Aspen Pharmacare, a branded pharmaceutical company led by South African billionaire Stephen Saad, is poised to strengthen its presence in Latin America with a significant acquisition.
The company is set to purchase a portfolio of drug products from the American-based global pharmaceutical company Viatris in a deal valued at $280 million.
The portfolio included in the deal encompasses several products, such as Lipitor, Viagra, Lyrica, Zoloft, Norvasc, and Celebrex, along with their intellectual property rights, product registrations, marketing authorizations, and related inventory. These products collectively generated approximately $92 million in sales in 2022.
The acquisition will be facilitated through Aspen’s wholly-owned subsidiary, Aspen Global Incorporated (AGI), which will utilize a combination of a $150 million cash payment and an extension of supply terms to Viatris to finalize the transaction.
The transaction, expected to conclude around Oct. 1, 2023, is contingent upon approval from competition authorities in Ecuador and Colombia. As part of the deal, employees involved in the commercialization of the products will be transferred to Aspen’s local subsidiaries.
With the addition of these established post-patent brands, Aspen aims to enhance its business scale and complement its offerings in the Latin American market, which is considered one of the Group’s key regions. The acquisition is seen as a strategic move to solidify Aspen’s position and further tap into the region’s pharmaceutical industry.
Aspen Pharmacare, founded by Saad in 1997, has enjoyed a robust presence in the global pharmaceutical sector for over two decades, catering to patients’ healthcare needs in more than 115 countries. Currently, Saad owns 12.5 percent of the company, which translates to 57,151,972 ordinary shares.
Despite the company’s ambitious expansion plans, Aspen’s shares on the Johannesburg Stock Exchange experienced a slight decline of 1.95 percent during today’s trading session, closing at R190.05 ($10.29). This pushed its market capitalization below R85 billion ($4.6 billion).
Despite the market’s reaction, Saad’s 12.5-percent stake in Aspen Pharmacare remains substantially valuable, presently worth R10.6 billion ($574 million), further solidifying his position as one of South Africa’s wealthiest entrepreneurs.
