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Aspen will be in a closed period from 1 January 2025 until the publication of the Interim Results on the JSE SENS platform on 3 March 2025.

OPINION: Let’s pause for a moment to reflect on SA’s ARV success

By Stavros Nicolau, published in Independent Media’s Business Report JOHANNESBURG – Last week’s launch by Minister of Health Zweli Mkhize of a new ARV triple drug regimen in the Ugu district in KwaZulu-Natal and the commemoration of World Aids Day allows us as a country to reflect on how successfully we’ve managed what is arguably one of our country’s most complex post democratic challenges, HIV/Aids. While much room remains to further strengthen a number of areas in our highly acclaimed public ARV programme, one cannot argue against the facts and these remain the following: Life expectancy has increased from a low 53 years in 2004 (when ARVs first started to roll out in our public sector) up to an impressive 66 years today. Few government-led programmes have had this level of success or impact on society and its citizens. This can be directly ascribed to ARVs and other interventions such as male circumcision and the prevention of mother-to-child transmission, with ARVs being the biggest contributor to this impressive statistic. Today, an estimated 5million South Africans are taking ARVs, 4.7million of those receiving ARVs through the public sector, making the South African public programme six to seven times larger than the next largest global programme. This takes some management by the government, making 4.7million patient treatments available month in and month out. Somewhat of a logistical feat, matched by few other government departments. This made it possible for us to dream of meeting targets such as the UNAids 909090 target to help end the epidemic by 2020, ie 90percent know their status, 90percent of these are on ARV treatment, and 90percent of these are virally suppressed. This was, however, not always the case. Dreams were turning into nightmares, helplessness contracting HIV was a de facto visit to death row. Turn the clock back two decades with 350000 mainly young South African lives perishing annually from the pandemic, it would not be an exaggeration to overstate the calamity and gloomy future we faced then. Those were difficult, polarising days, often pitting civil society and parts of labour against parts of our government. Those acerbic times called for practical and evidence-based leadership and solutions. However, there was a small matter of the cost of ART (antiretroviral therapy), which had to be provided as triple therapy in those days at an annual cost of $10000 (R146192) in the US, clearly unaffordable to most South African patients, even many of those in the private sector. So where to, was the burning question? Were we to look on helplessly and watch the next generation disappear before our eyes? Aside from the prohibitive price tag at the time, an even bigger uphill battle lay in getting ARVs recognised as the first treatment point, something we take for granted these days. The battle lines were drawn. Solve the pricing issue and you were in with a fighting chance. Another small matter – these products were all patent protected and intellectual property (IP) is sacrosanct for R&D-based pharma, who held the patents. At the time some argued for compulsory licensing, which would leave investors numb and others called for patent busting, equally unpalatable to investors, particularly foreign investment, who often rely on a balanced IP regimen as a key consideration in their investment decisions. It is when our backs are to the wall that South Africans tend to excel, coming up with innovative solutions at times of crisis. When the history of our remarkable country is written covering this period, much acknowledgement should be given to the TAC (treatment action campaign) and the courageous stance of their leaders Zackie Achmat, Mark Heywood and others, the role of our competition authority, the tireless clinical activism of people like Professor Francois Venter and the HIV clinicians society. They paved the way for a long-last solution. While this was ongoing Aspen, in those days a fledgling and recently JSE-listed minnow, began grappling with how we could positively contribute to solving the vexing HIV problem. The answer was obvious do what you do best, produce quality generic ARVs at accessible pricing without breaking patents. Not for the first time, critics wrote us off, saying that this was neither possible nor realistic. Patents were in place and consequently prices could not come down. Other sceptics stated, as they did when we acquired SA Druggists 18 months earlier, that this management team would be better off taking their medication for delusion rather than trying to sell it to the market. Spurred by the need to find a solution that would prevent the unfolding HIV catastrophe and possibly by some of the scepticism Aspen, encouraged by the changing landscape at the time, entered into discussions with multinational R&D partners with a view to finding a win-win solution for all the parties, particularly patients who were fast running out of time on the proverbial clinical death row. It was not uncommon at that time for Aspen management, when discussing the looming crisis with multinational partners, to recall the hopeless plight of HIV patients that presented at public clinics around our country, no more so than an example we often referenced, the Engcobo clinic in the Eastern Cape that former president Nelson Mandela had asked Aspen founder and group chief executive Stephen Saad to assist revamp – around 80percent of patients at the time presented at the clinic with suspected HIV/Aids or tuberculosis. Engcobo struck a nerve with many, including some of our multinational partners. These discussions paved the way for the first-ever voluntary licences and later manufacturing arrangements for generic ARVs. Our first generic ARV, Aspen Stavudine, was launched by then-Minister of Trade and Industry Alec Erwin, in 2003, with some in the Health Department in those days still unaccepting of ARVs. This proved to be a landmark moment for the company, for management of HIV in our country, a South African-pioneered solution, by a South African company for what was rapidly becoming an epic African problem. It was not long before licences were negotiated for… Continue reading OPINION: Let’s pause for a moment to reflect on SA’s ARV success

Aspen divests of its Japanese operations for up to R6.5 billion

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty and branded pharmaceutical company, is pleased to announced that its wholly owned subsidiary, Aspen Global Incorporated (“AGI”), has concluded an agreement to divest of Aspen’s Japanese operations and related intellectual property to Sandoz, a Novartis Division, for a cash consideration of up to EUR 400 million/ ZAR 6.5 billion (translated at ZAR16.37 to EUR, exchange rate subject to change) (“the Transaction”). It is anticipated that the Transaction will complete during the first half of calendar year 2020 (second half of Aspen’s 2020 financial year). Stephen Saad, Aspen Group Chief Executive said, “This Transaction complements our stated strategic intent to focus on our core pharmaceutical business in markets that offer scale and alignment to our business model. Although our Japanese-based operations do not provide appropriate scale and leverage in relation to this focus, the strong management team, dedicated staff, specialty portfolio and the commercial platform represent an excellent opportunity for Sandoz when combined with their Japanese portfolio and product pipeline.” AGI has also entered into a five-year Manufacturing and Supply Agreement with Sandoz (with an additional two-year extension option at the election of Sandoz), which will take effect from completion of the transaction, for the supply of active pharmaceutical ingredients, semi-finished and finished products related to the portfolio of divested brands. Aspen Japan’s operations contributed ZAR 2.1 billion in revenue and ZAR 0.4 billion in normalised EBITDA to the Group for the year ended 30 June 2019. The Net Asset Value of the Japanese operations was approximately ZAR 4.8 billion as at 30 June 2019. In terms of the Transaction, the disposal of Aspen’s Japanese operations comprises of the following elements: Proceeds The payment of the purchase consideration in terms of the Transaction has been structured as follows: The upfront cash consideration is subject to customary adjustments for net cash/debt and working capital in AJKK on completion; The deferred conditional consideration relates to milestone payments to be made to AGI contingent upon achieving certain supply criteria and licensing opportunities. It is expected that all milestones earned will have been received by 31 December 2023. The net proceeds from the Transaction will be used to further reduce debt. Conditions precedent and completion The Transaction is conditional upon the fulfilment of the customary conditions precedent applicable to transactions of this nature, the more material of which are: Ends Issued by:                     Shauneen Beukes, Aspen Group Communications Manager                                     Tel: +27 (012) 661-8467 : Cell: +27 82 389 8900 On Behalf Of:                Stephen Saad, Aspen Group Chief Executive                                     Tel: +27 (031) 580-8603                                     Gus Attridge, Aspen Deputy Group Chief Executive                                     Tel: +27 (031) 580-8605                                     Samer Kassem, Chief Executive, Aspen Global Incorporated                                     Tel: +230 209-3333                                     Luresha Chetty, Aspen Corporate Affairs Executive                                     Tel: +27 (031) 580-8637

Aspen generates strong second half cash flows, reducing borrowings

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced reviewed provisional Group financial results for the year ended 30 June 2019. Stephen Saad, Aspen Group Chief Executive said, “Despite the challenging environment, we have achieved most of our short-term goals, including the completion of the disposal of our Nutritionals business and a portfolio of products distributed in Asia Pacific. We delivered strong second half cash flows with the proceeds from these disposals resulting in a reduction in net borrowings to R39.0 billion. We will continue with active assessment of value realisation opportunities to accelerate deleveraging our balance sheet.” COMMENTARY GROUP PERFORMANCE (CONTINUING OPERATIONS) Aspen increased revenue by 1% to R38.9 billion while normalised EBITDA declined 2% to R10.8 billion, influenced by a lower contribution from the Manufacturing business. Commercial Pharma delivered an increase in revenue of 3% to R33.1 billion. Normalised headline earnings per share (“NHEPS”) was 7% lower at R14.14. Strong cash flows in the second half allowed the Group to achieve a cash conversion ratio of 107% for the year.  In the closing six months Aspen also completed the disposals of its Nutritionals business and a portfolio of products distributed in Asia Pacific, realising cash proceeds before tax of R12.3 billion and a combined profit on disposal of R5.4 billion.  The positive cash flows and the proceeds from the disposals have enabled net borrowings to be reduced from R53.5 billion at 31 December 2018 to R39.0 billion at financial year end. A leverage ratio of 3.62x was achieved, comfortably below the covenant level of 4.0x. Rigorous impairment testing of tangible and intangible asset values was once again performed, resulting in total impairments of R 3.1 billion of which R 2.4 billion related to intangible asset impairments. Relative movements in exchange rates had an impact on financial performance, as is illustrated in the table below, which compares performance in the prior comparable period at previously reported exchange rates and then at constant exchange rates (“CER”).  The CER results for the year ended 30 June 2018 re-state performance for that period using the average exchange rates for the year ended 30 June 2019. Year ended 30 June 2019 Continuing operations ReportedFY 2019 R’million   Restated FY 2018^ R’million   % Change at reported rates   FY 2018 CER R’million   % Change at CER Revenue 38 872   38 314   1%   39 856   (2)% Normalised EBITDA* 10 824   11 031   (2)%   11 219   (4)% NHEPS** (cents) 1 414.3   1 518.4   (7)%   1 536.6   (8)% ^ FY 2018 has been restated for the adoption of IFRS 15 and IFRS 9 as well as discontinued operations. *Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ** NHEPS is headline earnings adjusted for specific non-trading items, being transaction costs and other acquisition and disposal-related gains or losses, restructuring costs, settlement of product related litigation costs, net monetary adjustments and currency devaluations relating to hyperinflationary economies and significant once-off tax provision charges or credits arising from the resolution of prior year tax matters. From this point forward in the commentary,  (1) all performance references are to continuing operations and (2) all June 2018 financial information is stated in CER and all related percentage changes in revenue between June 2019 and June 2018 are based on June 2018 CER financial information revenue in order to enhance the comparability of underlying performance. GROUP PERFORMANCE Revenue for the Group declined 2% to R 38.9 billion and normalised EBITDA was 4% lower at R 10.8 billion with weaker Manufacturing results being the most material unfavourable influence on both results.  Higher net financing costs contributed to an 8% decline in normalised headline earnings to R6.5 billion. SEGMENTAL PERFORMANCE Sterile Focus Brands Sterile Focus Brands, comprising the Anaesthetics and Thrombosis portfolios, delivered improved gross profit up 3% to R 8.4 billion despite revenue declining 2% to R 15.3 billion. The gross margin percentage improvement was driven by lower Thrombosis manufacturing costs. Anaesthetics Brands Revenue from Anaesthetics was 2% lower at R 8.7 billion as ongoing supply constraints weighed on performance. China (+5%), Latin America (+7%) and MENA (+12%) achieved good revenue gains, but these were offset by Europe CIS (-8%) and Australasia (-9%) which suffered the most from supply limitations. Japan ended the year flat (0%) as volume gains offset pricing decreases.  Thrombosis Brands Thrombosis revenue was down 3% to R 6.6 billion, negatively impacted by Europe CIS (-6%) which contributes 80% of Aspen’s Group Thrombosis revenue. The decline in Europe CIS was exacerbated by the once-off impact of switching from a wholesaler model to Aspen’s own distribution channel in Russia. Collectively, the other regions grew revenue by 14%, supported by a 34% increase from China. Regional Brands Regional Brands revenue was flat at R17.8 billion vs the prior year, despite the impact of the strike at our South African manufacturing facilities which has now been resolved, and a reduced contribution from the oncology portfolio in Europe CIS. The downward pricing pressure on the oncology products also affected gross margins. Australasia grew 5% supported by the OTC business which grew 8% and Latin America delivered 6% growth due to a strong performance from the domestic brands. Manufacturing Manufacturing revenue was down 11% to R 5.8 billion, with contributing factors to this being a major third party customer losing a material tender in the prior year, the suspension of sales of heparin to third parties due to limited global availability and strike action undertaken at our South African manufacturing facilities. At Aspen Oss, sales of active pharmaceutical ingredients (APIs) are generally contracted in advance and tend to be stable with a relatively even spread over the year, but there can be margin variability dependent on the mix of products ordered.   In particular, the mix effect was such that the margin earned was higher in the first half of the year than in the second.… Continue reading Aspen generates strong second half cash flows, reducing borrowings

Aspen hosts more than 120 Mandela Day projects in 40 countries

Stephen Saad, Aspen Group Chief Executive

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, is again reaching out to less fortunate citizens through its Mandela Day projects being hosted on 6 continents. Stephen Saad, Aspen Group Chief Executive Stephen Saad, Aspen Group Chief Executive said, “This is the ninth year that we will participate in Mandela Day, and in 2019 we’ll do so through more than 120 projects in 40 countries. Our Group-wide effort is indicative of our international commitment to socio-economic development and our actions remain closely aligned to our corporate tagline “Healthcare. We Care”. Our intentions are to ensure that our actions aren’t limited to 67 minutes one day a year, but that our projects are sustainable and that partnerships are developed with worthy beneficiaries who we strive to continue to support through related initiatives where possible.” “We remain overwhelmed at the impact that many of our Mandela Day projects have had on communities beyond the annual 18 July event. The majority of these projects are driven by our employees who volunteer selflessly to make a difference in the lives of others and I am humbled and encouraged that many of them become personally involved with their chosen beneficiary on a long term basis. This attitude underscores our corporate ethos of showing respect and care to others while instilling a spirit of dignity in citizens who have been disadvantaged through harsh circumstances that they have not chosen, but are unfairly subjected to. ”  Aspen’s Mandela Day projects cover a broad spectrum of initiatives that include healthcare, nutrition, education, social enhancement and development, infrastructural improvements, animal wellbeing and preserving the environment. There is no discrimination in beneficiary selection with kindness shown to citizens of all ages from all walks of life. “Our sentiments are not driven exclusively by financial contributions but rather through physical actions which enable anyone to give back of their time. Some employees adopt very practical actions such as cleaning the home of a shut-in pensioner or cooking for them, planting mangroves to supplement a threatened ecosystem, improving play areas for children at orphanages, taking wheelchair-bound people on a walk through a park followed by a picnic or simply gifting a meal to a hungry or homeless person,” added Saad. Over the past eight years, the Group has engaged in more than 450 projects in 39 countries which have impacted the lives of some 470 000 beneficiaries. Read more about Aspen’s Mandela Day activities at www.aspenmandeladay.com, follow us on FaceBook, Twitter or LinkedIn and engage on social media via #aspenmandeladay.

Aspen opens anaesthetic building as part of €100 million investment at its French-based site

Agnès Pannier-Runacher, France's State Secretary to the Minister of Economy and Finance and Aspen's Lorraine Hill officiated at the inauguration of Aspen's anaesthetics facility in Notre Dame de Bondeville, France.

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has expanded its specialist sterile production site at Notre Dame de Bondeville in France to augment the Group’s global manufacturing facilities. Stephen Saad, Aspen Group Chief Executive said, “The new state-of-the-art facility for anaesthetics, together with the new high-speed pre-filled syringe filling and automatic visual inspection lines for thrombosis products, comprise a substantial part of the €100 million investment. The investment in infrastructure at our Notre Dame de Bondeville site will create additional capacity including 80 million individual units of blow fill seal anaesthetics and 180 million pre-filled syringes annually with commercial production expected to begin in 2020. Anaesthetics and thrombosis are two of the Group’s therapeutic focus categories and this investment will support supply sustainability as well as eliminate associated stock constraints being experienced.” To date more than €160 million has been invested at the Notre Dame de Bondeville site and once all the investments are fully operational the site will yield a total capacity of approximately 450 million individual units per year. Anaesthetic products currently manufactured in Sweden and Australia by third party or contract manufacturers will be transferred to Notre Dame de Bondeville and this may generate recruitment opportunities for up to 100 additional employees.

Department of Health and PHEF celebrate investment in human resources

The South African National Department of Health (NDoH) and the Public Health Enhancement Fund (PHEF) celebrated their investment in human resources for health in honour of the late Prof Bongani Mayosi on 30 April 2019. The public and private healthcare sector leaders and professionals converged in honour of post-graduate and medical doctors from various healthcare disciplines at an event held at Emperors Palace in Kempton Park, Johannesburg. Stavros Nicolaou, Aspen Pharmacare Senior Executive Strategic Trade and Minister of Health, Dr Aaron Motsoaledi The Ministers of Health and Higher Education presided over this event following a social compact between the National Department of Health and 22 healthcare companies, which constitute the PHEF, signed on 8th November 2012 to improve the delivery of healthcare, address debilitating diseases and improve accessibility to medical schools for disadvantaged communities. “We are trying to reverse the damage caused by Bantu education and other disadvantages,” Minister of Health, Dr Aaron Motsoaledi had stated as he signed the agreement five years ago, having convened a group of 22 CEOs in the health sector to focus their attention on building human capital for the country. The PHEF was subsequently designed for the production of post graduates in health, especially at PhD level to improve health research. The objective of the PHEF is threefold: To this end, three programmes were mutually agreed between the National Department of Health and the 22 private companies, who set up the joint PHEF which would fund the programmes. This programme includes the National Health Scholars Programme (NHSP), and is a partnership between the PHEF, the NDoH and the South African Research Medical Council (SAMRC). The SAMRC administers the NHSP, the programme has produced 47 graduates (87% of which are PhDs) in various health professions. The NHSP, which was chaired by the late Professor Bongani Mayosi, is a national asset and flagship programme for advancing the next generation of African health and clinical scientists. He championed the scholarship programme together with Minister Motsoaledi. In honour of one of the major contributions towards health transformation, Professor Mayosi was honoured for his immense contributions and lasting legacy by renaming the programme to the “Bongani Mayosi National Health Scholars Programme”. It was also unveiled by the two Ministers with the heads of medical schools and provincial health, also in attendance. To further demonstrate this public-private partnership as a critical element to nation building, social cohesion and improved healthcare outcomes, an initial R40 million was injected into the joint fund to finance the Social Compact to fund training and mentorship for aspiring medical students from disadvantaged communities. The allocation also included the training of PhDs and Master’s degrees with much focus on HIV/AIDS and TB. To date, over R200 million has been contributed to the fund by the partners, to ensure better health outcomes. As a result of this partnership, 20 post-graduate medical doctors graduated with PhD and Masters, which demonstrates what can be achieved when the public and private sectors work together to address inequities in the healthcare system. A total of 107 post-graduate medical doctors (60 Masters and 47 PhDs) who have benefited from the programme since its inception. They are expected to contribute to the overall research and innovation capacity of the country, and to service constrained communities – a success story of the transformation of healthcare system. In his keynote address, Minister Motsoaledi iterated the importance of the public-private partnership. He said, “It is therefore crystal clear that we must build human capital to ensure that we are not left behind and I am pleased that the Public Health Enhancement Fund has been very productive and that today we can announce what we have achieved to date. I want to acknowledge the contribution of Prof Mayosi who was the first chair of the selection committee.” For more information, please contact: Mr Popo Maja: Spokesperson Ministry of Health Mobile: 072 585 3219/082 373 1169

Aspen approved for secondary listing on A2X

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has been approved for a secondary listing on A2X Markets with effect from 1 April 2019. Stephen Saad, Aspen Group Chief Executive said, “We continually strive to identify ways to increase value for our shareholders and the complementary A2X listing offers investors trading benefits while simultaneously providing the prospect of increasing our shareholder base. We will retain our primary listing on the Johannesburg Stock Exchange and our issued share capital will be unaffected by the secondary listing.” A2X CEO, Kevin Brady said, “A2X is thrilled to have South Africa’s largest pharmaceutical company on board.  No doubt that Aspen will reap the benefits of a secondary listing, including the opportunity to attract potential new investors through A2X’s lower-cost trading structure and broadening their shareholder base.” A2X is a licensed stock exchange which provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the Financial Markets Act. A2X began trading in October 2017 and has nine approved brokers that account for about 50% of market activity.

Aspen’s encouraging Emerging Market growth

Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced interim financial results for the six months ended 31 December 2018 in line with management’s expectations. Stephen Saad, Aspen Group Chief Executive said, “Revenue increases from Anaesthetics in China and Latin America of 6% and 22% respectively have been very encouraging, despite the supply constraints experienced. China also delivered  strong revenue growth in the Thrombosis portfolio.” “The disposal of our Nutritionals business is nearing completion which will enable us to put all our focus on pharmaceuticals. We are conducting a strategic review of both our European and South African Commercial Pharma businesses and have already decided to split the latter into two distinct divisions to achieve heightened product and customer focus. The second phase of the South African review will focus on developing strategies specific to each division to optimise value delivery.” GROUP RESULTS Aspen’s earnings for the six months ended 31 December 2018 are in line with management’s expectations.  A good performance from Commercial Pharma in Emerging Markets is offset by a decline in revenue from Manufacturing (as guided in the September 2018 result announcement).  Earnings are diluted by higher financing costs. The published results record the impact of recent transactional activity and changes in accounting standards, namely:- In September 2018 Aspen announced that it had reached an agreement to divest of its Nutritionals Business to the Lactalis Group (“Lactalis”). Positive progress has been made in satisfying of the conditions precedent and all but one of the conditions which are reliant on third party consent had been fulfilled before the end of February 2019.  The outstanding third party condition relates to approval by New Zealand’s Overseas Investment Office for Lactalis to invest in that country.  The remaining conditions precedent are within the control of the parties. The parties are mutually committed to working towards a closing date for this transaction of 31 May 2019. The Nutritionals Business has accordingly been classified as discontinued and the related assets transferred to assets held for sale; The Group has concluded various agreements relating to the divestment and discontinuation of a non-core pharmaceutical portfolio in the Asia Pacific region. These products have also been classified as discontinued operations and the assets relating to this portfolio have been transferred to assets held for sale; and Aspen has adopted two new accounting standards, IFRS 9 (Financial instruments) and IFRS 15 (Revenue from contracts with customers) which have resulted in the re-statement of the disclosed comparable financial information for the six months ended 31 December 2017 and the year ended 30 June 2018. Relative movements in exchange rates had an impact on financial performance, as is illustrated in the table below which compares performance in the prior comparable period at previously reported exchange rates and then at constant exchange rates (“CER”).  The CER results for the six months ended 31 December 2017 re-state performance for that period using the average exchange rates for the six months ended 31 December 2018.     Six months ended 31 December   Continuing operations   Reported 2018 R’billion Reported 2017^ R’billion Change at reported rates % CER 2017^ R’billion Change 2018/2017 at CER     % Revenue 19 673 19 509 +1 19 743 0 Normalised EBITDA* 5 535 5 712 -3 5 616 -1 NHEPS (cents) 743 814 -9 792 -6 *Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ^ Restated for IFRS 9 & 15 implementation. In order to enhance comparability of relevant underlying performance, in this commentary, (1) all performance references are to continuing operations and (2) all December 2017 revenue numbers are stated in CER and all percentage changes in revenue between December 2018 and December 2017 are based on December 2017 CER revenue. SEGMENTAL PERFORMANCE Sterile Focus Brands Sterile Focus Brands, comprising the Anaesthetics and Thrombosis portfolios, delivered revenue in line with the prior comparable period at R7,8 billion. The gross profit from Sterile Focus Brands of R4,3 billion was at an improved gross margin percentage benefitting from lower Thrombosis manufacturing costs. Anaesthetics Brands Revenue from Anaesthetics was 1% lower at R4,4 billion. This is a sound performance given ongoing supply constraints affecting all major territories other than Japan. China (+6%) and Latin America (+22%) are the material regions driving growth. Supply limitations have adversely impacted sales in Europe CIS and Australasia.  Price decreases in Japan offset strong volume gains.  Supply is expected to improve from the commencement of the 2020 financial year and should be unconstrained midway through that year. Thrombosis Brands Thrombosis revenue of R3,4 billion is unchanged from the prior comparable period. Emerging Markets are up 7%, propelled by a strong performance in China, which offsets the declines in Developed Markets. Other Pharmaceuticals Other Pharmaceuticals, comprising Regional Brands and Manufacturing, deliver revenue of R11,9 billion, flat with the prior comparable period. Regional Brands Regional Brands, which comprise 45% of Group revenue, have shown growth of 3%.  The High Potency & Cytotoxic Brands have been reclassified under Regional Brands in line with a change to regional management of this portfolio. Revenue growth has been recorded in most territories, but this has been partially offset by pricing pressure on the oncology portfolio in Europe that also dilutes the margins. Manufacturing Manufacturing revenue declines 10% to R3,0 billion, primarily due to a tender lost in the prior year by one of Aspen’s major third party customers, as reported in the results announcement for the 2018 financial year, and the suspension of sales of heparin to third parties due to limited global availability.  Resultant lower volumes weigh on margins. FUNDING Borrowings, net of cash, has increased by R6,7 billion to R53,5 billion. R1,0 billion of this increase is the consequence of Rand weakness relative to foreign currency denominated loans.  Payments relating to acquisitions of R4,9 billion and capital expenditure of R1,5 billion have been the main other drivers of the higher debt levels.  The gearing ratio covenant measure is 4,43… Continue reading Aspen’s encouraging Emerging Market growth

Closed Period

Aspen is in a closed period from 1 January until the publication of our interim results on the JSE SENS platform scheduled to be released on 1 March 2023.

The live presentation will take place in Cape Town at 08h30 on 2 March 2023.