CAPE TOWN, South Africa, March 18, 2010 /PRNewswire/ -- Botswana does not yet have a pharmaceutical manufacturing industry and therefore all drugs are imported. In an attempt to improve accessibility to essential medication and diversify economic activity, the government is launching private-public partnership (PPP) initiatives to kick-start local pharmaceutical production.
New analysis from Frost Sullivan (http://www.pharma.frost.com), The Pharmaceutical Industry in Botswana, finds that the generic drugs market in Botswana was valued at $73.7 million in 2008, while the market for branded drugs was valued at $62.8 million. By 2015, the market for generic drugs is expected to reach $168.8 million, while the market for branded drugs is set to reach $116.1 million.
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Through government-backed PPPs, the expectation is that prices will come down as a result of the availability of locally manufactured generic drugs, notes Frost Sullivan Research Analyst Ishe Zingoni. Lack of technical capability has been one of the main deterrents to local drug production, although the trend towards partnering Indian and Thai generic drug makers should, in the medium- to long-term, help ease this constraint.
Increased availability of low-cost generic drugs is poised to drive their uptake. As patents on major drugs are expiring, the availability of generic alternatives in Botswana is on the rise.
Mass treatment programmes which had relied on donated branded drugs are now switching to cheaper generic versions, states Zingoni. Local production of generic drugs, once in place, is set to expand coverage of these mass roll-out programmes.
The pharmaceuticals market in Botswana therefore presents significant opportunities for manufacturers of low-cost generic drugs. Infectious diseases, such as HIV/AIDS and malaria, are receiving heightened attention from donors, who are mostly looking to procure generic alternatives compared to the more costly branded products. This trend has been made more important in the current economic climate, as donor organisations seek to contain costs as they face uncertainty in terms of the flow of funds.
The main restraint to market growth is the high cost of imported drugs due to the unavailability of cheaper, locally manufactured alternatives, remarks Zingoni. Wider availability of locally manufactured drugs should drive prices down and improve affordability. Generic drugs are low-cost and local production would expand accessibility to essential medication.
The lack of technical skills is the main deterrent to local production. However, overseas companies - mostly from Asia Pacific - are seeking to enter strategic partnerships with local firms that are likely to enable local pharmaceutical production.
The Pharmaceutical Industry in Botswana is part of the Pharmaceuticals Biotechnology Growth Partnership Services programme, which also includes research in the following markets: Strategic Analysis of the Healthcare Industry of Kenya, Key Infectious Diseases Markets in East Africa, Strategic Analysis of Oncology Services in Key Sub-Saharan African Countries and, Infectious Disease Pharmaceutical Markets in key Sub-Saharan African Countries. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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The Pharmaceutical Industry in Botswana
SOURCE: Frost SOURCE: Sullivan
CONTACT: Patrick Cairns, Corporate Communications - Africa, of Frost Sullivan, +27-18-464-2402, firstname.lastname@example.org