Aspen Pharmacare’s share price leapt on the JSE yesterday after it said in a cautionary that it had received two material unsolicited offers for its active pharmaceutical ingredient (API) business. Photographer: Waldo Swiegers/Bloomberg
Aspen Pharmacare’s share price leapt on the JSE yesterday after it said in a cautionary that it had received two material unsolicited offers for its active pharmaceutical ingredient (API) business. Photographer: Waldo Swiegers/Bloomberg

Aspen’s shares leap on two material unsolicited offers for API business

By Philippa Larkin Time of article published Sep 10, 2021

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ASPEN Pharmacare’s share price leapt on the JSE yesterday after it said in a cautionary that it had received two material unsolicited offers for its active pharmaceutical ingredient (API) business.

By nearly 5pm, the shares had leapt at 6.02 percent to R211.90.

"Aspen has decided to embark on a structured process to facilitate offers for all or parts of its API Business from those parties that submitted the unsolicited offers and other selected interested parties. This will enable Aspen to make a full and informed assessment of what it considers to be in the best interests of Aspen, the management and employees of its API Business and other stakeholders,“ it said.

Aspen said the outcome of this structured process might have a material effect on the price of the company’s securities and advised shareholders to exercise caution when dealing in the company’s securities.

The API business comprises Aspen’s chemicals and biochem segments of its manufacturing operations in South Africa, the Netherlands and the US.

Earlier this month the global drug manufacturer said revenue for the year to the end of June increased by 12 percent to R37.8 billion from R33.7bn a year ago, while its headline earnings per share from continuing operations rose by 21 percent to 1 204 cents, up from 998c a year ago.

Aspen said it was in talks with Johnson & Johnson, including the evaluation of a licence to manufacture, market and sell a Covid-19 vaccine for Africa.

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