Aspen Pharmacare Holdings Limited (“Aspen”) and Matrix Laboratories Limited (“Matrix”) of the Republic of India, would like to announce the divestment of the existing joint ventures relating to the two chemical-manufacturing entities, Fine Chemicals Corporation (Proprietary) Limited (“FCC”) in Cape Town, South Africa and Astrix Laboratories (“Astrix”) Limited in Hyderabad, India. Aspen will acquire 50% of FCC from Matrix and, in turn, dispose of its 50% share in Astrix to Matrix. Aspen will retain a shareholding in Astrix through a B-share. Aspen and Matrix have secured a long-term supply agreement for the continued supply of anti-retroviral (”ARV”) active pharmaceutical ingredients. Furthermore, Aspen has acquired the rights to distribute a number of new generation ARV combination products into the South African and African markets.
Stephen Saad, Group Chief Executive of Aspen said, “Aspen has retained all of the commercial rights and strategic advantage it previously enjoyed through Astrix, including priority of supply and maintenance of existing transfer pricing philosophies for ARVs, in both the revised shareholders agreement and various long term supply agreements. In addition Aspen has secured exclusive rights to a number of novel ARV combinations for South Africa. The arrangements will ensure the sustainable continuation of a successful long-term partnership in the fight against HIV AIDS. Matrix has secured and retained Aspen as a key customer and business partner. With outright ownership of FCC we will be seeking to achieve a more effective vertical integration of this business into the Aspen Group.”
The agreement is subject to precedent conditions, including regulatory approval of the transactions.
Aspen is the largest generics manufacturer in the southern hemisphere and it is also the leading supplier of generic medicines to both the private and the public sectors in South Africa. Aspen is the leading provider of ARVs to the private and public sectors in South Africa.
Aspen produces more than seven billion tablets and capsules per annum and has the manufacturing capability to produce a diverse range of generic and specialized products. Aspen’s extensive basket of branded, generic, over-the-counter, FMCG, personal care and nutritional products is renowned for its quality, efficacy and affordability. Aspen has international operations in Australia, Latin America, East Africa, India and Mauritius. Aspen’s products are distributed in more than 100 countries around the world.
Roshni Gajjar, Aspen Investor Relations
Tel: +27 (031) 580-8649 : Cell: +27 82 789 1826
On Behalf of:
Stephen Saad, Aspen Group Chief Executive
Gus Attridge, Aspen Deputy Group Chief Executive