Aspen Pharmacare has secured a deal to manufacture the Johnson & Johnson COVID vaccine, in an effort to adapt to the pharmaceutical market.
Elective surgeries being deferred due to the pandemic has reduced demand for certain medications, and the company withheld dividends for the second year running in September. However, the company does produce some medications which are currently in demand due to COVID.
Dexamethasone, one of the medications Aspen has the rights to produce, is a key treatment for COVID patients, which according to a study done in June, reduces mortality by 30%. Colchicine is another medication used to treat COVID, normally used for gout.
Tavros Nicolaou, a senior Aspen executive, said in an interview: “In February, we looked at how we best respond to this looming disaster facing us and we split it into three buckets — what we can do at a therapeutic level, what can we do at a vaccine level and what can we do to generally help society.” This positioned them “globally as a company that had a multifaceted response to this pandemic.”
The pharmaceuticals company has invested R3 billion in a Port Elizabeth plant to manufacture the Johnson & Johnson COVID vaccine at a rate of 300 million per year, which will help supply the rest of Africa. The need for local COVID vaccines may come sooner rather than later.
Despite peaking in July, the country’s COVID pandemic is not yet over with at least two provinces seeing increases in cases again, while on the horizon a second surge is expected in January.
Source: Moneyweb
