Cipla aims to make biosimilars affordable with new South African plant

The new plant, to be built with an investment of about Rs 600 crore, will be run independently of existing pharma manufacturing division, Cipla Medpro Manufacturing

Cipla's Goa manufacturing plant
BS B2B Bureau Mumbai
Last Updated : Jul 11 2016 | 2:18 PM IST
Cipla, which on Friday announced its plans to set up a biopharmaceutical manufacturing facility in South Africa, is aiming to make biosimilar treatment cost-effective with wider penetration among the patients.
 
It is estimated that currently about 1-in-50 patients in Africa have access to biologic medication. “We are striving to reduce this number to about 1-in-5 cancer patients through the production and supply of biosimilar medication at an affordable price. This embraces Cipla ethos of advancing healthcare for all,” said Paul Miller, CEO of Cipla Medpro – the South Africa-based pharmaceutical unit of Cipla.
 
The biosimilars produced at the proposed facility will be for both state and private sectors and there is also the potential to export to markets in the US, European Union and Asia, explained Miller. “The capacity of this factory will have the potential for a vast majority of the products to be exported, thereby contributing significantly to the country’s economic growth and skill development,” he added.
 
Cipla BioTec, Cipla’s biotechnology company focused on affordable and accessible biopharmaceuticals, plans to invest just over Rand 1.3 billion (approximately Rs 600 crores) in the South African biotech manufacturing facility for the production of biosimilars.
 
Biosimilars are important to enable access to advanced cancer and autoimmune treatments. These treatments are only used by about 8 percent of patients who should be treated worldwide mainly due to the high costs of these drugs. “Biosimilars are as safe and effective as the original treatment and are starting to be introduced worldwide. However, biosimilars remain too expensive for broad use outside of major western markets. Cipla BioTec aspires to transform the biosimilars market worldwide, by significantly increasing access with its strategy of one global product standard at affordable pricing,” said Steven Lehrer, director of Cipla BioTec.
 
Construction for the new facility is scheduled to start in early 2017, with full operations expected to commence in the third quarter of 2018. It also marks the entry of Cipla BioTec into South Africa. The new plant will be run independently of the pharmaceutical’s existing manufacturing division, Cipla Medpro Manufacturing (CMM).
 
Subhanu Saxena, MD & global CEO, Cipla Ltd, “Cipla’s investment in this facility will enable the creation of the first bio-cluster on the African continent. A state-of-the-art, world-class manufacturing base here in South Africa will allow opportunities for supply chain partners and related companies to get involved. This in turn will allow top-notch research efforts to stay in South Africa and attract research from international institutions as well.”
 
The biotech manufacturing facility will have the necessary design capacity and capabilities and will seek regulatory approvals to supply the local market and to export into the rest of Africa and Europe.

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First Published: Jul 11 2016 | 2:02 PM IST

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