South Africa plans to set up a state-owned pharmaceutical company, a senior official in the ruling ANC party said on 19 July – a move that could squeeze local players in one of the world’s largest market for antiretroviral (ARVs) drugs.

South Africa has long complained it was paying too much to secure supplies for life-prolonging HIV/Aids drugs to state-run hospitals.

The ANC decided it would establish the state firm, said Gwede Mantashe, the party’s general-secretary.

He said in a telephone interview that there was a compelling case to establish such a firm, as South Africa consumes 25% of ARVs in the world.

Mantashe did not give details, saying the idea was in early stages.

South Africa has at least 5.7 million people infected with HIV -- one of the heaviest caseloads in the world. It also has one of the largest treatment programmes.

Health authorities said in December last year that 10 companies – including South Africa’s Aspen Pharmacare and Adcock Ingram – would share in a R4.3-billion ($615-million) contract to supply ARVs.

– Reuters