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Strategic Analysis of the South African Diabetes Markets

Frost & Sullivan
April 8, 2008
144 Pages - SKU: MC1774766

Abstract Table of Contents Related Reports

Countries covered: South Africa

This Frost & Sullivan research service titled Strategic Analysis of the South African Diabetes Markets provides an overview of the South African healthcare industry in the context of diabetes treatment drugs as divided between Type 1 and Type 2 diabetics. In this research, Frost & Sullivan's expert analysts thoroughly examine key industry challenges, drivers, restraints, and trends. Revenue forecasts and strategic recommendations are also provided.

Rising Number of Diabetics Points to Sustained Future Demand for Anti-Diabetic Medication

Nearly 6.4 per cent of South Africa’s population is diabetic. In 2006, 1.7 million were diagnosed with diabetes - 170,000 with Type I diabetes and 1,530,000 with Type II diabetes. The balance remains undiagnosed; however, 187,000 new cases were diagnosed as well. The South African diabetes market is growing rapidly, primarily as a result of higher diagnosis rates, which are increasing because of easier access to healthcare. "The anti-diabetic pharmaceutical market in South Africa is firmly in the growth stage as a result of not only better access to healthcare delivery, but also due to drastic changes in lifestyle," states the analyst of this research. "Hence, more South Africans are seeking treatment and are being diagnosed with the disease, boosting the prospects of anti-diabetic pharmaceutical manufacturers."

As the market expands, it has brought about a choice for patients between ethical and generic drugs as well as between prices. Type 2 diabetics, who comprise 90 per cent of all diabetics, are shifting towards the treatment used by Type 1 diabetics, namely insulin. Almost 16 per cent of all Type 2 diabetics are complementing their oral treatments with the more expensive insulin. This trend is gaining momentum and is significantly boosting the revenues and sustained growth of the anti-diabetic pharmaceutical market. With the beginning of awareness campaigns, increased testing, better diagnosis and larger numbers seeking treatment, the market is showing signs of potential for tremendous profit. The market is in its early stages of development and will expand dramatically with growth rates set to rise, annually. The escalation in incidence rates coupled with the shift towards insulin will add to market value. With better economic prospects and an enhanced standard of living, many are seeking treatment and will do so in future. The Type 2 diabetic population will grow at a rate of nearly 9.0 per cent per annum and, in 2012, will comprise about 93.1 per cent of total diabetics. These demographics indicate that the anti-diabetic pharmaceuticals market in South Africa is on a path of rapid growth.

Reimbursement Issues and Reference Pricing Continue to Dampen Market Prospects

The South African pharmaceutical industry is extremely regulated. It is very difficult to market high-priced drugs owing to reference pricing and reimbursement issues. "Due to spiralling healthcare expenditures, the South African government is resorting to strict cost-containment measures," cautions the analyst. "As oral drugs cost less than insulin and other novel anti-diabetic drugs, the market is set to be driven by the cost factor: the government is likely to purchase cost-effective drugs rather than costly alternatives."

The need for oral anti-diabetic drugs with tighter glycaemic control abilities and alternative methods of insulin delivery constitute a key market need. Companies able to fulfil this need stand to make strong gains. Manufacturers should try to lower costs and, at the same time, maintain a high level of quality. This strategy will enable them to capture greater market share.

1. Analysis of the South African Diabetes Markets: 1. Executive Summary; 2. Research Objectives, Scope and Methodology; 3. Strategic Analysis of the South African Diabetes Markets; 4. List of Key Industry Participants; 5. Decision Support Databases
List of Figures: Revenue forecasts for the insulin market in the South African Diabetes Market from 2006 to 2012; Exchange rate of South African rand to US dollars in South Africa in 2006; Private/public hospital market metrics for the South African advanced wound care market in 2006; Healthcare budgets for the 2006/7 financial year for the South African advanced wound care market in 2006; Hospitals by province for the South African advanced wound care market in 2006; Total hospital revitalisation expenditure for the South African advanced wound care market from 2002 to 2010; Demographics and healthcare data related to the South African diabetes market in 2006; Ananzi Curve - PESTLE analysis summary of results for the South African diabetes market in 2006; Key political rankings and indicators related to the South African diabetes market in 2006; Key economic indicators related to the South African diabetes market in 2006; Overall South African ease of doing business rank in 2006: 35 (/175 countries); Ease of doing business indicators related to the South African diabetes market in 2006; Local currency exchange rate vs. US dollar in South Africa from 2002 to 2006; Key social Indicators related to the South African diabetes market in 2006; Key health indicators related to the South African diabetes market in 2006; Leading causes of death related to the South African diabetes market in 2002; Key technology indicators related to the South African diabetes market in 2006; Key legal and constitutional indicators /10 related to the South African diabetes market in 2006; Key legal transparency indicators related to the South African diabetes market in 2006; Key environmental indicators related to the South African diabetes market in 2006; Final table of PESTLE scores related to the South African diabetes market in 2006; Revenue forecasts for the insulin market in the South African diabetes market from 2006 to 2012; Insulin market size - $36.0 million - for the South African diabetes market in 2006; Revenue forecasts for the oral anti-diabetic drugs market in South Africa from 2006 to 2012; Oral anti-diabetic drugs market size in 2006 - $17.2 million - for the South African diabetes market; Type I and Type II diabetes growth forecast for South Africa from 2006 to 2012; Number of diabetics using insulin and OADs in South Africa in 2006; Manufacturer market share by volume of oral anti-diabetic drugs in South Africa in 2006; Manufacturer market share analysis - revenue derived from oral anti-diabetic drugs in South Africa in 2006; Manufacturer market share analysis - revenue derived from insulin in South Africa in 2006; Revenue derived from oral anti-diabetic active ingredients in South Africa in 2006; Key industry challenges related to the South African diabetes market from 2007 to 2012; Key insulin market drivers related to the South African diabetes market from 2007 to 2012; Key market insulin restraints related to the South African diabetes market from 2007 to 2012; Key oral anti-diabetic drugs market drivers related to the South African diabetes market from 2007 to 2012; Key oral anti-diabetic drugs market restraints related to the South African diabetes market from 2007 to 2012

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Strategic Analysis of the South African Diabetes Markets

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