Aspen Pharmacare Holdings Limited (“Aspen Holdings”) has made a significant stride in its expansion strategy, announcing the acquisition of a portfolio of branded products in Latin America from Viatris Inc. The deal was finalized on 31 July 2023 and is valued at USD 280 million. This strategic move positions Aspen to strengthen its presence in the Latin American pharmaceutical market and unlock new growth opportunities.
The Portfolio of Branded Products
Aspen Global Incorporated (“AGI”), Aspen’s wholly-owned subsidiary incorporated in Mauritius, spearheaded the agreement with Viatris, a major global pharmaceutical company listed on the NASDAQ in the United States. The acquisition includes commercialization rights and related intellectual property for a diverse selection of well-known branded pharmaceutical products in the Latin American region. The portfolio features several post-patent brands that have a strong market presence and brand recognition.
Key Products in the Portfolio
The table below showcases the key products included in the acquired portfolio:
| Brand Name | Therapeutic Area |
|---|---|
| Lipitor | Cardiovascular |
| Viagra | Men’s Health |
| Lyrica | Neurological |
| Zoloft | Antidepressant |
| Norvasc | Cardiovascular |
| Celebrex | Anti-Inflammatory |
These brands are known for their efficacy and have been widely prescribed by healthcare professionals in the region, contributing to their significant sales of approximately USD 92 million in the year ended 31 December 2022.
Rationale Behind the Acquisition
The acquisition of Viatris’ portfolio of branded products in Latin America aligns with Aspen’s growth strategy and presents a compelling opportunity to expand its market presence. By adding these well-established brands to its product offerings, Aspen aims to diversify its portfolio and strengthen its position as a leading pharmaceutical player in the region.
Furthermore, the acquisition comes with the advantage of gaining access to a dedicated and experienced sales team, which will bolster Aspen’s commercial capabilities. The inclusion of this team is expected to create synergies and optimize sales strategies, enhancing Aspen’s competitive edge in the Latin American market.
Fostering Future Growth
Aspen’s strategic move reflects its commitment to expanding its footprint in key regions and driving future growth. Latin America presents a dynamic market with a growing demand for pharmaceutical products and healthcare services. By acquiring a portfolio of established brands, Aspen can leverage its existing distribution networks and capitalize on market opportunities, ensuring long-term sustainable growth.
Transaction Details and Financial Information
The acquisition was valued at USD 280 million, and AGI will settle the consideration through a combination of a cash payment of USD 150 million and an extension of supply terms to Viatris. The transaction is subject to approval from competition authorities in Ecuador and Colombia, and it is anticipated to be completed on or about 1 October 2023.
While the specific profit attributable to the Products within Viatris could not be precisely determined, the gross margin from the Products is expected to surpass Aspen’s Commercial Pharmaceutical segment gross profit percentage of 60% for the six months ended 31 December 2022.
Securing a Promising Future
Aspen’s acquisition of Viatris’ branded products portfolio in Latin America is a strategic move that sets the stage for the company’s continued growth and expansion. By integrating these well-known brands into its product offerings, Aspen positions itself as a formidable player in the Latin American pharmaceutical market. With a robust foundation and a dedicated sales team, Aspen is well-positioned to capitalize on market opportunities and deliver innovative healthcare solutions to patients across the region. The completion of the transaction in the coming months will mark a significant milestone in Aspen’s journey of growth and impact in Latin America.
