Africa’s biggest drug manufacturer Aspen Pharmacare shed R18.5bn of its value on Thursday after the market took a dim view of the price it got for the sale of its infant milk business, and its reported earnings, which fell short of expectations. Aspen’s share price took its biggest intraday knock in two decades, plunging as much as 26% before recovering to close 14.8% lower at R232.06, leaving its market capitalisation at R105.9bn. The one-day decline dwarfs the market value of local drug maker Adcock Ingram, which is worth R11.1bn. Aspen said it was selling its infant milk business to French dairy giant Lascalis for $860m, falling short of the $1bn-$1.5bn the market was expecting for the unit. The proceeds would be used to pay off debt, Aspen said. An aggressive acquisition spree has seen the group’s net borrowings increase 26% to R46.78bn at year-end. Aspen’s results also fell short of expectations, with group revenue for the year to end-June increasing by a mere 3% year on year t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.