• Deal aims to cut debt and strengthen balance sheet

• Company refocuses on GLP-1 drugs after reporting annual loss

South African drugmaker Aspen Pharmacare said on Monday it would sell most of its Asia-Pacific businesses, excluding China, for about $1.6 billion, as part of a strategy to cut debt and strengthen its balance sheet.

The assets will be acquired by Australian private equity firm BGH Capital for A$2.37 billion, Aspen said. The divestment covers operations in Hong Kong, Taiwan, Malaysia and the Philippines, as well as its long-standing subsidiaries in Australia and New Zealand, which marked Aspen’s first expansion outside South Africa.

Aspen said the Asia-Pacific region accounted for 18% of group revenue and 26% of core operating profit in the financial year ended June 30, 2025. The company said it had not originally planned a sale but reconsidered after receiving an unsolicited offer it considered attractive.

“This transaction is aligned with our strategic objectives and represents a compelling proposition for the Group and its shareholders,” Chief Executive Stephen Saad said, adding that existing employment terms for affected staff are expected to remain unchanged.

The sale will allow Aspen to focus on priority segments, including the production of GLP-1-based drugs, which are in high demand for the treatment of diabetes and obesity. Aspen partners with U.S. drugmaker Eli Lilly to commercialise its diabetes and weight-loss drug Mounjaro.

Aspen is also restructuring its sterile manufacturing sites in France and South Africa to cut costs amid rising operational pressures.

In September, the company reported an annual loss of 1.1 billion rand ($66 million), largely due to asset impairments and contractual disputes related to messenger RNA-based products.

Fiacre E. Kakpo