Cape Town — Adcock Ingram, SA's second-biggest pharmaceutical manufacturer, has expanded its five-year co-promotion and distribution agreement with the world's second-biggest drug firm US-based Merck & Co (MSD) beyond SA's borders to include six other African countries, it announced yesterday.

As with the deal signed in June, which focused on SA, the parties declined to disclose financial details, but said the deal is strategically important for both sides.

Adcock Ingram will expand its portfolio of products, while MSD hopes to increase sales in key African markets by leveraging off Adcock Ingram's presence there.

The expanded deal includes Botswana, Namibia, Swaziland, Lesotho, Kenya and Ghana.

Multinational pharmaceutical companies are placing increasing emphasis on emerging markets as those in Europe and the US stagnate, said Marc Princen, MSD's president for Eastern Europe, the Middle East and Africa.

"There is economic growth in these markets, and there is a huge unmet medical need," he said.

"Our intention is that about 25% of our turnover should come from emerging markets by 2013. That represents a 10%- 12% increase on last year," he said in an interview with Business Day.

"There is a lot of attention today on Brazil, China and India, but I believe the next set of emerging markets will be on the African continent.

"We would like to lead the efforts there," Mr Princen said.

The total pharmaceutical market in sub-Saharan Africa is worth about 6bn, of which 3bn is attributable to SA. The market is expected to tip 10bn in the next three to five years, he said.

Mr Princen said MSD is exploring collaborative deals with pharmaceutical companies in other emerging markets. However, he declined to provide further details.