Pharmaceutical

Introduction

The country has a relatively well-developed pharmaceutical industry, comprising a complex network of pharmaceuticals manufacturers, distributors and dispensers. The South African pharmaceutical industry turnover is estimated at around R14.1 billion, including imports of R7.44 billion and exports of approximately R0.77 billion.  An informal survey of all pharmaceutical companies and Clinical Research Organisations in South Africa extrapolated that the clinical research budget was R826 million for 2000 (Wits Health Consortium 2000). In most cases, the pharmaceutical industry is involved in research that focuses predominantly on clinical and drug trials. This research is done in both private and public health facilities by mainly universities and clinical research organisations.  

Locality 

The  Eastern Cape pharmaceuticals industry is small and robust, but includes some internationally respected names in the pharmaceutical industry. The pharmaceutical industry in the Eastern Cape is centred predominantly in the Nelson Mandela metropole (P.E/Uitenhage & Despatch) and East London.  

In East London, a pharmaceutical company which has been in South Africa since 1930, manufactures and distributes a full range of consumer products from its headquarters.

A well renowned pharmaceutical company,  which is the largest generics manufacturer in the southern hemisphere and is also the leading supplier of generic medicines to both the private and the public sectors in South Africa,  has its primary plant in Nelson Mandela Bay and a second facility in East London. It is one of the top 20 manufacturers of generic medicines globally. December 2007 statistics confirm its local generic market share at 34%, compared to its nearest rival at 14%. Its product lines include over 1200 products which fall into 7 categories being ethical drugs, generic products, over the counter pharmaceuticals, personal care products, nutriceutical products, FMCG and infant nutritional formulations. 

Products 

The Port Elizabeth plant is South Africa's leading producer of tablets and capsules, and also manufactures liquid dosage forms such as syrups, suspensions and solutions, as well as creams, ointments and suppositories. The East London-based facility has extensive manufacturing capability and capacity in various categories, including penicillin, oral contraceptives, fast-moving consumer goods (FMCGs), complementary medicines, cosmetics, capsules, powders, creams, ointments, lotions, liquids and tinctures. 

There is a large world market for derivatives of the aloe plant.  There is scope for new entrants, particularly in terms of aloe ferox, a plant which grows naturally in the Eastern Cape. In fact, eighty percent of all aloe ferox in South Africa is found in the province. A number of factors contribute to making the Eastern Cape, and the East London IDZ in particular, an ideal investment destination for the manufacture of aloe vera derivative products. 

Indigenous plants found in the Eastern Cape used in the manufacture of health care products:
• Bulbine gel is used in personal care products
• Sutherlandia or cancer bush is used for wound-healing, eczema, herpes and shingles
• Honeybush is well-known locally as health 

tea with a pleasing honey like aroma is also used for cosmececuticals
• Melonseed oil is cultivated on farms for animal food. The seeds yield a high grade fixed oil when cold pressed
• Pelargonium sidoides its roots are used for treating coughs, tuberculosis and diarrhoea while the leaves are used for its wound-healing activities
• Lippia javanica is a shrub whose leaves are highly aromatic when crushed. It is widely used as a health and medicinal tea. Infusions are used topically to treat burns, sore and wounds. 

Distribution & dispensing

Pharmaceuticals distribution occurs through buying groups, dispensing doctors, pharmacists with wholesale licences and wholesalers. A number of companies, or associations of companies, have their own distribution divisions. 

Dispensing occurs via private channels, dispensing doctors, retail pharmacies, retail chains, private and public institutions, industrial clinics, and private and government hospitals 

Distribution centre

On average the warehouse/distribution centre in P.E of the leading manufacturer receives approximately 1100 tons of generic medicines per month. The warehouse/distribution centre receives these medicines on a daily basis from the P.E plant in the form of 8 ton trucks as well as medicines from East London, Durban, Johannesburg and Cape Town, which utilises light to extra heavy vehicles. An average of 100-150 tons per month of medicines is received via containers (12m containers) through the Port of Port Elizabeth from various overseas distribution centres, which includes India, China, Portugal, Spain and the CzechRepublic, where it is distributed to the warehouse/distribution centre in Deal Party. 

Approximately 13 200  tons of generic medicines are transported by road and air on an annual basis from the warehouse/distribution centre in P.E to markets in South Africa, SADC and sub Saharan, which is mostly done by road. A very small amount is transported by air/sea to New Zealand, Australia and Mauritius. This depends on the contractual agreement. 

Modal Transport Usage: 

The mode of transport utilised includes air, road and sea. Air transport is used for distribution into Africa (depending on destination) and in emergency cases. Reefers and insulated containers are used for the import & export of goods by sea and these are in turn transported by road to the various destinations. 

The transport is outsourced to transport operators and is done in-house (own fleet), which also varies from leased to owner drivers. The mixture of the vehicle fleet varies from light to extra heavy and the vehicle types are mostly made of pantechnicons and refrigerated.