Aspen strikes R3.66bn deal for its menopause treatment

People wearing face masks walk past a logo of South African pharmaceutical major Aspen Pharmacare in Gqeberha. Image credit: Reuters/Siphiwe Sibeko/File photo

Europe-focused Ennogen will also buy related inventory valued at about €4m, 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 €1m per month, and transitional services for up to three years to facilitate the transfer of the business.

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Ovestin generated revenue of about R756m and profit after tax of R238m 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.

According to Business Day, Ovestin is a prescription-only hormone therapy medication containing the active ingredient oestriol (a body-identical form of oestrogen), primarily used to treat local menopausal symptoms.