Aurobindo Pharma has sued the South African government alleging bias towards the local companies after the Indian drug maker failed to get a $425-million contract for supplying anti-AIDS medicines (ARV), according to a media report.
According to Johannesburg-based paper 'Business Day', Aurobindo claims that even though its tender was 30 per cent cheaper, the multi-million US dollar tender was granted to three local companies.
The company has filed a suit against the government alleging bias towards the local companies while granting contracts.
When contacted, the company spokesperson declined to comment on the issue saying that the matter is subjudice.
South Africa is considered as the world's largest market for ARV drugs as more than one-fourth of world's AIDS affected population is from that country. It is the largest drug market in the African continent.
According to industry sources, the tender for supplying ARV medicines to a UN sponsored programme by the South African government was originally floated in May 2007 but due to bureaucratic hurdles it was delayed and was finally granted in June last year.
The company took around one-year time in making preparation for filing case against the government.
The Business Day reported that according to the court documents, almost 60 per cent of the contract went to local companies — Aspen and Adcock Ingram among others.
