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South Africa’s pharmaceutical manufacturing industry has secured a commitment from senior government officials to jointly review the regulations governing private-sector medicine prices, which the sector has long complained are not applied in a clear and consistent manner.The agreement was reached at a meeting convened in response to the problems recently aired in parliament by local pharmaceutical manufacturers, who painted a picture of an industry in crisis. The Pharmaceutical Task Group (PTG), representing four industry associations, and the Black Pharmaceutical Industry Association (BPIA) told MPs that several companies had closed and 2,500 jobs had been lost in the past 18 months. In a joint statement issued after Tuesday’s meeting, the health department and industry associations said there had been a “frank and productive exchange” on the pressures facing the sector, including: pricing regulations;heightened geopolitical uncertainty; and global supply-chain disruptions. The industry outlined the impact of current conditions, while the government outlined the direction of its evolving localisation roadmap, they said. They agreed to set up a structured mechanism to discuss issues such as medicines policy, pricing, regulation, localisation and sustainable supply. Regular meetings will be held to track agreed actions and enable greater collaboration between government and industry, they said.The PTG told parliament on August 6 that the health department’s narrow focus on price was squeezing local pharmaceutical manufacturers out of state tenders, and was at odds with broader government objectivesActing health director-general Nicholas Crisp led a government team with officials from the departments that constitute the interministerial committee on local pharmaceutical production previously convened by President Cyril Ramaphosa. The committee was set up to co-ordinate national efforts to support domestic drug manufacturing and reduce reliance on imported medicines and active pharmaceutical ingredients. It includes the departments of: health; trade, industry & competition; and science & innovation. The meeting included top executives from drug companies, the Competition Commission, the SA Health Products Regulatory Authority and industry associations for pharmaceutical manufacturers. Representatives from the PTG and BPIA attended, along with others from: the Innovative Pharmaceutical Association South Africa (Ipasa);the Self-Care Association of SA (SCA);Pharmaceuticals Made in SA (Pharmisa); and Generic and Biosimilar Medicines of Southern Africa (GBMSA) The PTG told parliament on August 6 that the health department’s narrow focus on price was squeezing local pharmaceutical manufacturers out of state tenders, and was at odds with broader government objectives to grow the domestic industry and improve South Africa’s security of supply. The department subsequently defended its position, accusing the PTG of misleading parliament with a subjective analysis of tender awards that contradicted its own assessment. The BPIA also criticised the health department, saying black pharmaceutical professionals had not been given enough government support to make inroads into the industry. Business Day
