Aspen first-half profit up

Aspen Pharmacare, Africa’s biggest generic drug-maker, posted a 27% rise in first-half profit from continuing operations, boosted by a strong performance from its South African business.

Aspen, 19% owned by Britain’s GlaxoSmithKline, said on Wednesday headline EPS from continuing operations rose to 242,3 cents in the six months to end-December, at the top end of its forecast range of a 20% to 30% increase.

The company, which supplies more than 50% of the life-prolonging HIV/Aids drugs to state-run hospitals in South Africa, said the results were boosted by robust volume growth and margin improvement in the country’s operations.

Revenue was up 10% to R4,6-billion and operating profit increased 16% to R1,3-billion.

Aspen, one of the top 20 generic drug-makers worldwide, said future profits in the South African business would be negatively affected by health authorities’ delay to grant product price increases. South Africa regulates the price of medicines.


But the company expects its Asia-Pacific business — where it is investigating growth opportunities — to deliver “excellent” results and the company’s restructuring plan to boost its Latin American business. — Reuters

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday