NOVO Nordisk, a leading Danish pharmaceutical firm, has announced a strategic partnership with South Africa’s Aspen Pharmacare to facilitate the production of human insulin within South Africa for export to various African countries. This initiative, unveiled during the UN General Assembly, is set to operate through a cost-effective government tender system, reflecting Novo Nordisk’s dedication to improving access to vital diabetes treatment across the African continent.
Under this agreement, Aspen Pharmacare will produce an estimated 16 million vials of insulin in the coming year. This substantial production volume underscores Novo Nordisk’s expanded commitment to addressing the needs of individuals living with diabetes in Africa, where access to life-saving insulin is of paramount importance.
The insulin production planned for the upcoming year is equivalent to the annual consumption requirements of approximately 1.1 million people diagnosed with type 1 and type 2 diabetes. Novo Nordisk currently serves around 500,000 individuals with diabetes throughout sub-Saharan Africa, and the anticipated increase in insulin production is poised to benefit approximately 4.1 million people across the continent by 2026.
Katrine DiBona, Corporate Vice President for Global Public Affairs and Sustainability at Novo Nordisk, commented, ‘Especially in lower- and middle-income countries, diabetes is fundamentally a tragedy.’ The company estimates that a staggering 60 million people worldwide require insulin but face significant barriers to access.
Notably, Novo Nordisk recently ascended to the status of Europe’s most valuable company, driven by robust sales of its obesity and type 2 diabetes medications. The company boasts a market capitalisation of approximately $420bn.
The insulin produced by Aspen Pharmacare will be distributed to health authorities and non-governmental organisations through a transparent tender system, featuring a guaranteed ceiling price of $3 per vial, according to Novo Nordisk. Further financial details regarding the contract were not disclosed.
This collaboration holds potential benefits for Aspen Pharmacare, Africa’s largest pharmaceutical manufacturer, as it leverages expanded manufacturing capacities developed during the COVID-19 pandemic. Despite investing approximately 10 billion rand (about $527.9 million) in facility expansions in South Africa and France, Aspen’s vaccine orders did not materialise as expected. As a result, the increased production capabilities were rendered unprofitable. Last month, Aspen announced agreements with three global firms to manufacture their drugs at its French facility.
Novo Nordisk’s selection of Aspen as its partner reflects the latter’s established credibility as a reputable drug manufacturer, stated Katrine DiBona. This partnership is poised to make significant strides in addressing the critical healthcare needs of individuals living with diabetes in Africa while bolstering the region’s pharmaceutical manufacturing capabilities.
