1. From Balance sheet to economic analysis
Dott.ssa Notaro
Dott.ssa Stefanoni

2. What we are going to study
Balance sheet analysis and Income Statement analysis
Financial CBA
Economic CBA

3. Producing ARV in Sub-Saharan Africa
Project Objective
The project aims to increase the offer of Antiretroviral drugs in Sub-Saharan Africa by reducing the price of Antiretroviral therapy
Project stakeholders
Private sector Sigma Tau
Government Sudan Government

4. Project activities
Build up a plant to produce and can Antiretroviral (ARV) drugs in Sudan
Finance the research on AIDS vaccine for both adults and children

5. Expected impact Increase life expectancy of infected people
Improve the quality of life by transforming a mortal disease in a manageable chronic illness
Alleviate the economic impact of HIV/AIDS in Sub-Saharan Africa

6. Analysis structure Balance Sheet and Income statement analysis
Financial CBA
Sigma Tau
Sudan Government
Economic CBA

7. Social and Economic Framework
In the world there are 40 millions people living with HIV
Africa accounts for 10% of the total world's population but the 83% of deaths caused by AIDS occurs in Africa
Sub-Saharan Africa accounts for people living with HIV/ADS.
WHO’s members have reached an agreement to allow LDCs countries to make use of compulsory licenses to import or produce in loco low cost generic drugs

8. Market Analysis: Demand
Africa didn’t experiment any reduction in the rate of prevalence of HIV/AIDS
Between 1990 and 2000 the spread of epidemic has increased in the region
At present in Africa the 99% of people living with HIV don’t have access to ARV Therapy (ART)

9. Potential demand

10. Market Analysis: Supply
ART has become more affordable through international competition between producers of generic drug. (From US$ per year to 290US$ per year)
So far there are not factories that produce ART in Sub-Saharan Africa

11. Expenditures Investment costs Operating costs Engineering costs
Personnel costs
Operating costs
Row materials
Personnel
Distribution

12. CBA and Balance sheet Costs Balance sheet Income Statement
Financial ACB
Economic ACB
Intangible assets + Property Plant and Equipment
Investment costs
Investment costs * Conversion Factors (= Shadow Prices)
Production Costs:
Raw materials
Service Expenses
Personnel Costs
Other Accruals
Operating costs
Operating costs * Conversion Factors (= Shadow Prices)

13. Benefits Benefits -Revenues from sales (adults)
Balance sheet
Income Statement
Financial ACB
Economic ACB
Production value:
-Revenues from sales (adults)
-Revenues from sales (pediatric) Others Revenues
Revenues deriving by selling the drug on the market
Value of life + Economic Growth