Public-private Partnerships to Propel Pharmaceuticals Industry in Botswana, Finds Frost & Sullivan

CAPE TOWN, South Africa, March 18, 2010 - Botswana does not yet have a pharmaceutical manufacturing industry and
therefore all drugs are imported. In an attempt to improve accessibility to
essential medication and diversify economic activity, the government is
launching private-public partnership (PPP) initiatives to kick-start local
pharmaceutical production.

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New analysis from Frost & Sullivan (www.pharma.frost.com), The
Pharmaceutical Industry in Botswana, finds that the generic drugs market in
Botswana was valued at $73.7 million in 2008, while the market for branded
drugs was valued at $62.8 million. By 2015, the market for generic drugs is
expected to reach $168.8 million, while the market for branded drugs is set
to reach $116.1 million.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Through government-backed PPPs, the expectation is that prices will come
down as a result of the availability of locally manufactured generic drugs,"
notes Frost & Sullivan Research Analyst Ishe Zingoni. "Lack of technical
capability has been one of the main deterrents to local drug production,
although the trend towards partnering Indian and Thai generic drug makers
should, in the medium- to long-term, help ease this constraint."

Increased availability of low-cost generic drugs is poised to drive their
uptake. As patents on major drugs are expiring, the availability of generic
alternatives in Botswana is on the rise.

"Mass treatment programmes which had relied on donated branded drugs are
now switching to cheaper generic versions," states Zingoni. "Local production
of generic drugs, once in place, is set to expand coverage of these mass
roll-out programmes."

The pharmaceuticals market in Botswana therefore presents significant
opportunities for manufacturers of low-cost generic drugs. Infectious
diseases, such as HIV/AIDS and malaria, are receiving heightened attention
from donors, who are mostly looking to procure generic alternatives compared
to the more costly branded products. This trend has been made more important
in the current economic climate, as donor organisations seek to contain costs
as they face uncertainty in terms of the flow of funds.

"The main restraint to market growth is the high cost of imported drugs
due to the unavailability of cheaper, locally manufactured alternatives,"
remarks Zingoni. "Wider availability of locally manufactured drugs should
drive prices down and improve affordability. Generic drugs are low-cost and
local production would expand accessibility to essential medication."

The lack of technical skills is the main deterrent to local production.
However, overseas companies - mostly from Asia Pacific - are seeking to enter
strategic partnerships with local firms that are likely to enable local
pharmaceutical production.

The Pharmaceutical Industry in Botswana is part of the Pharmaceuticals &
Biotechnology Growth Partnership Services programme, which also includes
research in the following markets: Strategic Analysis of the Healthcare
Industry of Kenya, Key Infectious Diseases Markets in East Africa, Strategic
Analysis of Oncology Services in Key Sub-Saharan African Countries and,
Infectious Disease Pharmaceutical Markets in key Sub-Saharan African
Countries. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27 18 464 2402
    E: patrick.cairns@frost.com

The Pharmaceutical Industry in Botswana

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www.frost.com

Patrick Cairns, Corporate Communications - Africa, of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com