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Aspen and India`s Matrix sign JVs
Aspen Pharmacare Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1985/002935/06)
Share code: APN ISIN: ZAE000066692
Press Release
26 September 2005
Aspen and India`s Matrix sign JVs
Aspen Pharmacare Holdings Limited (Aspen) has signed definitive joint venture
(JV) agreements with Indian-based Matrix Laboratories Limited (Matrix). The
deals strengthen Aspen`s vertical integration into the manufacture of Active
Pharmaceutical Ingredients (APIs), the key raw materials required in the
manufacture of finished dosage form pharmaceuticals including anti-retrovirals
(ARVs), and they unlock additional global supply and manufacturing
opportunities.
The basis of the two JVs is:
The sale of 50% of Aspen`s 100% ownership of Cape Town based Fine Chemicals
Corporation (Pty) Ltd (FCC) to Matrix for a purchase consideration of US$
20million. FCC is South Africa`s leading API manufacturer and a major exporter
of product to the USA and other territories;
Aspen to acquire a 50% stake of a newly incorporated Indian company, Astrix
Laboratories (`Astrix`), into which Matrix will transfer an API manufacturing
facility, technology and intellectual property (IP) for a consideration of
US$36,5 million
Stephen Saad, Aspen`s Group Chief Executive said `the JVs strengthen Aspen`s
supply source for APIs to meet the increasing demand for pharmaceutical
products, most notably ARVs. The deals also provide for additional global
trading opportunities for Aspen. Matrix`s technological expertise complements
Aspen`s successful strategy of manufacturing quality, internationally approved
medicines, including ARVs. The finished dosage form products for which the APIs
are required will be manufactured at Aspen`s US Food and Drug Administration
(FDA) and World Health Organisation (WHO) accredited Oral Solid Dose (OSD)
facility in Port Elizabeth`.
Saad added that he expected Astrix to record revenue in the order of $40 million
in its first full year of operation and that Aspen would be a material customer.
N Prasad, Executive Chairman of Matrix said `the long-term strategic
relationship between Matrix and Aspen is a great leap forward. It will result in
combining the strengths of both the companies to achieve global leadership
positions by meeting the large unfulfilled needs in the treatment of HIV/AIDS.
This alliance also gives Matrix a strategic presence in South Africa.
Technological expertise provided by Matrix will assist in unlocking additional
value in the FCC business.`
The Astrix facility, situated near Hyderabad, will be Aspen`s lead supplier of
ARV APIs. Astrix will also continue supplying its existing customer base with
ARV APIs. The site offers scope for modular expansion and in terms of the
agreement Astrix may also source additional API volumes from other Matrix
production facilities on a toll-manufacture basis.
Approvals for the JVs are subject to approvals by, inter alia, the South
African Reserve Bank, the Reserve Bank of India and South Africa`s Competition
authorities.
JSE listed Aspen is the southern hemisphere`s largest generic pharmaceutical
manufacturer and a global leader in generic ARVs. Matrix is a leading
international API manufacturer listed on the National and Bombay Stock
Exchanges.
The US FDA`s 2004 accreditation of Aspen`s world class OSD facility and
registration of its co-pack triple combination generic ARV treatment qualified
Aspen as the first generic supplier under President Bush`s Emergency Plan for
AIDS relief (PEPFAR) programme to which funding of US$15 billion has been
committed.
Aspen has actively pursued a meaningful solution to the provision of high
quality, affordable generic ARVs in the fight against HIV/Aids. Aspen pioneered
the conclusion of voluntary licence agreements with leading multinationals for
the manufacture of generic ARVs which were developed in Aspen`s own
laboratories. This underscores Aspen`s scientific and technical capabilities,
its manufacturing and quality standards, and GMP compliances. Aspen was also
recently awarded the lion`s share of the South African government`s ARV tender.
ends
Issued by: Shauneen Beukes, Shauneen Beukes Communications
Tel: (012) 661-8467
Fax: (088) (012) 6618467
Cell: 082 389 8900
On Behalf Of: Stephen Saad, Aspen Holdings Group CEO
Tel: (031) 580-8602
Fax: (031) 580-8640
Cell: 083 303 4833
Gus Attridge, Aspen Holdings Deputy Group CEO
Tel: (031) 580-8604
Fax: (031) 580-8640
Cell: 083 628 8813
Date: 23/09/2005 09:00:15 AM
Produced by the JSE SENS Department
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