ASPEN PHARMACARE HOLDINGS LIMITED
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 Group")
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
17 October 2014
Investec Bank Limited
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