CAPE TOWN – While its competitor spent the better part of a year negotiating its future, Aspen concluded four acquisitions that will add about R9bn to the top line; advance its entry into 30 new countries and extend both its product range and manufacturing capability.
Despite 15 years of unbroken growth and numerous commercial achievements, the transactions concluded in 2013 “will probably prove to be the most transformational transactions undertaken by the Group to date,” wrote Aspen CEO Stephen Saad in the group’s annual report.
The deals include the acquisition of an API (active pharmaceutical ingredient) manufacturing business based in the Netherlands, from MSD for R525.6m, effective October 1 2013. In a related agreement with MSD Aspen acquired a portfolio of 11 branded finished dose form molecules for R6bn, effective December 31 2013.
Aspen also concluded a deal with its shareholder GSK, from which it acquired the global rights (excluding China, India and Pakistan) to anti-coagulant drugs Arixtra and Fraxiparine. It will also acquire the specialised sterile production site which manufactures these brands in April this year. This will supplement Aspen’s current sterile capability in South Africa. The deal was worth about R11bn and also became effective on the December 31 2013.
Aspen’s financial year ends in June and these deals are expected to enhance earnings in this, the second half of its financial year. In the year to June 2013 the company achieved revenue growth of 27% to R19.3bn and raised operating profit by 28% to R5bn. While every region experienced growth the offshore