Aspen concludes the acquisition of an API Business from MSD
2013-10-30
Aspen concludes the acquisition of an API Business from MSD
01 October 2013
By : Shauneen Beukes
1 October 2013
Oss, the Netherlands - JSE Limited listed Aspen Holdings, the ninth largest generic pharmaceutical company in the world, has announced that the Aspen Group (“Aspenâ€), has finalised the acquisition of Active Pharmaceutical Ingredient (API) manufacturing operations and related businesses (“the API Businessâ€) from MSD, known as Merck & Co., Inc. in the US and Canada, with effect from 1 October 2013. This forms part of the larger series of transactions with MSD as announced by Aspen on 18 June 2013 â€" it was confirmed in this announcement that Aspen would acquire the API Business and had reached agreement for an option to purchase a portfolio of 11 branded finished dosage form molecules (“the Productsâ€) from MSD for a total consideration of R10 billion.
Stephen Saad, Aspen Group Chief Executive, said “this deal strongly complements Aspen’s strategic intent of globalising its business by providing access to a niche range of APIs and products. It includes the acquisition of an API facility in Oss that manufactures for MSD and the market generally as well as a satellite facility and sales office in the United States.â€
In terms of the transaction, Aspen will continue to supply APIs to MSD under a 10-year supply contract, which will provide significant on-going volumes for the API Business. Further opportunities also provide for Aspen to develop finished dosage form products from certain of the APIs such as hormones and peptides.