Aspen reaps reward of expansion plan

Johannesburg - Aspen Pharmacare Holdings [JSE:APN], Africa's biggest generic drug maker, posted a 20% rise in full-year profit as its international expansion plan pays off.

Aspen, 19% owned by Britain's GlaxoSmithKline, said normalised diluted headline earnings per share (Heps) totalled 523.3 cents in the year to end-June compared with 437.7c a year earlier.

The company said Heps was adjusted for transaction costs.

Aspen bought the manufacturing arm of Australia's Sigma Pharmaceuticals during the period for $887m.

"Revenue and profit contributions from the group's businesses outside of South Africa will exceed that of the South African business for the first time," the company said.

Aspen, which has overshadowed its closest domestic rival Adcock Ingram Holdings [JSE:AIP] with its push into international markets, is one of companies set to gain as drugs worth $100bn lose patent protection over the next three years.

Shares in the company, which are down about 5% so far this year, rose 2.4% to R89.09 by 11:34 GMT, outpacing a flat JSE Top 40 - (Tradeable) [JSE:J200] blue chip index.