After a period of remarkable growth, South African businessman and pharmaceutical magnate Stephen Saad has experienced a substantial decrease in the market value of his stake in Aspen Pharmacare Holdings (Aspen Pharma), Africa’s leading drug manufacturer.
Over the past 27 days, Saad’s stake in the multinational company has plummeted by over $29 million as investors factor in the challenging operating conditions in the pharmaceutical industry. This has pushed the market value of his shares in Aspen Pharma further below the $600 million mark.
Aspen Pharma, established by Saad 26 years ago and headquartered in Durban, has witnessed a nearly 5 percent decline in its shares. The stock tumbled from R188.43 ($10.39) on June 15 to R179.05 ($9.85) at the time of reporting, contributing to the devaluation of Saad’s holdings.
Ranked among South Africa’s wealthiest individuals, Saad owns a 12.5-percent stake in Aspen Pharma, equivalent to 57,151,972 ordinary shares. This substantial investment positions him as one of the most affluent investors on the Johannesburg Stock Exchange.
Unfortunately, the recent single-digit percentage drop in Aspen Pharma’s shares has had an adverse effect on Saad and other shareholders.
The market value of Saad’s stake has declined by R536.09 million ($29.45 million), from R10.77 billion ($591.67 million) on June 15 to R10.23 billion ($562.22 million) at present.
This downturn follows Saad’s gain of $132.4 million from Jan. 1 to June 15, during which the market value of his 12.5 percent stake in the pharmaceutical company surged from R7.79 billion ($419.55 million) to R10.25 billion ($551.94 million).
The recent slump in the market value of Saad’s stake in Aspen Pharma highlights the volatility of the pharmaceutical industry and the sensitivity of market conditions.