ASPEN PHARMACARE HOLDINGS LIMITED - Aspen to acquire license rights to an innovative unmodified oral-testosterone replacement therapy

Aspen to acquire license rights to an innovative unmodified oral-testosterone replacement therapy

ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1985/0002935/06
Share code: APN
ISIN: ZAE000066692
and its subsidiaries (collectively “Aspen” or “the Group”)

ASPEN TO ACQUIRE LICENSE RIGHTS TO AN INNOVATIVE UNMODIFIED ORAL-TESTOSTERONE
REPLACEMENT THERAPY AND AN EQUITY STAKE IN TESORX

Aspen is pleased to announce that the Group has entered into a series of agreements with TesoRx
Pharma LLC (“TesoRx”), a specialty pharmaceutical company, in terms whereof TesoRx will license
select international rights to TSX-002, an innovative unmodified oral-Testosterone replacement
therapy, to Aspen Global Incorporated (“AGI”), a wholly owned subsidiary of Aspen Holdings. These
agreements further provide for Aspen USA Inc., a wholly owned subsidiary of Aspen Holdings,
acquiring a minor shareholding in TesoRX.

The salient terms of these agreements are as follows:
    - The Aspen Group companies involved in this transaction will invest a total of US$15 million
      in TesoRx, which includes the payment of certain upfront fees to TesoRx;
    - Additional payments will be made to TesoRx, dependent on certain regulatory and
      commercial milestones being achieved, capped at US$20 million and US$60 million
      respectively;
    - In addition certain royalty payments will be payable to TesoRx by AGI, based on sales
      revenues generated on a country-by-country basis;
    - AGI will be responsible for developing and commercializing TSX-002 in the emerging
      markets of Latin America, Africa, Asia Pacific, Russia and other countries in the
      Commonwealth of Independent States; and
    - TesoRx will retain the full development and commercial rights in the US, EU, Japan, China
      and the Middle East.

TSX-002 is a unique formulation of native Testosterone that allows for the convenience of oral
administration. TesoRx has tested TSX-002 in over 150 patients to date and is poised to begin
pivotal trials in 2015. It has exhibited a favourable safety profile in all of its studies. If approved,
TSX-002 will be the first product to orally deliver a native, bio-identical form of the human
hormone. Worldwide sales of currently available Testosterone replacement products exceed
US$2.5 billion.

The acquisition of the licence rights to TSX-002 will reinforce Aspen’s pipeline and bolster its
presence in a key therapeutic area for the Group. Registration of the product will allow Aspen the
opportunity to develop the testosterone market in emerging markets. The transaction also allows
for considerable secondary synergies with the Group’s manufacturing capabilities as a key global
supplier of Testosterone APIs. Aspen’s investment in TesoRx will assist in the work being
undertaken to bring this product to market and in investing behind TesoRx’s pipeline and
technology that has the potential to be used for a wide range of different applications.


Durban

20 October 2014

Sponsor:

Investec Bank Limited

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