Aspen CEO Stephen Saad says that helping to roll out antiretroviral (ARV) drugs stands as a highlight of his 25 years leading the group he cofounded in 1997 that grew to be a top 40 company on the JSE.
In a reflective letter to shareholders published in the company’s annual report, SAAD said the company grew from being a small player in the global pharmaceutical industry to playing an “outsized” role in pandemics.
“There have been many financial and other highlights over the past 25 years, but my proudest has been the work we did to build the manufacturing capability and obtain the necessary waivers to manufacture generic ARVs on SA soil,” said Saad.
“We were at the forefront of creating access for the millions of patients who simply had no prospects of receiving these treatments. Over the years, we have continued to play an active and leading role in responding to the need for affordable and more effective ARVs, as well as other medicines, to address related diseases such as multidrug resistant tuberculosis.”
In 2003, the group launched Aspen-Stavudine, the first generic ARV drug developed and manufactured in Africa.
SA’s life expectancy has risen from a low 53 years in 2004 to 66 years today.
Saad is the group’s second-biggest shareholder after the Public Investment Corporation. He holds a stake of about 13% in the company valued at R74bn on the JSE. Group co-founder Michael Attridge has a 4.2% stake.
Attridge is the group’s chief adviser, responsible for identifying and pursuing corporate opportunities and global transactions.
The group’s revenue rose from R3.7m in 1998 to R40bn in 2023 as it built its manufacturing capacity.
Aspen has been aggressive in corporate activity to shore up its offering. The company said in August it will buy the Latin American commercial rights and intellectual property for a portfolio of Viatris’ branded products, including erectile dysfunction drug Viagra, in a $280m deal.
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.
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. Its medications are used to treat cancer, cardiovascular disease, osteoporosis, asthma and rheumatoid arthritis.
Saad said the group’s manufacturing business has moved out of the building phase.
“This business offers significant returns and cash flows, given the fixed and operational investments already incurred. We have made substantial progress in achieving our medium-term strategy to fill our existing sterile manufacturing capacity which has a potential annual contribution of at least R8bn,” he said.
“Our focus is on the successful execution of recently concluded contracts which have the potential to deliver contributions of R2bn in calendar year 2024, increasing to R4bn in calendar year 2025. We continue to pursue additional contracts to increase utilisation and enhance contributions.” With Nico Gous
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