New S African Distribution Venture Claims Success

The first true pharmaceutical distribution venture in South Africa, International Health Care (Pty) Ltd, is claiming success after its first nine months of operation.

The jointly-owned, non-profit, cooperative organization was formed in December last year by the multinatio nal drug companies Bayer, Boehringer Ingelheim, Ciba and Roche (which has subsequently also acquired part of the Fisons business) to serve as the sole agent for the principal manufacturers' ranges of approximately 500 products. Other manufacturers distribute through wholesalers.

With the sizeable gray activities market in South Africa (see also Marketletter October 24), estimated at 750 million rand ($213.8 million) per annum, one of IHC's main objectives was to create an effective distribution system in order to control the destiny of products from manufacturer to dispenser or prescriber, the company's marketing executive Nick Brummer explained. This would ensure the safety, efficacy and stability of products.