Novo Nordisk, the world’s largest maker of diabetes drugs, has teamed up with Aspen Pharmacare, Africa’s biggest pharmaceutical company, to produce and distribute low-cost insulin for millions of people in Africa. The deal, announced on Tuesday at the UN General Assembly in New York, will see Aspen produce human insulin on behalf of Novo Nordisk at its facility in South Africa. The insulin will be exported to African countries through a government tender system that guarantees a maximum price of $3 per vial.
Novo Nordisk said the contract will result in the production of 16 million vials of insulin next year, which is enough to meet the annual needs of 1.1 million people with type 1 and type 2 diabetes. By 2026, the production will increase to cover the needs of 4.1 million people across the continent.
The Danish company said it currently reaches 500,000 people with diabetes in sub-Saharan Africa, where access to insulin is limited by high costs, poor infrastructure and lack of awareness. According to a company estimate, 60 million people globally need insulin but cannot get it.
“Especially in lower and middle income countries, diabetes is fundamentally a tragedy,” said Katrine DiBona, Novo Nordisk’s corporate vice president for global public affairs and sustainability. Novo Nordisk, which has a market capitalisation of about $420 billion, became Europe’s most valuable company earlier this month on strong sales of its obesity and type 2 diabetes drugs.
The deal with Aspen could also help the South African company utilize its expanded manufacturing capacity, which it built during the pandemic but did not receive enough orders for its vaccine. Aspen invested about $540 million to upgrade its facilities in South Africa and France, and recently secured agreements with three global companies to produce their drugs at its French plant. Novo Nordisk chose Aspen as its partner because of its reputation as a drug manufacturer, DiBona said.
The deal is part of Novo Nordisk’s “expanded commitment” to improve access to life-saving insulin in Africa, where diabetes is a growing health challenge. According to the International Diabetes Federation, there were 19.8 million people with diabetes in Africa in 2019, and this number is expected to rise to 47.1 million by 2045. The partnership between Novo Nordisk and Aspen is an example of how the private sector can work together to address global health issues and make a positive difference in people’s lives.
Source: Reuters
