Adcock Ingram, one of South Africa’s top five companies in the private and public sector pharmaceutical markets, was able to adapt to changing market dynamics and affordable brands would continue to be sought to add to the company’s range, chairman Nompumelelo Madisa and CEO Andrew Hall said.
The annual report released Friday said that in the consumer division, the heritage brands would be used to leverage new launches within the portfolio. A focus was on reducing the above normal cost increases from suppliers to ensure sustainable profitability.
Opportunities would also be sought to close gaps in the portfolios in areas the company doesn’t compete in.
New channels, markets and adjacent categories would be targeted. Brand-led initiatives such as the Island Tribe solar programme were expected to contribute toward the division’s sustainability objectives.
In the over the counter division, sales and marketing investment behind the division’s brands would continue. The field force would continue to engage with customers, with a focus on increasing market share by brand and therapeutic area. Listing and procuring from local black-owned business vendors would continue, with a focus on black female-owned SMEs.
Utilisation of the sterile facility would be increased. Energy and water conservation and waste management initiatives at Clayville would continue.
In the prescription division, the aim was to strengthen the focus and offering in generics. Delivering on multinational strategic partnerships remained key. The well-established Novartis ophthalmic partnership continues to build on this platform.
In the hospital division, as a local manufacturer, the business would maintain its close relationship with key customers, including government, SANBS and the major hospital groups, and support the provision of quality healthcare products affordable to all.
The division would concentrate efforts on product mix, line extensions, process efficiencies and people.
The pharmaceutical industry, through interactions with the Pricing Committee, was granted a ‘‘top-up’’ 1.73% SEP increase in August 2023, in addition to the 3.28% increase granted in January 2023.
The Wadeville plant had in the past year repurposed its manufacturing towards greater manufacture of oral liquid formulations, showing a 50% improvement in the quantity of units packed and a consequent improvement in recoveries through the plant.
Some 57% of the company’s R9.1 billion turnover in the past financial year was from single exit price regulated products.
Madisa and Hall said the manufacturing facilities were expanded during the past year, with the addition of effervescent capacity in India.
The liquids, creams and ointments facility in Wadeville had seen improvements in throughput, with production volume having doubled by the end of the past financial year.
In response to the low allocation by the National Department of Health in the most recent ARV tender, the oral solid dosage section of the facility was reconfigured for shorter production runs.
Despite the much reduced ARV tender volumes, capacity utilisation in this section had remained the same as in the previous financial year.
On Friday afternoon the share price was 3.64% lower at R51.55. A year ago on the same day, the share price was R46.50.