Government and the pharmaceutical sector have committed to working together to resolve challenges facing the sector.
This after the Department of Health (DoH), led by Acting Director-General Professor Nicholas Crisp, met with sector leaders on Tuesday.
The meeting also included senior officials from the Departments of Trade, Industry and Competition; Science, Technology and Innovation; National Treasury; and the Presidency; as well as the Competition Commission; the South African Health Products Regulatory Authority (SAHPRA) and the Medicines Pricing Committee.
“The meeting provided an opportunity for a frank and constructive exchange on the pressures facing the sector, including heightened global geopolitical uncertainty and global supply-chain disruptions. Industry outlined the practical impact of current conditions, while government shared the broad direction of its evolving localisation roadmap.
“Participants recognised that, while the medium- and longer-term elements of the roadmap are being finalised and appropriate funding identified, several urgent matters require immediate attention and resolution. Government undertook to consider an extraordinary single exit price [SEP] adjustment, in line with existing domestic and geopolitical pricing pressures,” the DoH said in a statement.
Furthermore, an agreement was reached to form a structured, institutionalised engagement mechanism which will meet regularly.
Priority areas identified for further engagement include:
• A fair, transparent and predictable single exit price adjustment (SEPA) mechanism that balances medicine affordability with sustainable supply, including joint review of the applicable SEPA regulations;
• Continued strengthening of SAHPRA and structured engagement with industry on regulatory requirements and their practical implications for business operations, trade, medicine supply, investment and competitiveness. Early joint planning will help to minimise operational disruption and costs, support economic growth and export competitiveness, and ensure timely access to safe, effective and quality medicines;
• Capital-investment support and export incentives to encourage greater investment in South Africa's own pharmaceutical manufacturing capacity and to assist the sector’s export ambitions. This should include the distressed contract manufacturing subsector;
• Transparent, predictable and consistent public-sector procurement rules that support localisation, reliable medicine supply and enable better long-term planning and potentially longer-term contracts;
• Exploration of alternative reimbursement models (ARMs) that could improve the affordability of selected medicines;
• Removal of unnecessary red tape and measures to reduce the cost of doing business, helping to support investment and more efficient and sustainable medicine supply; and
• A broader package of appropriate incentives to sustain existing capacity, attract new investment and strengthen local production and medicine security.
“Government underscored its commitment and readiness to work closely with industry to build a stronger pharmaceutical future across the public and private sectors, in the best interests of patients and the country’s healthcare system.
“The engagement reflects a shared recognition of the pharmaceutical sector’s importance to patient access, sustained medicine supply, public health, investment, employment and South Africa’s industrial-development objectives,” the statement noted. – SAnews.gov.za
