FINANCIAL results released by South Africa-listed Aspen Pharmacare Holdings last week have seen a major sell off of the company's shares and a significant decline in its share price.
The Durban-based company said earnings per share declined 9%, with analysts citing Aspen's heavy debt load and concerns about a delay in the planned divestment of its infant formula operations.
The company said its earnings for the six months to 31 Dec 2018 were "in line with management expectations," with a good performance from Commercial Pharma in Emerging Markets offset by a drop in revenue from the Manufacturing division.
In Sep last year Aspen announced the sale of its Nutritionals Business to the Lactalis Group, but the deal has not settled due to an outstanding approval by NZ's Overseas Investment Office for Lactalis to invest in that country.
The sale is now expected to be finalised on 31 May 2019.
Other measures to reduce debt include the "divestment and discontinuation of a non-core pharmaceutical portfolio in the Asia-Pacific region," with the company not providing further details of this transaction.
Aspen operates in over 50 countries worldwide, with its Australia/NZ business transacting about $650 million in annual sales, according to the company's website.
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