Cape Town – South African billionaire Stephen Saad’s pharmaceutical company, Aspen Pharmacare, has agreed to sell the European rights to its menopause treatment, Ovestin, for €197 million (approximately $220 million or R3.7 billion) as it continues restructuring its international operations.
The deal will see Europe-focused pharmaceutical company Ennogen Healthcare International acquire the commercialisation rights, product registrations, marketing authorisations and related intellectual property for Ovestin.
According to Reuters, the transaction was announced on Monday, 2 November, with Ennogen also purchasing existing inventory valued at approximately €4 million.
Despite the sale, Aspen will retain a manufacturing and supply role, providing Ovestin’s active pharmaceutical ingredient and cream formulation to Ennogen under a 10-year agreement.
Strategic support services
The company will also provide strategic support services for five years, earning €1 million monthly, potentially generating an additional €60 million over the period.
According to Business Day, Ovestin generated R756 million in revenue, R521 million in gross profit and R238 million in after-tax profit during Aspen’s 2026 financial year.
Aspen expects to record an accounting profit of approximately R2 billion from the disposal.
The company described the transaction as an opportunity to unlock shareholder value, saying the consideration represented “a strong multiple for an asset outside of the group’s emerging markets focus”.
Substantial proceeds
The proceeds will be allocated in line with Aspen’s capital allocation policy, with share buybacks remaining its preferred method of returning capital to shareholders.
The disposal follows Aspen’s sale of its Asia-Pacific commercial business, excluding China, in May 2026 for gross proceeds of R28 billion, as the pharmaceutical group increasingly prioritises emerging markets.
As reported by Business Insider Africa, the latest transaction allows Aspen to generate substantial proceeds while maintaining a long-term manufacturing relationship with the new rights holder.
Founded in 2011, Ennogen is a privately owned pharmaceutical and medical-device company with a European commercial focus and offices in the United Kingdom and Ireland, alongside its head-office function in Dubai.
Completion of the transaction remains subject to Ennogen’s financing arrangements becoming unconditional.
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Compiled by Betha Madhomu
