After Barrs Pharmaceuticals, a subsidiary of Avacare Health, received a tender, it turns out the company was not only under mounting financial pressure but also facing regulatory scrutiny, a combination that allegedly led to the companys shutdown late last year.
Barrs is one of 11 companies awarded a national tender to supply HIV medication, known as antiretrovirals ARVs, across South Africa, a critical contract that helps ensure patients continue to receive life-saving treatment.
However, Barrs and its sister company, Innovata Pharmaceuticals, both awarded the same tender registered for business rescue on 9 December 2025, just days after the contract began on 1 December 2025.