ASPEN PHAR­MA­CARE

Finweek English Edition - - INVESTMENT -

HOLD

HOLD As­set man­age­ment firm Ves­tact says that while the phar­ma­ceu­ti­cal group ap­pears ex­pen­sive com­pared to South African peers (trad­ing on a P/E mul­ti­ple of 28 times), it needs to be con­sid­ered rel­a­tive to big­ger in­ter­na­tional play­ers when it comes to val­u­a­tion. An­a­lyst Sasha Naryshkine told clients: “Both Glaxo and Sanofi com­mand 20 plus earn­ings mul­ti­ples, Dr Reddy’s too. Even some of the older and well es­tab­lished types are close to a 20 mul­ti­ple, Pfizer and No­var­tis com­mand a 19 plus mul­ti­ple. For a very fast grow­ing emerg­ing mar­ket generic com­pany, per­haps it is not as wildly ex­pen­sive as you might think.”

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