Aspen Pharmacare Holdings Ltd, the largest drug manufacturer in South Africa, is planning more investments in India, through strategic alliances with Indian drug manufacturers.
The company has invested more than US$ 50 million in two joint venture projects with Matrix and Lupin, announced last year. Already, Aspen Pharmacare tops the list of foreign direct investment firms in India in the field of drugs and pharmaceuticals in 2005 as per the data announced by India's Commerce Ministry, about two weeks ago.
In a telephonic interaction with Pharmabiz, Stavros Nicolaou, senior executive for strategic trade development, said Aspen is in advanced talks with three to four Indian manufacturers for strategic alliances or joint ventures in the field of manufacturing and in-licensing of technologies and formulations. "The discussions so far are satisfactory and we may be able to announce the details within a month's time. We are looking at strategic alliances in India, both for manufacturing and licensing of formulations and technologies. We are not in a position to divulge more details now" said the official.
On asked whether the Mylan-Matrix takeover deal would derail the Matrix- Aspen joint venture Astrix that was announced last year as a 50:50 joint venture, he said "We are weighing all the options after the Mylan takeover and necessary review of the project would be done from time to time. Both our Indian JVs are progressing satisfactorily is what I can say now, as we have Non-Disclosure Agreements (NDA) related to these projects" he said.
In September 2005, Aspen and Matrix had announced to form Astrix Laboratories Ltd, envisaged as a long-term business partnership. As per the agreement, Matrix has to transfer one of its US FDA approved Active Pharmaceutical Ingredients (APIs) manufacturing facility in Hyderabad, technology and Intellectual Property (IP) related to the manufacture of certain APIs to Astrix Laboratories Ltd for a total consideration of US$36 million. As part of the agreement, the JV will pick up a 50 per cent stake in Aspen's subsidiary Fine Chemical Corporation (FCC) in South Africa, for an investment of US$ 20 million. FCC is a leading API manufacturer in South Africa and has a good customer base for its products in US, Europe and Africa.
In February, 2005, Lupin Limited and Aspen signed an MoU for establishing a 50:50 joint venture for development, manufacture and global marketing (except US, South Africa and India Trade) of selected anti-TB products. The JV is to leverage Lupin's traditional strengths in anti-TB formulations and APIs, combining with Aspen's range of MDR-TB products and ARV business in Africa.
For the year ended June 2005, Aspen had a total group turnover of $461 million and a net profit of $79 million.