Motsoaledi allays fears over ARV supply amid business rescue

THE business rescue process involving two ARV suppliers has had no impact on patients receiving their medication as provinces have an adequate stock to cover three months, says Health Minister Aaron Motsoaledi.

“It was planned right from the beginning that nobody ought to be affected by any risk because it would be dangerous. We can confirm to you that nobody is affected because if one company is unable to supply, we just go to the next company. All patients continue to receive their ARVs and other medication; there has never been any disruption whatsoever,” he said.

Motsoaledi made the statement when he led a department team to brief the Health Portfolio Committee on the contingency measures following the placement of Avacare Health subsidiaries, Barrs Pharmaceuticals Industries, and Innovata Pharmaceuticals, on business rescue in December 2025.

He told parliamentarians that the department had measures in place to avoid a stock-out of medicine.

The department has an electronic system for clinics and hospitals to monitor stock in the public health system.

“Following confirmation of the supplier constraints, because of these systems, the department activated contingency measures by engaging other suppliers to increase production so that they supply the volumes we need.

“At a supplier level, current stock levels include approximately two months’ supply across four suppliers, with additional volumes to be increased in line with the department’s adaptive supply plan.”

He said the risks associated with pharmaceutical supplies were many, including manufacturing disruptions, regulatory hurdles, raw material shortages, and logistical constraints, which can affect any supplier during the contract term.

Motsoaledi explained that the ARV tender was intentionally awarded to multiple suppliers as a risk-mitigation measure to ensure continuity of supply in the event any individual supplier faced production, financial, or operational challenges.

“By diversifying supply sources, the department can respond swiftly to supplier-specific challenges by adjusting orders among contracted suppliers, thereby minimising the risk of stock-outs, a strategy that strengthens system resilience, ensures sustained product availability, and supports the integrity and reliability of the public health supply chain.”

He said if any company experienced operational challenges, the next company would take over.

“By diversifying the supplier sources, the department responds swiftly. If you fail, the department does not negotiate. We go to the next person to minimise stock-outs because it will be dangerous for the country and individuals who need these drugs,” said the minister.

A presentation to the committee showed that 15 companies were awarded the ARV tender and specified volumes.

Parliamentarians wanted to know how the no-impact on patients regarding ARV supplies was defined and measured at health facilities beyond stocktake data.

In his response, Motsoaledi said: “As far as patients are concerned, they get all ARVs. If they never got them, it would be any other reason we don’t know, not the reason of business rescue problem that has happened.

“So far, we are comfortable, and that is why we are sure there has not been an impact on patients.”

Cape Times