Aspen Pharmacare

Aspen Pharmacare Holdings Limited
Public (JSE: APN)
JSE Limited
Industry Health care, Pharmaceutical industry
Founded 1850,[1] public 1997.[1]
Headquarters Durban, South Africa[2]
Key people
 Stephen Saad (Group Chief Executive)[3]
Revenue IncreaseR35,600,000,000 (FY 2016)[4]
IncreaseR4,300,000,000 (FY 2016)[4]
Total assets IncreaseR104,300,000,000 (FY 2016)[4]
Total equity IncreaseR42,500,000,000 (FY 2016)[4]
Owner JSE Listed
Number of employees
 10,513[5]
Website www.aspenpharma.com

Aspen Pharmacare Holdings Limited is a multinational South African holding company for pharmaceutical concerns,[3] and the largest drug company in Africa.[6][7]

History

After complaints of anticompetitive activities by Boehringer Ingelheim and GlaxoSmithKline in 2003, Aspen was granted licenses from the companies to create generic versions of antiretrovirals (ARV) for use in the Sub-Saharan portion of Africa.[8] At the time, Aspen was already the largest generic medicine distributor in South Africa.[8] Subsequent inspections by international organisations led to a rapid increase in distribution capabilities, primarily though integration with alliance partners.[8] The company's efforts led to expanded access to affordable treatments for HIV/AIDS.[9]

Price-gouging

Aspen has been criticised for increasing the prices of generic drugs it sells. It was fined for price-gouging in Italy where it paid $5.5m in October 2016 for its behaviour. It has been accused of the same practices, including artificially restricting supply, in the UK, Australia, New Zealand, France and Brazil. In France, three people died after being given cyclophosphamide, an alternative drug to Aspen's melphalan which had gone up in price. An investigation is currently ongoing.[10]

Similarly, Aspen's busulfan, a treatment for chronic myeloid leukaemia, was bought by the British National Health Service for 21p for 2 mg in 2011, rising to £2.61 in 2016, a hike of 1,143%.[10]

The Guardian newspaper has linked this activity to a rise in Aspen's share price. Between 2009 and 2016 it rose more than 650% and GSK sold its shares in Aspen earning about £1.5bn.[10]

In May 2017, the European Commission announced it would open an investigation into Aspen's pricing practices.[11]

Thyrax shortage in The Netherlands

In January 2016, Aspen announced that due to production problems, tablets with 0.025 mg Thyrax would not be available from mid-2016. Later, it was announced that this shortage would last well into 2017. People who took this medication had to switch to alternatives, which led to 30% of them experiencing side-effects because of this shift.[12]

Products

As of 2007 Aspen supplied more than 650 branded medicines, specialising in generics and treatments for HIV/AIDS and tuberculosis.[7]

References

  1. 1 2 "Timeline of the Aspen Group's evolution". Aspen Annual Report 2016. Aspen Holdings. Retrieved 27 April 2017.
  2. ↑ "Global presence". Aspen Annual Report 2016. Aspen Holdings. Retrieved 27 April 2017.
  3. 1 2 "APN Profile & Executives—Aspen Pharmacare Holdings Ltd". Aspen Annual Report 2016. Aspen Holdings. Retrieved 27 April 2017.
  4. 1 2 3 4 "Group statement of comprehensive income". Aspen Holdings. Retrieved 27 April 2017.
  5. ↑ "Notes to the Group Annual Financial Statements". Aspen Annual Report 2016. Aspen Holdings. Retrieved 27 April 2017.
  6. ↑ Simeon Bennett; Michael Cohen (21 May 2010). "Aspen Pharmacare Offers to Buy Australia's Sigma Pharma for $1.23 Billion". Bloomberg News.
  7. 1 2 Tenu Avafia; Jonathan Berger; Trudi Hartzenberg (1 January 2009). "8. The ability to utilize TRIPS flexibilities in sub-Saharan African countries". In Ricardo Meléndez-Ortiz; Pedro Roffe. Intellectual Property and Sustainable Development: Development Agendas in a Changing World. Edward Elgar Publishing. pp. 177–8. ISBN 978-1-84844-645-8. Retrieved 30 June 2012 – via Google Books.
  8. 1 2 3 Patrick Lumumba Osewe; Yvonne Korkoi Nkrumah; Emmanuel K. Sackey (15 June 2008). Improving Access to HIV/AIDS Medicines in Africa: Trade-Related Aspects of Intellectual Property Rights (TRIPS) Flexibilities Utilization. World Bank Publications. pp. 35–9. ISBN 978-0-8213-7544-0. Retrieved 30 June 2012 – via Google Books.
  9. ↑ Karen Maas; Frank Boons (30 April 2010). "7. CSR as a strategic activity". In Céline Louche; Samuel O. Idowu; Walter Leal Filho. Innovative CSR: From Risk Management to Value Creation. Greenleaf Publishing. p. 158. ISBN 978-1-906093-35-8. Retrieved 30 June 2012.
  10. 1 2 3 Editor, Sarah Boseley Health (28 January 2017). "Drugs firms are accused of putting cancer patients at risk over price hikes". Retrieved 14 April 2017 – via The Guardian.
  11. ↑ "Aspen under EU antitrust spotlight over excessive cancer drug prices". Reuters. 15 May 2017. Retrieved 2017-06-19.
  12. ↑ "Report about the effects on patients that had to switch from thyrax" (PDF).
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