Aspen buys MSD factory for R10,6bn

Aspen Group‚ the ninth largest generic pharmaceutical company in the world and the biggest in Africa‚ has signed an agreement with MSD to buy its active pharmaceutical ingredient (API) manufacturing business in the Netherlands.

Agreement has also been reached for the API business on an option to acquire a portfolio of 11 branded finished dose form molecules from MSD, covering a diverse range of therapeutic areas and including products that use APIs manufactured by the API Business.

Stephen Saad‚ Aspen's chief executive‚ said: "One of Aspen's primary strategic intents is to globalise its business‚ increase its representation across a number of additional territories and provide support to its growing global presence with a differentiated pipeline of products. This transaction provides a platform to contribute to the achievement of this strategic goal by enabling Aspen to access a niche range of APIs and finished dosage products."

The transaction‚ which is subject to conditions precedent‚ is valued at US$1bn.

MSD is known as Merck in the US and Canada.