Stephen Saad’s Aspen wins $29 million settlement

Aspen Pharmacare Holdings, Africa’s largest drugmaker, led by South African pharma tycoon Stephen Saad, has reached a settlement worth R500 million ($28.8 million) with an overseas contract manufacturing client after a dispute over mRNA drug production. 

Aspen confirmed the agreement in a statement to shareholders on Friday, ending months of uncertainty surrounding the issue that had weighed on its stock earlier this year. It said the counterparty will pay EUR25 million ($29 million) by Dec. 1, 2025, in full and final settlement. 

The disagreement stemmed from a manufacturing and technology agreement involving mRNA products, according to Aspen’s previous filings. The matter had been cited by analysts as one of the key reasons for investor caution around the stock. 

While Aspen’s shares have regained some ground in recent months, they remain under scrutiny. Market analysts said Friday’s news could help restore investor confidence and stabilize trading in the coming weeks.

Aspen faces faces tough fiscal year

Founded in 1997 by Saad and Gus Attridge, Aspen has grown into Africa’s biggest pharmaceutical manufacturer and a key supplier of specialty medicines to global markets. Saad, who has served as chief executive since 1999, remains the company’s largest individual shareholder with roughly 13 percent of its stock.

Despite its reach, Aspen has faced a challenging year. The company reported a net loss of R1.08 billion ($61.3 million) in its latest fiscal year, a sharp reversal from the R4.4 billion ($249 million) profit it recorded previously. 

Saad drives Aspen’s global healthcare expansion

Still, Saad remains optimistic. Speaking in September, he said Aspen’s new weight-loss treatment could generate up to $50 million in annual sales within two years. The company recently secured regulatory approval to launch an injector pen version of Mounjaro in South Africa, expanding its presence in the fast-growing obesity drug market. 

In May, Aspen also opened a regional headquarters in Saudi Arabia to tap into the Middle East’s expanding healthcare sector under Saudi Arabia’s Vision 2030 plan, signaling Saad’s continued push to position the company for long-term global growth.