Price gouging is not in Aspen’s DNA, says founder Stephen Saad, incensed at the thought that his company would exploit the sick. But Aspen’s predicament, and that of all drug firms, boils down to the tension between a drug company’s perceived responsibility to provide life-saving drugs to patients at a reasonable price, and its natural objective to turn a profit Download (PDF 5.53MB) Businesslive
One of Aspen’s key business imperatives is the creation of stakeholder value. The communities Aspen operates within remain amongst the Group’s most important stakeholders, with healthcare being one of the key aspects to ensuring sustainable communities. While South Africa is currently burdened with one of the world’s most disproportionate disease profiles, it also has enthusiastic and spirited healthcare workers and a large human capital base that can be tapped into. In line with Aspen’s commitment to develop this human capital and to resource the South African healthcare sector, Aspen has spearheaded the formation of The Public Health Enhancement Fund (PHEF) in South Africa, resulting in a private/public partnership and social compact between the South African Department of Health and the South African private sector. This partnership has had an considerable positive impact on the public healthcare sector in South Africa – below is a link to short video providing a brief insight into this partnership and the benefits derived from it.
Durban – JSE Limited-listed Aspen Pharmacare (APN), a leading pharmaceutical company in the southern hemisphere, has welcomed the statement issued by the Democratic Alliance (“DA”) earlier today in which it has confirmed that it is satisfied that there is no evidence that Aspen has engaged in alleged anti-competitive behavior as per the DA’s statement issued on 19 April 2017. The statement issued by the DA on 29 May follows below: Competition Commission investigates conduct of all pharmaceutical companies operating in South Africa and BRICS The DA welcomes the Competition Commission’s preliminary investigation into the market conduct of all pharmaceutical companies operating in South Africa and in the BRICS (Brazil, Russia, Brazil, India, China and South Africa) consortium. The World Bank has raised concerns about cartel-like practices that tend to drive medicine prices upwards and this requires investigation. Following extensive high-level engagements between Aspen Pharmacare and the Health Portfolio of the Democratic Alliance, necessitated by a previous press release, the DA is satisfied that there is no evidence that Aspen is involved in the same practices that they are accused of having pursued in Europe.
Windhoek, Namibia – JSE Limited listed Aspen Pharmacare (APN), a leading pharmaceutical company in the southern hemisphere, has announced that a memorandum of understanding (“M.O.U”) has been concluded between Aspen’s Russian business and the Vladivostok Far Eastern Federal University (“F.E.F.U”). The Deputy Prime Minister of Russia Mr. Yury Trutnev, who has delegated authority from the Russian President for the Far Eastern Federal Region of Russia, oversaw proceedings and committed the region and university to this collaborative effort. Stavros Nicolaou, Aspen Senior Executive Strategic Trade Development said, “The Group welcomes this latest collaboration with the Russian Federation which further complements existing relations with that country. The M.O.U provides for cooperative efforts to improve the quality of education and contribute towards advanced innovative technology in the fields of thrombosis and anaesthesia through joint training and research efforts with the FEFU. The goal of the programme is to decrease the mortality rate of thrombotic events and to increase the quality of anaesthesia use in the Russian Federation. This will improve the life expectancy of Russian citizens in the medium to long term, as clinicians will have access to some of the newest low molecular weight heparin technology, which has an improved safety profile against older interventions.” Aspen was established in the Russian Federation in 2013 and employs over 150 specialist representatives detailing critical medicine areas that include anti-thrombosis and anaesthesiology. One of the principle products in Aspen’s thrombosis therapeutic portfolio is Fraxiparine (Nadroparine Calcium), which substantially diminishes the risk of the formation of life-threatening blood clots. This low molecular weight heparin is manufactured through a complex process and provides one of the best in class safety and efficacy anti-thrombotic profiles. Aspen is in discussion with the Ministry of Health for the inclusion of Fraxiparine on the Russian Federation Essential Drug List. The use of anti-thrombotic agents in the Russian Federation is approximately 10% of that of the European Union. In 2015 Aspen commenced technology transfer for the Russian-based manufacture of Fraxiparine through its Russian partner Nanolek L.L.C, which is in the Kirov region of Russia. Aspen’s products are distributed throughout the Russian Federation.
Having noted the report published in The Times of London on 20 May 2017 titled “Massive price rise for vital drug put pets’ lives at risk”, Aspen wishes to express its disappointment and concern that much of the information and clarification it provided to The Times’ Billy Kenber prior to the report being published has been excluded. In particular, the Times chose to omit the fact that the product in question, fludrocortisone, is not indicated for use in animals and that the original Aspen product, Florinef, continues to trade actively in the United Kingdom under European Union free trade arrangements. To provide a balanced account of the facts, Aspen wishes to communicate the following information which was shared with the Times, in response to questions: 1. Aspen replaced Florinef with a new product formulation with an improved product stability profile. Florinef is a cold chain product, requiring continuous refrigeration, creating challenges for transportation and storage both in the supply chain and by the patient. The new product is a different formulation which is heat stable and no longer requires such refrigeration. It also removes the risk of discard in case of storage temperature change. The price at which the product was launched in the United Kingdom was considered appropriate considering the cost of developing and launching the new formulation. 2. Pricing approval for the new formulation fludrocortisone was obtained via the NHS BSA prior to launch and the price is registered on the NHS DM&D site. 3. Florinef remains available in the United Kingdom through the free trade arrangements of the European Union and continues to be actively sold in the United Kingdom. 4. Neither Florinef nor the new formulation fludrocortisone are indicated for use as a veterinary product and Aspen can accordingly not take accountability for utilisation of these products by pet owners. We do note that the apparently substantial mark-up by others on the price of the product sold to pet owners contributes to the cost of using this product off-label by pet owners, but must point out that Aspen cannot be deemed to be responsible for this mark-up. 5. As Aspen has the rights to register and supply this improved fludrocortisone tablet formulation globally, there may be scope for cost and price reductions as the product is registered in more countries and the volumes of off-take for it increase. Any further queries in this regard may be directed to Aspen via its website at https://www.aspenpharma.com/contact-form.
Aspen confirms that the European Commission has opened proceedings to investigate certain actions of Aspen Holdings and certain of its European subsidiaries. While Aspen is not currently in a position to comment on these proceedings, it reaffirms its commitment to fair and open competition in markets in the European Union and around the world. Aspen takes compliance with competition laws very seriously and will work constructively with the European Commission in its process. Shareholders are advised that any material developments in these proceedings will be communicated through SENS. Shareholders should exercise care when reacting to information on this matter which has not been released by Aspen Holdings.
Durban – Media reports that the Competition Commission has decided to take up the Democratic Alliance’s request to investigate the alleged anti-competitive conduct of Aspen Pharmacare (“Aspen”) in South Africa, in its preliminary investigation into the pharmaceutical sector, has reference. Aspen welcomes the process and the opportunity to categorically set aside such allegations of anti-competitive behavior. Aspen is committed to full and constructive engagement with the Competition Commission should it wish to pursue such an investigation. It is worth noting that pharmaceutical prices are approved by the Department of Health in terms of the Single Exit Price regulatory framework which establishes a universal fixed price for each pharmaceutical product. Aspen has not increased pricing of its products outside of this regulatory framework.
In reference to the articles reported in the European press on 14 and 15 April 2017, Aspen Pharmacare Holdings Limited (“Aspen”) has the following comments: Aspen has clearly demonstrated its commitment to providing quality medicines affordably over many years. The supply of the oncology products in question is no exception. Aspen’s status as a responsible and committed provider of quality, affordable medicines is further validated by the role it has played in saving millions of lives across Africa through pioneering and supplying generic anti-retroviral medicine in Africa for the treatment of HIV/AIDS. The content of the reports concern matters that are sub-judice. Out of respect for the integrity of ongoing legal processes with European regulators, as well as the court in Italy, Aspen will not comment on these public allegations. Instead, Aspen looks forward to the opportunity to demonstrate the integrity and legality of its practices in the context of these legal processes.
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