South Africa’s biggest pharmaceutical manufacturer, Aspen, is expecting a R500m boost to its bank account within the next 30 days after its seven-month legal battle with an undisclosed contract manufacturing customer for mRNA products finally ends, reports Business Day.
“Shareholders are advised that the dispute has been settled on the basis that the counterparty will pay Aspen an amount of €25m (R500m) before 1 December 2025, in full and final settlement,” it said on Friday.
In April, the company had warned that it faced a “material contractual dispute” that might lead to core earnings falling as much as R2bn, while not revealing the name of the company involved in the dispute. It said only that the issue was linked to a manufacturing and technology contractual agreement for its mRNA products.
In its latest annual results, the company posted a 3% dip in revenue and a 42% decline in headline earnings per share, after impairing its mRNA assets by R800m.
Earlier this month, the group received a regulatory lifeline from SA Health Products Regulatory Authority (SAHPRA) after the group approved Aspen’s diabetes treatment drug, Mounjaro (tirzepatide) as a chronic weight management treatment. It expects the drug to rake in R1bn in sales over the next few years.
Business Day article – Aspen wins R500m settlement from contractual dispute (Restricted access)
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