South Africa's biggest drugmaker Aspen Pharmacare said on Monday it will sell a part of its local business to a unit of Endo International Plc for 1.6 billion rand ($134 million).
[DATA APN:Aspen Pharmacare] said in a statement that the sale is part of its strategy to focus on areas of growth. The generic drug maker's revenue is increasingly coming from outside its home market. Aspen operates in more than 150 countries across the world.
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Litha Pharma, Endo's South African unit, will gain a portfolio of established brands and injectable medicines, Aspen said.
In South Africa's highly regulated pharmaceutical market, consumers have been under pressure as unemployment of nearly 25 percent, fuel cost increases and steep electricity price hikes have gnawed away at disposal income.
Aspen's home market contributed less than a quarter of its 31.4 billion rand revenue in 2014, down from more than a third in 2013.
The unit Aspen is selling contributed 362 million rand to its revenue of 7.45 billion rand for the year ended June 2014.
The transaction is dependent on approval by South Africa's competition authorities.