SOUTH AFRICA PHARMACEUTICAL MARKET

KEY FINDINGS

• South Africa is moving toward universal healthcare through a proposed National Health Insurance (NHI) scheme. Through NHI, the government will likely become the main procurer of health goods and services, as well as investing in the public healthcare system to improve infrastructure and access.
• The healthcare market in South Africa is highly complex and fragmented in terms of real purchasing power. Entry usually requires appointing a reputable and experienced distributor.
• The public sector is the biggest purchaser of healthcare equipment and supplies, particularly for primary healthcare.  Purchasing is devolved to each of the nine provinces that in turn publish their own tender notices, but the National Department of Health also issues tenders for national supply. Severe funding constraints make it difficult for public hospitals to maintain or purchase equipment. 
• Around 78 medical schemes are in play in South Africa, 20 of which are open and the rest restricted. Discovery Health remains the largest open medical aid scheme, with an estimated 1.3 billion members and 2.8 billion beneficiaries (Council for Medical Schemes 2019/2020).
• All healthcare-related products must be registered with and evaluated by the South African Health Products Regulatory Authority (SAHPRA). All entities involved in the manufacture, distribution, import and export of healthcare products must be licensed by SAHPRA. Only authorized representatives resident in South Africa may apply for registration of products with SAHPRA.
• An increase in government spending to upgrade public health facilities and systems as part of their NHI implementation program may catalyze some growth in this sector, though the recent, significant budgetary shortfalls and the pandemic fallout will likely negatively impact government spending.
• Private sector investment will also continue, albeit at a cautious pace, as many increasingly are coming under considerable cost pressures. The United States continues to dominate this market sector, with other major suppliers from the EU (Germany, France, Switzerland, other EU member states) and Asia (China, India, South Korea, and Japan).
• Germany and the United States are the leading suppliers in this market. Other players include Japan, China, Netherlands, and the UK. Despite the underdeveloped nature of this market, there is great need for MRI and PET scanners, radiotherapy products, and other diagnostic imaging products in the public sector.  Still, growth will remain muted due to depressed market conditions and unfavorable currency fluctuations.
• The South African government has indicated that digital healthcare technologies will form an integral part of NHI in that it will strengthen healthcare systems, provide better access for patients, and improve health outcomes. 
• High data costs, low connectivity density and inadequate ICT infrastructure will need to be improved significantly for the successful implementation of the strategy. Adequate funding for this initiative will be key to its proper and timely implementation.
• South Africa is heavily reliant on imported medicines, with over 70% of all medicines consumed in the country coming from abroad. This makes the country vulnerable to supply chain disruptions and price fluctuations. The government is encouraging local manufacturing of medicines to reduce reliance on imports.
• The South African pharmaceutical industry faces a number of regulatory challenges, including a lack of harmonization with international standards and a lengthy registration process. These challenges can hinder the development and introduction of new medicines to the market.

SOUTH AFRICA PHARMACEUTICAL MARKET OVERVIEW

The key factors driving the pharmaceutical market growth in South Africa are the growing and aging population, larger prevalence of chronic diseases, expanding private health insurance coverage, and increased patient volumes for general practitioners and specialist medical practitioners.

The pharmaceutical market of the country is extensively reliant on imported products, accounting for more than two-third of pharmaceutical sales.

In South Africa, increased government spending to upgrade public health facilities and systems as part of their NHI implementation program may catalyze some growth in this sector, though recent significant budgetary shortfalls and pandemic fallout might have a negative impact on government spending.

Novelty Technology Care (NTC), an R&D-driven pharmaceutical company headquartered in Italy, and Aspen, headquartered in South Africa, announced SAHPRA’s approval for the first fixed combination of an ophthalmic quinolone antibiotic (levofloxacin) with an anti-inflammatory steroid (dexamethasone) eye drop solution.

The key segments in the South Africa pharmaceutical market are generics, biologics, biosimilars, and over-the-counter (OTC). The key segments in the South Africa medical devices market are hospital supplies, general energy, orthopedic devices, cardiovascular devices, dental devices, and others. Hospital supplies has the highest revenue in the medical devices market in South Africa 

The government is encouraging local manufacturing of medicines, and this is creating opportunities for pharmaceutical companies to invest in manufacturing facilities in South Africa. The government is committed to expanding access to affordable medicines, and this is creating opportunities for pharmaceutical companies to develop and market new generic medicines.

Saddled with a triple  disease burden – communicable (HIV/AIDS, TB), rising non-communicable (diabetes, cardiovascular disease, hypertension, cancer), and trauma (interpersonal violence, such as gunshot- and stab wounds)  - South Africa’s healthcare operates under  two systems: the public system, which caters to around 85  percent of the population, constituting roughly 48  percent of total healthcare expenditure with funding from the state (approximately nine  percent of GDP); and private healthcare, which looks after 15  percent of the population who can afford medical insurance. 

INTRODUCTION TO SOUTH AFRICA PHARMACEUTICAL MARKET

The South African pharmaceutical industry plays a vital role in the country's healthcare system, providing essential medicines and medical products to millions of people. The industry is characterized by its contributions to healthcare, economic impact, and challenges.

The South African pharmaceutical industry has a rich history, marked by significant milestones and contributions to the country's healthcare system.The industry's origins can be traced back to the early 20th century with the establishment of pharmaceutical wholesalers and distributors.

South African pharmaceutical trade has always been characterised by higher levels of imports than exports, thus an increasing trade balance deficit. Asian and European markets remain the main sources of South Africa’s pharmaceutical imports.

the African continent has become the main destination for South African exports of pharmaceutical products and it is expected that more multinational corporations (MNCs) will continue using South Africa as a platform to explore the opportunities in the African market.

South Africa is the only country in the SADC that meets the Good Manufacturing Practice standards of the World Health Organization (WHO). Furthermore, the SADC free trade area ensures the country of tariff free exports. Thus, South Africa remains the main source of pharmaceutical products for various African states.

High disease burden ensures increasing demand for drugs, especially anti-retroviral drugs. South Africa’s rapid urbanization, sedentary lifestyles and dietary trends ensure long-term demand for pharmaceuticals that target chronic, lifestyle-related diseases. 

South Africa does not take full advantage of legal flexibilities permitted under the World Trade Organisation’s TRIPS Agreement to practically and feasibly overcome patent barriers and access more affordable generic medicines. South African patent law lags behind that of other emerging economies, such as India, Brazil, and Argentina, in terms of how it protects public health.

Strengthening IP protection and fostering collaboration between industry, academia, and government can encourage investment in local research and development, leading to the creation of innovative medicines tailored to the needs of the South African population.

Embracing digital technologies and artificial intelligence can enhance efficiency, streamline processes, and accelerate drug discovery, positioning the industry at the forefront of pharmaceutical innovation.

The prevalence of counterfeit drugs in South Africa poses a serious threat to patient safety and undermines public trust in medicines. These counterfeit drugs often contain substandard ingredients or lack active ingredients, leading to ineffective treatment and potential adverse health effects.

The pharmaceutical industry requires significant investment in R&D to bring new and innovative treatments to market. However, insufficient funding for R&D in South Africa hinders the development of homegrown solutions and limits the industry's global competitiveness.

SOUTH AFRICA PHARMACEUTICAL MARKET SIZE AND FORECAST

The South Africa Pharmaceutical Market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

TRENDS IN SOUTH AFRICA PHARMACEUTICAL MARKET

• South Africa launches new program to promote local manufacturing of medicines:The South African government launched a new program to provide incentives for local manufacturers of medicines. The program aims to reduce reliance on imported medicines and boost the country's pharmaceutical industry.
• South Africa signs MOU with China to promote pharmaceutical cooperation:South Africa signed a Memorandum of Understanding (MoU) with China to promote collaboration in the pharmaceutical sector. The MoU aims to facilitate technology transfer, joint research and development, and knowledge sharing between the two countries.
• South African researchers develop new treatment for tuberculosis:South African researchers developed a new treatment for tuberculosis that is more effective and has fewer side effects than existing treatments. The new treatment is expected to have a significant impact on the fight against tuberculosis in South Africa and other countries with high TB burdens.
• South Africa approves first generic version of HIV drug:The South African Health Products Regulatory Authority (SAHPRA) approved the first generic version of the HIV drug dolutegravir. This is a major development for South Africa, which has one of the highest HIV prevalence rates in the world.
• South Africa joins global initiative to combat counterfeit drugs:South Africa joined the Medicines Regulatory Authorities of Africa (MARAA) Harmonization Initiative, a regional initiative to combat counterfeit drugs. The initiative aims to strengthen regulatory frameworks and improve collaboration among African countries to address the counterfeit drug problem.

NEW PRODUCT LAUNCH IN SOUTH AFRICA PHARMACEUTICAL MARKET

New treatments for chronic obstructive pulmonary disease (COPD):COPD is a major cause of morbidity and mortality in South Africa. Pharmaceutical companies are developing new treatments for COPD to improve lung function, reduce exacerbations, and enhance quality of life for patients.

Long-acting injectable antiretrovirals (LAIs) for HIV/AIDS: LAIs provide a convenient and long-lasting treatment option for HIV/AIDS patients, improving adherence and reducing pill burden. Pharmaceutical companies are developing new LAIs with improved efficacy and tolerability.

Therapies targeting cancer stem cells:Cancer stem cells are responsible for the initiation, growth, and recurrence of tumors. Pharmaceutical companies are developing therapies that specifically target cancer stem cells to improve treatment outcomes and prevent cancer recurrence.

Digital therapeutics:Digital therapeutics are software-based interventions that utilize technology to deliver evidence-based therapies for a range of medical conditions. Pharmaceutical companies are exploring the potential of digital therapeutics to complement or replace traditional pharmacological treatments.

These new products represent significant advances in the South African pharmaceutical industry. By harnessing cutting-edge technologies and embracing innovative approaches, South Africa is contributing to the development of novel therapies that can improve healthcare outcomes for its citizens and address global health challenges.

SOUTH AFRICA PHARMACEUTICAL MARKET DYNAMICS

Aspen, a South African pharmaceutical company, opened a world-leading anaesthetics production line. This line will ensure local supply and meet growing global demand for coronavirus-related medications. Since the beginning of the pandemic, general anaesthetics have been used more frequently because they are needed to help Covid-19 patients who are on ventilators in intensive care units. Aspen’s factory in the southern city of Gebara has been transformed into “one of the world’s largest general anaesthetics production lines. 

RECENT PARTNERSHIPS

SOUTH AFRICA PHARMACEUTICAL MARKET SEGMENTATION

South Africa Pharmaceutical Market By Geography

• Urban
• Rural Areas
• Regional 

South Africa Pharmaceutical Market By Demography

• Age
• Gender 
• Income Level 
• Education

South Africa Pharmaceutical Market By Behavior

• Prescription Drug Usage
• Over-the-Counter Drug Usage
• Brand Loyalty 

South Africa Pharmaceutical Market By Therapeutic Area

• Non-Communicable Diseases (NCDs)
• Infectious Diseases

South Africa Pharmaceutical Market By Healthcare Provider 

• Hospital
• Clinic
• Pharmacy
• Traditional Healer

COMPANY PROFILED IN SOUTH AFRICA PHARMACEUTICAL MARKET

• Aspen Pharmacare Holdings Limited
• Cipla
• Sanofi
• Adcock Ingram Holdings Limited
• Novartis AG
• GlaxoSmithKline plc (GSK)
• Pfizer Inc
• Merck & Co.
• AstraZeneca
• Johnson & Johnson

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What are the opportunities for pharmaceutical companies in theSouth Africamarket?
2. What is the government's investment in research and development in the South Africapharmaceutical sector?
3. Where is the Pharmaceutical manufactured? What is the average margin per unit?
4. Market share of South AfricaPharmaceutical market manufacturers and their upcoming products
5. What are the key drivers of growth in the South Africapharmaceutical market?
6. key predictions for next 5 years in South AfricaPharmaceutical market
7. What is the impact of e-pharmacies on the South Africapharmaceutical market?
8. Latest trends in Pharmaceutical market, by every market segment
9. The market size (both volume and value) of the Pharmaceutical market in 2024-2030 and every year in between?
10. What are the new therapies for non-communicable diseases (NCDs) being developed in South Africa?
11. What are the key regulations governing the pharmaceutical industry in South Africa?
12. How do regulatory changes affect the business operations of pharmaceutical companies in South Africa?
13. What is the level of research and development activity in the South Africapharmaceutical industry?
14. What are the opportunities and challenges associated with adopting digital solutions?