The Public Investment Corporation (PIC), Africa’s largest fund manager, has increased its stake in pharmaceutical manufacturer Aspen Pharmacare to just more than 20% — continuing its buying streak, with valuations on the JSE still attractive to long-term investors.
Aspen on Wednesday said the PIC now held 20.15% of the group’s securities, cementing its place as the company’s largest investor — with the group’s founder Stephen Saad coming in second.
The move by the PIC to increase its stake in Aspen, valued at R75bn on the JSE, implies the asset manager’s exposure to Aspen now amounts to R15bn.
The PIC, whose assets under management breached the R3-trillion mark for the first time due to the rally of SA Inc following the formation of the government of national unity (GNU), increases its stake in Aspen when the company’s valuation is on the cheap.
Aspen stock has lost 26% over the past six months. However, the company has made several strategic moves over the past year to position itself for future growth.
Six months ago the group secured a €500m loan package from a development finance consortium led by the World Bank’s International Finance Corporation (IFC). This as the company bolstered its plans for the development of medicines and vaccines for Africa.
Aspen has also applied to the medicines regulator for the registration of the drug tirzepatide — used to treat type 2 diabetes — as a weight loss medication.
Saad in October hailed the group’s licensing agreement to enter the rapidly expanding GLP-1 agonist market, deeming it “a coup”.
With preparations under way to ensure readiness for the GLP-1 market by 2026, the agreement positions Aspen to tap into a lucrative sector driven by increasing global demand for diabetes and obesity solutions, with the market projected to expand to more than $142bn by 2030.
The country’s largest generic drugmaker in 2023 bagged a deal that will give it exclusive rights to market, distribute, use and sell Amgen’s products in the country.
The US-based Amgen has a presence in 100 countries and regions and its medications are used in the fight against serious illnesses such as cancer, cardiovascular disease, osteoporosis, asthma, rheumatoid arthritis and many others.
The PIC, one of the largest investors on the JSE, has not been shy to flex its muscle, taking up strategic positions in several companies over the past year. In October it increased its stake in Sibanye to 15%, upped its exposure to WBHO to 20% and last month increased its stake in logistics company, Super Group to just under 26%.
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