Press Conference Presentation
<Click to download>
<Click to download>
Stephen Saad, Aspen Group Chief Executive said: “The Transactions further strategically complement Aspen and GSK’s strong and mutually beneficial relationship which has been fostered over several years. The Transactions will reinforce Aspen’s position as a leading provider of quality, affordable medicines across Africa. The acquisition of additional products for distribution into worldwide markets supports Aspen’s recently implemented internationalisation strategy into emerging markets and the establishment of a global distribution network. ”
As consideration for the Transactions, Aspen will issue 68.5 million ordinary shares to GSK (approximately 16% of Aspen’s issued ordinary share capital after the issue thereof). On completion of the Transactions GSK will attain the right to nominate one member to the Aspen Board. The final value of the Transactions and the attribution of this value to the individual transactions will depend on the price at which Aspen shares are trading on the JSE upon completion of the Transactions.
a) The SA Component: Aspen will acquire the rights to sell, market and distribute GSK’s products in SA for a minimum period of twenty years.GSK will maintain a presence in South Africa through its retained Consumer Healthcare business and the GSK scientific office.
b) The SSA Collaboration: GSK and Aspen will enter into a collaboration arrangement for the commercialisation of a portfolio of branded prescription pharmaceutical products in SSA.. The portfolio of products will include a combination of GSK and Aspen products. GSK’s existing distribution platform in SSA will be used for this purpose. Aspen’s subsidiary in East Africa, Shelys, is presently excluded form the ambit of this collaboration arrangement.
GSK is one of the leading pharmaceutical companies in SSA, covering most territories in this region with its diverse and recognised portfolio of branded products. Aspen’s extensive product portfolio will supplement GSK’s existing position in the region. The benefits of a combined portfolio of products, supported by a strong distribution network will enable Aspen and GSK to increase access to high-quality, affordable healthcare throughout SSA under the collaboration brand of “GSK Aspen Healthcare for Africa”.
c) Acquisition of manufacturing facility in Bad Oldesloe, Germany: Aspen will acquire the business comprising GSK’s manufacturing facility in Bad Oldesloe, Germany as a going concern. The Facility currently manufactures a range of products, including some of the products which Aspen is to acquire from GSK through the Transactions as well as products acquired from GSK through previous transactions. A ten-year supply arrangement with GSK for the continued supply of GSK retained products currently manufactured at the Facility has also been agreed to.
The acquisition of the Facility will enhance Aspen’s existing manufacturing base and enable the Group to optimise production capacities to meet demand from its global markets. The technical skills and competence of staff at the Facility will further complement Aspen’s existing manufacturing capability.
d) The acquisition of eight specialist products: Aspen Global will acquire eight specialist products from GSK for distribution into worldwide markets, except for Alkeran in the USA which will be retained by GSK. The products are:
These products will add to Aspen’s existing global brands portfolio which contains products such as Eltroxin, Lanoxin, Imuran and Zyloric, acquired from GSK in June 2008, as well as Aldomet, Indocid and Aggrastat which are being dristributed under license from Iroko.
The completion of the Transactions is subject to the fulfillment of, inter alia, the following conditions precedent:
The terms of the agreement are expected to be completed before the end of 2009.
From left to right: JUDY DLAMINI (ASPEN CHAIRMAN), STEPHEN SAAD (ASPEN GROUP CHIEF EXECUTIVE), NOEL GULIWE (ASPEN CHIEF EXECUTIVE : SOUTH AFRICA), GUS
Issued by: Shauneen Beukes, Shauneen Beukes Communications
Tel: (012) 661-8467 : Cell: 082 389 8900
Roshni Gajjar, Aspen Investor Relations
Tel: (031) 580-8649 ; Cell: 082 789 1826
On Behalf Of: Stephen Saad, Aspen Holdings Group Chief Executive
Tel: (031) 580-8600
Gus Attridge, Aspen Holdings Deputy Group Chief Executive
Tel: (031) 580-8600