Aspen, Adcock Ingram and other South African generic
drugmakers stand to benefit from the introduction of a more efficient
regulator and retailer Clicks’s expansion plans, BMI Research said in a
note released on Wednesday.
BMI estimated generic drugs sales in SA totalled R16.2bn in 2016, and expected this to grow to R40bn by 2026, equating to a compound annual growth rate of 9.5%.
This growth will partly be thanks to the South African Health Products Regulatory Agency (Sahpra) replacing the Medicines Control Council (MCC) in April — if government meets its deadline.
The new regulator’s first task will be to clear the backlog of 2,900 applications awaiting registration by the MCC.
"The launch of Sahpra will see generic products being fast-tracked and brought to market much sooner than before, making newer generation molecules available to patients at a fraction of the cost," the report quotes Pharma Dynamics’ CEO Erik Roos saying.
But BMI’s report noted that the establishment of Sahpra has faced continuous delays since its approval in 2008, partly due to significant opposition from multinational drug makers.
"Should the transition go ahead, new laws will be implemented resulting in lower drug prices for individuals and the government through cutting out patents and stimulating competition from generic drug makers," it was noted in the report.
Another boon for local generic medicine makers is retailer Clicks’s aggressive roll-out plans.
BMI estimated Clicks grew its share of the South African pharmaceutical market to 19.6% last year from 18.7% in 2015. The research company expects Clicks to grow its market share further with its plan to invest R577m this financial year on new pharmacies and improving existing stores.
Clicks said in its recent results it planned to open 30-35 new pharmacies in 2017, supplementing the 511 pharmacies recorded at the end of 2016.
Highlighting the company’s commitment to expansion, 26 new standalone stores and 40 in-store pharmacies were opened in its past financial year.
Clicks has a combined presence of 25 pharmacies in neighbouring Namibia, Swaziland, Botswana and Lesotho.
BMI estimated generic drugs sales in SA totalled R16.2bn in 2016, and expected this to grow to R40bn by 2026, equating to a compound annual growth rate of 9.5%.
This growth will partly be thanks to the South African Health Products Regulatory Agency (Sahpra) replacing the Medicines Control Council (MCC) in April — if government meets its deadline.
The new regulator’s first task will be to clear the backlog of 2,900 applications awaiting registration by the MCC.
"The launch of Sahpra will see generic products being fast-tracked and brought to market much sooner than before, making newer generation molecules available to patients at a fraction of the cost," the report quotes Pharma Dynamics’ CEO Erik Roos saying.
But BMI’s report noted that the establishment of Sahpra has faced continuous delays since its approval in 2008, partly due to significant opposition from multinational drug makers.
"Should the transition go ahead, new laws will be implemented resulting in lower drug prices for individuals and the government through cutting out patents and stimulating competition from generic drug makers," it was noted in the report.
Another boon for local generic medicine makers is retailer Clicks’s aggressive roll-out plans.
BMI estimated Clicks grew its share of the South African pharmaceutical market to 19.6% last year from 18.7% in 2015. The research company expects Clicks to grow its market share further with its plan to invest R577m this financial year on new pharmacies and improving existing stores.
Clicks said in its recent results it planned to open 30-35 new pharmacies in 2017, supplementing the 511 pharmacies recorded at the end of 2016.
Highlighting the company’s commitment to expansion, 26 new standalone stores and 40 in-store pharmacies were opened in its past financial year.
Clicks has a combined presence of 25 pharmacies in neighbouring Namibia, Swaziland, Botswana and Lesotho.
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