Fresenius Kabi South Africa

Reproductive Health Supplies Coalition (RHSC) Market Development Approaches (MDA) Working Group Working with Industry Consultative Forum
FRESENIUS KABI SOUTHERN AFRICAN EXPERIENCE
Arlington, USA
1 - 2 October 2007 John-Heyns Ferreira

Fresenius Kabi South Africa

9 PROVINCES IN SOUTH AFRICA

Fresenius Kabi South Africa

RH BACKGROUND IN SOUTH AFRICA

Healthcare Services are provided by
both Government (service and products are for free) and Private Health institutions Reproductive Health forms part of Primary Health Care in South Africa The bulk of Reproductive Health is provided by the government and

private institutions account for a

small percentage Contraceptive State tender runs for two years with accurate quantity forecasts

Fresenius Kabi South Africa

RH in SOUTH AFRICA Market development by Fresenius Kabi

South African market is covered by a Brand Manager and 5 representatives calling mainly on state clinics and other relevant parties

Brand Manager calls on key opinion leaders and

buyers and manages the brand locally Education and continued reliable supply is key Evidence that this approach is working

is the resultant unit and sales growth

Fresenius Kabi South Africa

DOMESTIC SALES UNIT GROWTH 2006 vs 2007 Local activities proven effective by increased sales
10000 8000 6000 4000 2000 0 EC FS NC MP GT NW LP KZ WC SC YTD '07 YTD '06

Fresenius Kabi South Africa

% SALES AND UNIT GROWTH 2006 -2007

Local and Export activities proven by increased sales

Market South Africa Export

% Growth 9.2% > 20%

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STATE CONTRACEPTIVE MARKET SOUTH AFRICA

Method used % Usage** 41% 12.3% 2.1% 12% 1.7% 1.9% 29%

Injectables Pill (oral) Condoms Female sterilization Male sterilization IUD Other

**Department of Health and Family Planning

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DMPA A GLOBALLY AVAILABLE PRODUCT

Depot Medroxyprogesterone Acetate
3 monthly injection (4 / year) progestogen-only injectable arguably the most extensively studied and widely used hormonal injectable available registered and available in >130 countries used by millions of females globally for many years Depo Provera developed by Pfizer the brand

has been extensively used by Aid Agencies

Fresenius Kabi South Africa

FRESENIUS ACTIVITY IN SOUTHERN AFRICA

NAMIBIA BOTSWANA

SWAZILAND RSA LESOTHO

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FRESENIUS KABI SOUTHERN AFRICAN TERRITORIES MARKET APPROACH

The product is Petogen (generic DMPA (depot medroxyprogesterone acetate)

Supplied to the surrounding countries on

the same basis as the domestic product Fresenius Kabi has built up good working relationships with these various country authorities to allow for no interruption of supply Consultative forecasting of production

happens as part of the supply conditions

Fresenius Kabi South Africa

CONTRACEPTIVE SECURITY AND STRATEGY EFFECT

Manufacturing capacity should be in line with supply requirements to neighbouring and other potential territories Improve relationships with NGOs and Donors Fresenius Kabi aims to deliver sustainably, a product of assured quality at an affordably low cost to achieving supply security for Petogen A part of a growth strategy, Fresenius Kabi aims to make available a quality product to donor agencies, governments and social marketing organizations at affordable prices

Fresenius Kabi South Africa

CONTRACEPTIVE SECURITY AND STRATEGY EFFECT Local manufacturer In Africa for Africa
and beyond Quality Generic - Internationally accepted Cost-effective -Internationally competitive DMPA POI of choice - International

Dedicated sales and marketing team

- South Africa and International

Substantial market share gain both

locally and internationally

Fresenius Kabi South Africa

ONGOING CHALLENGES FOR FRESENIUS

CAPACITY sufficient to meet expanding demand CURRENCY ongoing fluctuations TENDERS risky nature of the business WHO pre-qualification and compliance

DEMAND aim to smooth demand / forecast

EDUCATION all markets PACKAGING variations in format and kits

REGULATORY variations per country

Fresenius Kabi South Africa

OVERCOMING CHALLENGES
INVEST increased manufacturing capacity & quality BALANCE ongoing demand/capacity STABLE supply by co-operation and agreement RELATIONSHIPS ongoing building with relevant parties MARKETING affordable generic and social marketing

Fresenius Kabi South Africa

IN CONCLUSION
CONSTRUCTIVE INPUT dialogue and communication CO-OPERATION all stakeholders in this market

PRODUCT
provide a quality product at globally affordable price SUPPLY the correct product at the right time and right place