South Africa to Create State-Owned Pharma Firm

South Africa -- which has long complained of paying too much for the HIV drugs it distributes at state hospitals -- plans to set up a government-owned pharmaceutical company, a senior official said Tuesday. The ruling African National Congress made the decision over the weekend, said Gwede Mantashe, the party's general secretary. In an interview, Mantashe declined to give details but said there is a compelling argument for establishing such a firm, given that South Africa consumes one-quarter of the world's antiretrovirals. In December, health authorities announced that 10 manufacturers -- including South Africa's Aspen Phamacare and Adcock Ingram -- would share a contract worth 4.3 billion rand (US $615 million) to supply ARVs.

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