South Africa's Aspen Clinches Government Drug Tender

South African generics maker Aspen Pharmacare claims that it has won the largest share of the long-awaited government supply contract for HIV/AIDS generics. The company will now produce antiretrovirals for the government at a dedicated US$33mn plant in Port Elizabeth. About nine products will be exclusively or principally supplied by the company under the two-year contract.

Meanwhile, health officials indicate that UK drug major GlaxoSmithKline, US drugmaker Merck & Co's local unit and Germany's Ingelheim Pharmaceuticals have also been awarded major orders. Abbott Laboratories, Bristol-Myers Squibb and Indian generics producer Cipla are also understood to have won significant shares in the ZAR3.4bn (US$578.61mn) tender process.

The contract follows Aspen's announcement in January that it had received tentative US FDA approval for an HIV/AIDS combination therapy to be used under the US$15bn PEPFAR initiative for the disease in Africa. Although the approval does not apply within the US, the move has also shown the growing strength of South Africa's drug manufacturing sector. New pricing legislation introduced in recent months, which is intended to increase low-cost access to healthcare, is likely to benefit a sector where per capita spending has remained low by global standards, at just US$56 in 2003. Meanwhile, US officials have announced that further PEPFAR approvals are expected shortly.