South Africa’s (SA) Aspen Pharmacare will sell the European commercialisation rights and related intellectual property for its women’s health product Ovestin to Ennogen Healthcare International for €197 million ($220 million), it said this Monday.
Europe-focused Ennogen will also buy related inventory valued at about €4 million ($4.49 million), Aspen said.
As part of the deal, Aspen and Ennogen have long-term supply agreements under which Aspen will continue manufacturing and supplying the active pharmaceutical ingredient and cream formulation of Ovestin in Europe for at least 10 years.
The agreement forms part of Aspen’s strategy to unlock value from assets outside its core focus on emerging markets.
Aspen will also provide strategic support services to Ennogen for five years for a fee of €1 million per month, and transitional services for up to three years to facilitate the transfer of the business.
Ovestin generated revenue of about R756 million ($45 million) and profit after tax of R238 million ($14.30) in Aspen’s 2026 financial year.
The company said proceeds from the transaction would be subject to its capital allocation strategy, with share buybacks remaining its preferred method of returning capital to shareholders
–Reuters–
