Author: bpc

Clayville, Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), the 5th largest generic company in the world, earlier today hosted a delegation of over 30 government dignitaries at its manufacturing facility where specialised infant nutritional products are produced for local and export markets. The facility is unique in that it contains highly specialized spray dried capability which enables the manufacture of some of the continent’s leading Infant Milk Formula (IMF) brands such as Infacare, Infacare Gold and the S-26 range. Aspen recently acquired the S-26 portfolio from Nestlé. The delegation was led by Gauteng Premier David Makhura and the Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana, and included Gauteng MEC for Health Qedani Mahlangu and Ekurhuleni Mayor Mondli Gungubele. Government expressed their approval of Aspen’s commitment to the enhancement of local manufacturing, which significantly contributes to provide for increased economic growth and export opportunities in the province. Aspen’s range of IMFs has been earmarked for strategic export markets such as sub-Saharan Africa (SSA) and China. Stephen Saad, Aspen Group Chief Executive reiterated the Group’s global expansion into various markets including Africa, Europe, South America and Asia. “Aspen has successfully created a business presence on 6 continents and our previously stated objective of increasing our footprint in the Asian and SSA markets is rapidly materializing. China is a key growth area for the Group and its burgeoning population offers significant export opportunities for our infant nutritional and other locally manufactured products”. Saad said that the Group remained committed to South African economic development through ongoing investment in its manufacturing facilities. A key component of the IMF is the base powder that is currently imported. There are however opportunities for local agro processing of the base powder which will build value linkages across communities, provide a much needed economic boost and also curtail raw manufacturing costs which will result in enhanced competitiveness in export markets. He announced that a further capex has been earmarked for investment at the Aspen Nutritionals site in Clayville in order to increase manufacturing capacity for export markets. The investment would however be dependent upon various factors including local supply, competitive pricing and the review of tariffs on imported blended powder. “Aspen Nutritionals is one of very few facilities that has invested in specialized spray dried technology required in the manufacture of powdered IMF. The quality of our products continues to meet the highest international accreditation standards, which has enabled us to significantly increase our export base”, added Saad. Stavros Nicolaou Aspen Senior Executive Strategic Trade said: “Aspen’s objectives are entirely consistent and complimentary to Premier Makhura’s ten point economic growth plan of the province, which include re-industrialisation of the economy, creation of decent employment and the establishment of strategic partnerships” Aspen’s efforts to develop strategic partnerships for the supply of base powder further promotes trade and investment and supports the growth of key identified economic sectors in that it facilitates environmental sustainability and the efficient use of existing resources.

GlaxoSmithKline (“GSK”) has announced the completion of the disposal of half of its 12.4% shareholding in Aspen (equivalent to 28.2 million ordinary shares). These shares were sold by means of an accelerated book build offering process which resulted in the shares being sold at ZAR 372 per share, raising gross proceeds of approximately ZAR 10.5 billion. Following settlement of the sale, GSK will hold 28.2 million ordinary shares in Aspen, representing approximately 6.2% of the issued share capital. Simon Dingemans, GSK’s Chief Financial Officer, said: “GSK has a long and successful commercial partnership with Aspen and our investment in the company has grown in value significantly over time. As we continue to reshape the Group around our core franchises and drive the benefits from the Novartis transaction, optimizing our financial flexibility to invest behind these priorities is key. As a result we have decided now is the right time to realise further value from this successful relationship. We continue to believe in the strategy of Aspen and we remain committed to working together in the future.” The Board of Aspen has agreed that Mr David Redfern, recently appointed as GSK’s nominee director to replace Mr Abbas Hussain on the Board, will remain a director of Aspen. Durban 13 March 2015 Sponsor: Investec Bank Limited   ASPEN PHARMACARE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration number: 1985/0002935/06 Share code: APN ISIN: ZAE000066692 (“Aspen” or “the Company”)

Aspen is pleased to announce that Aspen Global Incorporated (“AGI”), a wholly owned subsidiary of Aspen Holdings, has entered into an agreement with Novartis AG in terms of which it will acquire the rights to Mono-Embolex®, an injectable anti-coagulant, for a consideration of US$142.3 million. Mono-Embolex is a heparin based anti-coagulant sold in the same therapeutic category as Aspen’s Arixtra and Fraxiparine. This product is, however, the only low molecular weight heparin that offers patients weight-independent dosing, thereby combining ease of administration with the proven efficacy in prophylaxis and therapy of deep vein thrombosis. The product presents an excellent strategic fit with the Group’s recent acquisitions in this therapeutic area and will be positioned as a simple-to-use once daily prophylaxis treatment supporting Aspen’s other current anti-coagulant offerings. As the product is only commercialized in Germany, Switzerland and Austria it presents Aspen with an opportunity to launch it in other countries. The product recorded revenue of EUR68 million in 2013. The transaction is subject to the approval of the German competition authorities.

Port Elizabeth. The Minister of Trade and Industry, Dr Rob Davies today visited the Aspen Pharmacare manufacturing site in Port Elizabeth, Eastern Cape. The purpose of the visit was to engage on the future direction and orientation of the Pharmaceutical Industry in South Africa. The visit was also for Minister Davies to see first-hand the world class manufacturing facilities and capacity that exist at Aspen’s flagship manufacturing site, which has both domestic and export orientation. The Industrial Policy Action Plan (IPAP) has prioritized the pharmaceutical sector as a lever that is key to South Africa’s growth and development objectives. Minister Davies’ visit to Aspen’s site further strengthened collaboration between the private and public sector, synonymous with the objectives of IPAP. Minister Davies said visiting Aspen’s facilities is a demonstrable example that industrial policy works in our country. “The Aspen management team needs to be commended for what they’ve achieved in Port Elizabeth. Although much has been attained, through collaboration with the dti even greater industrial capacity can be unlocked between Aspen and the dti, as we work closely together to optimise the various departmental industrial instruments available. Our joint aim is to achieve further domestic investment; a focused export support and orientation; and further job creation. This will help dent the stubborn trade deficit that continues to drag down the SA pharmaceutical industry. Pharmaceuticals, together with medical devices and medical diagnostics, are the 5th largest contributor to the current account deficit that is so costly to our country.” He said government’s policy on Intellectual Property (IP) seeks to strike a balance between the needs of public health and the interests of innovative pharmaceutical companies. “The aim of the Intellectual Property (IP) relating to health provisions is to bring South Africa’s laws in line with international agreements, including the World Trade Organisation’s Trade Related Aspects of Intellectual Property Rights (TRIPS), which has legal flexibility measures that effectively allow countries to have policy space access to public health and education. Generic medicine that comes from innovative medicine will also be allowed. Our Industrial Policy Action Plan requires that pharmaceutical companies will be incentivised if they invest in the country like motor manufacturing,” adds Minister Davies Aspen Group Chief Executive, Stephen Saad said they appreciate Minister Davies’ visit as it allowed him to experience Aspen’s extensive, world class pharmaceutical capability and life sciences resources. “Billions of rands has been invested in capex enhancements at the Port Elizabeth facilities by Aspen over the years, substantially more than the combined investment from the rest of the South African pharmaceutical industry. Aspen has shown that globally competitive manufacture is possible in South Africa if your strategy is sound and you are prepared to invest in technology and skills.” “Aspen’s Port Elizabeth facilities remain key to our worldwide business and is the location of our most important production capabilities. Aspen values its relationship with the dti and welcomes working alongside it in order to further unlock investment, market access and export opportunities in SA and across broader geographies.” The combined manufacturing capacity of Aspen’s Port Elizabeth site exceeds 12 billion oral solid dosage forms annually. This site also produces Murine eye drops, the second largest eye drop brand in the United States (US). The entire US eye drop demand for the Murine and Clear Eyes brands is manufactured at Aspen’s Port Elizabeth site, further endorsing Aspen’s sterile production capabilities, with over 25 million units of eye drops being exported annually to the US. Since the acquisition of the South African Druggists pharmaceutical manufacturing facilities in 1999, Aspen has been a significant and consistent investor in its Port Elizabeth and at various other manufacturing operations in the country. The PE site consists of four facilities, together comprising capabilities in oral solid, liquid, steriles and niche high potency pharmaceutical products. This includes complex and specialized manufacturing capabilities such as freeze dried lyophilisation. In line with Aspen’s ambitious offshore growth strategy, its PE facilities carry a number of important local and international Pharmaceutical Regulatory and Quality standard accreditations, covering all key global markets, including South Africa’s MCC, the US FDA, the UK’s MHRA, Europe’s EMEA, Brazil’s ANVISA, Australia’s TGA, the WHO and others. These accreditations are essential for entry into these offshore markets and reinforce the confidence that the MCC and other highly stringent regulatory agencies place in Aspen’s scientific and manufacturing capabilities and its personnel. Issued jointly by Aspen and the Department of Trade and Industry