Pharmaceutical manufacturer Aspen Pharmacare will buy the Latin American commercial rights and intellectual property for a portfolio of Viatris’ branded products including the erectile dysfunction drug Viagra, in a deal worth $280m (about R5bn).
Aspen’s Latin American business delivers more than a tenth of the company’s turnover, and the region offers strong growth opportunities, said Aspen CEO Stephen Saad.
The Americas were the fastest-growing geographical segment of Aspen’s business, accounting for 12.7% of group revenue of R19.15bn for the six months to December 31 2022.
The main products in the deal between Aspen’s Mauritius subsidy Aspen Global Incorporated and Nasdaq-listed Viatris are Viagra, Lipitor, Lyrica, Zoloft, Norvasc and Celebrex. They are all well-established branded products that are now off-patent, and generated sales of $92m for Viatris in its 2022 financial year.
“We have many of these brands in Australia, and have done particularly well with them,” said Saad.
The deal comprises a cash payment of $150m and an extension of supply terms to Viatris. It includes the intellectual property required for the products’ commercialisation, product registrations and marketing authorisations, and the related inventory.
AGI and Viatris will conclude supply agreements whereby AGI will receive these products for at least seven years.
Aspen expects competition authorities in Ecuador and Colombia to approve the deal by October 1.
In May, Aspen secured exclusive rights to market, distribute, use and sell Amgen’s products in SA.
The US-based biotech company has a presence in 100 countries and regions and its medications are used to treat cancer, cardiovascular disease, osteoporosis, asthma, and rheumatoid arthritis.
Update: August 1 2023
This story contains comments from Aspen CEO stephen Saad and more information about Viatris
With Kabelo Khumalo
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