SOUTH AFRICAN FIRMS EXPAND ON STRICKEN ZIMBABWE MARKET

Zimbabwean generic drug firm Datlabs, a unit of South Africa's Adcock Ingram, is to expand its manufacturing operations. The company's association with Indian generics major Ranbaxy under a new deal on generic ARVs is another example of the push by leading South African firms into regional markets, especially in the treatment of HIV/AIDS.

Adcock Ingram's leading rival in South Africa, Aspen Pharmacare, is already a major regional generics manufacturer in its own right and also recently concluded an agreement with another leading Indian firm. However, it is likely that Datlabs will be well positioned to meet demand for generic ARVs in internationally isolated Zimbabwe, while Aspen has succeeded in gaining major supply contracts under global treatment initiatives.

Zimbabwe's HIV/AIDS infection rate is estimated at some 25%, with the public healthcare system now reported to be on the point of collapse. Nevertheless, as even basic medicines remain beyond the reach of most citizens, it remains unclear how Datlabs' new generic ARV supplies will be resourced.