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anc lekgotla, art, arvs, aspen, cost of art, gilead, gwede mantashe, healthcare, medicines patent pool, pharmaceutical, piasa, sowetan, state drug company, the citizenMixed feelings over proposed state-owned drug company
JournAIDS
21 July 2011
According to newspaper reports, the jury is out over the potential benefits and losses of a home-grown, state-owned pharmaceutical company.
Yesterday various newspapers published reports on calls for a state owned pharmaceutical company heard at the ANC’s national executive committee (NEC) lekgotla which was held last week.
At a media briefing on Tuesday ANC Secretary-General Gwede Mantashe argued that the establishment of such a company would decrease the cost of ARVs paid by the state. The ANC NEC seems to have based its appeal on the fact that South Africa consumes 25% of the world’s ARVs.
Today’s edition of the Sowetan featured another report which saw Mantashe claiming that the state venture would also form part of a strong foundation on which the proposed national health insurance (NHI) plan could be built.
Mantashe also attempted to soothe allegations that a state owned enterprise would threaten those private companies currently providing ARVs to the South African government.
Aspen pharmaceuticals, Adcock Ingram and Cipla-Medpro are some of the drug companies which won government tenders to provide ARVs for use in the public health care sector.
The Citizen looked the discontent brewing in the pharmaceutical that the announcement has occasioned. The newspaper published a story centered on the Pharmaceutical Industry Association of South Africa (Piasa) which has disagreed with the Secretary-General’s proposal.
Piasa has reportedly said that a state owned drug company would be a waste of resources, because there are already established and viable drug companies functioning in the country.
This news comes in the wake of last week’s announcement by the Medicines Patent Pool, which stated that the organisation had forged an agreement with international drug giant Gilead.
The agreement will see developing countries having access to ARVs that would otherwise be too costly and/or unavailable.
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