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This project, led by Dott.ssa Notaro and Dott.ssa Stefanoni, focuses on the analysis of balance sheets and income statements, alongside financial and economic cost-benefit analyses (CBA) related to producing Antiretroviral (ARV) drugs in Sub-Saharan Africa. The main objective is to increase the availability of affordable ARV therapy, enhance life expectancy, and alleviate the economic burden of HIV/AIDS. Stakeholders include the Sigma Tau private sector and the Sudanese government, with project activities aimed at establishing a local plant for ARV drug production and researching an AIDS vaccine.
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From Balance sheet to economic analysis Dott.ssa Notaro Dott.ssa Stefanoni
What we are going to study • Balance sheet analysis and Income Statement analysis • Financial CBA • Economic CBA
Producing ARV in Sub-Saharan Africa Project Objective • The project aims to increase the offer of Antiretroviral drugs in Sub-Saharan Africa by reducing the price of Antiretroviral therapy • Project stakeholders • Private sector Sigma Tau • Government Sudan Government
Project activities • Build up a plant to produce and can Antiretroviral (ARV) drugs in Sudan • Finance the research on AIDS vaccine for both adults and children
Expected impact • Increase life expectancy of infected people • Improve the quality oflife by transforming a mortal disease in a manageable chronic illness • Alleviate the economic impact of HIV/AIDS in Sub-Saharan Africa
Analysis structure Balance Sheet and Income statement analysis Financial CBA Sigma Tau Sudan Government Economic CBA
Social and Economic Framework • In the world there are 40 millions people living with HIV • Africa accounts for 10% of the total world's population but the 83% of deaths caused by AIDS occurs in Africa • Sub-Saharan Africa accounts for 28.1 people living with HIV/ADS. • WHO’s members have reached an agreement to allow LDCs countries to make use of compulsory licenses to import or produce in loco low cost generic drugs
Market Analysis: Demand • Africa didn’t experiment any reduction in the rate of prevalence of HIV/AIDS • Between 1990 and 2000 the spread of epidemic has increased in the region • At present in Africa the 99% of people living with HIV don’t have access to ARV Therapy (ART)
Market Analysis: Supply • ART has become more affordable through international competition between producers of generic drug. (From 10.000 US$ per year to 290US$ per year) • So far there are not factories that produce ART in Sub-Saharan Africa
Expenditures • Investment costs • Engineering costs • Personnel costs • Operating costs • Row materials • Personnel • Distribution
CBA and Balance sheet Costs
Benefits Benefits