SA’s biggest pharmaceutical manufacturer, Aspen Pharmacare, has asked the government to consider creating a special economic zone (SEZ) and supplier park around its site in Gqeberha, home to the lion’s share of its domestic production.
SEZs are designated areas set aside by the government for specific activities, with economic support measures such as subsidised infrastructure and tax breaks to encourage investors.
“There is a real opportunity for a multiplier effect,” said Aspen Pharmacare CEO Stephen Saad on Monday. “Together with government, let’s invest and create jobs, and develop industrial capacity,” he said at the formal launch of the company’s R3.4bn sterile manufacturing facility in Gqeberha, which produces anaesthetics and bottles Johnson & Johnson’s (J&J) Covid-19 vaccine.
It is in talks with J&J for a voluntary licence for the vaccine, which would give it distribution rights in Africa, and to manufacture the active pharmaceutical ingredients used in the jab.
Trade, industry & competition minister Ebrahim Patel said Aspen’s Gqeberha site is the most advanced pharmaceutical production hub in Africa and there is scope for it to “spawn an ecosystem of suppliers”. SA imports most of the components it uses for manufacturing sterile products, such as glass ampoules, and bottles and rubber stoppers.
“The idea of localising more of the suppliers and using what Aspen has done to attract investment to new pharmaceutical facilities is very attractive. It is something that can provide opportunities to young people, graduates, small businesses and suppliers in the area. [We] will be looking at it on an expeditious basis,” said the minister.
The sterile manufacturing facility, which was relocated from Europe, will see products generating R8bn a year, Saad said.
Aspen shifted the production of drugs for late-stage cancer, Parkinson’s disease and some autoimmune illnesses to the factory in 2018. Last year it started making the J&J shot there.
“This facility will help ensure no African is ever denied these treatments like anaesthetics and vaccines again,” Saad said. “We thank J&J for giving us the capability to create our own manufacturing facilities. So we’ve been able to produce vaccines in Africa and now to also bring anaesthetics home.”
Durban-based Aspen has switched focus to producing so-called steriles such as anaesthetics rather than lower-value generic medicines, paving the way for a push into vaccines.
With Bloomberg
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