Possible Solutions | Onderstepoort Biological Products © |22nd February 2013

Proposal to strengthen OBP Upgrade of facilities, equipment and processes to PIC /S standards as a matter of urgency – improved production efficiencies, cost reduction and competitiveness, access to more markets Establishment of a new facility. Support by government – vaccine bank/reserve - to ensure supply for benefit of country (i.e. annual transfer payment on the MTEF of DAFF) Increased collaboration, technology transfer and technology acquisition (locally and internationally) to address research / innovation backlog e.g. linkage with TIA’s Animal Cluster. Financial support for R&D to develop new and improved products Increase product range - offer more combination vaccines OBP to be recognised by DAFF as an important role player in conjunction with government in terms of disease management and control – strategic vaccine bank and reserve, training and improved access of products to small holder/emerging farmers | Onderstepoort Biological Products © |22nd February 2013

Current initiatives 1. Treasury made funds available for the upgrading and modernization of the facility. Its is estimated that the full upgrade will take 5-6years. The upgrade and purchasing and delivery of equipment has already started over the next six months(using own funds): Packaging plant New filling machine Fixing old and broken down equipment e.g. freeze drier Access and movement control within the plant. | Onderstepoort Biological Products © |22nd February 2013

Current initiatives *GMP facility Project name 2013/14 2014/15 2015/16 Total Planning, replacement/upgrading of production and packaging equipment. R 96.5m R33.5m   R 130m New Facility: Phase I R 94.0m New Facility: Phase 2 268.4m R268.4m R 127.5 R 268.4 R 492.4m | Onderstepoort Biological Products © |22nd February 2013

2. OBP is one (ARC, UP, CSIR, NRF, TIA) of the signatories of the TIA Animal Health Cluster. The purpose of the cluster is to stimulate R&D and ultimately to bring new or improved animal health products to the market (including vaccines). OBP is currently the commercial partner in this endeavour. 3. DAFF – vaccine reserve, orphan vaccines, developing the smallholder market. 4. Rural Development – supporting land reform beneficiaries with integrated approach to livestock farming. | Onderstepoort Biological Products © |22nd February 2013

5. DST – specialized equipment. 6. Provinces – MOU’s So how does this affect production?: We have to accept that there will be intermittent product shortages during the upgrade process. However based on forecasts we will insure that there is sufficient product availability. For instance: of the 53 products which we produce we are only out of stock with 3, running low on 3 and have sufficient stock of 4 which we normally run low on. This is comparable to what our competitors are experiencing as well. | Onderstepoort Biological Products © |22nd February 2013

Conclusion OBP is required to deliver on its mandate of preventing and controlling animal diseases that impact food security and public health To be able to effectively and efficiently carry out this mandate and to remain a viable and sustainable business entity the following is required: Investment into upgrading and /or establishing new facilities Stronger relationships need to be built with provincial and national government (? preferential procurement of local products vs multinationals) Vaccination/health programmes driven by national departments provinces and private vets Vaccine reserve and orphan vaccines to be considered and supported. R&D of new products supported. Improved communication and interaction between all role players | Onderstepoort Biological Products © |22nd February 2013

THANK YOU | Onderstepoort Biological Products © |22nd February 2013