Aspen signs $1 billion deal with Merck & Co for API manufacturing business

South Africa’s leading drugmaker Aspen Pharmacare (APN: SJ) yesterday (June 27) signed an agreement with Merck & Co (NYSE: MRK) for the acquisition of an active pharmaceutical ingredient (API) manufacturing business based in the Netherlands.

The companies have reached an agreement valued at approximately 10.06 billion rand ($1 billion) for Aspen to acquire a portfolio of 11 branded finished dose form molecules from Merck, covering a diverse range of therapeutic areas and including products that use APIs manufactured by the API business, which manufactures for Merck and the wider market and also has a satellite facility and sales office in the USA.

Stephen Saad, Aspen group chief executive, said: “One of Aspen's primary strategic intents is to further globalize its business, increase its representation across a number of additional territories and provide support to its growing global presence with a differentiated pipeline. This transaction provides a platform to contribute to the achievement of this strategic intent by enabling Aspen to access a niche range of APIs and finished dosage products.”