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SA's biggest pharmaceutical group, Aspen Pharmacare, is deepening its footprint in Latin America with the $280 million (R5 billion) acquisition of a portfolio of specialist drugs, including Viagra.
Among other key products in the portfolio are cholesterol-lowering medicine Lipitor, anti-epileptic drug Lyrica, antidepressant Zoloft, hypertension medicine Norvasc and Celebrex, an anti-inflammatory medication. These are being acquired from Nasdaq-listed drug maker Viatris, with Aspen paying $150 million in cash for the portfolio and settling the balance through an extension of supply terms to Viatris.
While in the Viatris stable, the products generated $92 million in sales in the year to end-December, said Aspen in a statement.
"Due to the way the products have been integrated into Viatris' business, it is not possible to accurately determine or estimate the profit attributable to the products within Viatris," the group said.
However, Aspen estimates the gross margin from these drugs to be higher than the 60% gross profit margin of its own pharmaceuticals division during the six months ended December 2022.
Aspen, valued at R85 billion on the JSE, said the transaction represents an attractive opportunity to complement its existing portfolio and for it to expand its presence in one of its key regions. Aspen currently operates a manufacturing facility in Brazil, and also has a presence in Chile, Mexico, Ecuador, Colombia, Canada and the US.
Ecuadorian and Colombian competition authorities still have to approve the transaction, which Aspen hopes to complete by October this year.
"The acquisition of a dedicated and experienced sales team will materially enhance Aspen’s commercial capabilities, further strengthening its foundations for future growth in Latin America," it said.
Shares in Aspen were down 0.7% in midday day on Tuesday but is up almost 40% in the year to date. Click here for details of its shares as well as other info.
