| Wed 30 Aug 2023, 9:30 | | ASPEN PHARMACARE HOLDINGS LIMITED - Aspen secures Distribution and Promotion Rights in South Africa and Certain Sub-Saharan African Countries from Lilly |
|
Aspen secures Distribution and Promotion Rights in South Africa and Certain Sub-Saharan African Countries from Lilly
ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa) (“Aspen Holdings”)
Registration number: 1985/002935/06
Share code: APN
ISIN: ZAE000066692
LEI: 635400ZYSN1IRD5QWQ94
and its subsidiaries (collectively “Aspen” or “the Group”)
ASPEN SECURES DISTRIBUTION AND PROMOTION RIGHTS IN SOUTH AFRICA AND CERTAIN SUB-SAHARAN
AFRICAN COUNTRIES FROM LILLY
Aspen is pleased to announce that it has concluded an agreement with Eli Lilly Export S.A., a subsidiary of Eli
Lilly and Company (Lilly), in terms of which, Aspen will distribute and promote Lilly’s products in South Africa
and certain other Sub-Saharan African countries (the Territory) for an initial term of 10 years, automatically
renewable for two further periods of 5 years (the Transaction). As consideration for the distribution rights,
Aspen will pay an amount of USD 41.5 million. Lilly will continue to manufacture and supply its products to
Aspen for the duration of the agreement.
The Transaction is conditional upon the fulfilment of customary conditions precedent applicable to
transactions of this nature, including the necessary competition authority approvals. It is anticipated that
the Transaction will complete by the end of Q1 of calendar 2024.
The assumption of the Lilly portfolio will expand Aspen’s product offering into new therapeutic categories,
and thus, an essential aspect of the Transaction is the integration of Lilly’s highly skilled staff complement
into Aspen’s commercial organisation in accordance with the Labour Relations Act.
South Africa generated sales revenue of approximately ZAR 440 million(1) in 2022, accounting for nearly 90%
of the total sales revenue of the portfolio in the Territory. This is expected to be materially increased by the
launch of key pipeline products in the short to medium term, pending their successful registration.
The Transaction forms part of Aspen’s strategy to be a partner of choice to leading global pharmaceutical
and biotechnology companies for niche products in emerging markets. Lilly is a leading multinational
pharmaceutical company serving patients and healthcare professionals through innovative and high-quality
medicines in the areas of Neuroscience, Oncology, Diabetes and Immunology. Lilly focuses on areas of high
medical need and has a robust pipeline that includes Lilly’s Tirzepatide, marketed globally as Mounjaro®, a
molecule currently under evaluation by SAPHRA and expected to be launched in South Africa in the near
future.
Any forward-looking statements provided herein have not been reviewed or reported on by Aspen’s external
auditors.
Durban
30 August 2023
Sponsor
Investec Bank Limited
Footnote: (1) Per IQVIA data
Date: 30-08-2023 09:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
