South Africa Pharmaceutical Industry Report - Shift from Reactive Medicine to Preventative Healthcare Resulting in Demand for Immunity-building Vitamins, Tonics, Minerals and Supplements

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Feb 12, 2024, 10:15 ET

DUBLIN, Feb. 12, 2024 /PRNewswire/ -- The "Pharmaceutical Industry in South Africa 2023" report has been added to ResearchAndMarkets.com's offering.

More than 80% of South African pharmaceutical manufacturing and distribution revenue is from the private sector. State purchases of pharmaceuticals are declining, and manufacturers' margins are under pressure due to low regulated price increases for scheduled pharmaceuticals in a high inflation environment.

In the retail sector Clicks and Dis-Chem have wholesale volume advantages and an ever-increasing footprint. Consumer spending patterns have forced consolidation in the retail sector, the growth of private label sales, growth in convenience formats, and diversification into new services and products. There has been a flurry of investments in localising vaccine raw material and finished dose manufacturing, although the sustainability of these initiatives is far from secure.

Key Opportunities

Cannabis cultivation, processing and medical product manufacturing
Rapid growth in generic sales making medicine more affordable
Strong R&D and advanced manufacturing capabilities may attract investment

Challenges

Growing concentration of wholesale and retail pharmacy supply.
Low regulated medicine price increases in the context of high international inflation.
Poor economic growth constraining consumer spending on healthcare.
Reduced government budgets for medicines restricting local opportunities in the face of cheaper international competition.
South Africa's dependence on imported active ingredients. Sustaining local vaccine manufacturing in the face of declining demand.

Trends

A shift from reactive medicine to preventative healthcare resulting in demand for immunity-building vitamins, tonics, minerals and supplements.
Focus on research and development, particularly drugs and therapies targeting COVID-19, HIV/Aids, TB, malaria, cancer, and chronic diseases.
Growing pressure on pharmaceutical companies to improve access to healthcare by making medicines more affordable.
Increased focus on localisation, including local sourcing of inputs and the development of local manufacturing capacity.
Recovery of demand as elective surgery and procedures and illnesses such as flu return to pre-pandemic patterns.
Small community pharmacies are finding it difficult to compete with large retail businesses.

Outlook

The pharmaceutical industry is well developed and supported by strong R&D and advanced manufacturing capabilities, including biotechnology manufacturing facilities. The Department of Health's affordable medicines programme has been instrumental in lowering scheduled pharmaceutical prices, particularly in the public sector. Investments in vaccine manufacture have begun to address South Africa's exposure to vulnerabilities and dependence on active pharmaceutical ingredient and vaccine imports. These investments have strengthened South Africa's position as the hub for sub-Saharan African pharmaceutical research, development, and supply.

However, vaccine demand has dropped and doses are being donated to African countries. Margin pressure is expected to grow as the economy remains poor and restraints on consumer spending intensify. The implementation of the National Health Insurance is likely to put further pressure on manufacturers and wholesalers to reduce medicine prices.

Report Coverage

This report on the pharmaceutical industry in South Africa provides comprehensive information on the manufacturing, wholesale and retail subsectors, price regulation, medical cannabis, market shares, notable multinational and local players and corporate actions.

There are profiles of 128 companies including local dominant players Aspen Pharmacare and Adcock Ingram, multinationals such as Bayer, GlaxoSmithKline and Pfizer and retailers Clicks and Dis-Chem and other players such as Nativa.

COMPANY PROFILES

Abbott Laboratories South Africa (Pty) Ltd
Acino Healthcare Group (Pty) Ltd
Adcock Ingram Holdings Ltd
African Medicines (Pty) Ltd
Afrigen Biologics (Pty) Ltd
Afriplex (Pty) Ltd
AIM Africa
Alpha Pharm (Pty) Ltd
Amka Products (Pty) Ltd
Amway South Africa (Pty) Ltd
Arrie Nel Pharmacy Group (Pty) Ltd
Ascendis Health Ltd
Aspen Pharmacare Holdings Ltd
Astellas Pharma (Pty) Ltd
AstraZeneca Pharmaceuticals (Pty) Ltd
Aurobindo Pharma (Pty) Ltd
Austell Pharmaceuticals (Pty) Ltd
B Braun Medical (Pty) Ltd
Barrs Pharmaceuticals Industries (Pty) Ltd
Baxter Healthcare South Africa (Pty) Ltd
Bayer (Pty) Ltd
Becton Dickinson (Pty) Ltd
Bio Earth Manufacturing (Pty) Ltd
Biologicals and Vaccines Institute of Southern Africa (Pty) Ltd (The)
Bitek Industries (Pty) Ltd
California Pharmaceuticals (Pty) Ltd
Caprichem (Pty) Ltd
Chemical Convertors (Pty) Ltd
Chemtron Holdings (Pty) Ltd
Cilo Cybin Pharmaceutical (Pty) Ltd
Cipla Medpro South Africa (Pty) Ltd
Columbia Pharmaceuticals (Pty) Ltd
CoMED Health (Pty) Ltd
Deon Schoeman CC
Dis-Chem Pharmacies Ltd
Dr Reddy's Laboratories (Pty) Ltd
DSV Solutions (Pty) Ltd
Dynachem (Pty) Ltd
Ecolab (Pty) Ltd
Eli Lilly (S A) (Pty) Ltd
Evohealth (Pty) Ltd
Felbridge (Pty) Ltd
Ferring (Pty) Ltd
Forever Living Products South Africa (Pty) Ltd
Fresenius Kabi Manufacturing SA (Pty) Ltd
Fresenius Kabi South Africa (Pty) Ltd
G M Pharmaceuticals (Pty) Ltd
GlaxoSmithKline South Africa (Pty) Ltd
Glenmark Pharmaceuticals South Africa (Pty) Ltd
Goodleaf Company (Pty) Ltd (The)
Gulf Drug Company (Pty) Ltd
H H Durrheim (Pty) Ltd
Herba Zone (Pty) Ltd
Herbalife International South Africa Ltd
Hersol Manufacturing Laboratories (Pty) Ltd
Hymed (Pty) Ltd
IMBC Investment (Pty) Ltd
iMvula Healthcare Logistics (Pty) Ltd
Infection Protection Products (Pty) Ltd
Ingelheim Pharmaceuticals (Pty) Ltd
Iszipharm Pharmaceutical Distributors (Pty) Ltd
Joe Soap CC
Johnson and Johnson (Pty) Ltd
Kellogg Company of South Africa (Pty) Ltd
Kevali Chemical Group (Pty) Ltd
Lakato (Pty) Ltd
Leaf Botanicals (Pty) Ltd
MedCan (Pty) Ltd
Medichem (Pty) Ltd
Mega Magic CC
Merck (Pty) Ltd
MSD (Pty) Ltd
National Bioproducts Institute NPC
Nativa (Pty) Ltd
NeoLife International (Pty) Ltd
Nestle (South Africa) (Pty) Ltd
Netcare Pharmacies (Pty) Ltd
Netcare Pharmacies 2 (Pty) Ltd
New Clicks South Africa (Pty) Ltd
Nkunzi Pharmaceuticals (Pty) Ltd
Novartis South Africa (Pty) Ltd
Omnia Holdings Ltd
Organon South Africa (Pty) Ltd
P and G South African Trading (Pty) Ltd
Parceval (Pty) Ltd
Pfizer Laboratories (Pty) Ltd
Pharma Dynamics (Pty) Ltd
Pharmaceutical Enterprises (Pty) Ltd
Pharmacy Direct (Pty) Ltd
Pharmacyweb Holdings (Pty) Ltd
PharmaForce (Pty) Ltd
Pharmed Pharmaceuticals (Pty) Ltd
Pick n Pay Stores Ltd
Platchem (Pty) Ltd
Prime Cleaning Suppliers (Pty) Ltd
Ranbaxy (S A) (Pty) Ltd
Ranbaxy Pharmaceuticals (Pty) Ltd
Reckitt Benckiser Pharmaceuticals (Pty) Ltd
Releaf Pharmaceuticals (Pty) Ltd
Richbay Chemicals (Pty) Ltd
Roche Products (Pty) Ltd
S A F I C (Pty) Ltd
S A Natural Products (Pty) Ltd
S Buys (Pty) Ltd
Safarmex (Pty) Ltd
Safety Chemicals (Pty) Ltd
Sandoz South Africa (Pty) Ltd
Sanofi Industries South Africa (Pty) Ltd
Sanofi-Aventis South Africa (Pty) Ltd
Shoprite Holdings Ltd
Solgar South Africa (Pty) Ltd
Sonke Pharmaceuticals (Pty) Ltd
South African Nuclear Energy Corporation SOC Ltd (The)
SPAR Group Ltd (The)
Specialised Maintenance Products (Pty) Ltd
Specpharm Holdings (Pty) Ltd
Spectank (Pty) Ltd
Tevo (Pty) Ltd
Tiger Brands Ltd
Topmed Health Care Distributors (Pty) Ltd
Touchless Germ Control Western Cape CC
Transpharm (Pty) Ltd
Unilever South Africa (Pty) Ltd
Viatris South Africa (Pty) Ltd
Vital Health Foods (Pty) Ltd
Waco Africa (Pty) Ltd
Wellness Warehouse (Pty) Ltd
Woolworths Holdings Ltd

For more information about this report visit https://www.researchandmarkets.com/r/e341vv

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