- Language: English
- 92 Pages
- Published: February 2012
- Region: Nigeria
South Africa Pharmaceuticals and Healthcare Report Q2 2012
- Published: April 2012
- Region: Africa, South Africa
- 104 Pages
- Business Monitor International
South Africa Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on South Africa's pharmaceuticals and healthcare industry.
South Africa is one of the most developed markets in the region from a business environment and regulatory standpoint. However, vast income disparity within the population has created a two-tier healthcare system that is leading to tension between stakeholders and putting pressure on private healthcare providers. South Africa will continue to be the best place for drugmakers to base their Sub- Saharan operations, but the domestic market still requires reforming to realise its potential.
Headline Expenditure Projections
- Pharmaceuticals: ZAR27.14bn (US$3.74bn) in 2011 to ZAR29.68bn (US$3.71bn) in 2012; +9.4% in local currency and -0.7% in US dollar terms.
Forecast in US dollar terms is down significantly due to forecast depreciation in the rand.
- Healthcare: ZAR261.51bn (US$36.01bn) in 2011 to ZAR285.83bn (US$35.73bn) in 2012; +9.3% in local currency terms and -0.8% in US dollar terms.
Historic data up slightly from Q112 and forecast in US dollar terms is down significantly.
- Medical devices: ZAR11.01bn (US$1.52bn) in 2011 to ZAR11.74bn (US$1.47bn) in 2012; +6.6% in local currency terms and -3.2% in US dollar terms. Forecast in US dollar terms is down significantly.
With a calming in the political environment of the Gulf Cooperation Council (GCC) countries, BMI has revised up the Pharmaceutical Risk/Reward Ratings (RRRs) of some of the countries of the GCC, which have overtaken South Africa. It has also had a decrease in its score from 57.0 out of 100 in Q112 to 55.5 in Q212. Globally, South Africa ranks 38th out of 95 countries surveyed, down from 31st in Q112, as even though the country’s score only decreased slightly, the scores for markets around it improved.
Key Trends And Developments
- Local news sources have reported that a joint venture has been proposed involving the government, Lonza and state-owned company Pelchem, contributing ZAR1bn (US$130mn), ZAR500mn (US$65mn) and ZAR100mn (US$13mn) respectively. Lonza has not commented on any of the figures involved but has confirmed that Pelchem, a subsidiary of the South African Nuclear Energy Corporation, is involved in discussions. Lonza said talks had not finished but it did confirm negations are underway.
- In mid-January 2012, local news agencies reported that hospitals in the Gauteng province of South Africa had debts of over ZAR403.8mn (US$50.5mn), which is owed to various members of the South African Medical Devices Industry Association (SAMED). Some of these debts have reportedly been outstanding for three years and they are seriously jeopardising the viability of some small and medium-sized enterprises (SMEs). Although there were some statements in the media that the hospitals had cleared much of their debt, it turned out that this was with suppliers such as the blood service and not with the medical device manufactures, which are threatening to withdraw supplies if payments are not forthcoming.
- In January 2012, the North Gauteng high court ordered the cancellation of the registered trademark of Andosept, a pharyngeal product by Aspen Pharmacare. The court found the drug’s trademark was similar to Australian company Wirra’s product Andolex (benzydamine hydrochloride). The court asked the Registrar of Trade Marks to remove Aspen’s trademark registration from the register, which will signal the end of Aspen’s sale of the product.
BMI Economic View:
We retain our outlook for slow but steady economic growth in South Africa, following a visit to Johannesburg and Pretoria in mid-March. Businesses continue to look to the wider Sub-Saharan Africa (SSA) region for growth opportunities, while on the domestic front the powerful unions are flexing their muscles.
BMI Political View:
The coming year will likely be a testing one for the African National Congress (ANC). The party will hold a crucial conference in December 2012 where its presidential candidate for the 2014 election will be selected. At this stage, we see President Jacob Zuma being in pole position. In the meantime, there is likely to be months of infighting as the various contenders for the candidacy jostle for position. Attention will likely be diverted away from key development initiatives for public services and job creation. SHOW LESS READ MORE >
South Africa Pharmaceuticals And Healthcare Industry SWOT
South Africa Political SWOT
South Africa Economic SWOT
South Africa Business Environment SWOT
Pharmaceutical Risk/Reward Ratings
Table: Middle East And Africa Pharmaceutical Risk/Reward Ratings, Q212
South Africa – Market Summary
Table: Drug Classification System
Intellectual Property Environment
Table: Tiered Pharmaceutical Pricing System Is Better Than A Flat Fixed Mark Up
Table: Single Exit Price Inflation, 2008-2011
National Health Insurance Scheme
Public Healthcare Reform
Private Healthcare Regulation
National Health Reference Price List
Government Health Insurance
Research & Development Sector
Traditional African Medicine
Table: Customs Classification Of Medical Devices
Regional Developments In The Medical Devices Sector
Industry Forecast Scenario
Overall Market Forecast
Table: Pharmaceutical Sales, 2008-2016
Key Growth Factors – Industry
Table: Overall Healthcare Expenditure, 2008-2016
Table: Governmental Healthcare Expenditure, 2008-2016
Table: Private Healthcare Expenditure, 2008-2016
Key Growth Factors – Macroeconomic
Table: South Africa Economic Activity, 2011-2016
Prescription Drug Market Forecast
Table: Prescription Drug Sales, 2008-2016
Patented Drug Market Forecast
Table: Patented Drug Sales, 2008-2016
Generic Drug Market Forecast
Table: Generic Drug Sales, 2008-2016
OTC Medicine Market Forecast
Table: OTC Medicine Sales, 2008-2016
Medical Device Market Forecast
Table: Medical Device Sales, 2008-2016
Pharmaceutical Trade Forecast
Table: Pharmaceutical Trade, 2008-2016
Other Healthcare Data
Key Risks To BMI’s Forecast Scenario
Pharmaceutical Sector Developments
Retail Pharmacy Sector
Cipla Medpro (formerly Enaleni)
Merck & Co
Country Snapshot: South Africa Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Wages, 2000-2012
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Risk/Reward Ratings Methodology
Table: Pharmaceutical Business Environment Indicators
Table: Weighting Of Components
- Aspen Pharmacare
- Adcock Ingram
- Cipla Medpro (formerly Enaleni)
- Merck & Co