At the heart of the case is a law passed by former President Nelson Mandela giving his country the right to buy huge amounts of generic drugs and sell them cheaply in South Africa. In addition, South Africa could compulsorily license HIV drugs and manufacture them within its borders, undercutting the multinational pharmaceuticals companies. The threat of legal action has so far prevented South Africa acting on this right. Pharmaceuticals companies believe these measures represent a threat to their balance sheets although, at present, just 1 per cent of drug revenues come from the entire African continent. Furthermore, argue the drugs firms, it is no good farming out cheap pills to countries that don't have robust health infrastructures.
Drugs have to be monitored with scans and therapies.
If that can't be done, drugs are useless. But African HIV campaigners argue that drug companies are putting their profits before the health of a whole region. For the South African government, eager to play a leading role in the global economy, court action is the last thing it wants. It doesn't want to be seen as the Mugabe of the South. Even a leading pharmaceuticals analyst in the City last week said leading drug firms could afford to sanction cheap drugs tomorrow without it impacting on their balance sheets.