Bada Pharasi, CEO of the Innovative Pharmaceutical Association of South Africa (IPASA), discusses the scientific achievements of South African Pharma, and how it is leading the way on the continent.
South Africa’s pharmaceutical industry is at the forefront of scientific advancement and constantly provides the country with innovative medical treatments, while investing in the latest research and development (R&D), and supporting employment and skills transfer initiatives. It has also led South Africa to become a regional hub for pharmaceutical development in Africa.1
South Africa as a regional hub and HQ
“Innovative multinational pharmaceutical companies (MNCs) are increasingly looking at South Africa as a regional hub for managing pan-African commercial operations and centralising functions across the region,” says Pharasi. “By encouraging this high value-adding sector to base their regional headquarters here, the socio-economic benefits will be disproportionately greater than the local South African market value, with enhanced employment, knowledge transfer and investment value.”
The relatively good infrastructure and business-friendly environment, as compared to other Sub-Saharan African countries, has resulted in a significant and increasing number of MNCs viewing South Africa as a sound base to support other African member states in need – ensuring enhanced access to the MNCs’ pipeline of innovative therapies to benefit more patients across the region as well as extra GDP.2
More than 90% of MNCs indicated South Africa as their ‘regional HQ’. Up to 50% indicated that markets as distant as Mauritania are managed from South Africa.2
Senior roles emerging in South Africa
“A sizable portion of the regional revenues generated by MNCs are being led from operations within South Africa by senior and regional management roles that would otherwise be based in other countries,” says Pharasi.
South Africa as a critical knowledge base
Innovative Pharmaceutical MNCs are increasing their spend and sponsorship on healthcare programmes that target other member states from within South Africa. They do this by investing in existing skills and partnering with local specialists and the scientific community to train up experts in these other countries.2
South Africa – a hub for knowledge-based regional programmes
There has been a 10.2% annual growth in the number of healthcare programmes conducted from South Africa, targeting other countries between 2016 and 2021.2
Medical innovation
Pharasi says, “Pharmaceutical member companies of IPASA are constantly working on innovative new medicines to treat illnesses, and although some illnesses currently have no cure, advanced medical treatment is improving and extending the lives of patients, and new treatments are being developed all the time.”
IPASA member companies are also developing therapies to prevent a variety of conditions previously considered untreatable, including infectious diseases, various forms of cancer and neurological disorders.
Medicines developed by innovative pharma benefit millions of South Africans every day. For example, mortality rates for HIV/AIDS and TB in the country fell by 59.2% and 55.7% between 2007 and 2017.3 Currently, at least 60 new medicines are in the research and development (R&D) pipeline to treat TB.3
Chronic Leukaemia treatment has also seen increased survival rates. A drug was created to treat chronic myeloid leukaemia (CML). It was later found that the drug was even more beneficial when treating the disease earlier. Research also showed that the drug was useful in treating other forms of cancer. Patients are now living close to normal life spans and cancer death rates have declined by 27%. Approximately 73% of survival gains in cancer are attributable to new treatments, including medicines.3
Furthermore, 43% of South Africans’ deaths are caused by non-communicable diseases (NCDs) with a third of them being people under the age of 60, and many of the cases being related to cardiovascular disease. There are currently over 4 100 new medicines for NCDs in the research-based pharmaceutical pipeline, including heart disease, stroke, cancer, and more.3
Pharasi says, “IPASA member companies explore, develop and bring innovative, quality medicines to the South African market.” For example, Novartis launched Novartis Access, a portfolio of affordable medicines to treat chronic diseases in lower-income countries. In a first-of-its-kind portfolio approach within the healthcare industry, Novartis is increasing availability and affordability of 15 medicines to treat cardiovascular diseases, diabetes, respiratory illnesses and breast cancer.4
In another example, healthcare and pharmaceuticals group, MSD, has a vision to eradicate cervical cancer. The company is moving from just treating cancer to trying to prevent it, considering that almost one-third of deaths from cervical cancer occur in sub-Saharan Africa, a region that has only 14% of the world’s women.5
MSD has active programmes treating cervical cancer across 13 out of the 35 countries it operates in, but these were disrupted by the pandemic. In terms of augmenting global efforts in the fight against COVID-19, MSD is focusing on an investigation for an antiviral drug. It does not replace vaccinations, but should work hand in hand with them. It’s currently in the phase three clinical trial stage for the treatment of non-hospitalised patients with confirmed COVID-19.5
Investment, Sales and R&D
“MNCs spend a high proportion of sales on R&D compared to other sectors. That R&D delivers social and health benefits as well as financial stimulus for the South African economy,” notes Pharasi.
Pharasi says, “The volume and proportion of clinical research activity sets South Africa apart from its peers in the Middle East and Africa, as a more scientifically developed economy and society. This makes South Africa a regional focus for investment, education, and access to innovative health solutions; improving South Africa’s ‘soft power’ within Africa and the global pharmaceutical community.”
It is clear that, apart from providing innovative medical treatment for South Africa and the African continent, MNCs play a significant and vital part in South Africa’s economy and an important role in the provision of sustainable and inclusive economic growth.6
References
1. Footprint Study March 2020. IMPACT OF INNOVATIVE MULTINATIONAL PHARMACEUTICAL COMPANIES OPERATING IN SOUTH AFRICA – Longitudinal Study Commissioned by Innovative Pharmaceutical Association South Africa (IPASA), p.1
2. Ibid, p.28
3. Ibid, p.1
4. Financial Mail 2021. PROFILE: ZWELETHU BASHMAN IS FIGHTING COVID AND CANCER, by Patrick Wadula. P.3
5. Ibid, p.3
6. Footprint Study March 2020. IMPACT OF INNOVATIVE MULTINATIONAL PHARMACEUTICAL COMPANIES OPERATING IN SOUTH AFRICA – Longitudinal Study Commissioned by Innovative Pharmaceutical Association South Africa (IPASA), p.1
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