SACCI comment on the delays at the Medical Control Council
The South African Chamber of Commerce and Industry (SACCI) is concerned by the closure of QdotPharma due to administrative delays as reported in the Business Day of 21 June 2012 (see here). The tardiness being experienced is not confined to the granting of permission for clinical trials but pharmaceutical companies have reported that it can take four to five years for the Medical Control Council (MCC) to register patents. Industry development and product innovation are inhibited by the slow responses of the MCC.
It makes it increasingly difficult for new entrants to enter the market when the return on investment is unnecessarily delayed. It may not come as a surprise that multinational companies may seek alternative investment destinations as a result. Medicines typically become available in South Africa several years after they are approved in other countries. This has a potential negative impact on the health of patients who could have benefitted from the products.
The government priority on job creation, nurturing of innovation and up-skilling of the work force requires a supportive rather than the current restrictive environment. The problems associated with the MCC and its delays in granting project approvals and licenses are significant barriers to growth and job creation. While other countries are bailing out their failing businesses, South African enterprises are challenged by regulatory impediments.
While additional factors may have played a role in the closure of QdotPharma, SACCI believes that the delays at the MCC are extremely damaging to the pharmaceutical industry. They also have a detrimental impact on South Africa's ability to attract foreign direct investment. SACCI is of the view that the situation requires urgent intervention in the operations of the MCC and will engage at ministerial level on the matter.
Statement issued today the CEO of SACCI, Mr Neren Rau, June 22 2012
Click here to sign up to receive our free daily headline email newsletter
