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South Africa Pharmaceuticals & Healthcare Report Q3 2013 - New Market Study Published

Fast Market Research recommends "South Africa Pharmaceuticals & Healthcare Report Q3 2013" from Business Monitor International, now available

 

Boston, MA -- (SBWIRE) -- 08/06/2013 -- South Africa is the best investment opportunity for multinational drugmakers seeking to enter the African market. The country currently boasts the largest medicines market on the continent by value, with a double-digit increase in expenditure expected in the medium and long terms. However, we caution there are downside risks to our bullish outlook. These stem from increasing government pressure to contain costs in the relatively small private sector (currently a gold mine for drugmakers); and long, inefficient approval times - years in some cases - which will remain the biggest deterrent to investment in the sector.

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Headline Expenditure Projections

- Pharmaceuticals: ZAR30.45bn (US$3.84bn) in 2012 to ZAR33.86bn (US$3.61bn) in 2013; +11.2% in local currency terms and -6.0 % in US dollar terms. US dollar forecast lower than Q213 based on revisions to ZAR/$US exchange rate estimations.
- Healthcare: ZAR271.40bn (US$33.07bn) in 2012 to ZAR295.50bn (US$31.51bn) in 2013; +8.9% in local currency terms and -4.7% in US dollar terms. US dollar forecast lower than Q213 based on revisions to ZAR/$US exchange rate estimations.

Risk/Reward Rating

Despite the country's low risk profile being more favourable than its rewards profile, South Africa has strong longer-term commercial potential because of its sizeable population and economic development. South Africa is one of the most promising markets in the entire MEA region, ranking fifth in our matrix with an overall score of 55.

Recent Developments

June 2013

Adcock Ingram verified buyout speculations with the announcement it was discussing the acquiring a controlling stake or 100% of the company's shares with several potential buyers, according to Adcock's Chairman, Khotso Mokhele. After the company received non-binding proposals in May, the share price jumped 8.9%, reaching the highest level since November 2010, valuing the company at ZAR11.8bn (US $1.3bn).

May 2013

Cipla Medpro's shareholders approved the ZAR4.5bn (US$485mn) acquisition proposal of Indian pharmaceutical firm Cipla to buy remaining shares in the company. According to Cipla Medpro, the buyout proposal was approved by 99.7% of shareholders.

April 2013

The government announced plans to remodel its intellectual property (IP) laws to limit market exclusivity on multinational drugmakers' patented medicines. The proposed changes to intellectual property protection would open the market to an increased volume of cheap generic drugs.

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