| Thu 18 Mar 2010, 9:55 | | APN - Aspen Pharmacare Holdings Limited - Voluntary announcement not a Trading |
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APN
APN
APN - Aspen Pharmacare Holdings Limited - Voluntary announcement not a Trading
update as previously announced
Aspen Pharmacare Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1985/002935/06)
Share code: APN & ISIN: ZAE000066692
("Aspen")
Aspen and Strides restructure Oncology arrangements
Aspen Pharmacare Holdings Limited ("Aspen"), and Strides Arcolab Limited, today
announced a restructuring of their arrangements relating to the two oncology
joint ventures between Aspen and Strides, Onco Therapies Limited ("OTL"), India
and Onco Laboratories Limited ("OLL"), Cyprus.
The transactions
The following are the material terms of the restructuring:
a Aspen Global Incorporated will sell its 50% ownership in the Oncology JVs
to Strides for a consideration of USD 117 million;
b Strides will license the existing and future oncology products to
Pharmacare Limited, an Aspen Group company, for certain territories;
c The effective date of the above transactions is the first day of the month
following the fulfillment of the conditions precedent which include, inter
alia, the approval of the Exchange Control Department of the Reserve Bank
of South Africa;
d The payment terms are based upon certain future milestones with an outside
date for settlement of all outstanding amounts by 30 April 2011.
Rationale
The transactions signal the strategic intent of Aspen and of Strides in the
oncology market.
The transactions compliment Aspen`s focus on sourcing differentiated products
for supply through its international distribution network which reaches
approximately 100 countries worldwide. Aspen already has a developing oncology
business in most of these territories.
Central to the Strides strategy is the enhancement of its manufacturing and
development capabilities in its Specialties business. To this end, Strides has
built capacities in facilities and development. This includes the establishment
of world class sterile assets in India, Europe, the recent acquisition of the
Campos facility in Brazil, and taking over full ownership of the Oncology JVs.
The value of these assets has been demonstrated by the attraction of numerous
leading pharmaceutical partners, including multinationals.
Stephen Saad, Aspen Group Chief Executive said: "Through these agreements we
continue to build on the strong partnership we enjoy with Strides. Each party
now does what they do best. Our focus is commercialisation of these niche
products in our territories. Aspen has and is building its own oncology product
franchise. The existing and future pipeline of products from the Strides Group
will be an important contributor in achieving this objective. There is a clear
definition now of responsibilities and focus. The close association forged over
the last decade continues. We believe that these transactions, together with
their current expertise, leave Strides well positioned in their endeavours to
grow their global sterile business."
Arun Kumar, Vice Chairman and Group CEO of Strides said "While the restructuring
of the oncology arrangements with Aspen provides Strides greater focus and
ownership of a key domain in our specialties division, we are delighted to
strengthen our existing strong partnership with Aspen by entering into a
licensing agreement in territories where Aspen has established distribution."
Johannesburg
18 March 2010
Sponsor
Investec Bank Limited
Date: 18/03/2010 09:55:01 Produced by the JSE SENS Department.
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