Business Maverick: Aspen delivers positive growth in its first half

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The once heavily indebted pharma company has cut its cloth and is now reaping the rewards of its more focused, but no less ambitious, strategy.

Aspen Pharmacare has grown organic earnings by 10% for the six months to December 2021, its first double-digit growth in many years. This is significantly better than the 1% earnings growth reported in September for the full 2021 year, and the 3% growth reflected at the end of the 2020 year and was achieved despite Covid-19 headwinds which disrupted procurement, supply, logistics, employee productivity, and customer demand.

Rounding off the strong half-year, was the announcement that the group has finally signed the much-anticipated agreement with Johnson & Johnson that will see the multinational license – for the first time ever – its intellectual property to a third party. This will enable Aspen to produce its own Aspen branded Covid-19 vaccine, Aspenovax which will enable an African firm to make a meaningful contribution to improving equitable vaccine access for Africa.

Operating cash flow was marginally higher than in the previous interim period, despite an increased investment in inventory by Manufacturing which sought to avoid supply chain snarl ups caused by Covid-19 disruption of global supply chains and logistics.

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