Aspen hurt by ill winds lashing sector
Negative sentiment towards healthcare companies persists
Africa’s largest generic drug maker, Aspen Pharmacare, is trading at levels last seen in 2013 as negative sentiment towards healthcare companies persists. Regulatory bodies, meanwhile, are keeping a close watch on the sector. On Monday, the share was trading at R274.25, compared with R236.92 on August 22 2013. It peaked at R440 in 2015. "I still think superb results will not be enough to push Aspen to previous highs," said portfolio manager at Gryphon Asset Management Casparus Treurnicht. "Management credibility has definitely taken a knock and, at best, we should see a gradual share price increase to previous highs over the next two years."In June, Aspen lost its appeal against the €5.2m fine levied by the Italian Competition Authority over the price of some of its cancer drugs. Domestic competition authorities also announced an investigation into the pharmaceutical industry. While the company has defended itself against allegations of overcharging for cancer drugs, the share price...