The African antiretroviral market was estimated to be around $ 234 million in 2003 and is expected to grow at a compounded annual growth rate of 4.3 per cent to reach $ 289 million by 2008. The number of AIDS cases is likely to touch 35.6 million by 2008, according to a recent study conducted by Frost & Sullivan India for Chemexcil.
While countries like Uganda and South Africa are trying to expand the access to available treatment options to rural areas, the African region is still one of the most poorly penetrated areas with respect to ARV treatment usage, the study says.
India and Brazil are already active in the African countries which are currently not following the product patent system in the region. In countries like Zambia and Uganda, local manufacturers are also trying to take a step further and set up manufacturing plants for ARVs through joint ventures with international players.
The Clinton Foundation, The Global Fund to fight AIDS, TB and Malaria, UNICEF, and the World Bank announced their joint support for four generic drug manufacturers based in India and South Africa to enable the reduction of therapy cost to as low as $ 140 per person.
With an increasing volume of HIV cases in the African subcontinent, there is an increasing demand for ARV drugs. This opens up opportunities for imports from a country such as India because of its cost and supply capacity, the study states.
Indian exporters have the twin advantage of geographical proximity and cost leverage which can help in opening up markets in Africa. This can allow development of warehouses, distribution channels and appointment of trade representatives and thereby gain access to the region.
The government and regulatory authorities concerned with the pharma industry should improve the regulatory infrastructure, policies and the Indo-Africa relationships, the study opines.