How Aspen will keep earning from its R3.7bn Ovestin deal
DURBAN — Aspen Pharmacare has agreed to sell the European commercial rights to its menopause treatment Ovestin for €197 million, about R3.7 billion, while keeping a contract to manufacture and supply the drug’s active ingredient and cream for an initial ten years. The buyer, Ennogen Healthcare International, will also pay Aspen €1 million a month for five years to help it take over the business.
For the South African drugmaker, the deal releases cash from a profitable European brand that falls outside its focus on emerging markets. The Ovestin assets generated R756 million in revenue and R238 million in after-tax profit in Aspen’s 2026 financial year. Aspen estimates it will book a profit of about R2 billion on the disposal, based on the rand exchange rate at the end of June.
What Ennogen gets for €197 million
Ennogen will acquire the intellectual property, product registrations and marketing authorisations it needs to sell Ovestin in European markets including Germany, France and the UK. It will pay separately for stock, currently valued at about €4 million, as Aspen delivers it. The agreement covers Ovestin’s European business and involves no transfer of Aspen employees.
The five years of support from Aspen’s subsidiary, Aspen Global, carry fees totalling €60 million. Under a separate distribution agreement, the subsidiary will also earn 4% of net product sales for up to three years while it helps transfer the business to Ennogen. The manufacturing contracts run longer, and the companies can extend them by mutual agreement after the first decade.
For shareholders, the next milestone is Ennogen’s financing. The sale can close only once the buyer’s funding arrangements become unconditional, at which point the full €197 million falls due. Aspen said share buybacks remain its preferred way of returning capital to shareholders.
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