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Assessing the micro-economic impact of HIV/AIDS on a South African pharmaceutical manufacturer as well as evaluating their policy on HIV/AIDS

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: HIV infection has increased sharply in SA over the past decade, from almost zero to a
level where between 4-6 million citizens are estimated to be HIV positive (i.e. around Il
percent of the total population). Given the considerable lag and link between the HIV and
AIDS epidemic, the mortality consequences of this exponential increase in HIV infection
over the 1990s are more or less matter-of-fact over the coming decade; even drastic
interventions can do little to avoid this reality, albeit possibly impactingfurther beyond.
The health care industry, and more specifically the pharmaceutical industry, is the only
industry that can have a direct impact on the outcome of the epidemic in terms of
provision of antiretroviral drugs. More importantly, the decision by multinational
companies to provide voluntary licensing to local SA pharmaceutical manufacturers for
the manufacturing of generic ARVs has gone a long way into achieving the World Health
Organisations' objective of providing an ARV cocktail for less than $1,00 per day.
The mam aim of the study is to establish and study the micro-economic effect of
HIV/AIDS on a South African pharmaceutical manufacturer and to evaluate their
HIV/AIDS Policy with the framework of the mV/AIDS & SID Strategie Plan for South
Africa 2000-2005.
Both qualitative and quantitative methods were used to obtain data from various key
informants, manufacturers and market survey companies. The analysis of quantitative
data was done using Excel software and a descriptive analysis method was used to
interpret the data.
The key findings from the study are that Aspen Pharmacare will experience a 20,8 %
HIV prevalence rate in 2005, which will progressively increase to a 25,6 % level in 2015.
This prevalence level will be severely experienced in the skilled, semi-skilled and
unskilled employment of the company during the 2010 period and will start to stabilise in
the latter part of 2015. The AIDS prevalence in the company will increase from a 2,0 %
level in 2005 to a 4,4 % level in 2015. This increase is largely due to the increase in the
prevalence rates in the semi-skilled and unskilled employees. At a senior management level the forecasted number of employees that will have clinical AIDS after 2010 is
between 6 and 8. This clearly indicates that mv/AIDS prevalence at this level is
independent of race and is lifestyle dependent.
If the company were to have the full responsibility for the provision of benefits, based on
the current expected employee benefit structures, the direct cost to company would add
10 % to salary and wages by 2005 and around 20 % by 2010. Indirect costs to company,
such as recruitment and training, increased labour turnover, lost skills and intellectual
property, etc. are estimated to be 2,5 % by 2005 and 5 % by 2010.
With the high HIV/AIDS prevalence rates, especially amongst the unemployed,
companies will have to carry the costs of their mv/AIDS patients for longer and register
then with Aid for AIDS when it becomes too costly. More importantly employers will
have to investigate the cost implication of assisting employee dependents, as this will
have a direct impact on the morale of the employees.
Aspen Pharmacares' mv/AIDS Policy goes beyond the requirements of the mv/AIDS
Strategic Plan for SA in terms of the legal and social requirements. The company also has
a Corporate Social Investment division that assists many NGOs, clinics, hospitals and
communities.
Based on the intellectual property, the pharmaceutical competencies and the continuous
dialogue that exists between the pharmaceutical industry and the department of health,
the researcher concludes, that pharmaceutical companies have an advantage over nonpharmaceutical
companies in dealing with the mv/AIDS issues.
The paper concludes by suggesting recommendations that companies can adopt to ensure
that their mv/AIDS policy can form a significant component of their skills retention
strategy. / AFRIKAANSE OPSOMMING: MIV infeksie het skerp gestyg in SA oor die laaste dekade, vanaf amper geen tot 'n vlak
waar tussen 4-6 miljoen inwoners beraam word om MIV positiefte wees (minstens 11%
van die totale bevolking). Gegee die aansienlike vertraging en skakel tussen die MIV en
VIGS epidemie, word die eksponensiële toename in die sterfte syfer as gevolg van MIV
infeksies gedurende die jare negentig as vanselfsprekend aanvaar in die komende dekade.
Selfs ingrypende veranderinge kan min doen om hierdie katastrofe te keer.
Die gesondheidsorg industrie, en meer spesifiek die farmaseutiese industrie is die enigste
industrie wat 'n direkte slag kan slaan om die uitkoms van die epidemie te beinvloed, in
terme van voorsiening van antiretrovirale medisyne. Die besluit van die multinasionale
maatskappye om vrywillige lisensiëring aan plaaslike farmaseutiese maatskappye te bied,
vir die vervaardiging van generiese antiretrovirale medisyne, is een stap vorentoe om by
die doelwit van die Wereld Gesondheidsorg Organisasie se doelwit van die voorsiening
van 'n daaglikse toediening van antiretrovirale medisyne van minder as $1.00 per dag.
Die primêre doelwit van hierdie projek is om te bepaal wat die mikro-ekonomiese effek
van MIV/VIGS op 'n Suid Afriakaanse farmaseutiese vervaardiger is en hul MIV/VIGS
beleid te evalueer binne die raamwerk van die MIV/VIGS en SOS Strategiese Plan vir
SA 2000-2005.
Beide kwalitatiewe en kwantitatiewe metodes is gebruik om data te verkry vanaf verskeie
bronne, vervaardigers en marknavorsings maatskappye. Die kwantitatiewe inligting was
geanaliseer deur gebruik te maak van "Excel" sagteware en 'n beskrywende analitiese
metode was gebruik om die data te interpreteer.
Die hoof bevindinge van die studie is dat Aspen Pharmacare 'n MIV infeksie vlak van
20.8 % in 2005 sal ondervind, wat progressief sal toeneem tot 25,6 % in 2015. Hierdie
infeksie vlak sal in die geskoolde, semi-geskoolde en ongeskoolde arbeid die ergste
voorkom gedurende die 2010 periode en sal dan stabiliseer in die latere gedeelte van
2015. Die VIGS infeksie vlak in die maatskappy sal toeneem vanaf 2,0 % in 2005 tot 'n 4,4 % in
2015. Hierdie toename kan toegeskryf word aan die toename in die infeksie vlakke van
die semi-geskoolde and ongeskoolde arbeid. Op die senior bestuurs vlak word beraam dat
tussen 6 en 8 werknemers VIGS onder lede sal hê na 2010. Hierdie beraming toon
duidelik aan dat MIV/VIGS op hierdie vlak onafhankilik van kleurgroup is en direk
leefstyl verwant is.
Gebaseer op die huidige verwagte werknemer voordele struktuur, en die feit dat die
maatskappy volle verantwoordelikheid sou aanvaar vir die voorsiening van voordele,
word beraam dat die direkte koste as gevolg van MIV/VIGS 'n toename van 10 % in
2005 en 20 % in 2010 by salarisse en lone sal voeg. 'n Toename van 2,5 % in 2005 en 5
% in 2010 word beraam vir indirekte koste (werwing van personeel, opleiding, ens.)as
gevolg van MIV/VIGS.
Met die hoë MIV/VIGS infeksievlakke, veral onder werkloses, sal maatskappye die
kostes vebonde aan hul MIV/VIGS werknemers vir langer moet verduur en dan later
sulke werknemers registreer by "Aid for AIDS" indien dit onbekostigbaar word.
Belangriker is die feit dat werknemers die koste implikasie bepaal in die verband, omdat
dit 'n direkte invloed sal hê op werknemer selfvertroue.
Aspen Pharmacare se MIV/VIGS beleid bied meer as die wettige en sosiale vereistes
soos uiteengesit in die MIV/VIGS en SOS Strategiese Plan vir SA 2000-2005. Die
maatskappy het ook 'n Korporatiewe Maatskaplike Beleggings afdeling wat 'n bydra
lewer by NGOs, klinieke,hospitale en gemeenskappe.
Gebaseer op die intelligensie eiendom, die farmaseutiese bekwaamheid en die
aanhoudende gesprekvoering wat bestaan tussen die farmaseutiese bedryf en die
department van gesondheid, oortuig die navorser dat farmaseutiese maatskappye 'n
voordeel het bo nie-farmaseutiese maatskappye in die hantering van die MIV/VIGS
strydvraag.
Hierdie studie sluit af met aanbevelings wat maatskappye kan toepas om te verseker dat
hul MIV/VIGS beleid 'n betekenisvolle komponent van hul bekwaanheids retensie
strategie is.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/49857
Date03 1900
CreatorsLudick, Christopher Vernon
ContributorsRoux, A., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format110 p. : ill.
RightsStellenbosch University

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