THE CHANGING STRUCTURE OF PHARMACEUTICAL PRODUCTION IN SOUTH AFRICA
Date
2012-01-19
Authors
Naudé, Carel te Water
Te Water Naude, Carel
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Abstract
The structure of the South African pharmaceutical manufacturing industry has
undergone changes in the last 10 to 20 years.
The purpose of this research is to investigate the changing structure of pharmaceutical
production in South Africa. This includes establishing the global and local contributing
factors to the changing structure and evaluating the possible implications of the
changing structure on the South African pharmaceutical industry and the response of
the pharmaceutical industry to these implications. Generally, these factors have
resulted in a decline in the number of pharmaceutical manufacturers in South Africa
and in particular manufacturing operations owned by multinational companies (MNCs).
Simultaneously, within this period the global demand for generic medicines has
increased due to their ability to improve access to affordable medicines. As a result,
the supply of medicines in South Africa is being increasingly met by mostly imported
generic medicines and to a lesser extent locally manufactured generic medicines.
These changes together with a turbulent and sometimes uncertain regulatory
environment has led to interesting dynamics and changes within the structure of the
pharmaceutical manufacturing industry in South Africa.
Qualitative data was collected through in-depth interviews conducted with stakeholders
within the local manufacturing industry using pre-determined questions that served as
a guideline for a detailed discussion.
The key findings have been that, despite an apparent decline in the number of
pharmaceutical producers in South Africa in recent years, interesting trends appear to
be emerging that may be indicative of a sustainable local pharmaceutical
manufacturing capacity. This sustainability, however, does appear to rely mainly on
government intervention and the successful strategies of the largest generic medicine
producers locally. The future viability of the industry largely depends on the ability of
the local industry and the government to cooperate and work collectively in achieving
their individual mutually beneficial objectives.
Description
MBA thesis - WBS
Keywords
Pharmaceutical industry, Production processes