Aspen Partners with Eli Lilly, Aims to Mitigate Drug Shortage

Key Takeaway

• Aspen Pharmacare, Africa's largest drugmaker, plans to ease the global shortage of obesity and diabetes drugs through fill and finish services.
• The company is expanding its portfolio through strategic partnerships, including a notable agreement with Eli Lilly & Co. and a $280 million deal with Viatris Inc.
• Aspen commits to boosting vaccine production in Africa while creating jobs, aligning with the African Union's goal for local vaccine production by 2040.

Expanding Global Drug Supply

Africa's largest drugmaker, Aspen Pharmacare Holdings Ltd., is positioned to alleviate the global supply shortage of the latest obesity and diabetes medications. CEO Stephen Saad, in a discussion with Bloomberg, highlighted the company's capability to enhance the availability of these in-demand treatments through fill and finish services. This process involves the final steps of packaging the medication for distribution. Aspen's potential involvement comes at a time when pharmaceutical giants like Eli Lilly & Co. and Novo Nordisk A/S are experiencing unprecedented demand for their new obesity and diabetes drugs, which have shown significant efficacy in weight loss for patients. However, the full market potential of these drugs has been hampered by severe supply constraints.

Strategic Partnerships and Production Capabilities

Aspen Pharmacare's strategy includes forming partnerships with leading global pharmaceutical companies to address niche markets, particularly in emerging regions. Following a notable agreement with Eli Lilly & Co. to distribute and promote the diabetes drug Mounjaro in Southern Africa, Aspen also entered into a $280 million deal with Viatris Inc. This agreement included acquiring a portfolio of products, among them the well-known erectile dysfunction medication, Viagra. These moves underscore Aspen's commitment to expanding its product offerings and leveraging its manufacturing capabilities. CEO Saad also mentioned the possibility of manufacturing both glucagon-like peptide 1 diabetes drugs and higher dose obesity medications at Aspen's primary facility in South Africa, indicating a future direction towards producing these high-demand medicines locally.

Commitment to Vaccine Production and Job Creation

Aspen Pharmacare's expansion into the sterile drug market, including anesthetics, does not detract from its commitment to increasing vaccine production within Africa. Saad emphasized that the company's shift towards producing steriles aims to tap into a higher-value market without compromising its efforts to produce more vaccines on the continent. This initiative aligns with the African Union's goal for 60% of vaccines used in Africa to be produced locally by 2040, a significant step given that African countries currently import more than 90% of their vaccines. Local production is not only crucial for meeting healthcare needs but also for creating thousands of jobs for African professionals in the pharmaceutical and biotechnology sectors.

Management Quotes

• Stephen Saad, CEO of Aspen Pharmacare Holdings Ltd.:

  "Aspen Pharmacare Holdings Ltd., which signed a deal last year to distribute and promote Eli Lilly & Co.’s blockbuster diabetes drug Mounjaro throughout Southern Africa, has the capacity to boost availability of the most in-demand shots globally... This could take the form of so-called fill and finish services, where the drug is packaged for use." "In time, Aspen also sees an opportunity to make both glucagon-like peptide 1 diabetes drugs and the higher dose obesity medicines at its main facility in South Africa." "We’ve put all our bets into building these facilities globally and building the active pharmaceutical ingredient capacities as well... If you are looking at what will really drive Aspen now, it’s to fill capacity at these sterile facilities — we are at an inflection point in our growth."