South African tycoon Stephen Saad’s Aspen stake loses $18 million

South African pharma tycoon Stephen Saad, chief executive of Aspen Pharmacare Holdings Ltd., has seen more than $18 million wiped off the value of his stake in the continent’s largest drugmaker as shares continue to fall on the Johannesburg Stock Exchange (JSE).

Saad’s 12.8 percent Aspen stake slides

Saad, who co-founded Aspen in 1997, owns a 12.8-percent stake in the Durban-based pharmaceutical group. Over the past 16 days, his stake has declined by R322.16 million ($18.59 million), leaving his stake now valued at R5.59 billion ($322.63 million).

Aspen’s shares have shed 5.45 percent in the past 16 days, slipping from R103.35 ($5.96) on Oct. 15 to R97.72 ($5.64) this week. The downturn has trimmed the company’s market capitalization to around $2.4 billion, affecting both institutional and retail investors.

Pharma giant faces rising costs, demand shifts

Stephen Saad has turned Aspen from a modest South African factory into an international company that does business in more than 115 countries. The company supplies medicines across Africa and emerging markets, but it continues to face headwinds. Shifting demand, higher input costs, and pricing pressure have weighed on its margins and earnings this year.

For Saad, the losses go beyond numbers on a screen. The South African pharma tycoon, whose wealth is closely tied to Aspen’s fortunes, has seen the value of his stake fall from R5.91 billion ($341.22 million) on Oct. 15 to R5.59 billion ($322.63 million) at the time of drafting this report.

Aspen faces steep stock decline

Headwinds have pressured Aspen’s financial outlook this year. The company’s stock has fallen 40.7 percent year-to-date. A $100,000 investment in January is now worth $59,300. Saad and the shareholders are awaiting signs of recovery from the pharmaceutical company.