INDUSTRY TALK
South African pharma – a powerful destination for multinational investment In March 2020, IPASA commissioned a longitudinal study among its members to assess the impact of innovative multinational pharma companies operating in South Africa. The scientific achievements of local pharma companies are clear from the study data, underlining several areas where South Africa is a frontrunner on the continent, from increasing the availability of live-saving treatments to stimulating the economy.
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outh Africa’s pharma industry is at the forefront of scientific advancement and constantly provides the country with innovative medical treatments. Industry players also invest in the latest research and development and support employment and skills transfer initiatives. These are just some of the reasons why South Africa is perfectly positioned to become a regional hub for pharmaceutical development in Africa.1 Bada Pharasi, CEO of the Innovative Pharmaceutical Association of South Africa (IPASA), explains: “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 territory. By encouraging this high Bada Pharasi, CEO of IPASA value-adding sector to base its 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.” Compared to other Sub-Saharan African countries, the relatively good infrastructure and business-friendly environment of
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"Innovative pharma MNCs are increasing their spend and sponsorship on healthcare programmes" South Africa have resulted in a significant and increasing number of MNCs viewing our country as a reliable base from which to support other African member states in need. This ensures enhanced access to the pipeline of innovative therapies of MNCs, benefitting more patients across the country and contributing additional GDP. 2
A CRITICAL KNOWLEDGE BASE “A sizable portion of the regional revenues generated by MNCs are being led from operations within South Africa by senior and regional management roles, which would otherwise be based in other countries,” Pharasi explains. Innovative pharma MNCs are increasing their spend and sponsorship on healthcare programmes, which target other member states from within our country. They do this
NOVEMBER/DECEMBER 2021 // WWW.PHARMACOS.CO.ZA
by investing in existing skills and partner with local specialists and the scientific community to train and up-skill experts in those other countries. 2 Between 2016 and 2021, the number of healthcare programmes conducted from South Africa which targeted other countries, grew by 10.2% annually.2
MEDICAL INNOVATION SAVES LIVES “Pharmaceutical member companies of IPASA are constantly working on innovative medicines to treat illnesses,” comments Pharasi, adding that although some illnesses currently have no cure, advanced medical treatment is improving and extending the lives of patients, while new treatments are being developed all the time. The association’s member companies are also developing therapies to prevent a variety of conditions previously considered untreatable, including infectious
Did you know? Products from SA’s innovative multinational pharma companies generate substantial revenues for manufacturers, distributors and other suppliers. Since 2016, these revenues have grown annually by 3.6% on average. By the end of this year, these pharma companies will have generated over R20.6bn in revenue for their manufacturing and distribution partners and other direct business partners.
