S Africa's expanding diabetes market

South Africa's diabetes market is growing rapidly, primarily as a result of higher diagnosis rates. This is due to increased access to health care. Many type 2 diabetics are shifting towards the use of insulin along with their oral treatment. In 2006, 43.0 % of type 2 diabetics were using the more expensive insulin in addition to the oral treatment. This trend is significantly boosting the revenues of the anti-diabetic pharmaceutical market.

A new analysis from consulting firm Frost & Sullivan, Strategic Analysis of the South African Diabetes Markets, finds that the sector earned revenues of $3.2 million in 2006 and estimates this to reach $82.7 million in 2012. However, because the South African pharmaceutical industry is extremely regulated, it is difficult to market high-priced drugs, the report notes. This is due to reference pricing and reimbursement issues, it adds.