The Department of Health has assured the public that there is no shortage of antiretrovirals (ARVs) after reports that two companies awarded to supply the medicine used to treat HIV have entered business rescue. Avacare Health subsidiaries Barrs and Innovata last year won a share of the tender to supply ARVs, alongside nine other companies. However, Barrs and Innovata both applied for business rescue nine days after the tender commenced.
Business rescue is a legal process that helps a struggling company avoid shutting down. When a company enters business rescue, it is placed under the control of a business rescue practitioner who tries to fix its financial problems, keep it operating, and protect jobs while a plan is made to pay creditors over time instead of all at once. According to the Department of Health’swebsite, under the ‘Pharmaceutical Contracts’ tab, the contract for successful suppliers started on 1 December 2025, and it will run until 30 November 2028.
However, papers show that bothBarrsandInnovataregistered for business rescue on 9 December 2025. The Citizen reached out to the department to confirm if the dates are correct, when the tender was advertised, and when the companies were appointed. Foster Mohale, departmental spokesperson, said in a media statement that it is not uncommon for a tendered company to enter business rescue.
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“The phenomenon of a company that has received a tender from the state or any other entity, public or private, going into some supply-related problems, be it business rescue, financial hardships or outright production failures, is not new and is well known.” Mohale said awarding the ARV tender to multiple suppliers is a risk-mitigation strategy to ensure continuity of supply in the event of supply constraints by any individual contracted supplier. There are11 companiesappointed to supply ARVs untill end of November 2028. “This approach enables the department to respond swiftly by engaging alternative contracted suppliers where necessary,” he said.
According to papers, thedepartment has approvedBarr’s request to supply an alternative product until the end of March 2026, as the pharmaceutical company is out of stock and cannot meet its tender obligations. There is no indication of when Innovata will be able to meet its tender obligations or what will happen in the meantime. There is no indication of when Innovata will be able to meet its tender obligations or what will happen in the meantime “Following notification of supply challenges experienced by the affected companies, the department immediately engaged with them to establish the causes and expected timelines for resolution,” said Mohale in a media statement.
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