WATERFORD PHARMACEUTICAL company EirGen Pharma yesterday announced a new partnership agreement with a South African company worth an estimated €3 million a year to the Irish firm.
EirGen Pharma co-founder Patsy Carney said the breakthrough deal to supply five oncology products for the local market was the culmination of three years of negotiations with South African firm Equity Pharmaceuticals, one of the country’s fastest growing pharmaceutical companies.
He said the company’s annual sales prediction for the drugs – which will be available in South Africa from next year – was based on a belief they can secure 20 per cent of the €15 million local market for their product portfolio.
Effectively, the deal will involve EirGen Pharma supplying the oncology products from their plant in Co Waterford, and Equity Pharmaceuticals marketing and selling them locally.
Speaking after the announcement in Johannesburg, Mr Carney said: “We are delighted to have secured this agreement with Equity Pharmaceuticals. EirGen and Equity plan to take a significant share of the current market of €15 million for these products.
“We also see further potential in our partnership in the future as we are currently jointly evaluating four other oncology products for potential entry to South Africa and other markets in the region.”
In August, the South African government unveiled plans to introduce a universal health scheme, as more than 80 per cent of the population cannot afford private medical insurance and rely on publicly funded hospitals.
A pilot scheme in 10 areas is to start next April and the scheme will be phased in nationally over the next 14 years.
According to Mr Carey, whose company employs 45 people, if the health scheme comes to fruition, it could open up a huge market to companies supplying pharmaceutical products.
Yesterday’s agreement between EirGen Pharma and Equity Pharmaceuticals was the first announced by an Irish firm participating in Enterprise Ireland’s trade mission to South Africa this week.
Led by Minister of State for Trade and Development Jan O’Sullivan, 28 Irish companies have travelled to South Africa seeking business opportunities in a variety of sectors, from telecommunications to financial services.
