Novo Nordisk has contracted Aspen Pharmacare to produce human insulin on its behalf in South Africa for export to African countries through a low-cost government tender system, the Danish drugmaker has said.
The contract will lead to the production of 16m vials of insulin next year, marking its “expanded commitment” to improving access to the life-saving drug for diabetics on the continent, Reuters reports.
Novo said the amount Aspen would produce next year under the contract equates to the yearly consumption of 1.1m people with type 1 and 2 diabetes, adding that it currently reaches 500 000 people with the disease across sub-Saharan Africa.
By 2026, the amount of insulin produced will equate to the yearly consumption of 4.m people across the continent, it said.
“In lower- and middle-income countries, especially, diabetes is fundamentally a tragedy,” said Katrine DiBona, Novo’s corporate vice-president for global public affairs and sustainability.
She said some 60m people globally need insulin, but cannot access it.
The Aspen-produced insulin would be distributed to health authorities and NGOs through a tender system, with a guaranteed ceiling price of $3 per vial, said Novo.
The deal could help Aspen, Africa’s biggest drugmaker, use the expanded manufacturing capacity it built during the Covid-19 pandemic. Aspen invested about $540m to expand facilities in South Africa and France, but orders for its vaccine failed to materialise.
That left the increased capacities loss-making, Aspen’s CEO said last month after the company announced it had secured agreements with three global companies to produce their drugs at its French facility.
Novo chose Aspen as its partner due to its credibility as a manufacturer, DiBona said.
See more from MedicalBrief archives:
Aspen SA to halt vaccine output as J&J orders dry up
€75m boost for Dakar vaccine facility while Aspen sits idle
Aspen’s PE facility to concentrate on specialist products for niche markets