R24bn tender for HIV drugs

18 November 2014 - 02:08 By Reuters, Staff reporter
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FORESIGHT: Stephen Saad
FORESIGHT: Stephen Saad
Image: Business Times

South Africa is to spend R24-billion over two years to buy HIV/Aids drugs for public hospitals, Trade and Industry Minister Rob Davies said yesterday.

Speaking at an Aspen Pharmacare manufacturing plant in Port Elizabeth, Davies said the government aims to buy 75% of the drugs from local manufacturers.

"We are on the cusp of a very important tender worth R24-billion by the Department of Health which is for the procurement of antiretrovirals for 2015," he said.

In 2012 South Africa awarded a $667-million two-year contract to pharmaceutical companies, including Aspen and America-based Abbott Laboratories.

Aspen, which secured about a third of that contract, will also be bidding this year.

CEO Stephen Saad said Aspen was aiming for a share of more than 50% this time.

The company is building a new, hi-tech sterile facility in North End in Port Elizabeth, which will create at least 500 jobs once it is fully operational in December 2016.

"Billions of rands have been spent and there are billions still to be spent," Saad said.

Aspen has already invested R2-billion to R3-billion in group facilities across the country.

"Today 80% of our turnover comes from offshore and yet the bulk of our manufacturing continues to be situated here in Port Elizabeth, and there are bigger developments coming. The biggest is yet to come," Saad said.

Aspen employs 1700 people at the four different facilities in North End in Port Elizabeth and 500 at its facility in East London.

Since 2009, Aspen has also invested R228-million in upgrades to its East London facility.

The drug company's headquarters are in Durban.

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