Why invest in Aspen?

Aspen has a proud heritage dating back more than 160 years and is committed to sustaining life and promoting healthcare through increasing access to its high quality, affordable medicines and products.

Aspen is the largest pharmaceutical company listed on the South African securities exchange,  JSE Limited, and is one of the top 20 companies listed on this exchange. Aspen’s market capitalisation at 30 June 2016 was R165 billion (approximately USD11 billion). The Group has 26 manufacturing facilities at 18 sites on six continents and more than 10 000 employees.

Aspen is well positioned in both developing and developed markets – it is the largest pharmaceutical company in Africa, and has an expanding presence in Latin America, Asia, Europe and the Commonwealth of Independent States, comprising Russia and the former Soviet Republics. Aspen is also one of the leading pharmaceutical companies in Australia and is establishing a presence in other developed markets such as the United States of America and Canada.

QUICK FACTS

Market capitalisation

R164 billion

US$14 billion

Ranking in generic producers globally

9th largest

Manufacturing facilities

26

Sites

18

Continents

6

Employees

+10 000

INVESTMENT PROPOSITION

Please click on a title below left for more information.
Strong market position

Strong market position

  • One of the largest pharmaceutical companies in the southern hemisphere
  • Substantial presence in major developing markets such as Latin America, Russia, Eastern Europe, sub-Saharan Africa and South East Asia
  • Accredited manufacturing facilities that are scalable to demand
  • Vertical integration advantages for the manufacture of certain of Aspen’s leading global brands
  • The leading pharmaceutical company in South Africa
  • One of the top five pharmaceutical companies in Australia
Diversified geographies and product offering

Diversified geographies and product offering

  • Well positioned in both developing and developed territories with products distributed in more than 150 countries and an established presence in approximately 50 of these countries
  • Approximately 80% of revenues and EBITA are generated from territories outside of South Africa
  • A broad product portfolio including branded medicines, biologicals, generics, infant nutritionals and other consumer healthcare products
  • Targeted acquisitions of product portfolios in niche therapeutic areas which have a broad geographical footprint and which present value creation opportunities for the Group
  • Diverse manufacturing capabilities across 26 manufacturing facilities covering a wide variety of product types including oral solid dose, liquids, semi-solids, steriles, biologicals, APIs and infant nutritionals
  • Diversification of geopolitical and currency risk
Proven track record

Proven track record

  • Delivered NHEPS CAGR of 38% since listing through acquisitive and organic growth
  • CAGR since listing in excess of 40% for gross revenue and EBITA
  • Skilled and experienced management teams to execute Aspen’s strategy across multiple territories
Leverages on local knowledge and expertise

Leverages on local knowledge and expertise

  • Empowered local management take ownership of their businesses and are responsible for growth in their respective markets
  • Products are acquired and product pipeline is developed in line with targeted therapeutic categories for each region
Centralised Group activities facilitate synergies and mitigate pricing pressures

Centralised Group activities facilitate synergies and mitigate pricing pressures

  • Globally competitive manufacturing facilities that are aligned to commercial objectives and provide economies of scale
  • Centralised regulatory, supply chain and procurement resources provide competitive advantages for the Group
  • An ongoing focus on continuous improvement of efficiencies and performance
Positive growth drivers

Positive growth drivers

  • Provider of high quality, affordable medicines and products to historically under-served markets
  • Exposure to faster growing developing markets
  • Expanding footprint in targeted strategic growth territories
  • Ongoing consolidation of production volumes and procurement efficiencies at strategic manufacturing sites will deliver competitive advantages to the Group
  • Capital investment in production technologies and capacities to harness synergies from recent acquisitions in the medium term
  • Strong cash generation enables reinvestment into the business
Responsible corporate citizen

Responsible corporate citizen

  • Committed to pursuing the Group’s strategic objectives in a responsible and sustainable manner
  • Operates on an established foundation of strong corporate governance
  • Active participant in the United Nations Global Compact (“UN Global Compact”) initiative, applying the 10 Principles
  • Participant in the annual Carbon Disclosure and Water Disclosure Projects
  • Focused investment for the development of our human capital and empowerment of future leaders
  • A constituent of the FTSE/JSE Responsible Investment Index
Other considerations

Other considerations

  • Aspen’s shares have good trading liquidity, with an average daily trading volume of approximately 1,3 million shares for the 2016 financial year
  • Aspen’s executive directors are founders and material shareholders of the Group, ensuring alignment of shareholders’ and executives’ interests
  • Aspen operates in the pharmaceutical industry which is considered to be defensive in nature