The pharmaceutical industry in South Africa continues to grow despite concerns around medical inflation and the implementation of restrictive regulations. The burden of diseases like HIV/AIDS, TB and lifestyle diseases like Diabetes have boosted the demand and use of high priced medicines.

The market has seen growth in the use of generic medicines which is in line with the Department of Health's (DOH) policy towards finding ways to provide South Africans with access to cheaper and life saving drugs which ensures that the market remains competitive as well as innovative.

The Pharmaceutical Industry is made of up the following product sectors:

• Originator medicines
• Generic medicines
• Complimentary medicines

Litha has identified the pharmaceutical sector as a key growth area for the Group and will focus on all three product sectors. The emphasis will be on acquiring generic medicines, given the trend towards generic utilisation and this will be achieved through organic growth and acquisition.