Sharenet Sites 
Sharenet Sites
Potential Risks have Performance Implications for Manufacturing
ASPEN PHARMACARE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1985/002935/06
JSE Share code: APN
ISIN: ZAE000066692
LEI: 635400ZYSN1IRD5QWQ94
("Aspen" or "the Group")
POTENTIAL RISKS HAVE PERFORMANCE IMPLICATIONS FOR MANUFACTURING
Aspen alerts shareholders that risks have recently arisen relating to Aspen's Manufacturing business,
including a material contractual dispute ("Dispute"). As a consequence, shareholders are advised that
normalised EBITDA from the Manufacturing business for FY 2025 in constant exchange rate ("CER")
will potentially be R2 billion lower than last guided. This could result in the EBITDA from the
Manufacturing business for FY 2025 in CER being less than 50% of that reported in FY 2024, dependent
on the outcome of the Dispute. It is too early to estimate the full financial effects on FY 2026 and future
years due to possible variable outcomes to the Dispute and mitigating activities that will be
undertaken. Shareholders will be updated in respect of any related developments as and when
appropriate.
The Dispute, the details of which are subject to contractual confidentiality, relates to a manufacturing
and technology agreement with a contract manufacturing customer for mRNA products. In addition
to the effects set out in the above paragraph, an impairment of R770 million in respect of related
technology could also arise in FY 2025.
The pharmaceutical industry has been, and we expect, will continue to be affected by the current
turbulent and unpredictable world trading environment. Furthermore, those that sell products in the
USA are likely to look to source these products from manufacturing sites within the USA. Other
countries and continents have also been impacted as health security and independence have become
a greater priority. This shifting landscape provides both risk and opportunity for Aspen's contract
manufacturing business.
Aspen has valuable and needed manufacturing capacities and skills to assist in filling voids that have
become evident in the changing global pharma landscape. We will work diligently to reposition Aspen
for the new opportunities which present themselves in this fluid environment.
With respect to the above, Aspen has scheduled a live webcast
https://www.corpcam.com/Aspen23042025 at 08h00 tomorrow, 23 April 2025, which all stakeholders
are invited to join, at which more detail in respect of the above will be shared. The information shared
at this live webcast will be made available on the home page of Aspen's website
www.aspenpharma.com after the webcast.
Forward Looking Information
This announcement contains certain forward-looking statements which relate to the possible future
performance and financial position of the Group. All forward-looking statements are solely based on
the views and considerations of the directors. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that may or may not occur in the future. The Group
does not undertake to update or revise any of these forward-looking statements publicly, whether to
reflect new information, future events or otherwise. These forward-looking statements have not been
reviewed or reported on by the Group's external auditors.
22 April 2025
Sponsor:
Investec Bank Limited
Date: 22-04-2025 05:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
