Aspen Pharmacare Holdings Ltd What 's Behind One Of The Jse 's Stand Out Shares Over The Past Two

1309 Words Oct 2nd, 2015 6 Pages
The Investment Case – Aspen Pharmacare Holdings Ltd What’s behind one of the JSE’s stand-out SHARES over the past two years?
Patrick Cairns | 12 January 2011 01:54
Aspen Holdings, Investing 101
ORAPA – Despite the pressures of intense competition and restrictive legislation, the South African pharmaceutical industry finds itself in strong health. Over the past two years, all of the three largest pharmaceutical shares listed on the JSE have been amongst the bourse‘s most robust performers.
The SHARE prices of Adcock Ingram (JSE:AIP), CiplaMedpro and Aspen Pharmacare (JSE:APN) have been on a sustained and significant upward trend since the start of 2009, all gaining at least 50% in this time. While this is impressive enough for the first two, it’s particularly noteworthy in the case of Aspen, which has a market capitalisation nearly four times that of Adcock and more than ten times that of Cipla.
Aspen’s success has been based on an aggressive growth strategy, made possible by the demand for generic pharmaceuticals. Having established itself in South Africa, thanks to the local demand for generic antiretrovirals (ARVs) and tuberculosis (TB) treatments, the group has been able to expand through a focus on emerging markets, where demand for more affordable medicines is most prevalent.
“Aspen identified the opportunity within the local market as it moved towards higher generic penetration,” says Investec Asset Management’s Neil Stuart-Findlay. “That shift occurred over the past…

More about Aspen Pharmacare Holdings Ltd What 's Behind One Of The Jse 's Stand Out Shares Over The Past Two

Open Document