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Aspen Pharmacare Holdings Ltd., the drugmaker led by South African tycoon Stephen Saad, has completed the sale of the European rights to its menopause treatment Ovestin after receiving the €197 million ($220 million) purchase price from the buyer.
Ennogen Healthcare International Ltd. paid the money on Nov. 3, a day after the deal was announced, Aspen said in a statement to the Johannesburg Stock Exchange on Nov. 5. The only remaining condition had been that Ennogen's funding arrangements become unconditional, and that has now been met.
The €197 million, about R3.7 billion, covers the commercialization rights and related intellectual property for Ovestin in Europe. Ennogen will also pay for the existing stock of the product. The assets were held by Aspen Global Inc., a wholly owned subsidiary.
Aspen expects to book a profit of about R2 billion ($120 million) on the sale. Ovestin, an estriol-based hormone treatment used for symptoms of menopause, generated revenue of about R756 million ($45 million) and after-tax profit of R238 million ($14 million) in Aspen's 2026 financial year, so the price is about 15 times the product's annual profit.
Aspen keeps a role
Aspen will keep making and supplying the active ingredient and the cream formulation in Europe for at least 10 years under long-term supply agreements. It will also provide strategic support services to Ennogen for five years at €1 million a month, worth €60 million over the period, and transitional services for up to three years.
The company has said the proceeds will be handled under its capital allocation policy and that share buybacks remain its preferred way of returning cash to shareholders. The sale is part of a push to unlock value from assets outside its focus on emerging markets, following its R27 billion ($1.6 billion) agreement this year to sell its Asia-Pacific business.
Saad, Aspen's chief executive, co-founded the company in 1997 with Gus Attridge. He owns 58.8 million Aspen shares, or about 13% of the company.
Figures were converted at R16.6 to the dollar and €1 to $1.12.
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