Industry Trend Analysis - Pharmacy Expansion Bodes Well For Generic Medicines Outlook - MAR 2017
BMI View : South Africa's generic drug industry is well-placed to benefit from the expansion of the country's retail pharmaceutical sector. While expansion will create commercial opportunities for generic drugmakers, proposed regulatory changes will continue to face opposition from innovative drugmakers that manufacture patented medicines. Any large-scale regulatory changes are likely to face delays as opposition remains fierce.
Expansion of South Africa's retail pharmaceutical sector will increase the population's access to affordable medicines, creating revenue-earning opportunities for drugmakers in South Africa. The leading South African health and pharmaceutical retailer New Clicks Holdings Limited is planning to open 30 to 35 new pharmacies in 2017, supplementing the 511 pharmacies recorded at the end of 2016. Highlighting the company's commitment to expansion, 26 new standalone stores and 40 in-store pharmacies were opened in the 2015/16 financial year. The company also has a combined presence of 25 pharmacies in neighbouring Namibia, Swaziland, Botswana and Lesotho. Indeed, this will increase the population's access to medicines, creating revenue-earning opportunities for drugmakers - predominantly those firms whose portfolio includes generic medicines.
Clicks Pharmacy Expansion To Benefit Generic A nd OTC Uptake
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