Two of the pharmaceutical companies that won a slice of the health department’s latest Aids drug tender are in business rescue and have been unable to reliably supply the state.
Avacare Health subsidiaries Barrs and Innovata, which last year each won a share of the core contract to supply the three-in-one pill taken by most HIV patients, were placed in business rescue in December.
Companies go into business rescue when they are financially distressed and cannot pay their debts, in an attempt to restructure their operations and avoid liquidation.
Avacare and its subsidiaries did not notify the department of the business rescue proceedings, and neither Barrs nor Innovata have been able to meet their tender obligations, said health department spokesperson Foster Mohale.
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