By Nqobile Dludla JOHANNESBURG (Reuters) -Aspen Pharmacare posted a 5% rise in half-year earnings on Monday and said it expects double-digit revenue and core profit growth in its commercial pharmaceuticals unit in the full year, benefiting from its Latin American portfolio and the roll-out of its weight-loss drug Mounjaro. Its shares closed 11.7% stronger at […]
Health
African drugmaker Aspen says new Latam and Eli Lilly portfolio boosting earnings
Audio By Carbonatix
By Nqobile Dludla
JOHANNESBURG (Reuters) -Aspen Pharmacare posted a 5% rise in half-year earnings on Monday and said it expects double-digit revenue and core profit growth in its commercial pharmaceuticals unit in the full year, benefiting from its Latin American portfolio and the roll-out of its weight-loss drug Mounjaro.
Its shares closed 11.7% stronger at 182 rand.
The South Africa-based pharmaceutical company is betting big on contracts for a class of medicines known as GLP-1 analogues for diabetes and weight loss.
It has an agreement with Eli Lilly to sell, promote and distribute the American drugmaker’s pharmaceutical portfolio in Sub-Saharan Africa, including Mounjaro in South Africa, which became available in late December.
In 2023, it also bought the commercialisation rights and related intellectual property for a portfolio of products in Latin America from Canonsburg, Pennsylvania-based Viatris.
These businesses helped boost revenue growth in the group’s commercial pharmaceuticals business by 13% in constant currency terms to 16.1 billion rand in the six months to December 31.
Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) from commercial pharmaceuticals grew 13%.
Aspen, which also has a presence in Asia, the Middle East, Africa, Australasia and Europe, said the double-digit forecast was in constant currency terms.
The company recorded normalised headline earnings per share (HEPS) of 724.2 South African cents. Group revenue grew by 4% to 21.9 billion rand, with EBITDA up 12% at 5.8 billion rand.
CEO Stephen Saad told Reuters that the company is seeing increased demand for Mounjaro. “Before we even launched, it had (a) nearly 20% (share) of the (South African) market,” he said, based on generated scripts.
Aspen has also applied to broaden the reach of the product to weight management, Saad said, adding that it is registering Mounjaro in some Sub-Saharan African markets.
($1 = 18.6454 rand)
(Reporting by Nqobile Dludla, Editing by Louise Heavens, Sharon Singleton and Jan Harvey)