South Africa’s biggest pharmaceutical producer Aspen Pharmacare will sell its major Asia Pacific assets, excluding China, to Australian private equity firm BGH Capital for A$2.37bn (R26.45bn), the group said on Monday, as it looks to cut debt and boost capital.
The group had no plans to sell those assets, but agreed to do so after it evaluated an unsolicited offer from Australia and New Zealand-focused BGH Capital, Aspen said in a statement.
The deal, which includes divestment of Aspen’s first venture outside South Africa, in Australia and New Zealand, will help the company focus on producing GLP-1 drugs and bolster turnaround efforts.
“This transaction is aligned with our strategic objectives and represents a compelling proposition for the group and its shareholders,” Aspen CEO Stephen Saad said.
The businesses’ current employment conditions are intended to continue as normal, he added.
Aspen, which is a marketer for Eli Lilly’s blockbuster diabetes and obesity drug Mounjaro, has been betting on the booming weight-loss drug market in a bid to offset contractual disputes and rising costs.
It also plans to restructure its manufacturing facilities in France and South Africa that produce sterile drugs entirely free from living microorganisms to cut costs.
In September the firm reported an annual loss of R1.1bn, citing hefty asset impairments amid contractual disputes over mRNA products.
The Asia Pacific assets it is selling include Hong Kong, Taiwan, Malaysia and Philippines, and constituted 18% of Aspen’s total revenue and 26% of its core profit for the year ended June 30, according to the company.
Reuters
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