023, Axmed secured $5 million in funding from the Bill & Melinda Gates Foundation. The grant supported digital procurement of maternal and neonatal health (MNCH) drugs, supply chain infrastructure, and pilot testing in sub-Saharan Africa.

Then in May 2024, the company raised a $2 million seed round led by Swiss VC Founderful to expand its team and strengthen its technology stack.

In short: one investment paved the road; the other accelerated the journey—laying the foundation for a scalable, mission-driven procurement platform.

Surging Growth Even Before Platform Launch

In July 2024, Axmed officially registered its headquarters in Basel, Switzerland. Even before the platform’s launch, the company had delivered nearly one ton of medicines to its first client, reaching over 200,000 patients.

By the end of 2024, Axmed had partnered with over 20 organizations across 15 countries. It processed more than 4,200 orders, covering 4,000+ SKUs, and saved clients an average of 37% on medicine costs.

In early 2025, the Axmed Medicines platform officially launched. Within the first quarter, it had already attracted 162 registered users—including global pharma companies like Pfizer, Sanofi, and GSK, as well as public and faith-based health networks from countries such as Kenya, Uganda, and Nigeria.

By Q2 2025, the platform had delivered 25 million doses of essential medicines to nine countries, spanning antimalarials, oncology treatments, maternal health products, IV fluids, and diagnostic kits.

Three Structural Challenges on the Startup Journey

Despite impressive milestones, Axmed faces three major challenges: buyers’ limited funding, the complexity of cross-border logistics, and its own commercial sustainability.

To address funding gaps, Axmed built a transparent price-comparison mechanism and partnered with donors like the Gates Foundation to offer flexible payment terms.

In May 2025, Axmed received an additional $5 million in matched funding from the Gates Foundation. This 1:1 co-financing scheme will support up to $10 million in MNCH product procurement by governments, offering short-term liquidity to cash-strapped public health systems.

"In many countries, currency fluctuations mean the cost of medicine can spike 10% overnight. That makes repayment harder and scares off most players," Sofía explained. "Payment terms must be flexible. We have to understand our partners’ realities."

To solve logistics, Axmed built end-to-end delivery tracking—from factory to last mile. It collaborates with major local networks like Zipline to ensure efficiency and traceability.

"Logistics is a huge space for disruption, efficiency, and innovation," Sofía said. "We now offer logistics as a service—our own version of SaaS."

On sustainability, Axmed remains committed to offering the platform free to buyers. To offset the cost, it provides consulting services to pharma companies looking to enter emerging markets—offering strategic planning, regulatory analysis, and government engagement support.

"There’s a massive data gap that affects supplier decision-making—and that’s costly," said Sofía. "We’re investing in analytics and consulting as key growth drivers for the next five years."

Why Axmed Matters for Chinese Pharma

Africa’s rapidly growing population and rising healthcare demand present a significant opportunity for Chinese pharmaceutical, biotech, and vaccine companies. African markets are highly price-sensitive, which aligns well with the strengths of Chinese manufacturers.

Yet significant barriers remain: regulatory complexity, fragmented procurement systems, logistical hurdles, and limited government engagement experience.

Axmed’s platform and services can help Chinese companies break into these markets—offering regulatory pathways, demand aggregation, logistics support, and strategic consulting.

Today, Axmed’s main partners are in sub-Saharan Africa, including Kenya, Nigeria, Rwanda, Tanzania, and Ethiopia. The company plans to expand into Asia, Latin America, and the Caribbean.

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Author Bio

Zhang Ming （张铭）is a former journalist specializing in China’s venture capital and startup ecosystem, now based in Switzerland. Her work focuses on covering innovation, entrepreneurship, and investment trends between China and Europe, including in-depth interviews and industry insights—building a bridge between the two regions.