Aspen is awaiting regulatory approval for the medication to be used in chronic weight management.
A semaglutide anti-diabetic medication, such as Ozempic, has gained popularity amongst people who want to lose weight, despite no approval from the government that it can be used as a weight loss drug.
However, Aspen, South Africa’s largest pharmaceutical company, is awaiting regulatory approval to roll out a weight-loss medication in the country and Canada. This follows the success of its semaglutide, Mounjaro.
The pharmaceutical company’s financial results for the year ended 30 June 2025 show that the diabetic medication significantly contributed to the group’s performance, with sales reaching at least R100 million.
Aspen makes a loss
Despite the success of Mounjaro, Aspen reported a loss of at least R1 billion due to contract issues and billions in impairments.
“Manufacturing performance and intangible asset impairments have been negatively impacted by the material contractual dispute,” read the results.
The company announced on 22 April 2025 that shareholders should expect normalised EBITDA from the manufacturing business for the year to be potentially R2 billion lower.
“The Dispute, the details of which are subject to contractual confidentiality, relates to a manufacturing and technology agreement with a contract manufacturing customer for mRNA products.”
mRNA technology is increasingly used in vaccine technology, and was utilised in the Pfizer and Moderna COVID-19 vaccines.
ALSO READ: Billions’ worth of weight loss and diabetes medications reached SA shelves and patients in 2024
Aspen impairments totalling R4 billion
“As a consequence of the Dispute and related risks, normalised EBITDA from the Manufacturing business for FY 2025 of R0,7 billion in CER was 38% of that reported in FY 2024,” added the results.
“The retrospective implementation of global minimum tax legislation in South Africa, coupled with the announcement by the Mauritian government of a Qualified Domestic Minimum Top Up Tax (QDMTT) of 15%, effective from financial year 2025, has negatively impacted both Commercial Pharmaceuticals intangible asset valuations and Group effective tax rates.”
Aspen’s intangible asset impairments totalled R4.1 billion. These are the DMTT-related impacts of R1.7 billion, mRNA asset impairment of R0.8 billion, and regional performance-related impairments of R1.6 billion.
The group attributed the loss for the period to the above impairments.
ALSO READ: ‘50% of SA women at risk of obesity by 2030’: Here’s how to avoid being part of the stats
Weight loss drug to the rescue
Aspen is putting its faith in Mounjaro to recover the loss it made this year. The group stated that the insulin product has the potential to reach R1 billion by the end of the financial year 2027.
“Commercialising the insulin contract, following an intensive technical transfer process. Resultant revenue of R0,3 billion is forecast for FY 2026, ramping up to more than R1 billion for FY 2027.”
Mounjaro is available for at least R5 000 and is also available in vial form. The approval by the South African Health Regulatory Authority of the Kwikpen delivery system, indicated for the management of type 2 diabetes, has generated revenue for the group.
Aspen is currently awaiting approval from the regulatory body for the medication to be used for chronic weight management.
NOW READ: Weighing in: How does South Africa’s Ozempic attraction measure up globally?