Pharmaceuticals Made in South Africa (Pharmisa) has urged the health department to ensure domestic players are included in its next medicine tenders, warning that failure to do so will undermine the country’s drug manufacturing capacity.
Bids for two key tenders — one for childhood vaccines and the other for tablets and capsules — are currently being considered by the health department, which has drawn fire for excluding several well-established local manufacturers from its latest Aids drug tender. The childhood vaccine tender is the second biggest by value after the R15.5bn Aids drug tender.
The R15.5bn Aids drug tender is being challenged in court by two pharmaceutical manufacturers that failed to secure contracts for the daily three-in-one pill taken by most HIV patients in South Africa, which accounts for about 80% of the tender’s value.
MPs have also criticised the department’s selection of suppliers, with parliament’s portfolio committee on health challenging its assertion that it is procuring at least 70% of its antiretroviral medicines from local companies. The committee said last week its assessment of local manufacturing content put the figure at just 30%. It said five successful bidders — Innovata, Barrs, Emcure, Aurobindo, and Viatris — were importing antiretrovirals from India rather than making them in South Africa.
Pharmisa is an industry association that counts Aspen Pharmacare, Adcock Ingram, and Biovac among its members.
“Pharmisa has noted with concern the ongoing erosion of important, life-saving pharmaceutical capacity because of the non-strategic implementation of public pharmaceutical procurement policy,” it said.
“The award of the recent antiretroviral contract has further exacerbated this concern, as significant capacity has been lost due to many local manufacturers not receiving any award,” said Pharmisa. Local firms that lost out include Adcock Ingram, Sun Pharma and Cipla Medpro, which has joined Hetero SA in challenging the Aids drug tender in court.
Pharmisa has noted with concern the ongoing erosion of important, life-saving pharmaceutical capacity because of the non-strategic implementation of public pharmaceutical procurement policy.
— Pharmaceuticals Made in South Africa.
Pharmisa said failure to implement preferential procurement in a transparent, clear way would further dilute scarce South African capacities, accelerate disinvestment and deter future investors who require policy certainty, clarity and implementation.
“It is very possible for the government to procure from local manufacturers and at the same time procure cost-effectively; [We] hope the vaccine and oral solid dose tenders will be adjudicated in a way that promotes the use of our local capacities and curbs fronted imports that are harmful to our economy,” it said.
The tender for childhood vaccines is due to start in January 2027, while the oral solid dose tender for tablets and capsules will kick off in May.
Business Day
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