1. South Africa Pharmacy Landscape
9/22/2018
South Africa Pharmacy Landscape
Dirk Myburgh Manager Supplier Services
26 July 2017

2. South Africa: Supply Chain
South Africa’s pharmaceuticals supply chain is fragmented and complex
FICCI – Africa Conclave 15 June 2017

3. Pending Healthcare Legislation
South Africa:
Pending Healthcare Legislation
International Benchmark Pricing 2
National Healthcare Insurance 1
Removal of discounts and bonuses 3
Amendment of IP legislation 4
Health Technology Assessments 6
Complementary & Alternative Medicines 5
Regulation of logistics fees 7
Protection of personal information Act 8
SAHPRA 9
FICCI – Africa Conclave 15 June 2017

4. Tap into our superior global resources & experience
South Africa:
Global Perspective
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9/22/2018
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Ranked 7th Pharmaceutical
Market, MEA
region
7.0% CAGR
(forecasted)
Between 2017 – 2020
vs US growth of 7.7%
CAGR of 7.8%
Between
5.6% Contribution to MEA
Pharma Market
Value = USD 3.0bn
Pharmerging Countries
Main concerns
High Inflation
Growing Population
Access to Healthcare
1.8% Contribution to the BRICS Pharma Market
BRICS value USD254bn
15.9% Contribution to
African Pharma
Market
PPG of 6.0%
From 2016
Ranked 18th on
Pharmerging list and
Contribute 1.1% in
2017
FICCI – Africa Conclave 15 June 2017

5. South Africa: Demographics 40.7% drugs dispensed 56.6% drugs dispensed
South African population size n
Pop. growth: 10.5% in 5 years
Ranked 25th in Population Size
Accounts for 0.7% of world’s Pop.
Population estimates by gender 2016
Female
Male
51%
49%
Life Expectancy: 61 years
Growing at 11.6%
40.7% drugs dispensed
Life Expectancy: 64 years
Growing at 9.4%
56.6% drugs dispensed
Very young population – Youth account for One Third of the Population
FICCI – Africa Conclave 15 June 2017

6. South Africa:
Demographics
FICCI – Africa Conclave 15 June 2017

7. South Africa: Economic Indicators GDP growth GDP per capita (USD) 5536
35.9
31.7
2014
2015
2016
2017
2016 – Economy grew by ONLY 0.4%
2017 Expected growth – 1.1%, Q Actual growth -0.7% leading SA into recession
2016 Number 1 ranking – Largest economy in Africa
Top decile = 58% of country’s income
Bottom decile = 0.5% of country’s income
Ranked 87th out of 198 countries in terms of GDP per Capita
FICCI – Africa Conclave 15 June 2017

8. Healthcare expenditure as % of GDP Medical inflation and CPI
South Africa:
Economic Indicators
Healthcare expenditure as % of GDP
Medical inflation and CPI
South Africa Healthcare expenditure more than double the WHO recommended 5%
This is mainly to fit the bill for National Health Insurance piloting
Increasing medical cost the reason for Medical inflation surpassing general inflation
FICCI – Africa Conclave 15 June 2017

9. Private Pharma Market Performance
South Africa:
Private Pharma Market Performance
471 million Unit Sales
Pharma Market USD3billion
>60% units from Top 5 Pharma (Aspen, Adcock, Sanofi, Cipla & Pfizer, )
Only Adcock & Cipla growing faster than market
Top 4 Selling products all from Adcock (Units)
Adco-Dol leading product in Units. 28 Years on Market – % Growth
Value – SA market PY Growth 6.0% vs Global Market Growth of 3.3% (Priv. 8.9%)
Largest Revenue generating product - Tribuss
FICCI – Africa Conclave 15 June 2017

10. South Africa:
Market Break Down
FICCI – Africa Conclave 15 June 2017

11. Originators vs Generics
South Africa:
Originators vs Generics
% Value Share
% Unit Share
Source: IMS Dataview TPM April 2017
FICCI – Africa Conclave 15 June 2017

12. 84% of the market is driven by only 8 ATC1 classes
South Africa:
84% of the market is driven by only 8 ATC1 classes
Contribution
# Companies
# Companies (80%)
% Companies (80%)
Leader
Million USD
MAT/4/2017
18%
121 11 9%
Aspen
N NERVOUS SYSTEM
504
16%
246 18 7%
Sanofi
A ALIMENTARY TR+METABOLISM
448
J SYSTEMIC ANTI-INFECTIVES
375
13% 69 12
17%
Aspen
12%
126 13
10%
Aspen
R RESPIRATORY SYSTEM
332 9% 89 12
13%
Pharma Dynamics
C CARDIOVASCULAR SYSTEM
249 6%
120 12
10%
Pfizer
M MUSCULO-SKELETAL SYSTEM
155 5%
135 11 8%
Bayer
G G.U.SYSTEM+ SEX HORMONES
153
153 5% 37 9
24%
Roche
L ANTINEOPLAST+IMMUNOMODUL
OTHER (8 ATC1 Classes)
446
FICCI – Africa Conclave 15 June 2017

13. 61% of the market is driven by the top10 companies
South Africa:
61% of the market is driven by the top10 companies
Contribution
# ATC1
# ATC1 (80%)
% ATC1 (80%)
Top ATC
Million USD
MAT/4/2017
ASPEN
386
14% 15 6
40%
NERVOUS SYSTEM
ADCOCK INGRAM
248 9% 15 4
27%
NERVOUS SYSTEM
SANOFI
196 7% 15 4
27%
NERVOUS SYSTEM
CIPLA
164 6% 14 5
36%
NERVOUS SYSTEM
PFIZER
161 6% 14 6
43%
NERVOUS SYSTEM
NOVARTIS
150 5% 13 6
46%
CARDIOVASCULAR SYSTEM
JOHNSON & JOHNSON
109 4% 13 4
31%
NERVOUS SYSTEM
MERCK & CO
104 4% 12 5
42%
SYSTEMIC ANTI-INFECTIVES
BAYER
100 4% 13 4
31%
GU SYSTEM + SEX HORM.
ROCHE 88 3% 12 3
25%
ANTINEOPLAST + IMMUNO.
FICCI – Africa Conclave 15 June 2017

14. South Africa: Top 10 Corporations Below National Growth
Above National Growth
FICCI – Africa Conclave 15 June 2017

15. South Africa: Top 10 Products Below National Growth
Above National Growth
FICCI – Africa Conclave 15 June 2017

16. TPM customer outlet type value % contribution –May 2017
FICCI – Africa Conclave 15 June 2017

17. Trade Channel Analysis
Growth Chains – 12% Couriers – 9.8% Independent – 2.8%
FICCI – Africa Conclave 15 June 2017

18. Questions?
FICCI – Africa Conclave 15 June 2017

19. 9/22/2018