South African pharma giant wins big from weight-loss drugs

Aspen Pharmacare reported higher earnings, benefiting from a restructuring of its manufacturing operations and expanding its presence in the fast-growing market for weight-loss medicines.

Normalised earnings from continuing operations rose 28% at constant exchange rates in the year through June, the company said in a statement on Wednesday. 

Its expansion comes amid competition to capture growing demand for medicines that mimic the GLP-1 gut hormone, which suppresses appetite.

The company said the rollout of this portfolio globally is expected to begin in the new financial year and contribute to growth in its commercial pharmaceuticals business.

In South Africa, Aspen already distributes Eli Lilly & Co.’s blockbuster drug Mounjaro, or tirzepatide, which was launched for diabetes in December 2024 and has since been approved for chronic weight management. 

Novo Nordisk A/S is seeking South African approval for an oral version of its Wegovy obesity treatment, while the expiry of the local patent covering injectable semaglutide is opening the market to cheaper alternatives.

Aspen received Canadian regulatory approval in July for its generic injectable semaglutide for treating type 2 diabetes.

Although it has been said that commercialisation depends on supplies of the active pharmaceutical ingredient from India’s Dr Reddy’s Laboratories, which has experienced temporary supply constraints.

The Durban, South Africa-based company separately said Wednesday that it had repurchased 13.3 million shares for about R1.98 billion, equivalent to roughly 3% of its issued share capital at the time shareholders approved the buyback authority.

The shares were bought at an average price of about R148.17 apiece from May through August.