SA pharma still attractive for foreign investors

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It recently acquired local generics company, Pharma Dynamics, to expand its local operations in the areas of anti-infective, respiratory, female healthcare, complex molecules and speciality products.

The deal effectively doubles Pharma Dynamics’s product pipeline.

Global presence

Lupin’s global manufacturing operations are spread across India, the USA and Japan, and it supplies active pharmaceutical ingredients (APIs) and formulations approved by pharmaceutical regulatory authorities like the American Food and Drugs Administration, World Health Organisation, Medicines and Healthcare products Regulatory Agency (UK), Therapeutic Goods Authority (Australia), Ministry of Health, Labour and Welfare (Japan), National Health Surveillance Agency (Brazil) and the Medicines Control Council (South Africa).

Erik Roos, newly appointed CEO of Pharma Dynamics says Lupin’s global presence means the company is also able to harness the potential of global sourcing as a way to further reduce the cost of medicine.

Tapping into skills

“Its continued investment into the development and distribution of generics will stimulate competition and ultimately provide greater access to quality medicines at a fraction of the cost of brand-name equivalents.”

“Other advantages of Lupin’s global footprint, include tapping into skills or resources unavailable domestically, developing alternative supplier or vendor sources to further stimulate competition and increasing total supply capacity. This all underscores the importance given by the National Department of Health to strengthening healthcare in the country, by ensuring availability of medicines to consumers at pocket-friendly prices,” says Roos.

New products

Apart from manufacturing pharmaceuticals, Lupin also employs 1,700 scientists who are engaged in research and development activities in generics research, process research, pharmaceutical research, advanced drug delivery Systems (ADDS) research, novel drug discovery and development (NDDD) and biotechnology research, which means Pharma Dynamics will gain access to the latest in new-generation generics, including biosimilars.

According to Roos some significant launches are on the horizon for 2018/2019, which will open up new markets for the firm.

Improving the country’s economic outlook

In addition, he believes that the local pharmaceutical industry has an important role to play in improving the country’s economic outlook and that foreign investment by multinationals such as Lupin remain critical to the country’s future success.

“South Africa’s pharma market as a whole is estimated to have a value of R59,6bn and big pharmaceutical companies continue to invest heavily into South Africa – the impact of which has caused a positive ripple effect across the economy, especially if one considers that the local pharmaceutical manufacturing sector employs and supports a total of 11,000 jobs across the country. The jobs that the industry creates involve a range of skills, from suppliers, retail to personal services and require a workforce with diverse skills and education levels from PhD scientists, entry-level technicians, to sales and support staff of all kinds.

“Ultimately, the pharmaceutical industry helps to support a vibrant economic ecosystem that is vital to the South African economy and our country’s competitiveness in the global market,” concludes Roos.