Aspen Pharmacare, Africa’s largest drug manufacturer, has recently forged a ground breaking agreement with Danish healthcare company Novo Nordisk to establish South Africa’s inaugural production facility for human insulin. Novo Nordisk presently provides medications to over 500,000 diabetes patients across the African continent. However, this collaborative effort is aimed at significantly increasing production, with aspirations to manufacture more than 16 million vials annually at Aspen’s sterile facility in Gqeberha, effectively meeting the needs of one million patients per year. The plan is to further scale up production to sufficiently cater to over four million diabetes patients by 2026.
Human insulin, vital for regulating blood sugar levels, is synthetically produced in laboratories by modifying bacteria. This is a departure from the traditional method of sourcing insulin from animals’ pancreases. Aspen has invested a substantial amount of R6 billion in constructing the necessary facilities and adopting advanced technologies for insulin production. The manufacturing process will utilize sterile infrastructure, some of which has been repurposed from the production of Covid-19 vaccines. Around 250 personnel will be deployed for insulin production, a move that aligns with Aspen’s commitment to retaining critical skills and fostering new talent within the continent. Additionally, this collaboration will contribute to a 68% reduction in the medication’s transport-related carbon footprint.
Stephen Saad, an executive at Aspen, emphasized that the insulin manufacturing initiative will play a pivotal role in developing critical skills and nurturing talent within Africa. Moreover, it underlines Africa’s significance in both regional and global supply chains. He highlighted Aspen’s dedication to empowering Africa and providing affordable access to essential medicines while fostering the capacity for export to global markets.
Novo Nordisk, in alignment with their iCARE sustainable business model, affirmed that the human insulin produced will be distributed at an affordable cost to health authorities and non-governmental organizations through government tenders. The commitment extends to maintaining a ceiling price of $3 (approximately R57) per vial for human insulin, ensuring accessibility for those in need. The World Health Organization projects that by 2030, more than 60 million individuals globally with diabetes will lack access to essential insulin, with a disproportionate impact on low- to middle-income countries, including the 24 million adults residing in Africa who currently battle diabetes. This number is estimated to surge to 55 million by 2045.
Katrine DiBona, Corporate Vice President for Global Public Affairs and Sustainability at Novo Nordisk, reiterated the commitment to offering affordable human insulin to enhance access to quality treatments for a broader segment of the African population. This initiative also underscores the importance of sustainable production through a focus on local manufacturing.
Earlier this year, Aspen experienced a 3% decline in revenue due to the pandemic’s economic impact, although they managed to increase dividends by 5%. The company has been actively seeking contracts to optimize the utilization of their advanced sterile facility. In August, Aspen secured a significant R775 million deal to distribute sub-Saharan drugs manufactured by Eli Lilly, a leading global pharmaceutical manufacturer. The agreement covers drugs such as Tirzepatide, marketed globally as Mounjaro, a diabetes-fighting medicine. Aspen will manage distribution and marketing, while Eli Lilly retains the manufacturing responsibilities. Despite market fluctuations, Aspen’s stock value on the Johannesburg Stock Exchange (JSE) witnessed a rise of over 1% on a recent Tuesday, marking an impressive nearly 25% increase over the past year.
