a lot of generic roleplayers in the country and a lot of new products – and new treatment categories – being launched into the market.”
The generics industry in SA is growing fast (market value as at June 2013 was R6.64bn), making it a good industry to invest in. Considering this, and the healthy performance of the pharmaceutical industry over the past few years, those who are not directly involved in the sector should consider the topperforming JSE-listed options.
Aspen’s stock value continues to grow due to its strict focus on profitable growth markets and lines, which deliver positive risk-adjusted returns (made possible by the demand for generics).
Aspen already counts for one in three of all generic medications sold in SA, and considering the generic market saw growth of 14.5% from June 2012 to June 2013, this company is the major player in a fastgrowing market.
The Asia Pacific region was the largest contributor to revenue in the group for the first time in 2013, accounting for 37% of total gross revenue. In Australia, Aspen is the l eading manufacturer by scripts written (one in five scripts generated is for an Aspen distributed product), which means that Aspen is the biggest player in Australia’s generic market. It’s a leading player in a market that is set for growth going forward.
A current repurchase authorisation of $500m (R4.95bn) also shows us that Aspen believes that it is a winning investment. Although a portion of this repurchase has already taken place, it’s not too late to jump on board.
Healthcare is a resilient sector. Whatever the state of the economic climate, people will always require pharmaceuticals, and higher generic penetration in the local market will translate into fairly stable cash flows for a company such as Aspen.
THE NEWLY PROPOSED PHARMACY