01 October 2013
By : Shauneen Beukes
1 October 2013
Oss, the Netherlands – JSE Limited listed Aspen Holdings, the ninth largest generic pharmaceutical company in the world, has announced that the Aspen Group (“Aspen”), has finalised the acquisition of Active Pharmaceutical Ingredient (API) manufacturing operations and related businesses (“the API Business”) from MSD, known as Merck & Co., Inc. in the US and Canada, with effect from 1 October 2013. This forms part of the larger series of transactions with MSD as announced by Aspen on 18 June 2013 – it was confirmed in this announcement that Aspen would acquire the API Business and had reached agreement for an option to purchase a portfolio of 11 branded finished dosage form molecules (“the Products”) from MSD for a total consideration of R10 billion.
Stephen Saad, Aspen Group Chief Executive, said “this deal strongly complements Aspen’s strategic intent of globalising its business by providing access to a niche range of APIs and products. It includes the acquisition of an API facility in Oss that manufactures for MSD and the market generally as well as a satellite facility and sales office in the United States.”
In terms of the transaction, Aspen will continue to supply APIs to MSD under a 10-year supply contract, which will provide significant on-going volumes for the API Business. Further opportunities also provide for Aspen to develop finished dosage form products from certain of the APIs such as hormones and peptides.