Aspen Pharmacare full-year revenue up 10%
Aspen Pharmacare reported flat full-year headline earnings hit by higher acquisition-related transaction costs and China volume-based procurement impacts. Group revenue rose by 10 per cent as its manufacturing business grew by 25 per cent, while its commercial pharmaceuticals division grew by 4 per cent after absorbing the impact of VBP in China. The company declared a dividend of 359 cents per share, up 5 per cent. Stephen Saad, CEO of Aspen joins CNBC Africa for more.
Tue, 03 Sep 2024 15:29:04 GMT
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AI Generated Summary
- Aspen Pharmacare's revenue increased by 10 percent, driven by growth in manufacturing and commercial pharmaceuticals divisions.
- The company faced challenges in China and Russia, leading to a loss of revenue and margins.
- Aspen is focused on de-risking its base in China, expanding sterile manufacturing capacity, and pursuing opportunities in obesity and diabetes drug markets.
Aspen Pharmacare has reported flat full-year headline earnings due to higher acquisition-related transaction costs and China volume-based procurement impacts. However, the company's group revenue rose by 10 percent, with its manufacturing business growing by 25 percent and its commercial pharmaceuticals division by 4 percent, despite challenges in China and Russia. The company declared a dividend of 359 cents per share, reflecting a 5 percent increase. Stephen Saad, CEO of Aspen, highlighted the operational challenges faced by the company in the past year and the strategies implemented to overcome them, paving the way for future growth. Saad emphasized the importance of de-risking the company's base in China, where significant revenue and margins were lost. He discussed how Aspen invested in sterile manufacturing facilities, which proved valuable during the COVID-19 pandemic. Saad also addressed the impact of volume-based procurement (VBP) risks in China and the company's plans to navigate this market effectively. Aspen's focus on building sterile capacity and exploring opportunities in the obesity and diabetes drug markets were key points of discussion in the interview. Saad mentioned ongoing conversations regarding potential partnerships for manufacturing COVID-19 vaccines at Aspen's facilities. Overall, Aspen Pharmacare remains focused on achieving its strategic objectives and driving growth in the coming years.
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