A view from South Africa

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A view from South Africa

Generics/News | Posted 17/12/2010 0 Post your comment

Aspen Pharmacare, Africa’s biggest generic drugs company, reported a 24% rise in full-year profit at the end of June 2010, boosted by its South African unit, and says it expects strong demand in the coming year.

South African pharmaceutical firms have largely escaped the economic slowdown, shielded partly by demand for antiretroviral drugs in a country that is suffering the most from HIV/AIDS. Aspen will post its “thirteenth consecutive year of uninterrupted real growth in 2011” the company said.

Net income for the 12 months to 30 June 2010 climbed to Rand 1.99 billion (Euros 219 million) from Rand 1.34 billion (Euros 147 million) a year earlier, the Durban-based pharmaceutical company said in a statement.

Aspen supplies more than 50% of the HIV/AIDS drugs to state-run hospitals in South Africa. It is 13% owned by GlaxoSmithKline and has started distributing new brands from the pharma giant in South Africa and sub-Saharan Africa.

Aspen is reportedly considering additional acquisitions in Brazil and other Latin America countries. It considers this market most promising, despite the fact that Brazil provides the highest risk, as well as the highest rewards. The firm restructured in Brazil earlier this year, but is still keen on growing its business not only in Latin America, but also in other parts of the world, such as Australia.

A deal to acquire the pharmaceutical division of Sigma Pharmaceuticals has been blowing hot and cold in recent months. Australia’s number one drugs manufacturer is in some trouble and may be hit by restrictions in the prices of generic drugs if planned healthcare reforms go ahead. Aspen’s hope is that the deal will lead to cost savings and allow it to introduce its own generic and over-the-counter products in Australia. It could then be poised to expand into fast-growing Asian markets, including Japan, the Philippines, Taiwan and Thailand.

Source: Aspen Pharmacare, Bloomberg, Reuters, thepharmaletter.