South African billionaire Stephen Saad rakes in $132 million as Aspen shares skyrocket

Durban-based pharmaceutical giant Aspen Pharmacare (Aspen) has proven to be a highly profitable investment for South African billionaire and pharmaceutical tycoon Stephen Saad.

Saad’s fortunes have skyrocketed this year, with the market value of his stake in Aspen surging by over $132 million. The surge in profits coincides with continued investor interest in the drug manufacturer on the Johannesburg Stock Exchange.

With a current net worth of $1.2 billion, Saad’s 12.5-percent stake in Aspen accounts for a significant portion of his wealth.

Saad founded the company himself 25 years ago, and it has since evolved into Africa’s largest drug manufacturer, specializing in specialty and branded pharmaceuticals.

In a strategic move earlier this year, Aspen Healthcare, a subsidiary of the company, forged a collaboration with Saudi Chemical Company Holding and its subsidiary AJA Pharmaceutical.

The partnership aims to expand their existing collaboration and diversify their product portfolio. As part of the agreement, products will be manufactured in Saudi Arabia and exported to Aspen’s established markets.

Despite facing challenges with idle COVID-19 vaccine production lines, investors’ buying interest has been overwhelmingly positive, resulting in a remarkable 31-percent surge in the company’s shares since the beginning of the year.

This upward trend has significantly boosted Aspen’s market capitalization to R80 billion ($4.3 billion), positioning the group as the 33rd most valuable company on the Johannesburg Stock Exchange.

As a result of the 31.56-percent year-to-date increase in Aspen shares from R136.33 ($7.34) on Jan. 1 to R179.35 ($9.66) on June 12, Saad’s stake in the group has witnessed an impressive increase of R2.46 billion ($132.4 million).

Since the start of the year, his stake has increased from R7.79 billion ($419.55 million) to R10.25 billion ($551.94 million) at the time of drafting this report.

Aspen’s outstanding performance on the Johannesburg Stock Exchange reflects the company’s strong position in the pharmaceutical industry.

With the booming healthcare market which has attracted significant attention from investors, Saad’s fortune is set to soar even higher.