Page 15 - IDC

6 CITY PRESS, 28 AUGUST, 2016
ALL BOXED UP A worker at Specpharm in Midrand packages medication for distribution
Fighting
HIV IN SA
Overseas suppliers are driving the high cost of ARVs, but one local firm
is giving the medical playing field an overhaul, writes Zinhle Mapumulo
outh Africa is in dire need of a steady supply of
quality and affordable antiretroviral (ARV) drugs.
The country has the largest ARV programme in
the world, with more than 3.6 million patients
accessing the life-saving medication in the public
Shealthcare sector alone.
This figure is expected to increase significantly by the end of
this year as the government rolls out its test-and-treat campaign,
which is likely to increase the patient load by up to a million
people in the next few months.
But despite the enormous volumes of medication involved in its
HIV-treatment programme, South Africa still relies on
international pharmaceutical companies for the active
components in the ARVs.
None of the local pharmaceutical companies that supplies the
medication to public clinics and hospitals produces them.
Instead, they buy the ingredients that go into ARVs (called
active pharmaceutical ingredients, or API) and formulate them
into tablets, meaning the real winners are the international
pharmaceutical companies.
However, that may soon change as a group of black
pharmaceutical manufacturers are rallying together to change the
status quo.
Specpharm, a black-owned pharmaceutical company employing
230 people – from packers to highly skilled chemical engineers –
is one of those companies giving the medical playing field an
overhaul.
Speaking to City Press this week, its managing director,
Dr Eugene Lottering, said the idea of opening a local, active
pharmaceutical ingredients manufacturing plant was long
overdue.
“Antiretroviral drugs are the largest sold medicines in South
Africa,” he said. “About 75% to 80% of the price of the ARV drug
goes towards the purchasing of the active ingredient. This means
that billions of rands leave this country to go to international
pharmaceutical manufacturers.”
Currently, four local pharmaceutical companies – Sonke
Pharmaceuticals, Mylan Pharmaceuticals, Aspen Pharma and
Cipla Medpro – share the R14.2 billion ARV tender to supply drugs
to public hospitals and clinics. All these companies import the
active ingredients that go into the ARVs from India and China.
Lottering said the problem with this was that ARV prices
changed whenever the rand weakened against the dollar.
“For example, if the exchange rate at the time of going to
tender is R11 to the dollar and the exchange rate suddenly
switches to R16 to the dollar, the price has to go up – otherwise
we are not going to generate profit from selling it to government.
“The government would then be forced to pay local
manufacturers more than was agreed when the tender was
awarded.
“But if we make the active ingredients locally, those price
changes that happen owing to importation are no longer a
significant factor. The price remains stable and you have security
of supply of the medication you want as a consumer,” he said. “We are looking at importing a technology called continuous
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
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
German company that develops the technology needed to stages of finalising the licensing agreement.”
produce APIs. Lottering expected it to be finalised next month, paving the
A has to deal with lifestyle diseases, which were previously
PROJECT IN
PARTNERSHIP
WITH THE
IDC
PHOTO: ELIZABETH SEJAKE
GET FUNDED!
The IDC can help you get your business idea off the ground or
take your existing business to the next level.
Call 0860 693 888 or email callcentre@idc.co.za.
The sectors the IDC operates in are:
. Agroprocessing and agriculture
. Automotive and transport equipment
. Basic metal and mining
. Basic and speciality chemicals
. Chemical products and pharmaceuticals
. Clothing and textiles
. Heavy manufacturing
. Industrial infrastructure
. Light manufacturing and tourism
. Machinery and capital equipment
. Media and motion pictures
. New industries
way for the BPMA to submit the proposal to the IDC for
funding.
Bringing such technology into the country comes with a hefty
price tag, something that the BPMA members cannot afford, and
they have turned to the IDC to fund their venture. The IDC is
Eugene Lottering now a 35% shareholder in Specpharm.
The IDC also has an interest in API manufacturing.
“The IDC is supportive of the idea. We are waiting for
Specpharm to finalise their agreement with Fluxpharm so that we
can consider the investment,” she said.
Lottering was hoping that the IDC would give them a chance.
“We are trying to solve a huge problem through this project.
You can’t have the biggest ARV programme in the world with the
active ingredient coming from international pharmaceutical
producers, when we have the capability to make it locally,” he
said.
He explained that the benefit of this would be great for South
Africans.
“For example, if the government says there is a shortage of
ARVs right now, it would take us at least two months to get the
APIs imported and another month to formulate them into tablets.
But if the APIs were manufactured locally, it would take us a few
days to supply,” Lottering said.
Four years ago, the IDC joined a task team that formed Project
Ketlaphela, which would have established the first pharmaceutical
plant able to manufacture APIs in South Africa.
The in-progress project could be funded by a capital investment
of up to R1 billion by various state institutions, including the IDC.
Sonia Keulder, head of chemical products and pharmaceuticals
at the IDC, said they were looking forward to receiving the
business proposal.
Sonia Keulder Lottering is not worried about how this would affect the
Ketlaphela project. He said the BPMA had adopted an inclusive
Lottering said talks were at an advanced stage. approach, rather than a competitive one.
“Ketlaphela is a state-owned company trying to do something
with the technology distributors out of Germany to explain what
the technology is about.
“We have support from them and they are interested in
participating in it as well,” he said.
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
only a concern in developed countries.
The World Health Organisation estimates that by 2030,
diseases such as cancer, heart disease and diabetes will
kill more people on the continent than all the infectious
diseases combined.
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
world, largely because of the high cost and unavailability
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.
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
R690m
THE AMOUNT THE IDC
INVESTED IN THE
PHARMACEUTICAL SECTOR
IN THE FIVE YEARS UNTIL
MARCH 2016
14
TOTAL NUMBER OF
BUSINESSES SUPPORTED
481
NUMBER OF JOBS
CREATED
WHERE THESE
BUSINESSES ARE:
GAUTENG
10
WESTERN CAPE
3
NORTH WEST
1