Indian drug exporters may get a big boost from South Africa, all thanks to a new USD 500 million proposal by the National Health Council of South Africa to provide critical treatment to all HIV and AIDS patients. CNBC-TV18's Sanjay Suri and Sandeep Srikanth report.
In South Africa alone over five million people -- men, women and children alike - are infected with HIV, of which only around 750,000 are already on treatment. Estimates suggest another half a million South Africans, and close to five million people across Africa need immediate treatment. Indian companies could throw them with a lifeline.
Skhumbuzo Ngozwana, Chairman, National Association of Pharma Manufacturers, said, "The bulk of the drugs used for treatment of patients are from Indian companies. As long as the company has the FDI accreditation or the qualification they are able to supply. So you find that in Africa a lot of Indian companies are already supplying products, rough estimate are about 60-70% across the board."
But it's not all smooth sailing for these firms. Ranbaxy has had serious run-ins with the US authorities over quality standards, and Aurobindo is in a court dispute over being denied a contract despite the lowest bid.
Vikash Salig, CEO, Dr Reddy's Laboratories (South Africa), said, "India is probably where Japan was in the 1960s and 70s, trying to establish itself in the global marketplace. Sadly one of the strategies that we find that emanate from vested interests and to some extent from innovator companies is to place concern around quality, safety and efficacy of generic products."
Patent-free generic drugs legally manufactured by Indian companies are at the heart of the dispute. And these drugs even seem to have a few African medical leaders -- and patients -- on their side.
"There is a growing acceptance that drugs from India are of very good quality, they are efficacious, they are safe, and people have no issues around quality, and of course they are affordable," Ngozwana added.
Clearly, all of Africa has the need and Indian companies have the means to meet that need. But there are all sorts of issues in the way, most of them clearly dubious. Indian companies, it seems, will have to fight their way to get the medicines through to those who desperately need them.
