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ASPEN PHARMACARE HOLDINGS LIMITED - Aspens supplementary response to the South African Competition Commission Announcement

Release Date: 14/06/2017 11:05
Code(s): APN     PDF:  
Wrap Text
Aspen’s supplementary response to the South African Competition Commission Announcement

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


ASPEN’S SUPPLEMENTARY RESPONSE TO THE SOUTH AFRICAN COMPETITION COMMISSION
ANNOUNCEMENT

Shareholders are referred to the SENS announcement released by Aspen on 13 June 2017 wherein it was
confirmed that:

 -   Aspen had noted the announcement made by the South African Competition Commission (“the
     Commission”) on 13 June 2017 that it will be investigating Aspen for suspected abuse of dominance
     in respect of the provision of cancer medication in South Africa;

 -   pharmaceutical prices in South Africa are approved by the South African Department of Health in
     terms of the Single Exit Price (“SEP”) regulatory framework which establishes a universal fixed price
     for each pharmaceutical product; and

 -   Aspen has not increased pricing of its products outside of this regulatory framework and has clearly
     demonstrated its commitment to providing quality medicines affordably over many years. The
     supply of the oncology products in question is no exception.

As further clarification, Aspen confirms that it has, to date, not had any engagement with the
Commission on the matters contained in the Commission’s announcement of 13 June 2017 and
welcomes the opportunity to meet and clarify the following key issues on the products listed by the
Commission in its announcement:

 -   these products are all post-patent and have been for some time now;

 -   there are no obvious barriers precluding generic entry for these products. Invariably in situations
     like these, the lack of generic entry is either attributable to the sub-economical pricing of the
     branded products and/or an unattractive market size; and

 -   despite the lack of generic competition on these products, Aspen reiterates and emphasises that it
     has never increased the prices for these products in South Africa beyond the allowable SEP
     increases as gazetted by the South African Department of Health from time to time.
Aspen hopes to demonstrate, through its active engagement with the Commission and other affected
stakeholders, its ongoing commitment to supplying the South African market with quality affordable
medicines for which it is renowned.

To provide context to shareholders it is confirmed that, while Aspen fully acknowledges the vital nature
of the four oncology products listed in the Commission’s announcement, these products have a
collective turnover of about R3 million in the South African private market.


Durban
14 June 2017

Sponsor:
Investec Bank Limited

Date: 14/06/2017 11:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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