Page 11 - IDC
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6                                                                                                                                                                                                     CITY PRESS, 28 AUGUST, 2016


                                                                                                                                                                                                              Local



                                                                                                                                                                                                 medicine



                                                                                                                                                                                      goes nuclear





                                                                                                                                                                                    There are more than 7 billion people in the world and just
                                                                                                                                                                                    over 1 billion of them live in Africa, yet the continent
                                                                                                                                                                                    carries a quarter of the world’s disease burden.
                                                                                                                                                                                      Despite having infectious diseases such as HIV,
                                                                                                                                                                                    tuberculosis and malaria to contend with, Africa now also
                                                                                                                                                               A                    has to deal with lifestyle diseases, which were previously
                                                                                                                                                       PROJECT  IN                  only a concern in developed countries.
                                                                                                                                                                                      The World Health Organisation estimates that by 2030,
                                                                                                                                                      PARTNERSHIP                   diseases such as cancer, heart disease and diabetes will
                                                                                                                                                        WITH  THE                   kill more people on the continent than all the infectious
                                                                                                                                                                                    diseases combined.
                                                                                                                                                        IDC                         capacity for pharmaceutical research and local drug
                                                                                                                                                                                      Calls have been increasing for Africa to strengthen its
                                                                                                                                                                                    production to withstand the emerging double epidemic.
                                                                                                                                                                                    Two years ago, the UN Economic Commission for Africa
                                                                                                                                                                                    revealed that out of 54 African countries, only 37 have
                                                                                                                                                                                    some sort of pharmaceutical production – with South
                                                                                                                                                                                    Africa having the most well-established companies.
                                                                                                                                                                                      Local technology company, Klydon, and Maono
                                                                                                                                                                                    Molybdos – part of a leading black consortium active in
                                                                                                                                                                                    nuclear medicine – have responded to this call. The
                                                                                                                                                                                    companies, in partnership with the Industrial
                                                                                                                                                                                    Development Corporation (IDC), are currently constructing
                                                                                                                                                                                    a highly advanced Molybdenum isotope (used in medical
                                                                                                                                                                                    nuclear imaging) separation plant.
                                                                                                                                                                                      Nuclear medicine uses radiation to provide diagnostic
                                                                                                                                                                                    information about the functioning of a person’s specific
                                                                                                                                                                                    organs, or to treat them. Diagnostic techniques in nuclear
                                                                                                                                                                                    medicine use radioactive tracers, which emit gamma rays
                                                                                                                                                                                    from within the body. These tracers are generally short-
                                                                                                                                                                                    lived isotopes linked to chemical compounds that allow
                                                                                                                                                                                    specific physiological processes to be observed. They can
                                                                                                                                                                                    be delivered orally, by inhalation or by injection.
                                                                                                                                                                                      Molybdenum isotopes will be used to produce a
                                                                                                                                                                                    technetium radioactive tracer for medical imaging, mostly
                                                                                                                                                                                    used to detect cancer and other infections. Technetium
                                                                                                                                                                                    scanning is the workhorse of nuclear medicine. Early
                                                                                                                                                                                    detection of cancer and other diseases gives patients a
                                                                                                                                                                                    better shot at survival, and contributes to reducing the
                                                                                                                                                                                    burden associated with these diseases.
                                                                                                                                                                                      Nelis Geyer from the IDC said: “This development will
                                                                                                                                                                                    transform the global industry, solving numerous problems
                                                                                                                                                                                    being encountered by the existing nuclear reactor-based
                                                                                                                                                                                    route to produce radioactive tracers.
                                                                                                                                                                                      “Nuclear medicine is undeveloped in the developing
         ALL  BOXED  UP  A  worker  at  Specpharm  in  Midrand  packages  medication  for  distribution                                         PHOTO:  ELIZABETH  SEJAKE           world, largely because of the high cost and unavailability
                                       Fighting                                                                                                                                     companies. The institution has always focused on companies
                                                                                                                                                                                    of radiopharmaceuticals, and this development is ideally
                                                                                                                                                                                    placed to address these challenges.”
                                                                                                                                                                                      The IDC has a long history of funding pharmaceutical
                                                                                                                                                                                    that develop medication for priority diseases such as HIV,
                                                                                                                                                                                    tuberculosis and malaria, among other illnesses.
                                                                                                                                                                                      Now it is adapting its focus to include radiopharmaceutical
                                                                                                                                                                                    medicine which will be beneficial considering the increase in
                                                                                                                                                                                    the number of cancer cases in Africa.
                                                                                                                                                                                      Radiopharmaceutical medicine is used to detect cancer
                                                                                                                                                                                    early, a move that Sonia Keulder, head of chemical
                                                                                                                                                                                    products and pharmaceuticals at the IDC, says will not
                                                                                                                                                                                    only benefit South Africa but also the continent.
                                              HIV IN SA                                                                                                                             area of growth is in radiopharmaceuticals.
                                                                                                                                                                                      “If you look at the world’s pharmaceutical focus, an
                                                                                                                                                                                      “If we can allow for manufacturing capacity and
                                                                                                                                                                                    capability in South Africa, we should be able to meet the
                                                                                                                                                                                    continent’s demand in future and beyond,” she said. –
                                                                                                                                                                                    Zinhle Mapumulo



            Overseas suppliers are driving the high cost of ARVs, but one local firm                                                                                                R690m

           is giving the medical playing field an overhaul, writes Zinhle Mapumulo

                                                                                                                                                                                         THE AMOUNT THE IDC
                    outh Africa is in dire need of a steady supply of                                           GET FUNDED!                                                                 INVESTED IN THE
                    quality and affordable antiretroviral (ARV) drugs.                                          The  IDC  can  help  you  get  your  business  idea  off  the  ground  or
                     The country has the largest ARV programme in                                               take  your  existing  business  to  the  next  level.                PHARMACEUTICAL SECTOR
                    the world, with more than 3.6 million patients                                              Call  0860 693 888  or  email  callcentre@idc.co.za.
                    accessing the life-saving medication in the public                                          The  sectors  the  IDC  operates  in  are:                            IN THE FIVE YEARS UNTIL
         Shealthcare sector alone.                                                                              . Agroprocessing  and  agriculture                                               MARCH 2016
           This figure is expected to increase significantly by the end of                                      . Automotive  and  transport  equipment
         this year as the government rolls out its test-and-treat campaign,                                     . Basic  metal  and  mining
         which is likely to increase the patient load by up to a million                                        . Basic  and  speciality  chemicals
         people in the next few months.                                                                         . Chemical  products  and  pharmaceuticals                                         14
           But despite the enormous volumes of medication involved in its                                       . Clothing  and  textiles
         HIV-treatment programme, South Africa still relies on                                                  . Heavy  manufacturing
         international pharmaceutical companies for the active                                                  . Industrial  infrastructure                                              TOTAL NUMBER OF
         components in the ARVs.                                                                                . Light  manufacturing  and  tourism
           None of the local pharmaceutical companies that supplies the                                         . Machinery  and  capital  equipment                                 BUSINESSES SUPPORTED
         medication to public clinics and hospitals produces them.                                              . Media  and  motion  pictures
           Instead, they buy the ingredients that go into ARVs (called                                          . New  industries
         active pharmaceutical ingredients, or API) and formulate them                                                                                                                         481
         into tablets, meaning the real winners are the international
         pharmaceutical companies.                                                                               way for the BPMA to submit the proposal to the IDC for
           However, that may soon change as a group of black                                                     funding.
         pharmaceutical manufacturers are rallying together to change the                                         Bringing such technology into the country comes with a hefty              NUMBER OF JOBS
         status quo.                                                                                             price tag, something that the BPMA members cannot afford, and
           Specpharm, a black-owned pharmaceutical company employing                                             they have turned to the IDC to fund their venture. The IDC is                     CREATED
         230 people – from packers to highly skilled chemical engineers –   Eugene  Lottering                    now a 35% shareholder in Specpharm.
         is one of those companies giving the medical playing field an                                            The IDC also has an interest in API manufacturing.                         WHERE THESE
         overhaul.                                                                                                “The IDC is supportive of the idea. We are waiting for
           Speaking to City Press this week, its managing director,                                              Specpharm to finalise their agreement with Fluxpharm so that we           BUSINESSES ARE:
         Dr Eugene Lottering, said the idea of opening a local, active                                           can consider the investment,” she said.
         pharmaceutical ingredients manufacturing plant was long                                                  Lottering was hoping that the IDC would give them a chance.
         overdue.                                                                                                 “We are trying to solve a huge problem through this project.                GAUTENG
           “Antiretroviral drugs are the largest sold medicines in South                                         You can’t have the biggest ARV programme in the world with the
         Africa,” he said. “About 75% to 80% of the price of the ARV drug                                        active ingredient coming from international pharmaceutical
         goes towards the purchasing of the active ingredient. This means                                        producers, when we have the capability to make it locally,” he
         that billions of rands leave this country to go to international                                        said.
         pharmaceutical manufacturers.”                                                                           He explained that the benefit of this would be great for South                   10
           Currently, four local pharmaceutical companies – Sonke                                                Africans.
         Pharmaceuticals, Mylan Pharmaceuticals, Aspen Pharma and                                                 “For example, if the government says there is a shortage of
         Cipla Medpro – share the R14.2 billion ARV tender to supply drugs                                       ARVs right now, it would take us at least two months to get the
         to public hospitals and clinics. All these companies import the                                         APIs imported and another month to formulate them into tablets.
         active ingredients that go into the ARVs from India and China.                                          But if the APIs were manufactured locally, it would take us a few     WESTERN CAPE
           Lottering said the problem with this was that ARV prices                                              days to supply,” Lottering said.
         changed whenever the rand weakened against the dollar.                                                   Four years ago, the IDC joined a task team that formed Project
           “For example, if the exchange rate at the time of going to                                            Ketlaphela, which would have established the first pharmaceutical
         tender is R11 to the dollar and the exchange rate suddenly                                              plant able to manufacture APIs in South Africa.
         switches to R16 to the dollar, the price has to go up – otherwise                                        The in-progress project could be funded by a capital investment
         we are not going to generate profit from selling it to government.                                      of up to R1 billion by various state institutions, including the IDC.                3
           “The government would then be forced to pay local                                                      Sonia Keulder, head of chemical products and pharmaceuticals
         manufacturers more than was agreed when the tender was                                                  at the IDC, said they were looking forward to receiving the
         awarded.                                                                                                business proposal.
           “But if we make the active ingredients locally, those price         Sonia  Keulder                     Lottering is not worried about how this would affect the               NORTH WEST
         changes that happen owing to importation are no longer a                                                Ketlaphela project. He said the BPMA had adopted an inclusive
         significant factor. The price remains stable and you have security   Lottering said talks were at an advanced stage.   approach, rather than a competitive one.
         of supply of the medication you want as a consumer,” he said.  “We are looking at importing a technology called continuous   “Ketlaphela is a state-owned company trying to do something
           Specpharm and other members of the Black Pharmaceutical   manufacturing technology from Germany,” he said.  in the private sector. We invited them to all the meetings we had
         Manufacturers’ Association (BPMA) have started to implement its   “The technology will enable us to compete with India and   with the technology distributors out of Germany to explain what
         plan to open an API plant. They have been in talks with a   China. We are licensing it from Fluxpharm and we are in the last   the technology is about.                                       1
         German company that develops the technology needed to   stages of finalising the licensing agreement.”   “We have support from them and they are interested in
         produce APIs.                                        Lottering expected it to be finalised next month, paving the   participating in it as well,” he said.
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