Multi-Stakeholder Collaboration in Support of Local Production of Pharmaceuticals (LPP) Mr. Godfrey Keele, MPharm (UNIDO) HRDC Summit, 29 March 2016, Midrand, RSA

Requested Intervention Vision 2030 for Pharma The Deliverable Healthy and productive nation Security of supply of essential medicines - NHI High rate of economic growth and job creation Thriving knowledge economy and R&D Local pharmaceutical industry that is globally competitive - FDI Key exporter of medicines esp to the African market A multi-stakeholder forum with a legal status. The forum should: Formulate a sector development strategy to address the matters related to public health and trade innovation Craft a demand driven and evidence based skills development programme Report back quarterly +

Current Situation (March 2016) Key Challenges: High incidence of medicine stock outs undermines our collective effort to improve the health of SAns Limited expansion of pharmaceutical plants despite SA’s triple burden of disease & incentives (dti) Erosion of manufacturing capacity and job losses – 37 plants closed down with 6,500 jobs being lost Shortage of highly skilled professionals Pharma is a 5th leading driver of trade deficit in SA Only 35% of our pharmaceutical consumption is produced locally Considerable threat to the security of supply of medicines in SA

Agenda 2030

Stakeholders Present at the Forum  Government    Statutory Authorities    Associations    SETAs   PHARMISA  UN Agency    Academia   Universities (X10)

Legislative Framework for LPP National Drug Policy Industrial Policy Action Plan Objectives Improve access to drugs Lower the cost of drugs Promote LPP Medicines Act Sect 22C(1)(b) – licensing and quality standards (PIC/S) Sect 22G – transparent pricing system Sect 22F – mandatory generic substitution Manufacturing Investment Programme Manufacturing Competitiveness Enhancement Programme Special Economic Zones 12I Tax Incentive Allowance National Industrial Participation Programme

Policy Analysis of the BRICS Bloc Country Price Controls Local Content PIC/S Import Duty Yes No  

Business Case for LPP Key Multipliers Impact on the Economy R1 invested in production = R 0.35 in Fiscal Revenue = R 1.13 in Value Created R1 M invested in production = 3 sustained jobs Knowledge economy Skills development Job creation Broader tax base Reference: Deloitte 2016

LPP and UN Agencies

“AU’s Pharmaceutical Manufacturing Plan For Africa – Business Plan” Ethiopia – concluded a Sector Strategy in 2015 Kenya – concluded a GMP Roadmap in 2014

“In the future, regional and global power and national stability will be determined not by who controls arms, but by who controls access to medicines” Michel Sidibe (Executive Director of UNAIDS)