mda1 fresenius kabi experience - ferreira

Fresenius Kabi South Africa

Reproductive Health Supplies Coalition (RHSC) Market

Development Approaches (MDA) Working Group – Working with Industry Consultative Forum

FRESENIUS KABI SOUTHERN AFRICAN

EXPERIENCEArlington, USA

John-Heyns Ferreira

1 - 2 October 2007

Fresenius Kabi South Africa

9 PROVINCES IN SOUTH AFRICA

Fresenius Kabi South Africa

RH BACKGROUND IN SOUTH AFRICA

• Healthcare Services are provided by

both Government (service and products are

for free) and Private Health institutions

• Reproductive Health forms part of

Primary Health Care in South Africa

• The bulk of Reproductive Health is

provided by the government and

private institutions account for a

small percentage

• Contraceptive State tender runs for two

years with accurate quantity forecasts

Fresenius Kabi South Africa

RH in SOUTH AFRICA – Market development by Fresenius Kabi

• South African market is covered by a Brand

Manager and 5 representatives calling mainly

on state clinics and other relevant parties

• Brand Manager – calls on key opinion leaders and

buyers and manages the brand locally

• Education and continued reliable supply is key

• Evidence that this approach is working

– is the resultant unit and sales growth

• Local activities proven effective by increased sales

DOMESTIC SALES UNIT GROWTH 2006 vs 2007

Fresenius Kabi South Africa

0

2000

4000

6000

8000

10000

EC FS NC MP GT NW LP KZ WC SC

YTD '07 YTD '06

Fresenius Kabi South Africa

% SALES AND UNIT GROWTH 2006 -2007

Market % Growth

South Africa 9.2%

Export > 20%

• Local and Export activities proven by increased sales

Fresenius Kabi South Africa

STATE CONTRACEPTIVE MARKET – SOUTH AFRICA

Method used % Usage**

Injectables 41%

Pill (oral) 12.3%

Condoms 2.1%

Female sterilization 12%

Male sterilization 1.7%

IUD 1.9%

Other 29%

**Department of Health and Family Planning

Fresenius Kabi South Africa

DMPA – A GLOBALLY AVAILABLE PRODUCT

Depot Medroxyprogesterone Acetate

• 3 monthly injection (4 / year)

• progestogen-only injectable

• arguably the most extensively studied and widely used hormonal injectable available

• registered and available in >130 countries

• used by millions of females globally for many years

• Depo Provera developed by Pfizer – the brand

• has been extensively used by Aid Agencies

Fresenius Kabi South Africa

FRESENIUS ACTIVITY IN SOUTHERN AFRICA

RSA LESOTHO

NAMIBIA BOTSWANASWAZILAND

Fresenius Kabi South Africa

FRESENIUS KABI SOUTHERN AFRICAN TERRITORIES – MARKET APPROACH

• The product is Petogen (generic DMPA -

(depot medroxyprogesterone acetate)

• Supplied to the surrounding countries on

the same basis as the domestic product

• Fresenius Kabi has built up good working

relationships with these various country

authorities to allow for no interruption of

supply

• Consultative forecasting of production

happens as part of the supply conditions

Fresenius Kabi South Africa

CONTRACEPTIVE SECURITY AND STRATEGY EFFECT

• Manufacturing capacity should be in line with

supply requirements to neighbouring and

other potential territories• Improve relationships with NGO’s and Donors• Fresenius Kabi aims to deliver sustainably, a

product of assured quality at an affordably low

cost to achieving supply security for Petogen• A part of a growth strategy, Fresenius Kabi aims

to make available a quality product to donor

agencies, governments and social marketing

organizations at affordable prices

Fresenius Kabi South Africa

CONTRACEPTIVE SECURITY AND STRATEGY EFFECT

• Local manufacturer – In Africa for Africa

and beyond

• Quality Generic - Internationally accepted

• Cost-effective -Internationally competitive

• DMPA POI of choice - International

• Dedicated sales and marketing team

- South Africa and International

• Substantial market share gain both

locally and internationally

Fresenius Kabi South Africa

ONGOING CHALLENGES FOR FRESENIUS

• CAPACITY

– sufficient to meet expanding demand

• CURRENCY

– ongoing fluctuations

• TENDERS

– risky nature of the business

• WHO – pre-qualification and compliance

• DEMAND– aim to smooth demand / forecast

• EDUCATION – all markets

• PACKAGING – variations in format and kits

• REGULATORY – variations per country

Fresenius Kabi South Africa

OVERCOMING CHALLENGES

• INVEST

– increased manufacturing capacity & quality

• BALANCE

–ongoing demand/capacity

• STABLE

– supply by co-operation and agreement

• RELATIONSHIPS

– ongoing building with relevant parties

• MARKETING

– affordable generic and social marketing

Fresenius Kabi South Africa

IN CONCLUSION

CONSTRUCTIVE INPUT

– dialogue and communication

CO-OPERATION

– all stakeholders in this market

PRODUCT

– provide a quality product at globally

affordable price

SUPPLY

– the correct product at the right time

and right place