Aspen Pharmacare Holdings has reported unaudited Group interim financial results for the six months ended 31 December 2025.
Aspen Pharmacare Holdings has reported unaudited Group interim financial results for the six months ended 31 December 2025.
Aspen marked World Diabetes Day by highlighting the alarming economic, social, productivity and reduced life expectancy impact that diabetes is having on South Africa
Aspen Pharmacare Holdings has reported financial results for the year ended 30 June 2025, with strong momentum in Commercial Pharmaceuticals and a modified Manufacturing strategy.
Aspen Pharmacare Holdings has reported positive Group interim financial results for the six months ended 31 December 2024.
Aspen and SEMDSA earlier today raised awareness around the alarming rise of non-communicable diseases, particularly diabetes, in recognition of World Diabetes Day.
JSE-listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has reported solid Group financial results for the year ended 30 June 2024.
Johannesburg – JSE-listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has reported solid unaudited interim Group financial results for the six months ended 31 December 2023. SALIENT HIGHLIGHTS Revenue increased by 10% (2% in constant exchange rate (“CER”)) to R21,1 billion (December 2022: R19,2 billion) Normalised EBITDA increased by 2% (-5% in CER) to R5,2 billion (December 2022: R5,1 billion) Normalised headline earnings per share increased by 1% (-5% in CER) to 688,3 cents (December 2022: 679,6 cents) Headline earnings per share decreased by 6% (-12% in CER) to 620,7 cents (December 2022: 660,6 cents) Earnings per share decreased by 13% (-18% in CER) to 520,8 cents (December 2022: 602,0 cents) Operating cash flow per share increased by 44% to 553,2 cents (December 2022: 384,3 cents) Stephen Saad, Aspen Group Chief Executive said, “Great progress has been made in delivering on our ambitious strategy to lay the foundation for strong growth. We have successfully completed the necessary steps to reach the commercialisation stage for the manufacture of mRNA platform products which will augment revenue in H2 2024. Notable financial highlights include a 10% increase in revenue and a 44% increase in operating cash flow per share. The transition to new toll manufacturing agreements for the Heparin business is expected to reduce inventory investment by R3 billion by the end of the financial year. Organic growth complemented by acquisitions is set to drive Commercial Pharmaceuticals’ revenue in H2 2024 up by some R1 billion over H2 2023. We are also pleased to report that our recently announced acquisition of products in China, which remain subject to Competition Authority approval, will mitigate the negative volume-based procurement impact from FY2025.” Noteworthy achievements in this half include, inter alia, the following: Sterile manufacturing contract for mRNA filling reaches commercialisation stage Successful completion of the required trial and validation batches has resulted in the fulfillment of the suspensive conditions to the previously disclosed agreement for the manufacture of mRNA platform products. The commercialisation of this opportunity will benefit revenue and contribution in the last quarter of H2 2024. The impact of the volume ramp up and its annualisation will be materially higher from FY2025 onwards. Heparin business transitions to a toll manufacturing model Manufacturing agreements for the supply of heparin-based syringes are transitioning to a toll contract manufacturing arrangement. The heparin active pharmaceutical ingredient (“API”) will now be owned by the customers. This will reduce Aspen’s investment in heparin inventory and increase operating cash flows in both FY2024 and FY2025. In H1 2024, Aspen’s investment in heparin inventory reduced by R1 billion with a further R2 billion reduction anticipated by the end of June 2024. China volume-based procurement (“VBP”) mitigation strategy well on track Aspen announced that it had concluded agreements with Sandoz AG (“Sandoz”), including acquiring the Sandoz business in China. The net upfront consideration is EUR27.9 million followed by potential net milestone payments of EUR9.2 million. Approval for the transaction from the Competition Authority in China is anticipated in May 2024. The transaction will materially mitigate the negative impact of VBP on Aspen’s existing business in China on an annualised basis from FY2025. Commercial Pharmaceuticals portfolio enhancement strategy set to drive strong growth in H2 2024 revenue H2 2024 will be boosted by the distribution and promotion agreement with Lilly for sub–Saharan Africa and the product purchase agreement with Viatris for Latin America. The agreement with Lilly is effective from January 2024. Subsequent years will benefit from the launch of key pipeline products including Lilly’s Tirzepatide, marketed globally as Mounjaro®. Viagra, Lipitor, Norvasc, Lyrica and Celebrex are key brands included in the product portfolio acquired for Latin America. GROUP HIGHLIGHTS /*! elementor – v3.15.0 – 20-08-2023 */ .elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=”.svg”]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block} 1The Group assesses its operational performance using constant exchange rate (“CER”). The table above compares performance to the prior comparable period at reported exchange rates and at CER. 2 The CER % change is based upon the performance for the six months ended 31 December 2022 recalculated using the average exchange rates for six months ended 31 December 2023. 3Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy. 4 Normalised headline earnings per share (“NHEPS”) represents headlines earnings per share (“HEPS”) adjusted for specific non-trading items as defined in the Group’s accounting policy. GROUP PERFORMANCE The Group has exceeded its guided performance growing normalised EBITDA ahead of H1 2023 and overcoming the negative impact of VBP in China as well as the loss of grant funding which benefitted the prior period. Group revenue for the six months ended 31 December 2023 grew 10% (2% CER) to R21 141 million, with Commercial Pharmaceuticals revenue up 3% (-3% CER) and Manufacturing revenue increasing by 33% (17% CER). Group gross profit grew 4% (-3% CER) muted by an increased Manufacturing sales mix. Normalised EBITDA rose 2% (-5% CER) to R5 194 million. Elevated transaction costs primarily relating to acquisitions, together with increased intangible asset impairments due to the VBP impact in China, resulted in operating profit declining. Normalised net financing costs of R566 million were 3% (-10% CER) lower than the prior year. Increased net interest costs, fueled by higher rates, were more than offset by lower foreign exchange losses resulting from reduced volatility in emerging market currencies relative to the Euro. NHEPS advanced 1% (-5% CER) aided by the lower net financing costs. Financing costs in H2 2024 will continue to be influenced by the interest rate cycle and emerging market foreign currency volatility. HEPS declined by 6% (-12% CER) and earnings per share ended 13% lower (-18% CER) affected by the higher transaction costs and intangible asset impairments respectively. SEGMENTAL PERFORMANCE Commercial Pharmaceuticals Aspen has revised and refined its reportable segments to align to the Group’s Commercial Pharmaceuticals growth strategy. The new segments comprise Prescription, Over-the-counter (“OTC”) and Injectables which have been defined in the basis of accounting section of the financial results. Commercial Pharmaceuticals revenue grew by 3%… Continue reading Aspen building momentum with revenue up 10% to R21,1 billion
New funding supports technology transfer from Serum Institute to Aspen to manufacture routine vaccines in Africa, for Africa Collaboration supports sustainable manufacturing capacity for African-produced vaccines for future epidemics and pandemics Durban, South Africa – JSE Limited listed Aspen Pharmacare Holdings Limited (“Aspen”) a global multinational specialty pharmaceutical company, announced that it will receive USD30 million from the Bill & Melinda Gates Foundation (”the Gates Foundation”) and the Coalition for Epidemic Preparedness Innovations (“CEPI”) to support its capabilities to manufacture lifesaving routine and outbreak vaccines for Africa. The new funding from CEPI and the Gates Foundation, which includes USD15 million from each organization, will support a ten-year agreement between Aspen and Serum Institute of India Pvt Ltd (“Serum Institute”) that aims to expand the supply and sourcing of affordable vaccines manufactured in Africa. Through the partnership with Serum Institute, Aspen will manufacture and distribute four routine vaccines in Africa — Pneumococcal, Rotavirus, Polyvalent Meningococcal, and Hexavalent — with technology transfer activities initiating in early 2023. In addition to supporting the technology transfer of these routine vaccines, the funding from CEPI and the Gates Foundation will help sustain regional vaccine manufacturing capacity at Aspen for potential future outbreak response, with the intention of securing early access to African-produced vaccines in the event of a future public health emergency. Stephen Saad, Aspen Group Chief Executive, said, “We thank both CEPI and the Gates Foundation for their commitment to support regional manufacture for Africa. Their commitment, together with our partnership with Serum, is an important first step in ensuring expanded and enduring equitable access to a pipeline of medicines and vaccines manufactured in Africa for Africans. Aspen has a proven capability of being at the forefront of pandemic preparedness for the Continent – from ARVs to COVID vaccines. This support will ensure we can continue to invest and expand our capacities, secure in the knowledge of future offtakes.” Dr Ahmed Ogwell Ouma, Acting Director Africa CDC said, “Africa CDC welcomes and wishes to congratulate Aspen, the Gates Foundation and CEPI on the conclusion of their respective agreements. These landmark agreements are a demonstration of Africa’s, and in this instance, Aspen’s ambition to further enhance Africa’s vaccine localisation efforts, its intention to diversify the pipeline for Africa-specific vaccines and to improve Africa’s ability to respond to pandemic outbreaks. All these are critical elements to establishing health security and security of supply on the African continent in line with the vision of our New Public Health Order.” “The urgent need to diversify vaccine manufacturing so every region can manage its own health security is one of the most significant learnings from the inequity of the COVID-19 pandemic response,” said Dr Richard Hatchett, CEO of CEPI. “CEPI is working with our partners at Africa CDC to support the expansion of vaccine manufacturing on the continent, and our collaboration with Aspen, the Gates Foundation and Serum Institute will help to deliver a sustainable and resilient business model capable of both producing routine and outbreak vaccines in Africa, for Africa .” “Expanding the availability of affordable, high-quality vaccines that meet the needs of local communities is one of the best ways to improve health outcomes and reduce preventable deaths,” said Mark Suzman, Chief Executive Officer of the Bill & Melinda Gates Foundation. “We’re very pleased to support this agreement between Aspen and Serum Institute, which has the potential to expand vaccine production and supply in Africa, increase vaccination rates, improve pandemic preparedness, and broadly strengthen global health security.” Over the past two decades, the increased globalization of vaccine manufacturing has generated more reliable vaccine supplies at a lower cost, helping many countries around the world reach more people with lifesaving vaccines. In Africa, however, 99% of all vaccines administered are currently imported. Because lifesaving vaccines and treatments are not available or affordable everywhere, vaccine-preventable diseases continue to have a devastating impact on the region. Last year, African leaders, civil society, the private sector, and organizations such as the African Union and the Africa Centres for Disease Control laid out a vision to expand regional manufacturing capacity, including an ambitious plan to produce 60% of the continent’s vaccines locally by 2040 and the launch of the Partnership for African Vaccine Manufacturing (“PAVM”), as well as a call for supranational funders and procurement agencies to source at least 30% of their requirements from African manufacturers.
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