S Africa’s Aspen Pharma targets $800-mn foreign acquisitions

Aspen Pharmacare, Africa's biggest generic drugs maker will spend around $800 million on overseas acquisitions, as the South African company's international businesses are expected to yield more revenue and profits than its domestic business in the coming years.

Aspen, one of the leading 20 generics manufacturers worldwide, which last year acquired the loss-making Australian OTC and prescription drugs maker Sigma for nearly $880 million, is likely to target smaller rivals in Asia and Latin America.

"We have the capacity to do another transaction of about a similar amount," said Stephen Saad, Aspen's CEO.

In March 2010 Durban-based Aspen, 19-per cent owned by UK's GlaxoSmithKline,  sold its  cancer drug making joint ventures - Onco Therapies in India and Onco Laboratories in Cyprus - for $117 million (Rs531 crore) to Strides Arcolab.

Aspen had struck an association with Strides Arcolab in 2003, and later entered into a series of transactions with the Bangalore-based company.

This year, Aspen signed a deal with Cipla, one of the first Indian pharmaceutical companies, to launch Cipla's developed products in Australia.