Summary of health news: May/June 2011
The Council for Medical Schemes (CMS) has increased the levy that schemes must pay to fund its activities by 24,8%, despite objections
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The Council for Medical Schemes (CMS) has increased the levy that schemes must pay to fund its activities by 24,8%, despite objections from medical scheme representatives. The levy is used to fund the activities of the CMS, which regulates medical schemes and other role players in the medical scheme industry. Some individual schemes and administrators, as well as the Board of Healthcare Funders (BHF), objected to the increase, pointing out it was six times the inflation. The levy increase was much higher than that for which schemes had budgeted. According to, dr Monwabisi Gantsho, the Registrar of Medical Schemes, the regulation of schemes had become more complex over the past 10 years, requiring the council to undertake increasingly costly measures to ensure scheme members were protected. One of the reasons for a high increase was the increase in legal costs and the burden on staff. The council's budget and motivation as well as the proposed increase in the levy were sent to dr Aaron Motsoaledi, the Minister of Health, and parliament's health portfolio committee. 5. PHARMACEUTICALS Indian drug firms use SA as launch pad into Africa The Mail & Guardian, 22 May 2011 India's pharmaceutical industry has rolled out a strong local presence in South Africa, cornering a large share of the market and using the country as a base to gush a flood of cheap generic drugs into Africa. India's "big three" - Ranbaxy, Cipla and Dr Reddy's - have carefully cultivated their local credentials by bringing South Africans into the top corporate echelons. Ranbaxy and Cipla have also won fans by slashing the price of anti-AIDS drugs. Cheap generic drugs have been the catalysts of their growth, and Africa has been a key market, buying 14% of India's $8-billion pharmaceutical exports in 2009. The thriving pharmaceutical partnerships between India and Souih Africa were part of a larger vision of south-south cooperation that South Africa and India share. More India ties may be Cipla Medpro remedy FinWeek, 19 May 2011 Cipla India is to take a 25% stake in CMSA's loss-making manufacturing facility Cipla Medpro Manufacturing (CMM) after what started off as a supply arrangement between Cipla Medpro South Africa (CMSSA) and its Indian counterpart Cipla CMSA says Cipla India will provide additional volume and assist it in achieving World Health Organisation and Food and Drug Administration manufacturing approvals in the near future, which will result in increased orders and business for its newly refurbished Durban-based factory. It also aims to extract maximum value in the increasing use of generic medication due to rising healthcare costs. Cancer drug spending to jump Reuters, 18 May 2011 US spending on cancer drugs could rise at least 10% a year until 2013, fuelled by use of effective - and expensive - new therapies used over longer periods. Oncology medicines are on track to become the third-largest contributor to increases in drug spending by 2015 according to the report from pharmacy benefit manager Medco Health Solutions Inc. More than 900 drugs are in development for oncology, by far the single-largest category, the report said. Patients are using the medicines on a more chronic basis as certain cancers become more manageable, driving up spending. The number of US cancer survivors is expected to increase by more than 30% from 13,8m in 2010 to 18m by 2020. Newer cancer drugs have resulted in significant improvements in care, so bio-similar versions of the older drugs may not gain traction in the market. Hospital groups pleased with plans to safeguard standards and bring down medicine prices Business Day, 17 May 2011 Private hospital groups seem genuinely pleased with plans to introduce a new inspectorate to safeguard standards and help bring down medicine prices. According to the Netcare CEO, Richard Friedland, his company pays on average 65% more for drugs in SA than the UK, where it has a private hospital business called General Healthcare Group. This seems bizarre when you consider that Netcare has much greater purchasing power in SA. Friedland questions the extent to which the private sector is subsidising the lower prices paid by the state in SA. Medicine shortage in US could hit SA patients The Weekend Argus, 15 May 2011 A medicine shortage in the US could affect the supply of critical medicine being imported to South Africa; warn local doctors after the American Society of Anaesthesiologists announced the findings from its nationwide Drug Shortages Survey. Results showed that more than 90% of anaesthetists in the US were experiencing a shortage of at least one anaesthetic. Within the past year, more than 98% of respondents experienced an anaesthesia drug shortage. The critical medicines South Africa is in danger of running short of, include certain antibiotics, high blood pressure medication, anaesthesia drugs and muscle relaxants, which are among the commonly prescribed medications in short supply or no longer available in America. Shortages may be due to scarcity of raw materials, quality concerns, demand could suddenly outstrip supply, and manufacturers might choose not to make low-profit or a low-demand for medications. Financial restrictions in the state sector and delays in payment to providers meant that limited stock was ordered, and delivery was often delayed. New centre at UCT to take Africa forward on drug discovery and development Kelly Chibale (prof at UCT): Business Report, 11 May 2011 The University of Cape Town (UCT) in April launched the H3-D Drug Discovery and Development Centre. H3-D (the H stands for holistic) will offer research infrastructure comparable in quality to that of overseas centres. H3-D will create a value chain and a skilled base of expertise and modern technology platforms to assist researchers in tackling the disease burden not only of Africa, but also other parts of the world. A drug discovery centre bridges the gap between the basic and clinical studies. Strong drivers contributed to the establishment of H3-D. The local government, the academic community as well as pharmaceutical firms were also involved at the early stages of planning H3-D, to ensure that the facilities will be of a high international standard. African traditional medicines will be one of the research areas at H3-D from a safety point of view.
The Medicines Control Council (MCC) has decided to withdraw registration for Avandia, the former blockbuster diabetes drug made by UK pharmaceutical giant GlaxoSmithKline (GSK). This follows the withdrawal of Avandia in Europe over safety concerns. The US Food and Drug Administration has restricted its use to specific patients. Avandia, or rosiglitazone, was designed for treating type 2 diabetes. It has only been used to a limited extent in the private sector. Research showed it increased the risk of heart attacks and bone fractures. GSK's first-quarter results show the drug generated sales of just £36m in the first three months of this year. Get asthma off your chest Mail & Guardian, 6 May 2011 "You can control your asthma" - that was the upbeat message on World Asthma Day 2011, celebrated on May 3. But South African health experts say the reality is more complex, especially in poor communities with little access to reliable information. In 2004, the Global Initiative for Asthma (Gina) reported that the latest SA figures suggest that asthma leads to 3 000 to 9 000 deaths a year. Asthma medicines are now categorised as essential drugs, which means that state health facilities have to provide them for free. Rising generic drug deals hurt consumers
The United States Federal Trade Commission said drug-company deals that delayed the introduction of cheaper generic medicines rose 63% last year. The agency is pressing Congress and the courts to limit the settlements. The number of deals increased to 31 from 19 in 2009. Lobbyists for the drug makers defended the settlements as a way to cut legal costs and avoid long-running court battles. The drug industry so far has fended off the FTC's attempts to restrict the deals through the courts and legislation. The agency has contended in court that the deals are anti-competitive and violate antitrust law. The FTC has also supported legislation in Congress that would prohibit settlements that increase the cost of prescription drugs. The settlements are known as reverse-payment or pay-for-delay deals because the brand-name company compensates the generic-drug maker with cash or marketing or sales deals in return for dropping challenges to patents. In the next three years, $20 billion in brand-name drugs will lose their patents. Council firm on painkiller Financial Mail, 6 May 2011 The Medicines Control Council (MCC) said it was unlikely to reverse its three-month deadline for drug companies to stop supplying the painkiller, dextropropoxyphene (DPP), despite Adcock Ingram's appeal against the ban. In December the council asked SA pharmaceutical companies to discontinue the sale of DPP products after a study found DPP increased the risk of cardiac failure and death. MCC registrar Mandisa Hela said the global consensus was that DPP's risks outweighed its benefits, and countries, including the UK, EU and some developing countries, had already withdrawn DPP. Adcock Ingram's DPP-containing medicines, Synap Forte, Lentogesic and Doxyfene, generated an estimated R200m in revenue. It said the council had not given enough comprehensive reasons for the withdrawal and that DPP had a five-decade history of safe use. The MCC said a formal Health Ministry appeal committee would commence with finding outcomes for both sides, but Adcock could also use the courts to continue its appeal. 6. FINANCIAL NEWS Court rejects Numsa's Bonitas application The Times, 31 May 2011 The Johannesburg High Court has rejected trade union Numsa's application to have Bonitas Medical Scheme's curator replaced. Numsa filed an urgent application last week in which it claimed that the curator, Joseph Maluleke, who has been a practising attorney for seven years, had insufficient experience to be the fund's curator. Judge Nigel Willis turned down Numsa's application. Bonitas has 260 000 members with 500 000 dependants. Numsa, who wanted chartered accountant Thabani Zulu appointed curator, employees make up about 15% of the members of the fund. The scheme will be under curatorship for about three months. R500million boost in net income for Bonitas Press release Bonitas Medical Fund, South Africa's second-largest open medical scheme, bolstered its financial position in the year to 31 December 2010 with a R500-million boost in net income. Bonitas reported a net surplus for the year of R277-million after a deficit of R242-million in the previous financial year. The group's paid-up members at 31 December 2010
Net contributions by members in 2010 rose by R700-million to R6,8-billion. Hospital groups' foreign investment folly David Carte The Citizen, 27 May 2011 Medi-Clinic does better in SA, yet continues to pour billions of rand offshore. Like its great rival Netcare, it embarked on a corporate "semigration", choosing to have one foot in Africa and another in the stable First World. The two hospital groups have seen the rich countries steal thousands of SA doctors and nurses. Yet they have deployed some R45bn of scarce SA capital offshore that might have made a big difference to our healthcare services. The reasoning for both companies was that the private medical field in SA was becoming saturated. The private hospital groups had a model that would work in foreign climes, and they wanted to diversify to become a rand hedge. But, suddenly medical aid membership in SA has taken off, as the black middle class and more and more government employees joined. Now both companies do better in SA than offshore. The rand has gone better and both are weighed down by debt of more than R20 billion each, mainly in respect of their investments 10 000km away. When asked why Medic-Clinic did not go for the under-served lower market, given the huge demand for affordable medical services which State hospitals cannot provide, the group's management - like Netcare's - does not think affordable hospitals are practical. Regulators would also not allow one-star hospitals for the masses. A possible solution is public-private-partnerships. All the private hospitals are willing to take over wards in shambolic state hospitals and run them for profit. But the Department of Health is a naysayer and would rather have a cripplingly expensive NHI scheme. Medi-Clinic watches Swiss laws closely Business Report, 26 May 2011 There is still uncertainty about amendments to the Swiss Health Insurance Act, which are due to be implemented next year, according to Medi-Clinic. The listed hospital group is also concerned about the "dual role" of the cantons, which will become regulators and service providers. Cantons are the equivalent of provinces in South Africa. The group owns Hirslanden in Switzerland. Fixed fees for inpatient services based on diagnosis-related groups will be introduced. There will be a new hospital financing system, which redefines the funding proportions of the cantons versus the health insurance companies. The company said the conflict of interest arising from the dual role had resulted in sometimes questionable cantonal requirements for inclusion in the hospital list, protecting the public hospitals against private sector competition. Medi-Clinic's expansion work had already begun using R1,3bn. raised from a rights offer. Medi-Clinic maintains consistent growth, increases core headline earnings
Medi-Clinic's financial results for the year ending 31 March 2011 shows a revenue increase of 9% to R18625m. Core headline earnings rose by 27% to R1 082m and core basic headline earnings per ordinary share increased by 20% to 179,6c. The company has maintained its consistent growth pattern in its South African as well as international operations. In the past year the group acquired a hospital in Switzerland and three clinics in Dubai. A final dividend of 50c per ordinary share was declared, bringing the total dividend for the year to 73c. According to Group CEO Danie Meintjes, Medi-Clinic supports the government's policy objective of increasing access to affordable quality healthcare for all citizens (NHI), but not the proposal by the DoH and the CMS for a central tariff negotiation process, as it will have a negative impact on competition in the private hospital market. Medi-Clinic 'sheltered' in global crisis Business Day, 25 May 2011 The share price of Medi-Clinic, the private hospital group with significant offshore operations, rose sharply yesterday after it reported it had maintained earnings growth during the year ended March despite tough global economic conditions. Chief financial officer Craig Tingle said the group had been "sheltered" from the difficult global economic environment. He said that in SA overall medical aid membership had grown, Dubai remained a safe haven and Switzerland was stable and back to full employment levels. Revenue from Southern African operations increased 12% to R8,63bn, and contributed R731m to group attributable income. In Switzerland, Hirslanden's revenue increased 4% to R8,66bn. Emirate Healthcare's revenue rose 18% to R1,33bn and it contributed R63m to group attributable income, up from R2m last year. Proceeds from the October R1,33bn rights issue were invested in offshore short-term investments and were earmarked for Swiss expansion projects. Better than expected year for Discovery Health Medical Scheme (DHMS) Press release, May 2011, DHMS has published its healthcare analyses for the year ending 31 December 2010. The scheme has shown a constant growth of membership, reaching a total of over one million principal members at the year-end of 2010. DHMS is the largest open medical scheme in South Africa with a principal membership of over 3,5 times the level of its closest competitor. The members’ surplus increased by 13% to R6,8bn.
An analysis of DHMS’s membership distribution reveals that 77% of the risk pool stems from the corporate segment and 21% comprised of individuals. The strong growth in members, combined with 9,8% annual contribution increase across all plans, resulted in a 16% rise in gross premium income to R27,7bn. Net premium also advanced by 16% to R22,1bn. The scheme estimates principal membership growth of between 5% and 8% for the 2011 financial year. The scheme’s net healthcare result is expected to return to a surplus position of between R200m and R300m in this period.
Business Report, 11 May 2011 Despite continued concerns about the affordability of private health services, Life Healthcare recorded double-digit growth in earnings in the six months to March as volumes were boosted by an increase in the number of days spent by patients in hospitals. There are also more people using the private hospital group's facilities through the network arrangements. Normalised earnings per share rose 35,9 %t to 51.1c, while operating profit rose 20,1% to R987m. Revenue surged 12,7% to R4,7bn. and cash generated by operations gained 30,2% to R1bn. Paid patient days increased by 6,4% because of increased demand for hospital services. This also contributed to an improved occupancy of 69,5%, compared with 68,2% last year. Life Healthcare believes that there is another segment of the working population - about 4,5 million people who are uninsured - that could be brought into the private healthcare space and "take the burden of caring for them away from the government".
Private hospital group Life Healthcare has decided the assets it was eyeing in Turkey and India are too expensive, and is now in talks with a Nigerian company to acquire an 85-bed hospital in Lagos. Unlike its two biggest rivals, Netcare and Medi-Clinic, Life Healthcare does not have a significant offshore business. Nigeria could provide the springboard for expansion into West Africa, according to Life MD Michael Flemming. He said Nigeria's economy would be larger than SA's within 10 years. Life Healthcare wants to expand its presence in Nigeria to 500 hospital beds within three years. Life Healthcare also saw opportunities for acquisitions in Ghana, he said. Adcock Ingram acquires majority stake in Bioswiss BusinessLIVE, 17 May 2011 Pharmaceutical group Adcock Ingram Healthcare (Pty) Ltd has announced the acquisition of a controlling stake in Bioswiss (Pty) Ltd. Bioswiss is a specialised diabetes pharmaceutical company that distributes a range of human biosimilar insulins and a range of diabetic diagnostic products (Glucometer and test strips). This acquisition provides Adcock Ingram an opportunity to become a significant player in the diabetes market Pfizer profit rises; sales hit by Lipitor rivals Reuters, 3 May 2011 US drug maker Pfizer revealed that first-quarter earnings jumped 10% despite a 13% hit to sales of its anti-cholesterol drug Lipitor from new generic competition. Net earnings grew to $2.22 billion for the January-March period, from $2.01 billion in the same period in 2010. International revenues grew 2%t despite a 25% drop in foreign Lipitor (atorvastatin) sales, while revenues inside the United States were down 3%. Income was "negatively impacted by the loss of exclusivity of Lipitor in Canada and Spain in May and July 2010, respectively", as well as the November 2010 loss of exclusivity in the United States of the Alzheimer's treatment Aricept (donepezil) in the US in November 2010, the company said. The company said it expected revenues of $65.2-$67.2 billion in 2011 but a lower $62.2-64.7 billion in 2012.
The Australian government wants to replace the distinctive colours of various tobacco brands with a uniformly drab, olive green packet for all, under legislation to be introduced to Parliament in July. Brand names would appear on the front in print, dwarfed by health warnings and often gruesome, full-colour images of the consequences of smoking. The government expects the so-called plain packaging law to make smoking less attractive and further reduce the proportion of smokers. The tobacco industry says it will pursue expensive litigation for compensation if the plan proceeds. Uniform packaging would be easy to counterfeit and lead to a flood of illegal Asian tobacco on the Australian market on which tax is not paid, the industry has argued. British American Tobacco Australia, the Australian market leader known by the acronym BATA, has warned it might slash prices to compete against the illegal product - a move that could encourage more Australians to smoke. Marketing experts agree that Australia's tobacco giants - BATA, Philip Morris and Imperial Tobacco Australia - have a lot to lose from plain packaging. Other countries, including Britain and Canada, have considered plain packaging restrictions, but none has passed the measures. Smoking legislation 'long overdue' The Cape Argus, 26 May 2011 The National Council Against Smoking has called for the Health Department to speed up the process that will see the use of graphic warnings on cigarette packets, showing the effects of smoking on health. The legislation would restrict tobacco industry logos, brand imagery, colours and promotional text appearing on packs, with the only distinguishing marks being the brand and product name in a standard text and colour. Health warnings would be updated and increased from 30% to 75% of the front of the pack, and 90% of the back. Yusuf Saloojee, the council’s executive director, said the number of smokers in South Africa had dropped by more than 20% since 1994. He added that the government needed to better protect non-smokers by getting rid of indoor smoking areas and making public areas 100 % smoke-free. He added that it was necessary to ensure the regulations were compliant with international standards to avoid litigation. Tobacco ads ban upheld The Citizen, 23 May 2011 Yüklə 102,8 Kb. Dostları ilə paylaş:
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