Pretoria - The Adcock Ingram Holdings [JSE:AIP] pharmaceutical company is to use the Promotion of Administrative Justice Act to find out why it came off worst in a massive government tender for anti-retroviral medicines (ARVs).
On Tuesday the government awarded a R4.28bn tender for the supply of ARVs over the next two years. Although the drugs’ unit cost had dropped by more than half, the total tender value considerably exceeded the R3.6bn of the 2008 tender.
The tender was awarded to ten different suppliers and Adcock Ingram’s share fell from being 20.9% of the total 2008 tender to only 4% this time. The value of its allocation declined from R663m to R166.5m.
This brought the group’s share price down 4.35% to R58.99 on Tuesday. By Friday afternoon it was trading at R58.90.
And on Friday afternoon Adcock Ingram said that it was seriously concerned about the way in which the ARVs tender had been awarded in terms of two products: 600mg Efavirenz tablets (30s) and 20mg Stavudine capsules (60s).
Sake24 has reported that in the previous tender Adcock had supplied 600mg Efavirenz in bulk, but that Aspen Pharmacare Holdings [JSE:APN] was now supplying 70% of it. The tablets’ tender price, according to the Department of Health, was 63% cheaper.
Aspen received the biggest (40.6%) slice of the tender pie, which is in fact smaller than its 56.8% share of the 2008 tender.
The group’s share price responded by rising 2.16% on Tuesday to R94.50. By Friday afternoon it was trading at R95.26
On Tuesday the government awarded a R4.28bn tender for the supply of ARVs over the next two years. Although the drugs’ unit cost had dropped by more than half, the total tender value considerably exceeded the R3.6bn of the 2008 tender.
The tender was awarded to ten different suppliers and Adcock Ingram’s share fell from being 20.9% of the total 2008 tender to only 4% this time. The value of its allocation declined from R663m to R166.5m.
This brought the group’s share price down 4.35% to R58.99 on Tuesday. By Friday afternoon it was trading at R58.90.
And on Friday afternoon Adcock Ingram said that it was seriously concerned about the way in which the ARVs tender had been awarded in terms of two products: 600mg Efavirenz tablets (30s) and 20mg Stavudine capsules (60s).
Sake24 has reported that in the previous tender Adcock had supplied 600mg Efavirenz in bulk, but that Aspen Pharmacare Holdings [JSE:APN] was now supplying 70% of it. The tablets’ tender price, according to the Department of Health, was 63% cheaper.
Aspen received the biggest (40.6%) slice of the tender pie, which is in fact smaller than its 56.8% share of the 2008 tender.
The group’s share price responded by rising 2.16% on Tuesday to R94.50. By Friday afternoon it was trading at R95.26