The US President’s Emergency Plan for AIDS Relief, known as PEPFAR, is increasing its purchase of antiretroviral drugs (ARVs) from local suppliers to support 2 million patients in Africa, according to Stavros Nicolaou, head of strategic trade at Aspen Pharmacare.
This expansion is significant because it will boost drug production in Africa. PEPFAR, started by President George W. Bush in 2003, received short-term reauthorisation in March after political debates about its scope.
Over the past 20 years, PEPFAR has saved more than 25 million lives and invested over $110 billion. It has also helped at least 5.5 million children be born without HIV, the virus that causes AIDS. Sub-Saharan Africa has the highest number of HIV/AIDS cases in the world.
Until now, less than 1% of PEPFAR’s $750 million annual budget for HIV/AIDS was spent on products made in Africa. Nicolaou said HIV/AIDS is still a major health crisis in Africa, and with such a high disease burden, it’s crucial to produce drugs locally to support economic growth and health.
The Covid-19 pandemic highlighted the need for local drug production after Africa faced delays in vaccine access. Companies like Aspen Pharmacare and Adcock Ingram, as well as drugmakers in Nigeria, Ghana, Uganda, Tanzania, and Kenya with US FDA approval, are expected to benefit from this new agreement.