Theft And Fraud In South African Pharma Sector

Theft and fraud in the South African pharmaceutical industry is reaching alarming proportions, with major consequences for both manufacturers and consumers. An estimated 750 million rand ($210.2 million) worth of medicines (at retail price level) are stolen each year, both at manufacturing level and in transit, but mainly at state institutions.

A number of investigations by private contractors to major pharmaceutical companies, as well as by the police, are in progress, but not with significant success, the Marketletter's local correspondent reports.

In particular, the government tendering system and the serious lack of control at state warehouses and state hospitals are being blamed for the theft of huge amounts of medicines and the phenomenon of "round-tripping" that have become part of the local distribution network. Round-tripping refers to the theft of drugs from government stores and their later sale in the private sector.