The business sells medicines in more than 150 countries and is
looking for partners as it expands in China, the Middle East and the
US. The infant-milk formula market is just one area that represents a
good opportunity in Asia’s most populous nation as the market
consolidates, Chief Executive Officer
Stephen Saad said.
“Four years ago, Asia was less than 10 % of total commercial
pharma revenue, while China is now no. 3 by sales and Asia is bigger
than Australia,” he said in an interview in Johannesburg on Thursday.
“China has every opportunity to get to no. 1,” he added, declining to
comment on how long it would take.
Revenue from therapeutic brands, which include anesthetic and
blood-clotting medicines, rose to 45% of first-half sales after
the Durban, South Africa-based company said in September it would buy
more rights to AstraZeneca’s anesthetic medicines for $555m.
It made similar purchases in 2016.
Saad said the company is generating
enough cash for more deal making, particularly in emerging markets.
“There’s about 2 000 brands in China and we think that’s going to go
down to 500 as about three-quarters of them are not going to get
registration,” the CEO said. “We are going to focus on growing online
and selling to mother-and-baby stores.”
The shares rose 1.8% to close at R261.70 in Johannesburg,
valuing the company at R119.5bn. First-half
earnings per share, excluding one-time items, climbed 26% to R8.72.