Stephen Saad’s address on the occasion of President Cyril Ramaphosa’s visit at our Sterile Facility in the Eastern Cape at which time he announced the agreement reached with Johnson & Johnson to supply 250 million covid-19 vaccines to Africa, with 30 million being for South Africa
Gqeberha, South Africa – Aspen, a global multinational specialty pharmaceutical company, earlier today hosted President Cyril Ramaphosa and an accompanying government delegation at its flagship manufacturing site in the Eastern Cape. Aspen has invested in excess of R3.0 billion at this sterile manufacturing site, the single largest investment in the pharmaceutical industry in South Africa. The new sterile facility contains high-technology, state-of-the-art pharmaceutical equipment and systems that will be used to manufacture advanced sterile medicines, including vaccines. These investments at the Gqeberha manufacturing site, which has been a cornerstone of both local ARV and MDR TB manufacture, demonstrate Aspen’s ongoing and enduring commitment to South Africa and the continent. With roots firmly embedded in African soil, a continent which carries a disproportionately high disease burden, the investment in advanced pharmaceutical technology enables Aspen to continue to contribute to improved access to treatment, respond to public health emergencies and to create significant economic, export and job creation opportunities. This facility will allow Aspen to manufacture multiple and complex sterile products, such as vaccines and Aspen’s global anaesthetics. It will also ensure quality and security of both domestic and international supply. As South Africa and the world grapples with the management of the COVID pandemic, this strategic investment will materially contribute to the management of this pandemic. Through the collaboration announced between Aspen and Johnson & Johnson, Aspen is the only manufacturing site on the African continent and in the southern hemisphere selected by Johnson & Johnson to compound, fill, finish and package the Janssen (a Johnson & Johnson company) COVID-19 vaccine. Aspen and Johnson & Johnson’s commitment to Africa is further underpinned by continued collaboration to enhance the amount of vaccines produced at this facility, with most of the production serving the needs of Africans. We are very proud and grateful to have the opportunity to partner with one of the world’s largest and most technologically advanced healthcare companies who has committed to ensuring equitable access to COVID-19 vaccines. This has been demonstrated through their actions and was fundamental in our considerations of which company to partner. The Aspen and Johnson & Johnson project teams responsible for the technical transfer process at the new sterile facility, worked tireless ensuring collaboration in keeping to the ambitious goals and beating timelines. During this time, the Aspen project team have strengthened their technical competencies, complementing the capabilities of these highly skilled Aspen employees and enhancing a knowledge base in South Africa that will contribute to further solving future public challenges. Most of the vaccines manufactured at this Aspen’s new sterile facility in 2021 will be supplied to South Africa and the member states of the African Union. The South African government agreement with Johnson & Johnson, is to deliver more than 30 million doses of the Janssen COVID-19 vaccine to South Africans, with the first deliveries being made in April 2021. The African Union is expected to receive over 400 million doses. Addressing delegates at Aspen’s sterile facility in Gqeberha, H.E. President Cyril Ramaphosa said, “We are here to see how we can save lives. I am pleased to inform you that Johnson & Johnson has agreed to make 250 million vaccines available to Africa with 30 million for South Africans. Coming here to this facility in Gqeberha has been an honour. Aspen belongs to us as South Africans and it is making life saving vaccines and we as South Africans must be in pole position to receive these vaccines and for them to be made available to the continent immediately. We are pleased of what we have seen here and the commitment of Aspen’s people. This world class facility is in another league and I congratulate Aspen on this facility to manufacture vaccines for our country and for our continent. I would also like to congratulate Aspen on living up to their promise of investing more than R3 billion in our country.” Stephen Saad, Aspen Group Chief Executive said, “This is a watershed moment for Aspen as we continue to implement our strategic vision of delivering quality, affordable medicines using high-technology pharmaceutical equipment, contributing to improved health outcomes. This vision has come with much sacrifice and perseverance however we have been rewarded through the endorsement of the relevance of our product portfolio and capital investments at our manufacturing facilities. Our sterile capacity is a big step to ensuring that Africa has both the capacity and capabilities to reduce its reliance on other countries in addressing its healthcare priorities. The manufacture of the Janssen COVID-19 vaccine builds on the global contributions we have made with both our anaesthetics portfolio and dexamethasone supply. We are particularly proud that this vaccine manufacture is taking place in Africa. We hope that our success will inspire and give confidence to others to further invest in our continent. We have set ourselves a further target to become the pandemic solution for Africa. Security of supply for Africans is best achieved through African facilities. Aspen intends to assist with this goal by targeting further enhancement of capacities on the existing sterile footprint to ensure that we have the capabilities to give one liquid dose of vaccine per African person.” “Finally, with all the capacities and investments, this could not have been achieved without the dedication, commitment and passion of the Aspen and Johnson & Johnson technical teams. To each and every one of you, we at Aspen, in fact every citizen of our continent and millions more across the globe owe you a massive debt of gratitude. You are our heroes. Thank you, Nkosi sikelel’ iAfrika.” Premier Oscar Mabuyane said, “The commitment for this investment was made at the Investment Conference initiated by President Cyril Ramaphosa in 2018, where Aspen announced plans to invest 3.4 billion in our province to manufacture sterile anaesthetics, a niche and high tech manufacturing capability that presents both domestic and export opportunities. We view their investment as the fruits of President Ramaphosa’s leadership and the confidence of social partners to the direction he is leading the country to.” “At that time Aspen made… Continue reading Aspen welcomes President Ramaphosa and his delegation to Aspen’s world class sterile manufacturing facility
“Our Aspen philosophy has always been to give purpose to life. This is best achieved by contributing meaningfully to others. Aspen has defined itself and continues to define itself as a company that serves humanity, particularly the most vulnerable amongst us. It was over a decade ago that we made a special announcement on a prior pandemic. Aspen had achieved a global first. The first tentatively approved FDA generic ARV. As a result, this site became the backbone of our country’s roll-out of ARVs, making product for millions of our patients monthly and saving so many lives from that pandemic. Patients we continue to support to this day. Today we are proud to share with you our contribution to the COVID pandemic. Aspen has invested in excess of R3.0 billion at this sterile manufacturing site, the single largest investment in the pharmaceutical industry in South Africa. The new sterile facility contains high-technology, state of the art pharmaceutical equipment and systems that will be used to manufacture advanced sterile medicines, including vaccines. These investments demonstrate Aspen’s ongoing and enduring commitment to South Africa and the continent. With roots firmly embedded in African soil, a continent which carries a disproportionately high disease burden, the investment in advanced pharmaceutical technology enables Aspen to continue to contribute to improved access to treatment, respond to public health emergencies and create significant economic, export and job creation opportunities. This facility will enable Aspen to manufacture multiple and complex sterile products, such as vaccines and Aspen’s global anaesthetics products. It will also ensure quality and security of both domestic and international supply. As SA and the world grapples with the management of the COVID pandemic, it will also meaningfully contribute to the management of this pandemic. Through the collaboration announced between Aspen and Johnson & Johnson, Aspen is the only manufacturing site on the African continent and in the southern hemisphere selected by Johnson & Johnson to compound, fill, finish and package the COVID-19 vaccine. We are very proud and grateful to have the opportunity to partner with one of the world’s largest and most technologically advanced healthcare companies who has committed to ensuring equitable access to COVID-19 vaccines. This they have demonstrated through their actions and was fundamental in our own considerations of whom to partner. The Aspen and Johnson & Johnson project teams responsible for the technical transfer process at new sterile facility, worked tireless ensuring collaboration in keeping to the ambitious goals and even beating timelines. During this time, the Aspen project team have strengthened their technical competencies, complementing the capabilities of these highly skilled Aspen employees and enhancing a knowledge base in South Africa that will contribute to further solving future public challenges. The majority of the vaccines manufactured at this facility in 2021 will be supplied to South Africa and the member states of the African Union. The South African government has agreement with Johnson & Johnson, to deliver more than 30 million doses of the Janssen vaccine to South Africans, with the first deliveries being made in April 2021. The African Union will receive 400 million doses. This is a watershed moment for Aspen as we continue to implement our strategic vision of delivering quality, affordable medicines using high technology pharmaceutical equipment that contribute to improved health outcomes. This vision has come with much sacrifice and perseverance. However, we have been rewarded through endorsement of the relevance of our product portfolio and capital investments in our manufacturing facilities. The manufacture of the Janssen COVID-19 vaccine builds on the global contributions we have made to COVID through sustained supply of both our anaesthetic portfolio and dexamethasone. We are particularly proud that this vaccine manufacture is taking place in Africa. Our sterile capacity is a big step forward to ensuring that Africa has both the capacity and capabilities to reduce its reliance on other countries in addressing the healthcare priorities on the continent. We hope that our success will inspire and give confidence to others to further invest in our continent. At Aspen, we have set ourselves a further target to become the pandemic solution for Africa. Security of supply for Africans is best achieved through African facilities. Aspen intends to assist with this goal by targeting further enhancement of capacities on the existing sterile footprint to ensure that we have the capabilities to give one liquid dose of vaccine per African person. A special thank you, to the President, SAHPRA and the Ministers of Health, Trade Industry and Competition and their departments for their unwavering support and commitment and in assisting us, by making this journey as seamless as possible. Finally, with all the capacities and investments, this could not have been achieved without the dedication, commitment and passion of the Aspen and Johnson & Johnson technical teams. To each and every one of you, we at Aspen, in fact every citizen of our continent and millions more across the globe owe you a massive debt of gratitude. You are our Heroes Thank you, Nkosi sikelel’ iAfrika.”
Johannesburg – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced unaudited interim financial results for the six months ended 30 December 2021. Stephen Saad, Aspen Group Chief Executive said, “The business has delivered pleasing results and has proven to be in robust shape over the past six months. We are positioned to maintain the current positive momentum, provided we experience no further unexpected headwinds as a result of COVID-19. The past 12 months have been extraordinary, and Aspen has successfully navigated these turbulent times ensuring delivery of medicines to patients. During these challenging times, Aspen employees remained committed to contributing to the fight to combat the effects of the virus. We persevered with the build project to increase our sterile capabilities and capacity, we began the transfer of our Anaesthetics products to Aspen sites and remained steadfast in our commitment to patients and customers ensuring all manufacturing and commercial operations continued, uninterrupted.” COMMENTARY GROUP HIGHLIGHTS (CONTINUING OPERATIONS) Despite the many challenges arising from COVID-19, Aspen has maintained uninterrupted operations, including at our 15 manufacturing sites. This has been due to robust business continuity plans and, most importantly, the resilience and commitment of our employees. This has enabled us to continue to supply our medicines to patients in need across the world and to make an important contribution in assisting to combat the effects of the virus. Group revenue for the six months ended 31 December 2020 grew 17% to R18,6 billion following 12% and 36% increases by Commercial Pharmaceuticals and Manufacturing, respectively. Commercial Pharmaceuticals delivered revenue growth across all regions and revenue also advanced in each of the Manufacturing segments. Normalised EBITDA was up 11% to R5,2 billion as well controlled operating expenses partially offset both a lower gross profit percentage and lower other operating income. Normalised headline earnings per share (“NHEPS”) increased 16% to R6,76, benefitting from reduced net financing costs. Net borrowings declined to R27,7 billion from R35,2 billion at 30 June 2020. The reduction in net borrowings was supported by the upfront cash consideration from the completion of the divestment of the European Thrombosis assets and the relative strengthening of the ZAR. The leverage ratio, as at 31 December 2020, is 2,83 times against the banking covenant of 3,50 times. Operating cash flow was in line with our expectations, given the abnormally high inflows in the prior financial year. The outstanding consideration for the European Thrombosis assets, amounting to R7,0 billion, is receivable before the end of June 2021. This provides a further opportunity to reduce both debt and the leverage ratio. The table below compares performance from continuing operations in the prior comparable period at reported exchange rates and then at constant exchange rates (“CER”). The higher growth at reported rates is due to the weakening of the average rate of the ZAR over the reporting period against the majority of the other currencies in which Aspen trades. 1 Calculated in terms of the Facilities Agreement 2 EUR 389 million at Aspen’s 31 December 2020 exchange rate of ZAR 17,91 to EUR 1 Six months ended 31 December 2020 Continuing operations Reported H1 2021 R’million Restated H1 2020^ R’million Change at reported rates % Change at CER# % Revenue 18 633 15 984 17 6 Normalised EBITDA* 5 192 4 680 11 2 NHEPS** (cents) 676,2 585,1 16 7 ^ H1 2020 has been restated as a result of the discontinuation of operations in H1 2021. # The CER % change is based upon the performance for the six months ended 31 December 2019 restated using the average exchange rates for the six months ended 31 December 2020. * Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. ** NHEPS is HEPS 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. DISCONTINUED OPERATIONS Discontinued operations for the six months ended 31 December 2020 include the European Thrombosis assets to date of disposal (being 27 November 2020), the costs relating to this disposal, related Thrombosis product discontinuations, other product divestments and the residual costs related to prior period disposals. Discontinued operations in the prior period includes the results of the operations classified as discontinued in the current period as well as those discontinued in the prior financial year, the most material of which was the Japanese Business. SEGMENTAL PERFORMANCE (CONTINUING OPERATIONS) Commercial Pharmaceuticals Commercial Pharmaceuticals, which comprises Aspen’s Regional Brands and Sterile Focus Brands, grew 12% (+4% CER) to R14,3 billion. Gross profit increased 8% (+1% CER) to R8,2 billion. The margin percentage was diluted by an unfavourable mix in Sterile Focus Brands as well as higher manufacturing and supply chain costs associated with the pandemic. Regional Brands Regional Brands revenue increased 7% (+1% CER) to R8,8 billion. COVID-19 continued to negatively affect demand for medicines treating communicable diseases, most notably in South Africa and Australia. Despite this, the affected regions of Africa Middle East (+2% CER) and Australasia (+4% CER) contributed to the growth of the segment with Asia (+6% CER) and Americas (+4% CER) also providing momentum. Gross profit percentage was marginally higher for the period at 55,8% in spite of the higher costs associated with operating under COVID-19 conditions. Sterile Focus Brands Revenue from Sterile Focus Brands increased 20% (+7% CER) to R5,6 billion, benefitting from improved supply and tender management. COVID-19 driven demand added to strong gains in Europe CIS (+19% CER) while Asia (+1% CER) finished above the pre-COVID sales levels recorded in the comparative period. A greater weighting of sales from lower margin products as well as higher costs associated with operating under COVID-19 conditions weighed on the gross profit percentage. Manufacturing Manufacturing revenue increased 36% (+17% CER) to R4,3… Continue reading Aspen increases revenue by 17% to R18.6 billion
Durban – United States-based Aspen Pharma USA Inc. and Aspen Global Incorporated, located in Mauritius, both wholly owned subsidiaries of Aspen Pharmacare Holdings Limited, have announced a license and commercialisation agreement with Avion Pharmaceuticals, LLC, a specialty pharmaceutical company, for the exclusive rights to relaunch Cenestin® in the USA. This is a New Drug Application (NDA), without any generics, of the plant-derived, synthetic complex conjugated estrogens product for the treatment of hot flushes, night sweats and other moderate-to-severe vasomotor symptoms associated with menopause. Stephen Saad, Aspen Group Chief Executive said, “Avion’s expertise and success in Women’s Health provides the perfect partnership to relaunch Cenestin®. The nine synthetic conjugated estrogens used in Cenestin® will be manufactured at our active pharmaceutical ingredient (“API”) site in Oss, the Netherlands. The relaunch of Cenestin® provides Aspen with an opportunity to increase our presence in the United States leveraging our niche global intellectual property. Avion is ideally positioned to execute the relaunch of Cenestin® given that they have the necessary technical and commercial resources to drive the sales and marketing of this product in the United States. Cenestin® will provide an effective alternative to millions of women wishing to manage the symptoms of menopause using nine plant-derived synthetic conjugated estrogens. The relaunch of Cenestin® could take place before our financial year end of 30 June 2021, subject to the standard approvals required by the US Food and Drug Administration.” Art Deas, CEO of Avion Pharmaceuticals said, “Avion Pharmaceuticals has been diligent and focused in supporting our patients and prescribing partners in Women’s Health for over 9 years with our portfolio of prescription nutritional supplements and oral contraceptives. Cenestin® will allow us to expand our commitment to women who are seeking options to manage their menopause journey and allow for effective symptom management. We are honoured to support women throughout their life with their important health-related needs and milestones they encounter.” Cenestin® is the only plant-derived mixture of nine conjugated estrogens indicated for treatment of moderate to severe vasomotor symptoms and moderate to severe symptoms of vulvar and vaginal atrophy due to menopause. For the past few decades, the only complex conjugated estrogens product women could choose from was derived from pregnant mares’ urine. Cenestin® tablets will be available in 0.3 mg, 0.45 mg, 0.625 mg, 0.9 mg and 1.25 mg strengths of synthetic conjugated estrogens, A.[1] Vasomotor symptoms are prevalent in approximately 40 to 50 million women in the United States[2], with approximately 1.3 million women becoming menopausal each year[3]. With the relaunch of Cenestin®, millions of menopausal women will have a plant-derived choice in conjugated estrogens products for the treatment of vasomotor symptoms associated with menopause. Cenestin® showed significant reduction in moderate to severe vasomotor symptoms at weeks 4, 8 and 12 as compared to placebo in a double-blind, placebo-controlled, randomized 12-week clinical trial of 120 postmenopausal women. Cenestin® significantly decreased the mean vaginal pH from baseline as compared to placebo in a 16-week, randomized, placebo-controlled, multicenter clinical study in 72 postmenopausal women. Cenestin® was observed to be well tolerated, safe and effective in both clinical studies. [1] https://www.accessdata.fda.gov/drugsatfda_docs/label/2015/020992s034lbl.pdf [2] Utian WH. Psychosocial and socioeconomic burden of vasomotor symptoms in menopause: a comprehensive review. Health Qual Life Outcomes. 2005;3:47. [3] Menopause and Mood Disorders: Overview, Pathophysiology emedicine.medscape.com › article › 295382-overview
Durban, South Africa – Aspen is pleased to announce that one of its wholly-owned South African subsidiaries, Pharmacare Limited (which trades as “Aspen Pharmacare”), has entered into a preliminary agreement with Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica NV, two of the Janssen Pharmaceutical Companies of Johnson & Johnson, for the technical transfer and proposed commercial manufacture of their COVID-19 vaccine candidate, Ad26.COV2-S. The vaccine candidate is currently undergoing clinical trials. Aspen Pharmacare will perform formulation, filling and secondary packaging of the vaccine for supply to Johnson & Johnson. This agreement is still subject to the successful completion of the relevant technology transfer activities and finalisation of certain commercial manufacturing terms. Aspen Pharmacare has agreed to provide the necessary capacity required for the manufacture of Johnson & Johnson’s COVID-19 vaccine candidate at its existing sterile facility in Port Elizabeth, South Africa. Aspen has invested in excess of R3 billion in the facility together with the high technology equipment and systems that will be used to manufacture state-of-the-art sterile drugs and vaccines, packaged into vials, ampoules and pre-filled syringes. The production area where it is intended that the vaccine candidates will be manufactured has capacity to produce more than 300 million doses per annum. The facility has accreditation from a range of international regulatory authorities and provides lifesaving medicines to both the domestic and international markets. It was part of the first flagship investments announced at the President’s inaugural South African Investment conference. Stephen Saad, Aspen Group Chief Executive said “We have invested globally in our sterile capability and are determined to play a role in the manufacture of vaccines to add to our proud track record of making contributions to humanity in times of global pandemics. This has included, inter alia, being a leading global supplier for antiretrovirals for the treatment of HIV/AIDS, multi-drug-resistant-TB products and COVID-19-related treatments such as anaesthetics and dexamethasone. We have been selected as a vaccine partner by Johnson & Johnson and this project will receive priority focus. We are particularly pleased to be given the opportunity of providing assistance for patients in need across the world from our South African base.”
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 2020. COMMENTARY RESHAPING OF THE GROUP The recently announced agreement to divest the assets related to the commercialisation of Aspen’s Thrombosis business in Europe to Mylan (refer SENS announcement of 8 September 2020) marks the end of the process to reshape the foundation of the Group. Following the completion of this transaction, Aspen’s Commercial Pharmaceuticals business will be heavily weighted towards territories where we have demonstrated capabilities and a strong performance record, largely in Emerging Markets. A higher proportion of our business will be exposed to the private sector and will be better positioned to benefit from the expanding middle classes in Emerging Markets, where our trusted and proven brands are well placed to support the increasing medical demands of these growing populations. The receipt of the proceeds from the aforementioned transaction with Mylan will again give us scope for acquisitive investment to support initiatives aimed at enhancing value in areas of strength. Our significant investment in capital expenditure to build our sterile manufacturing capacities has been slightly delayed by the COVID-19 pandemic. This investment is planned to peak in the year ahead before reducing rapidly in subsequent years as the projects reach their end. The complex and niche production capabilities installed will allow us to reduce cost of goods within our existing portfolio. It also allows us to leverage this sought after capacity, particularly with big pharma, to further expand our global presence in steriles thus enhancing our offering of quality, affordable medicines. As a result of our reshaping of the Group and our significant investment in sterile manufacturing, Aspen is highly differentiated from our peer group as it is the most Emerging Market-focused specialty pharmaceutical company and a global leader in the production of sterile products. COVID-19 IMPACT The COVID-19 pandemic has created great uncertainty and many challenges for people and companies across the globe. Despite this, Aspen’s business model has proven resilient. Our relevant product portfolio, effective business continuity plans and safety measures to protect our employees have enabled us to remain in full operation throughout this period. We are most proud of the commitment shown by all of Aspen’s employees, with special gratitude to those at the production sites, for ensuring we have been able to maintain the supply of essential medicines to COVID-19 and other patients around the world under these circumstances. The volatility associated with the pandemic has had an adverse impact on our results in the second half of the 2020 financial year. This impact has varied by timing and region. The hard lockdown in China significantly restricted sales of medicines there for at least three months. Conversely, early in the first wave we experienced a spike in demand for certain of our medicines, most notably in South Africa, Australia and Mexico. This was followed by the predicted drop in demand as the resultant abnormally high inventory in-market levels were normalised. In Europe, there was a significant need for our sterile products required to treat COVID-19 patients during the height of infections, but a decline in orders for products related to elective surgeries. The period after the first wave has been characterised by continued social distancing, leading to reduced infection rates in non-COVID-19 communicable diseases and a slow and uncoordinated resumption of elective surgeries which has adversely impacted our performance. Despite the many challenges experienced during the second half of the financial year, we have made great progress against each of our medium-term priorities, while maintaining the supply of our medicines to patients in need around the world. GROUP PERFORMANCE (CONTINUING OPERATIONS) Group revenue increased 9% to ZAR 38,6 billion and Normalised EBITDA increased 7% to ZAR 11,0 billion for the 12 months ended 30 June 2020. The increase in Group revenue was supported by growth from Commercial Pharmaceuticals (+6%), despite the difficult trading conditions, and a pleasing performance from Manufacturing (+22%). Normalised headline earnings per share (NHEPS) increased 9% to ZAR 14,65, favourably impacted by lower financing costs. Strong second half cash flows resulted in a positive cash inflow from working capital for the 12 months ended 30 June 2020 and supported a cash conversion rate of 142%. Net borrowings declined ZAR 3,8 billion to ZAR 35,2 billion. The strong cash generation was offset by ZAR 5,6 billion in unfavourable currency movements. The leverage ratio in terms of the Facilities Agreement of 2.89 times is comfortably below the covenant leverage ratio of 3.5 times. Testing of intangible and tangible assets for impairment has resulted in impairments of ZAR 1,5 billion arising primarily from a decline in the outlook for the affected products. Discontinued operations include the Nutritionals Business, the Asia Pacific non-core pharmaceutical portfolio, both divested in the 2019 financial year, as well as the Japanese Business and the Public Sector ARVs. The Japanese business divestment became effective on 31 January 2020. The South African Public sector ARV transaction with Laurus, a leading Indian producer of ARV APIs, became effective in June 2020. Material relative movements in exchange rates in the last four months of the financial year have had a positive 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 12 months ended 30 June 2019 restate the performance for that period using the average exchange rates for the 12 months ended 30 June 2020. For the 12 months ended 30 June 2020 Continuing operations Reported FY 2020R’million Restated ReportedFY 2019^ R’million Change at reportedrates % Restated CER FY2019 ^ Change at CER % Revenue 38 647 35 514 9% 37 320 4% Normalised EBITDA * 10 968 10 277 7% 10 699 3% NHEPS ** (cents) 1 464,6 1 344,8 9% 1 397,7 5% ^ FY 2019… Continue reading Aspen increases revenue by 9% to R38,6 billion
Johannesburg – Following the release of a cautionary announcement on 24 August 2020, Aspen is pleased to announce that, Aspen Global Incorporated (“AGI”), its wholly owned subsidiary incorporated in Mauritius, has concluded an agreement in terms of which Mylan Ireland Limited (“Mylan”) will acquire the commercialisation rights and related intellectual property relating to Aspen’s Thrombosis Business in Europe1 (the “Assets”) for a purchase consideration of EUR 641.9 million, plus the cost of the related inventory (the “Transaction”). AGI’s thrombosis products (the “Products”) are sold under the brand names, and variations of the brand names, Arixtra, Fraxiparine, Mono-Embolex and Orgaran in Europe. Mylan has retained AGI (via its subsidiary, Aspen France SAS, “Aspen France”) as its distributor of the Products in France. The Transaction will be conditional upon the fulfilment of customary conditions precedent applicable to transactions of this nature. It is anticipated that the Transaction will complete before 31 December 2020. Mylan is a global pharmaceutical company, with principal offices in Canonsburg, Pennsylvania, United States of America. Mylan has a significant presence in Europe, generating sales of over USD 4 billion in 2019. Transaction details The disposal of the Assets comprises the following elements relating exclusively to the Products in Europe: intellectual property required for their commercialisation, and any related goodwill owned by AGI and its subsidiaries2; product registrations and marketing authorisations; and the related inventory3. The purchase consideration payable by Mylan for the Assets, other than the inventory, of EUR 641.9 million is structured as follows: Upfront cash consideration upon completion: EUR 263.2 million Deferred cash consideration payable on 25 June 2021: EUR 378.7 million The proceeds from the Transaction will be used to reduce the Group’s debt. The transfer to Mylan of employees engaged in the Thrombosis Business will take place in accordance with European labour law regulations. Contemporaneously with the Transaction, Aspen and Mylan will enter into a Manufacturing and Supply Agreement (the “MSA”) in terms of which Aspen will supply Products to Mylan for the Territory. Financial information in respect of the Transaction The Assets contributed approximately ZAR 1.91 billion4,5 in revenue, ZAR 0.53 billion5 in operating profit and ZAR 0.45 billion5 in profit after tax6 to the Group for the six months ended 31 December 2019. The Net Asset Value of the Assets 1 Excludes Russia and the other Commonwealth of Independent States countries 2 Excluding certain goodwill relating to distribution of the Products in France 3 Excluding inventory in France where Aspen France will continue to distribute the Products was approximately ZAR 9.25 billion7 as at 31 December 2019. It is expected that the net proceeds from the Transaction will not vary materially from the Net Asset Value of the Assets at time of completion of the Transaction. Rationale In March 2019, Aspen announced that it would undertake a strategic review in respect of its Europe CIS Commercial business (“the Business”). The review has focused on assessing alternative models for the conduct of the Business and in determining the range of available options with a view to optimising the Group’s sustainable returns. In line with the objectives of the strategic review, Aspen is of the view that the disposal of the commercialisation rights to the Products while continuing to manufacture and supply the Products is an attractive option for the following reasons: the Transaction supports Aspen’s strategy of continuing to reshape the Group towards a greater concentration of revenue in Emerging Markets (“EMs”) – the Thrombosis business that Aspen will retain is almost exclusively in EMs and well supported by strong sales representation; the disposal will allow Aspen to achieve a more streamlined Business in Europe; in terms of the MSA, Aspen will continue to manufacture and supply the Products, contributing its significant expertise in the production of sterile injectables; the positive cash inflow from the proceeds of the disposal will allow Aspen to further strengthen its balance sheet and assist in establishing financial headroom for future investments; and Mylan represents the ideal partner to acquire these assets given the company’s strength in Europe, commitment to the injectables and biosimilars space and comparable employee-first culture and values. Categorisation of the Transaction and Withdrawal of Cautionary In terms of the JSE Limited Listings Requirements the Transaction is categorised as a Category 2 transaction. This cautionary, as issued by Aspen on 24 August 2020, is hereby withdrawn. 4 Includes revenue in France of ZAR 0.36 billion related to the Products that Aspen will continue to distribute and recognise the revenue 5 Aspen average exchange rate for the six months ended 31 December 2019 was ZAR16.30 to 1 EUR 6 Profit after tax excludes any notional saving in interest paid arising from the repayment of borrowings with the net proceeds from the Transaction 7 Aspen closing exchange rate as at the 31 December 2019 was ZAR15.69 to 1 EUR
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