Who Owns Whom

The Pharmaceutical Industry in South Africa 2020

Carole Veitch | South Africa | 11 December 2020

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R 6 500.00(ZAR) estimated $ 413.69 (USD)*

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Report Coverage

This report focuses on the manufacture of pharmaceuticals in South Africa and includes the wholesale and retail trade in pharmaceutical products. It includes information on the state and size of the sector and influencing factors including the response to coronavirus, regulation, research and development and competition. There are profiles of 122 companies including international companies operating in South Africa such as Cipla, Sanofi and Novartis, major local manufacturers such as Aspen and Adcock Ingram and retailers including Clicks and Dis-Chem. Other profiles include state-owned South African Nuclear Energy Corporation, whose subsidiary NTP Radioisotopes is one of the world’s largest producers of medical radioisotopes and radioisotope-based diagnostic imaging and therapy products, and Alpha Pharm pharmacies, the largest group of independent community pharmacies in South Africa.

The Pharmaceutical Industry in South Africa

The pharmaceutical sector is dominated by multinational pharmaceutical companies. Although a greater variety of products is available in the private sector, the public health sector consumes the largest volume of pharmaceuticals. Vaccines and ARVs for HIV infection account for more than 50% of total public health sector expenditure on pharmaceuticals. While almost 70% of the pharmaceutical products that are used are locally-produced, various active pharmaceutical ingredients and finished products are imported. The sector is highly regulated and the development, production, marketing and sale of pharmaceuticals are strictly controlled.

Essential Provider

As a supplier of essential products, the pharmaceutical industry has been able to withstand the economic downturn of the past decade better than many other industries. The weak exchange rate has driven up the price of imported ingredients and finished products. Price agreements between government and suppliers have reduced the cost of pharmaceuticals used in public sector hospitals and primary care clinics. Manufacturers’ profit margins continue to narrow.

Sanitisers

Demand for sanitisers and hygiene products in response to coronavirus has seen a number of non-specialist producers and suppliers enter the market. Some public sector sanitiser suppliers have charged inflated prices and/or supplied substandard products.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 7
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 12
4.1. Local 12
4.1.1. Corporate Actions 17
4.1.2. Regulations 18
4.1.3. Enterprise Development and Social Economic Development 24
4.2. Continental 25
4.3. International 28
5. INFLUENCING FACTORS 33
5.1. Coronavirus 33
5.2. Government Interventions 35
5.3. Economic Environment 37
5.4. Labour Resources 39
5.5. Technology, Research and Development (R&D) and Innovation 40
5.6. Environmental Concerns 42
5.7. Drug Abuse 42
5.8. Substandard Products 43
6. COMPETITION 43
6.1. Barriers to Entry 45
7. SWOT ANALYSIS 46
8. OUTLOOK 47
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 49
10.1. Publications 49
10.2. Websites 50
APPENDIX 1 52
Summary of Notable Players 52
COMPANY PROFILES 64
ABBOTT LABORATORIES SOUTH AFRICA (PTY) LTD 64
ACINO HEALTHCARE GROUP (PTY) LTD 66
ADCOCK INGRAM HOLDINGS LTD 69
AFRICAN MEDICINES (PTY) LTD 74
AFRIPLEX (PTY) LTD 76
AIM AFRICA 79
ALPHA PHARM (PTY) LTD 81
AMKA PRODUCTS (PTY) LTD 83
AMWAY SOUTH AFRICA (PTY) LTD 86
ASCENDIS HEALTH LTD 88
ASPEN PHARMACARE HOLDINGS LTD 94
ASTELLAS PHARMA (PTY) LTD 100
ASTRAZENECA PHARMACEUTICALS (PTY) LTD 102
AUROBINDO PHARMA (PTY) LTD 104
AUSTELL PHARMACEUTICALS (PTY) LTD 106
B BRAUN MEDICAL (PTY) LTD 108
BARRS PHARMACEUTICALS INDUSTRIES (PTY) LTD 111
BAXTER HEALTHCARE SOUTH AFRICA (PTY) LTD 113
BAYER (PTY) LTD 115
BECTON DICKINSON (PTY) LTD 118
BIO EARTH MANUFACTURING (PTY) LTD 120
BIOCLONES (PTY) LTD 122
BIOLOGICALS AND VACCINES INSTITUTE OF SOUTHERN AFRICA (PTY) LTD (THE) 124
BITEK INDUSTRIES (PTY) LTD 126
BRANSON CHEMICALS (PTY) LTD 128
CALIFORNIA PHARMACEUTICALS (PTY) LTD 130
CAPRICHEM (PTY) LTD 132
CHEMICAL CONVERTORS (PTY) LTD 135
CHEMTRON HOLDINGS (PTY) LTD 136
CIPLA MEDPRO SOUTH AFRICA (PTY) LTD 137
COLUMBIA PHARMACEUTICALS (PTY) LTD 141
COMED HEALTH (PTY) LTD 143
DEON SCHOEMAN CC 145
DIS-CHEM PHARMACIES LTD 147
DR REDDY'S LABORATORIES (PTY) LTD 157
DYNACHEM (PTY) LTD 159
ECOLAB (PTY) LTD 161
ELI LILLY (SA) (PTY) LTD 163
EVOHEALTH (PTY) LTD 165
FERRING (PTY) LTD 167
FOREVER LIVING PRODUCTS SOUTH AFRICA (PTY) LTD 169
FRESENIUS KABI MANUFACTURING SA (PTY) LTD 172
FRESENIUS KABI SOUTH AFRICA (PTY) LTD 174
G M PHARMACEUTICALS (PTY) LTD 177
GLAXOSMITHKLINE SOUTH AFRICA (PTY) LTD 179
GLENMARK PHARMACEUTICALS SOUTH AFRICA (PTY) LTD 182
GULF DRUG COMPANY (PTY) LTD 184
H H DURRHEIM (PTY) LTD 186
HERBA ZONE (PTY) LTD 188
HERBALIFE INTERNATIONAL SOUTH AFRICA LTD 190
HERSOL MANUFACTURING LABORATORIES (PTY) LTD 192
HYMED (PTY) LTD 194
IMBC INVESTMENT (PTY) LTD 196
IMVULA HEALTHCARE LOGISTICS (PTY) LTD 198
INFECTION PROTECTION PRODUCTS (PTY) LTD 200
INGELHEIM PHARMACEUTICALS (PTY) LTD 202
ISZIPHARM PHARMACEUTICAL DISTRIBUTORS (PTY) LTD 204
JOE SOAP CC 206
JOHNSON AND JOHNSON (PTY) LTD 208
KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD 210
KEVALI CHEMICAL GROUP (PTY) LTD 212
LAKATO (PTY) LTD 214
MEDICHEM (PTY) LTD 216
MEGA MAGIC CC 217
MERCK (PTY) LTD 219
MSD (PTY) LTD 221
NATIONAL BIOPRODUCTS INSTITUTE 223
NATIVA (PTY) LTD 225
NEOLIFE INTERNATIONAL (PTY) LTD 227
NESTLE (SOUTH AFRICA) (PTY) LTD 229
NETCARE PHARMACIES (PTY) LTD 233
NETCARE PHARMACIES 2 (PTY) LTD 235
NEW CLICKS SOUTH AFRICA (PTY) LTD 237
NKUNZI PHARMACEUTICALS (PTY) LTD 240
NOVARTIS SOUTH AFRICA (PTY) LTD 242
NUTRITIONAL HOLDINGS LTD 245
OMNIA HOLDINGS LTD 249
P AND G SOUTH AFRICAN TRADING (PTY) LTD 253
PARCEVAL (PTY) LTD 255
PFIZER LABORATORIES (PTY) LTD 257
PHARMA DYNAMICS (PTY) LTD 260
PHARMACEUTICAL ENTERPRISES (PTY) LTD 262
PHARMACY DIRECT (PTY) LTD 264
PHARMAFORCE (PTY) LTD 266
PHARMED PHARMACEUTICALS (PTY) LTD 268
PICK N PAY STORES LTD 271
PLATCHEM (PTY) LTD 275
PRIME CLEANING SUPPLIERS (PTY) LTD 277
RANBAXY (S A) (PTY) LTD 279
RANBAXY PHARMACEUTICALS (PTY) LTD 281
RECKITT BENCKISER PHARMACEUTICALS (PTY) LTD 283
RICHBAY CHEMICALS (PTY) LTD 285
ROCHE PRODUCTS (PTY) LTD 287
S A F I C (PTY) LTD 290
S A NATURAL PRODUCTS (PTY) LTD 292
S BUYS (PTY) LTD 294
SAFARMEX (PTY) LTD 297
SAFETY CHEMICALS (PTY) LTD 299
SANDOZ SOUTH AFRICA (PTY) LTD 300
SANOFI INDUSTRIES SOUTH AFRICA (PTY) LTD 302
SANOFI-AVENTIS SOUTH AFRICA (PTY) LTD 304
SHOPRITE HOLDINGS LTD 307
SISONKE PARTNERSHIP (THE) 312
SOLGAR SOUTH AFRICA (PTY) LTD 314
SONKE PHARMACEUTICALS (PTY) LTD 316
SOUTH AFRICAN NUCLEAR ENERGY CORPORATION SOC LTD (THE) 318
SPAR GROUP LTD (THE) 322
SPECIALISED MAINTENANCE PRODUCTS (PTY) LTD 328
SPECPHARM HOLDINGS (PTY) LTD 329
SPECTANK (PTY) LTD 331
TEVO (PTY) LTD 333
TIGER BRANDS LTD 335
TOPMED HEALTH CARE DISTRIBUTORS (PTY) LTD 340
TOUCHLESS GERM CONTROL WESTERN CAPE CC 342
TRANSPHARM (PTY) LTD 343
UNILEVER SOUTH AFRICA (PTY) LTD 345
VITAL HEALTH FOODS (PTY) LTD 348
WACO AFRICA (PTY) LTD 350
WELLNESS WAREHOUSE (PTY) LTD 354
WOOLWORTHS HOLDINGS LTD 357
XIXIA PHARMACEUTICALS (PTY) LTD 361