Healthcare Pharma Industry

Africa Identified As Next Healthcare Frontier

Over the past decade the global life sciences sector has experienced healthy growth. The world market for pharmaceuticals, for example, has doubled within a decade, reaching a value of about USD 1 trillion, and is expected to grow by another 3 to 6 per cent per annum until 2016 (IMS 2012a). This huge demand, which has been particularly strong in the mature markets of Europe and North America, is now infiltrating the more dynamic emerging markets including China, Russia and India, but is particularly relevant in Africa, which is positioned as the next frontier for the healthcare sector.

This is according to Sumesh Rahavendra, Head of Marketing for DHL Express Sub-Saharan Africa, who says that Africa has seen tremendous growth in the life sciences and healthcare sector over the past years, as well as investment into the development of healthcare, especially in the logistics sector, as a result of this shift.

“Companies are increasingly turning to Africa due to the opportunities that the continent offers as it is one of the few locations that can still obtain double digit economic growth. The life sciences logistics model in Africa is therefore changing drastically as, in the last two and a half years, we have seen major growth in hubs like Kenya, servicing East Africa, and South Africa, which plays a key role for the Southern African Development Community (SADC) countries; in addition to direct shipments into specific countries, as the capabilities grow within the region.”

Referencing DHL’s recent report on key logistics developments in the healthcare sector for 2020 and beyond, entitled Key Logistics Trends in Life Sciences 2020+, Rahavendra says that this growth in Africa can be attributed to Sub Saharan Africa’s increased life expectancy, rate of urbanisation and rise of the middle class. “While Sub-Saharan Africa comprises of 12% of the global population, the region comprises of 24% of the global healthcare burden.”

Rahavendra says that another contributor to this shift is ecommerce growth in the pharmaceutical industry. “The healthcare sector will ultimately follow the technology sector as where there is communication, there is ability. Therefore, as technology capabilities roll out in the country, so will healthcare capabilities.

“With technology continuingly evolving, there is talk that consumers will likely soon be able to self-medicate and order over the counter drugs via their cellphones or the internet. These sorts of developments have the potential to drastically change both the healthcare, and logistics, sector.”

However with the current shift in the sector, Rahavendra explains that there are key challenges that need to be met based on the current developments. “Increasing differentiation of supply chains and the need for companies to keep their supply chain flexible to adapt to requirements of innovative products is a key challenge.

“As innovation in the pharmaceutical industry shifts towards specialties and biotech products, so does the need for temperature controlled, and monitored, cold chain transport and storage, historically only required for shipments of vaccines and blood fractions.”

He says that due to the combination of increasing regulatory demands, the focus on emerging markets, and new product requirements, notably around temperature management, and cost pressures, the life sciences and healthcare sector is accelerating its emphasis on driving supply chain transformation and differentiation.

“Despite these hurdles, we are confident that the life sciences and healthcare sector will continue to flourish in upcoming years due to the on-going investment and development on the African continent,” concludes Rahavendra. “The future is bright for Africa, and the healthcare sector will be one of its star performers.”

DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 285,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 55 billion euros in 2012.

BEERSE, Belgium, March 1, 2012 — In preparation of the conference ?Healthcare In Africa?, taking place in Cape Town on March 6 & 7, The Economist Intelligence Unit (EIU), published the report ?The Future Of Healthcare In Africa?, commissioned by Janssen Pharmaceutica NV.

The report focuses on five possible future scenarios for African healthcare systems over the next ten years. Thirty-four leading healthcare experts, representing the entire chain of stakeholders across the sector, helped the editors identify the key trends shaping African healthcare systems.

Jane Griffiths, Company Group Chairman of Janssen in EMEA, explains : ?The study draws a very high level picture, combining statistics with trends and possible scenarios that could form the basis for further discussions on which policy options to take. Solutions can only become clearer by having open and constructive discussions with all parties involved, based on factual analyses?.

Janssen is active in Africa in many ways. Apart from selling its products across the region, the company has also set up a number of projects specifically designed for infectious and neglected diseases, including research for a new tuberculosis treatment in collaboration with the TB Alliance, a microbicide targeting HIV, with the International Partnership for Microbicides, a new research programme against elephantiasis and river blindness with the Drugs for Neglected Diseases initiative (DNDi) and the Gates Foundation, as well as against sleeping sickness, Chagas and visceral leishmaniasis.

For the products that are already approved, Janssen sets up access programmes, such as the recently concluded agreements with generic manufacturers in Africa to distribute the company?s HIV/AIDS compounds, or the free distribution of treatments against intestinal infections with the Children Without Worms programme.

About Janssen

The Janssen Pharmaceutical Companies of Johnson & Johnson are dedicated to addressing and solving the most important unmet medical needs of our time, including oncology, immunology, neuroscience, infectious disease, and cardiovascular and metabolic diseases.

Driven by our commitment to patients, we develop innovative products, services and healthcare solutions to help people throughout the world.

Healthcare In Africa

New hospitals in Africa provide quality healthcare

The healthcare sector in Africa is showing signs of remarkable improvement as the quality of hospitals and the availability of qualified doctors has dramaticaly improved over the last few years. By making the transformation from traditional medicine to a modern and well structured healthcare system, many African countries have been able to meet the growing demands for quality healthcare services for their people.

The Council for Health Services Accreditation for Southern Africa (COHASA) has been accrediting many hospitals under its jurisdiction that meet the applicable predetermined and published standards. However, Africa’s healthcare industry is characterised by a huge division between the private and public sectors both in terms of facilities and funding. Perhaps the biggest problem facing the public sector currently is the rising incidence of HIV/AIDS, which is and will continue to place considerable strain on the public health system in many African countries.

As a result, there exist immense opportunities for the supply of a wide range of hospital equipment, intrumentation, machinery and allied medical products. Most of the requirement s of the healthcare sector in Africa are imported from various countries around the world. Being a price-sensitive market, African buyers are always on the lookout for high quality, competitively priced goods to meet their requirements.

All government efforts as well as the public and private hospital sectors in Africa are dedicating their energies towards making healthcare more accessible and affordable for the general population of Africa.