Corporate Brochure 2021 - Aspen Pharmacare
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Who Creating Our leadership
we are sustainable value and governance Referencing
Corporate Brochure
2021
Who Creating Our leadership
2 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Contents
Who we are
About Aspen 3 Navigation
Our global presence 5
Throughout our corporate brochure, we use the following icons to show the connectivity between our strategic objectives, our capitals and the
Our performance at a glance 6
value we create for our key stakeholders.
Our investment case 7
Manufacturing capabilities 8
Our strategic objectives
Creating sustainable value
Our strategic objectives provide the foundation to deliver our strategy of creating long-term value for our stakeholders.
Our value creation process 9
Our business model 10
Our business strategy 12
To deliver a To optimise To develop To be a good To create
Engaging with our stakeholders 13
differentiated the strategic and retain a corporate sustainable
Our leadership and governance portfolio of advantage of talented, agile citizen by economic
high quality, our integrated and diverse conducting our value for our
Our approach to governance 17
affordable value chain workforce business in a stakeholders
Governance supporting our strategy 19
medicines inspired responsible,
Board of Directors 22 to achieve inclusive and
Group Executive Committee 24 operational sustainable
Referencing excellence way
Abbreviations 25
Our capitals Our key stakeholders
Value creation, preservation and erosion are the consequences Our ongoing engagement with our key stakeholders enhances
of how we apply and leverage our unique value drivers within our relationship with them and improves our understanding of
Forward looking statements
This corporate brochure contains certain forward-
our six capitals to effectively execute our strategy and their needs, concerns and expectations.
looking statements with respect to our future implement our business activities.
performance and prospects. While these statements
represent our judgements and future expectations Communities in which we operate
at the time of preparing this document, a number of Financial
emerging risks, uncertainties and other important
factors could cause actual results to differ materially Employees and organised labour organisations
from our expectations. These include factors that Human
could adversely affect our business and financial Governments, competition authorities and pharmaceutical
performance. Forward looking information is not regulatory bodies
audited. Intellectual
Refer to our disclaimer on page 27. Investors and funders
Manufactured
Material contract manufacturing customers
Feedback and contact
We value feedback from our stakeholders and use it Natural
Patients, healthcare professionals and customers
to ensure that we are reporting appropriately on the
issues that are most relevant to them. Please use
the online contact form or email the Company Social and relationship Suppliers, service providers, consultants and business partners
Secretary & Group Executive: Governance &
Communications at rverster@aspenpharma.com Other navigation icons
This icon indicates that further information is available online The Integrated Report and Supplementary Documents are
available online.
Page references within this Corporate Brochure
This icon directs you to further information in this brochure
relate to the 2021 Integrated Report, unless www.aspenpharma.com
detailed under Contents.
Who Creating Our leadership
3 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
About Aspen
Aspen Pharmacare Holdings Limited (the Company or Aspen and, when
Our people
referred to with inclusion of all its subsidiaries, the Group) is a South African
Our greatest strength is our diverse and talented team who work together every day,
headquartered company listed on the Johannesburg Stock Exchange (“JSE”). united in our purpose to improve the health and quality of life of patients.
We are a global specialty and branded pharmaceutical company, improving the
health of patients across the world through our high quality, affordable medicines.
Active at every stage of the value chain, we are uniquely diversified by geography, Approximately
product and manufacturing capability.
9 100 52%
Men
48%
Women
Our business segments employees in 69 offices
We focus on marketing and manufacturing a broad range of post-patent, in over 50 countries
branded medicines and domestic brands covering both hospital and and territories
consumer channels through our key business segments.
Commercial Pharmaceuticals Our global presence
Headquartered in South Africa, we have a
65%
A C
46%
of total revenue
strong presence in both emerging and
developed markets.
of Commercial Pharmaceuticals
revenue from emerging markets
Regional Brands
A – a widelyC diverse range of https://www.aspenpharma.com/global-presence/
trusted medicines with a strong domestic or regional
presence.
A C
28%
of total revenue
Our manufacturing capabilities
Our manufacturing capabilities span a wide
7
Sterile Focus Brands – comprising our variety of product types including steriles, oral Active pharmaceutical
23
branded products in anaesthetics and thrombosis solid dose, liquids, semi-solids, biologicals and ingredient facilities
therapy areas. active pharmaceutical ingredients (“APIs”).
Our manufacturing sites hold international
16
Total revenue approvals from some of the most stringent Facilities
Manufacturing 26%
of total revenue
R37,8 billion
from continuing
global regulatory agencies.
Finished dose form facilities
operations
Internal and third party supply of chemical and
https://www.aspenpharma.com/manufacturing-capabilities/
biochemical APIs and finished dose form (“FDF”)
pharmaceuticals.Who Creating Our leadership
4 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
About Aspen continued
Delivering value through Our purpose
To improve the health and
Our commitment to sustainability
Delivered through our four sustainability pillars, our commitment
our purpose
is to create value for our stakeholders in a manner that is
quality of life of patients. responsible, transparent and respects the rights of all.
We believe that everyone should have Excellence
Our vision
access to the medicines they need to We strive to be the
best we can be and to
To deliver value to our
live a healthy and fulfilled life. deliver to the highest
standards. stakeholders as a
responsible corporate
In the midst of the COVID-19 pandemic, this sense of citizen that provides
purpose drives our actions to find innovative solutions to
Commitment high quality, affordable
Patients
support the global efforts aimed at ensuring that patients medicines globally.
We go the extra mile,
everywhere get the medicines they need. seeking to exceed
expectations.
We have adapted our production schedules and supply
chains to be responsive to the changing demand for
medicines used in the treatment of critically ill patients.
Employees United Nations
We have prioritised the health and safety of our employees Sustainable
and contributed to the health response in the communities Development
in which we operate.
Integrity Goals (“SDGs”)
Our integrity is Our sustainability
We are particularly proud of being selected by Janssen not negotiable. framework prioritises eight
of the 17 SDGs for
Pharmaceuticals Inc. and Janssen Pharmaceuticals NV, meaningful action.
two of the Janssen Pharmaceutical Companies of Johnson Society
& Johnson to manufacture their COVID-19 vaccine (the
“Johnson & Johnson COVID-19 vaccine”) at our flagship
Gqeberha-based manufacturing site in South Africa. This Teamwork
is a positive step forward in developing our technological We optimise our
know-how and capacity to contribute to meeting the Our values Environment
performance by pulling
needs of patients in Africa and around the world. together. Our combined
capabilities exceed Defining the foundation
In everything we do, we have one common goal – the sum of each on which Aspen has
individual. been built. These are
to deliver high quality, affordable medicines to the
patients who need them. Innovation the values we share as
We constantly search we work together
Through these actions we have been true to our credo of for better ways of
toward achieving the
Healthcare. We Care. doing things and are
solution oriented. vision of the Group.Who Creating Our leadership
5 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our global presence
We supply medicines to more
than 150 countries through
69 established offices in
more than 50 countries and
territories
Key:
Group headquarters
Combined sales, marketing, distribution
and manufacturing centres
● Sales, marketing and distribution centres
● Marketing centres
Branch representative offices
● Manufacturing sites
● Sales, marketing, distribution and
support centres
Support centre
ew product development and
N
manufacturing site
Contribution to Revenue
36% 25% 14% 14% 11%
Europe CIS Africa Middle East Australasia Asia Americas
R13 622 million R9 523 million R5 421 million R5 194 million R4 006 million
(2020 (CER): R12 091 million) (2020 (CER): R8 999 million) (2020 (CER): R5 053 million) (2020 (CER): R4 570 million) (2020 (CER): R3 682 million)
2 195 P ermanent employees* 3 866 Permanent employees* 538 P ermanent employees* 1 214 P ermanent employees* 768 Permanent employees*
* Permanent employees excludes temporary employees (525). Specific location details are provided www.aspenpharma.com/global-presence/Who Creating Our leadership
6 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our performance at a glance
Revenue from continuing operations
increased by
Intellectual capital Social and relationship capital
– Further reduced instances of product recalls – Supported 200 social economic development
12% (10% CER)
achieving a five-year low (“SED”) projects in 27 countries
to R37 766 million
– Investment of over R444 million in modernising our – Advanced level of ethical culture as assessed
digital capabilities with a further R749 million budgeted by The Ethics Institute
for FY2022 – Aspen’s 2020 Integrated Report was ranked as
Normalised EBITDA* from continuing
– 57 products launched in 17 countries and territories “excellent” by the Ernst & Young Inc. (“EY”)
Excellence in Integrated Reporting Awards operations increased by
3% (1% CER)
al
Social
an d to R9 945 million
ctu re
e lle la
nt tio
n
I
sh
Normalised headline earnings per
Manufactured capital Financial capital
ip
share (“NHEPS”) from continuing
– R2 045 million invested in capital – Strong operating cash flow
operations increased by
replacement and expansion projects conversion rate of 134%
Manufactured
– Continued the production of
Our six – Strengthened our balance 10% (7% CER)
Financial
life-saving medicines throughout capitals sheet, achieving a leverage
the period of COVID-19 disruption ratio of 1,7 times to 1 309,7 cents
– Fast-tracked technical transfer – R6 351 million of wealth
and successfully commenced created reinvested in the
manufacture of the Johnson & Group Net borrowings reduced to
Johnson COVID-19 vaccine
N
R16 326 million
at
ur an
m
al Hu from R35 228 million
Resumption of dividends to
Natural capital Human capital shareholders of
– “C Awareness“ performance rating for 2020 – R43,2 million invested in training our employees
Carbon Disclosure Project for Climate Change
262 cents per ordinary share
– Zero occupational fatalities
(“CDP-CC”) and “B- Management” for Water (2020: no dividend declared)
Security (“CDP-WS”) – 26% women in top management roles in the Group
– 82% of waste generated recycled
– 9% reduction in water withdrawn
* Normalised EBITDA comprises operating profit before
depreciation and amortisation adjusted for specific
non-trading items defined in accounting policies of
the Group’s Annual Financial Statements.Who Creating Our leadership
7 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our investment case
Our vision inspires our actions
To deliver value to our stakeholders as a responsible corporate citizen that provides high quality, affordable medicines globally.
Global footprint with weighting towards Strategically relevant manufacturing capital Responsible corporate citizen and
emerging markets trusted partner
Commercial and sales employees: Consistent inclusion in the
FTSE/JSE Responsible
Investment
Index
2 088 since 2016
in emerging countries
Constituent
Cost
competitive member of the
FTSE4Good
304 Index
in developed countries
Medicines supplied to more than Economies Scalable
130 emerging and over 25 developed of scale State-of-
countries the-art
technology
Diverse product portfolio with strong Committed management team, strongly aligned
brand equity with shareholders’ interests
Ownership (%)
Reliable Flexible
176 Executive
medicines on the Essential Medicines List1 management
17% 83%
Other
547 shareholders
prescription branded and over-the-counter
(“OTC”) medicines
Widely accredited and compliant
Our wide product portfolio of trusted API and FDF manufacturing sites ■ Regional Brands 44
■ Anaesthetics Brands 21
brands spanning most therapeutic areas with an increasing focus on complex Entrepreneurial,
■ Thrombosis decentralised
Brands 16
■ Manufacturing revenue 15
creates meaningful diversification sterile capacities management teams with
finished dose form
■ Manufacturing revenue 4 local expertise
active pharmaceutical ingredients (Chemicals)
■ Manufacturing revenue 4
1
World Health Organization Essential Medicines List active pharmaceutical ingredients (Biochem)Who Creating Our leadership
8 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our manufacturing capabilities
Primary FDF sites API facilities Regional facilities
Gqeberha, South Africa Cape Town, South Africa Melbourne, Australia
Unit 1 facility Capability: Specialised API and high potency manufacturing for domestic and export Dandenong
Capability: High-volume solids manufacturing and packing for domestic and export markets. markets. Large diversity of reactor MOC and sizing ranging from 20l pilot lab to 6000 l Capability: High-volume solids, liquids and semi-solids.
Maximum output: commercial scale. OEL 1ug / m3 – 50ng / m3. Maximum output: 3 billion tablets; 90 million sachets; 12 tonnes semi-solids; 2 200 tonnes
6 billion tablets. Maximum output: liquids.
Accreditation: ANVISA, EMA, HPRA, ISO 14001, ISO45001, PMPB, PPB – Kenya, SAHPRA, Commercial volume batch sizes ranging from 4 kg to 500 kg Accreditation: ISO 14001, ISO 45001, TGA.
SAUDI FDA, TGA, UNDA, US FDA, WHO. Output of 46 000 kg per annum.
Unit 2 facility Accreditation: EDQM, ISO 14001, ISO 45001, PMDA, SAHPRA, US FDA.
Capability: Small to medium-volume solids manufacturing for domestic and export markets.
Maximum output: Vitória, Brazil
4 billion tablets.
Accreditation: ANVISA, EMA, HPRA, ISO 14001, ISO45001, PMPB, PPB – Kenya, SAHPRA, Notre Dame de Bondeville, France Capability: Small to medium-volume solids, liquids and semi-solids.
SAUDI FDA, TGA, UNDA, US FDA, WHO. Maximum output: 36 million sealing; 415 million tablets and capsules; 9,2 million bottles of
Unit 3 facility Nadroparin & Certoparin facility
liquids; 5,2 million packs of semi-solids
Capability: End state packing for domestic market. Nadroparin
Accreditation: ANVISA, GMP, ISO 14001, ISO 45001.
Maximum output: Capability: Specialised biochemical API – conversion of heparin to nadroparin.
140 million packed units of tablets and capsules. Maximum output:
Accreditation: ISO 14001, ISO45001, SAHPRA. 200 batches of nadroparin.
Accreditation: ANSM, ISO 14001, ISO 45001, ISO 50001. Accra, Ghana
Unit 4 facility
Capability: Hormonal and high potency solids manufacturing and packing for the domestic Certoparin
and export markets. Capability: Specialised biochemical API – conversion of heparin to certoparin.
Maximum output: Capability: Small- to medium-volume liquids.
Maximum output: Maximum output: 567kℓ of liquids
950 million tablets (hormonal); 395 million tablets (high potency). 45 batches of certoparin.
Accreditation: BfArm, ISO 14001, ISO 45001, ISO 50001. Accreditation: GFDA.
Accreditation: EMA, ISO 14001, ISO45001, LAsD, SAHPRA, TGA, Turkey MoH, US FDA.
Sterile facility SVP 1: Fondaparinux facility
Multi-product suites A and B Capability: Specialised chemical API – purification by chromatography of fondaparinux.
Capability: Eye drops, ampoules, vials; aseptic and terminal sterilisation capability for Maximum output: Hyderabad, India
domestic and export markets. 34 batches of fondaparinux sodium.
Maximum output: Accreditation: ANSM, ANVISA, ISO 14001, ISO 45001, ISO 50001, KFDA, PMDA, TRA, US FDA.
A fire at the Alphamed site on 19th June 2021 damaged the manufacturing, packing and
Suite A: Up to 42 million units of eye drops; warehousing areas significantly. Capital projects are currently underway to reinstate the
Suite B: Up to 25 million units of ampoules; manufacturing and packing capabilities as per below, which are anticipated to be completed
Up to 30 million units of liquid vials. in June 2022 and fully commercialised by June 2023.
Accreditation: Sioux City, United States of America Capability: Small to medium-volume solids manufacturing for export markets.
Suite A: ISO 14001, ISO45001, SAHPRA, TGA, US FDA, WHO. Maximum output: 800 million tablets; 40 million effervescent tablets; 350 million capsules;
Suite B: EMA, ISO 14001, LAsD, OHSAS 18001, SAHPRA, TGA, US FDA, WHO. Capability: Specialist biochemical API – heparin intermediates. 30 tonnes of pellets; 60 million powder-filled sachets
Sterile facility SVP 2: Maximum output: Accreditation: To be conducted following restoration.
High potency suite Biologicals – capacity is measured on demand – dependent on product mix.
(Commercial production FY2021) Accreditation: Re-registration for US FDA.
Capability: Liquid ampoules, vials and cartridges; emulsion ampoules, vials and cartridges;
lyophilized vials; aseptic and terminal sterilisation capability for domestic and export markets. Nairobi, Kenya
Maximum output:
Suite C, D and E: Oss, The Netherlands Capability: Small to medium-volume solids, liquids and fast-moving consumer goods.
90 million units (container size and bulk batch dependent) Maximum output: 750 million tablets; 600kℓ of liquid.
Accreditation: Regulatory inspections pending (project phase). De Geer site Accreditation: AIRP-Cl, EFDA, GFDA, ISO14001, ISO 45001, MoH-DRC, MCAZ, NAFDAC,
LAsD tentatively planned, SAHPRA (all suites) and TGA (suite C) Capability: Specialised hormonal and chemical APIs: wet chemical multipurpose capability, PMRA-Malawi, PPB – Kenya, TMDA, UNDA, ZAMRA.
final powder handling (milling/sieving) and solvent recovery by distillation.
Maximum output:
Notre Dame de Bondeville, France Installed reactor capacity: 114m3 with reactor size between 2m3 and 10m3 beside bulk tank
Sterile prefilled syringe manufacturing site
storage capability. East London, South Africa
Accreditation: ANVISA, EMA, ISO 14001, ISO 45001, KFDA, PMDA, Russia MoIT, US FDA.
Capability: Aseptic and terminally sterilised prefilled syringe manufacturing and packing for
domestic and export markets. Moleneind site Oral contraceptive facility
Maximum output: Capability: Specialised biochemical, hormonal and chemical APIs. Dedicated biochemical Capability: High-volume oral contraceptive manufacturing and packing for domestic market.
85 million syringes (Etna line); 130 million syringes (Stromboli line); 180 million syringes (Vesuve reactors, multipurpose chemical reactors and dedicated solvent recovery unit. Maximum output: 1 billion tablets.
line) Maximum output: Accreditation: ISO 14001, ISO45001, SAHPRA.
Accreditation: ANSM, ANVISA, ASN, HPB, ISO 14001, ISO 45001, ISO 50001, PMDA, US FDA. Installed chemical reactor capacity (small molecule API + peptides): 59m3;
Biochem reactor capacity: 245m3 beside multiple storage capacity. Multi-product facility
New anaesthetics facility under construction Accreditation: ANVISA, EMA, ISO 14001, ISO 45001, KFDA, PMDA, Russia MoIT, US FDA. Capability: Solids, semi-solids and liquid manufacturing and packing for domestic market.
(Commercial production FY2023) Maximum output: 560 million tablets; 32 million packs of semi solids; 160 million packed units
Capability: Aseptic and terminally sterilised blow-fill seal ampoule and polybag manufacturing Boxtel site of liquids.
and packing for domestic and export markets. Capability: Specialised biochemical API – gonadotrophin intermediates and virus filtered API. Accreditation: ISO 14001, ISO 45001, SAHPRA.
Maximum output:
Measured on demand.
Bad Oldesloe, Germany Accreditation: EMA, ISO 14001, ISO 45001, PMDA, US FDA.
Dar es Salaam, Tanzania
Multi-dose form site
(Ramp-up of additional commercial production is expected over the next two years. Capacity
will be included in maximum output below as and when it becomes available). Capability: Small- to medium-volume semi-solids, large-volume solids and liquids.
Capability: Solid dose forms, oral and topical liquids, semi-solids and blow-fill seal, Maximum output: 1 billion tablets; 60 million capsules; 15 tonnes of semi-solids; 1 500kℓ of
manufacturing and packing for domestic and export markets. liquids; 8 million sachets.
Maximum output: Accreditation: AIRP-Cl, EFDA, MoH – DRC, NAFDAC, PMRA-Malawi, PPB – Kenya, TMDA,
3,3 billion tablets; 6 240 tonnes of liquids; 1 404 tonnes of topical liquids; 351 tonnes of ZAMRA.
semi-solids, 60 million units for blow-fill seals.
The maximum output is an estimate based on a number of assumptions regarding
Accreditation: ANVISA, GRA, IRA, ISO 14001, ISO 45001, ISO 50001, LRA, PPB – Kenya, PMDA, TGA, product mix and complexity, batch size, type and size of products, and overall
US FDA. equipment effectiveness.
Abbreviations of pharmaceutical regulatory authorities and acronyms on pages 25 and 26.Who Creating Our leadership
9 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our value creation process
Our value creation process, which is driven by our purpose and vision, is an integral part of our business strategy.
We leverage and apply our stock of capitals to deliver on our strategic objectives and optimise value for our stakeholders.
How we create value The value we create
Governance
Our governance framework supports our value creation process, ensuring we Patients, healthcare professionals and
make choices aligned with our purpose, vision, values and strategic objectives, customers
while being transparent and accountable for our actions. • Improved health and quality of life for patients
who use our medicines
• Provision of high quality, affordable treatment
External operating
options and medicines to patients, healthcare
context professionals (“HCPs”) and healthcare systems
page 16
Employees and organised labour
The environment in which we operate Business strategy organisations
impacts our ability to create
Our business strategy outlines our plan • Provision of employment and opportunities for
sustainable value Risk and
of action to achieve short-, medium-, Performance growth and development in the geographic
opportunity
management regions in which we operate
management and long-term goals
• Diverse and inclusive working environment,
page 13 free of discrimination and harassment
Stakeholder Identify Assess Communities in which we operate
relationships, • Contribution to society through engagement
needs and Business model with civil society and investment in SED
The material • Responsible management of our impact on
expectations issues we
Our differentiated business model and
the environment
globally integrated value chain allows
page 19 encounter create us to respond to the changing business
opportunity or Our investors and funders
We have a broad range context
• Sustainable returns to shareholders
of stakeholders, often restrict ability to
page 11 • Servicing and repayment of debt
with competing interests create value
and expectations, that
participate in our shared Our suppliers, service providers,
value creation through a consultants and business partners
Monitor Prioritise
range of engagements Sustainability pillars • Economic stimulus through procurement of
and relationships goods and services
Resource Our sustainability pillars are the • Collaboration and partnering opportunities
allocation foundation on which our strategy is Review
and and adapt
built and demonstrate our Material contract manufacturing customers
Risks and trade-offs
commitment to operate in a • Reliable supply of products manufactured to
opportunities responsible way required quality and regulatory standards
page 23 • Responsible and ethical business practices
page 15
An uncertain future presents risks and
Governments, competition authorities and
opportunities that impact the delivery
pharmaceutical regulatory bodies
of value to our stakeholders
• Contribution to governments through taxes
Effective • Contribute to effective healthcare systems
An ethical Sustainable value Trust and
control and through supply of essential medicines and by
culture creation legitimacy
accountability pharmaceutical regulatory compliance in the
countries in which we operateWho Creating Our leadership
10 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our business model
We deliver on our purpose through our differentiated business model and globally integrated value chain in which we seek to preserve
and create value for our stakeholders in a responsible and sustainable way.
We rely on our unique value drivers within our
six capitals to effectively implement our
strategy and business activities
Intellectual Manufactured Human Social and relationship Natural Financial
– Trusted Aspen brand – Complex manufacturing – Strong leadership team – Strong stakeholder – Focus on environmental – Planned prioritisation of
– Targeted and efficient expertise – High performance and relationships and protection capital allocation
product portfolio renewal – Vertical integration innovative culture corporate reputation – Initiatives to reduce – Diverse and enduring
– Strong presence in advantages – Empowered local – Robust corporate consumption of scarce support from funders
emerging markets – Globally competitive, management governance framework natural resources – Strong operating cash
– Digital platform enabling scalable and widely – Industry-specific – Support of local flow generation
strategy execution accredited manufacturing specialist skills communities
facilities
Value chain activities
Product portfolio management Manufacturing and supply chain Commercialisation
Patient/consumer needs operations Marketing and sales
Procurement
Product development, acquisition and HCP engagement and support
registration Manufacturing:
• API Patient/consumer use
• FDF
Distribution
Investment in a product portfolio of niche, specialty medicines Efficiencies achieved through end-to-end global supply chain Generation of organic revenue and profit growth through
that present opportunities for sustainable revenue growth management performed by a highly experienced team focused promotion of our products by our teams of
achieved through: dedicated sales representatives
Capitalise on our own significant manufacturing capability of both
– Targeted acquisitions that present value-enhancement
APIs and FDFs as well as our external supply network focusing on:
opportunities
– Reliable supply of high quality products
– Internal development of products that leverage our intellectual
– Optimisation of operational costs
and manufacturing advantage
– Maximisation of vertical integration synergies
– Line extensions of existing intellectual property (“IP”) into new
geographies
Capital is reinvested in: 1) our pipeline to provide the platform for future revenue growth; 2) improved operational synergies and
3) creating capacity for new value-adding opportunities while 4) providing returns to shareholdersWho Creating Our leadership
11 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our business model continued 11 \ Aspen Pharmacare Holdings Limited Integrated Report 2021
Our business model
Who
we are
We deliver on our purpose through our differentiated business model and globally integrated value chain in which we seek to preserve
and create value for our stakeholders in a responsible and sustainable way.
Creating
sustainable value
Our leadership
and governance
Our
performance
Creating value
through capitals
Remuneration
review
Supplementary
information
We rely on our unique value drivers within our
six capitals to effectively implement our
strategy and business activities
Intellectual Manufactured Human Social and relationship Natural Financial
– Trusted Aspen brand – Complex manufacturing – Strong leadership team – Strong stakeholder – Focus on environmental – Planned prioritisation of
– Targeted and efficient expertise – High performance and relationships and protection capital allocation
product portfolio renewal – Vertical integration innovative culture corporate reputation – Initiatives to reduce – Diverse and enduring
– Strong presence in advantages – Empowered local – Robust corporate consumption of scarce support from funders
emerging markets – Globally competitive, management governance framework natural resources – Strong operating cash
– Digital platform enabling scalable and widely – Industry-specific – Support of local flow generation
strategy execution accredited manufacturing specialist skills communities
facilities
Value chain activities
Product portfolio management Manufacturing and supply chain Commercialisation
Patient/consumer needs operations Marketing and sales
Procurement
Product development, acquisition and HCP engagement and support
registration Manufacturing:
• API Patient/consumer use
• FDF
Distribution
Investment in a product portfolio of niche, specialty medicines Efficiencies achieved through end-to-end global supply chain Generation of organic revenue and profit growth through
that present opportunities for sustainable revenue growth management performed by a highly experienced team focused promotion of our products by our teams of
achieved through: dedicated sales representatives
Capitalise on our own significant manufacturing capability of both
– Targeted acquisitions that present value-enhancement
APIs and FDFs as well as our external supply network focusing on:
opportunities
– Reliable supply of high quality products
– Internal development of products that leverage our intellectual
– Optimisation of operational costs
and manufacturing advantage
– Maximisation of vertical integration synergies
– Line extensions of existing intellectual property (“IP”) into new
geographies
Capital is reinvested in: 1) our pipeline to provide the platform for future revenue growth; 2) improved operational synergies and
3) creating capacity for new value-adding opportunities while 4) providing returns to shareholders
Outputs
We provide high quality, affordable medicines focusing on niche therapeutic areas
Commercial Pharmaceuticals Manufacturing Emissions and waste
Regional
A
Brands
C
– A widely diverse Sterile Focus Brands – Internal and third party supply of An inevitable consequence of production
range of trusted medicines with strong Comprising our branded products chemical and biochemical APIs and and distribution are carbon emissions and
domestic or regional presence. in anaesthetics and thrombosis FDF pharmaceuticals. the generation of waste.
A C
therapy areas.
A
Outcomes
C
Achieving outcomes that create long-term value
for our stakeholders
See page 62 See page 67 See page 71 See page 78 See page 83 See page 87
Improved health and quality Reliable manufacture and Employment opportunities Uplifting lives in the Initiatives to reduce the Sustainable earnings
of life for the patients and supply of safe, effective, and skills development communities in which impact of our operations growth to fund future
consumers who use our high quality products that provided to our employees Aspen works around the on the natural environment growth and provide a
medicines patients trust world return for shareholders
Trade-offs
Optimising value inevitably involves trade-offs in how and when value is
shared between different stakeholder groups, and in how that value is
created, transformed or depleted across the capitals
Building a world-class sterile manufacturing platform Undertaking organisational design to achieve a Achieving digital transformation Balancing financial security with returns to our
fit-for-purpose business shareholders
Building a world-class sterile manufacturing platform is a A series of organisational restructuring projects are ongoing The rapid shifts in digital technology and increased cyber In the 2019 and 2020 financial years, our focus on
cornerstone of our organic growth strategy. Investing in throughout the Group. While organisational redesign projects threats require us to make significant investments in deleveraging the balance sheet while maintaining our
building production capacity for the future has required us result in increased effectiveness, improved operational transforming our digital landscape to be a strategic enabler committed plans for significant investments in capital
to make material investments in multi-year capital build efficiency and an enhanced culture of ownership and to support the Group’s business strategy. Our transition to projects, together with the added levels of uncertainty
and expansion projects. These material capital investments accountability, they inevitably bring anxiety and uncertainty for digital also requires investment in the reskilling of employees created by the COVID-19 pandemic, resulted in the Board
negatively impact financial returns during the period of all of those engaged in the process and for some employees, and change management to enable them to work in an deciding not to declare dividends. This decision impacted our
construction and validation, but creates opportunity for a termination of employment or an adjustment in grading. increasingly digital world. The significant shift to a more shareholders’ short-term returns but was considered prudent
improved financial performance once the manufacturing While organisational change is complex, it is necessary to digital landscape requires financial capital in the shorter to assure our long-term sustainability. Following the significant
capacity is fully commercialised. build a modern, efficient and agile organisation positioned to term, but increases operational efficiency and effectiveness, deleveraging of our balance sheet and the positive outlook
deliver on strategic objectives and goals. benefits our human capital and enhances our interactions for the Group, the Board has resumed distribution of retained
with our stakeholders. income to shareholders.Who Creating Our leadership
12 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Our business strategy
Our business strategy is to build a resilient product portfolio promoted in growth territories, strategically aligned to our enhanced manufacturing
capacities and capabilities, to achieve organic growth and create long-term value. Our strategy is underpinned by our overriding commitment to
deliver social value for our stakeholders.
Strategic positioning Strategy implementation and performance
Our strategic positioning supports delivery of our vision. measurement
We seek to achieve this through building a differentiated portfolio of relevant Our five strategic We implement our strategy by applying the resources we have
IP, creating value through our complex manufacturing capabilities and objectives available in execution of our business model to achieve sustainable
enabling access through our globally integrated supply chain. growth and value creation ( page 11).
provide the foundation to deliver
Our market positioning is focused on leveraging opportunities presented by We have identified KPIs designed to provide a defined measure of performance
our strategy of creating long-term against our strategic objectives. We track our performance by reporting against
emerging markets, balanced with presence in more established, stable
developed markets. value for our stakeholders. these KPIs to the Board on a quarterly basis. In this way, the performance of
executive directors, executives and senior management is aligned to our
Our focus areas outline our
Through our dynamic portfolio management model, we build, optimise and sustainable business strategy.
reshape our basket of products to achieve a global product portfolio of niche, plan of action over the
specialty products complemented by leading regional brands, aligned to our Reporting on our performance against our strategic objectives is included in
short to medium term.
manufacturing capability. Our strategic business performance ( page 51 to 56).
To deliver a differentiated To optimise the strategic To develop and retain To be a good corporate To create sustainable
portfolio of high quality, advantage of our integrated a talented, agile and citizen by conducting our economic value for our
affordable medicines value chain diverse workforce inspired business in a responsible, stakeholders
to achieve operational inclusive and sustainable
excellence way
Assurance on our
Our focus areas Our focus areas Our focus areas Our focus areas Our focus areas KPIs
• Build and strengthen pipeline and • Optimise operations, drive efficiencies • Build a culture of operational • Maintain high governance and • Drive organic growth through the
accelerate product launches and reduce cost of goods excellence and cross-functional ethical standards realisation of the potential of existing We obtain
• Focus on expanding our emerging • Achieve the transfer of the collaboration • Enhance relationships and reputation portfolio and territories assurance on these
country portfolios by establishing a manufacture of complex, sterile • Strengthen leadership capacity with our various stakeholders • Increase operating margins and
reported KPIs
meaningful presence in countries products to Aspen sites across the Group • Recalibrate sustainability strategy generate strong free cash flows through a combined
with high growth potential • Focus on supply performance and • Harness the benefits of equity, and align ESG priorities • Remain alert to acquisition, disposal assurance
• Implement initiatives to achieve optimise carrying levels of inventory diversity and inclusion • Explore resource efficiency projects and collaboration opportunities approach:
security of supply • Partner with multinationals to leverage • Focus on the development and to secure security of supply and which present strategic value IBIS ¿
• Explore opportunities to reshape, excess manufacturing capacity in retention of required skills minimise impact on the environment • Optimise the allocation of available
optimise and revitalise product niche specialty sterile manufacturing, • Maintain a strong health and safety • Develop a climate change strategy capital Empowerdex ¢
portfolio including vaccines culture across our operations • Deliver economic benefits to
EY
• Explore opportunities to play a • Advance digital transformation across • Align organisational design to suppliers, employees, governments,
greater role in vaccine supply to our value chain position the Group for success communities and shareholders Internal Audit p
Africa.
Further discussion
KPI^ KPI^ KPIs^ KPIs^ KPIs^ on combined
• Number of product recalls p • Gross profit • Average staff turnover p • BBBEE accreditation in • Revenue growth assurance is
• Average training spend per South Africa ¢ • NHEPS growth included on
employee p • FTSE/JSE Responsible Investment • Normalised EBITDA growth
page 23
• Percentage of females in top Index score • Normalised EBITDA margin
management roles in the Group p • Carbon emissions ¿ percentage
• Percentage of black employees • Waste recycled ¿ • Operating cash flow per share
in top management roles in • Water withdrawn ¿ • Return on invested capital (“ROIC”)#
South Africa p • Electricity used ¿ • Free cash flow#
• Total recordable incident • Leverage ratio
frequency rate (“TRIFR”)¿$
^
KPI definitions are included in the Sustainability and ESG Data Supplement available online.
$
To align with best practice, we have transitioned to TRIFR as our KPI for Health and Safety, replacing lost workday frequency rate (“LWDFR”), refer to page 76 | # Measured, not reportedWho Creating Our leadership
13 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Engaging with our stakeholders
Fostering and maintaining mutually beneficial relationships with
Patients, HCPs and customers
our key stakeholders through transparent, sincere and effective
engagements is an integral part of our value creation process. Aspen considerations
While we were able to establish partnerships that made it possible Our products are used, prescribed or distributed by these stakeholders, and therefore, it
is imperative that they are fully aware of the indications, benefits and side effects of our
for us to contribute to the world’s efforts to reduce the impact of products. Aspen needs to have a thorough understanding of their perceptions and
COVID-19, at times the pandemic and the related lockdowns have expectations of us and our products.
made engaging with our stakeholders challenging. We remain Material matters engaged on since Reference to value
intent on continually seeking ways to improve on the credibility Stakeholder interests the previous report created for stakeholder
and rapport we have already established with our stakeholders. – High quality, affordable medicines – Ensuring continued supply of critical and – See page 62
– Patient safety and pharmacovigilance COVID-19-related medicines, considering – See page 67
– Consistent, reliable and on-time lockdown measures and resultant sourcing – See page 78
We define our stakeholders as the people, groups or organisations directly impacted by our supply of products and distribution challenges – See page 83
activities, as well as those who could be impacted by our activities. We have a structured system – Continued manufacturing capacity – Ongoing engagement capacity considering
of engagement in place to ensure that we provide timeous, accurate and relevant information to and ability to supply critical medicines COVID-19 challenges – use of virtual
our stakeholder groups, and that our interaction and communication with our stakeholders is – Impact of product recalls and/or any engagement tools
consistent. quality and/or efficacy concerns – Product recalls and pharmacovigilance
which may arise engagements
During the year a wide range of regular, structured and ad hoc engagements took place at various – Supply shortages in respect of a small
levels within the organisation. To make this possible during remote working and lockdowns we number of products
frequently relied on virtual and digital means of engagement. – Explaining the benefits of products in the
Aspen portfolio
Our Executive management team submits quarterly stakeholder engagement reports to the Board, – Detailing of patient benefits from new
which detail notable engagements with the Group’s key stakeholders. Any material topics or product launches
matters of concern that may arise are considered by the Board at their quarterly meetings.
Management responds to material issues raised by stakeholders, as appropriate, in the ordinary How we engage
course of business.
– Pharmaceutical representatives calling on HCPs and key opinion leaders to explain medicinal qualities, differentiators and patient
After a thorough consideration of the Group’s various stakeholders we have categorised our key benefits
stakeholders as: – Attendance at healthcare conferences – both virtual and in-person
– Dedicated pharmacovigilance and medical information communication channels, allowing patients and HCPs to enquire about
• Patients, HCPs and customers
product features and related safety concerns
• Governments, competition authorities and pharmaceutical regulatory bodies
– Communication measures to announce product concerns or product recalls to HCPs and patients
• Employees and collective labour organisations – Open communication with customers through commercial and technical discussions and one-on-one meetings
• Suppliers, service providers, consultants and business partners
• Communities in which we operate Link to our strategic objectives and capitals Relationship Indicator
• Contract manufacturing customers
¤¤¤¤
We have also considered and self-assessed the quality of the relationships we have with these
stakeholders and used the following scale as an indication of the quality of the relationship:
¤ No existing or poor relationship
¤¤ Relationship established, but work to be done to improve the quality of the relationship
¤¤¤ Good quality, mutually beneficial relationship, with some room for improvement
¤¤¤¤ Strong relationship of mutual benefitWho Creating Our leadership
14 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Engaging with our stakeholders continued
Governments, competition authorities and pharmaceutical
Employees and organised labour organisations
regulatory bodies
Aspen considerations Aspen considerations
Our ability to produce, market and distribute pharmaceutical products depends on the Employees play a critical role in ensuring we achieve our strategic objectives, tactical
manufacturing licences, marketing authorisations and a range of other regulatory plans and operational excellence. Prospective employees are also included in this
matters under the auspices of these authorities. stakeholder category. We need to understand their needs, challenges and aspirations.
Material matters engaged on since Reference to value Material matters engaged on since Reference to value
Stakeholder interests the previous report created for stakeholder Stakeholder interests the previous report created for stakeholder
– Legal and regulatory compliance – Collaboration with government officials in a – See page 62 – Job security, skills development and career – Measures to ensure employees and – See page 71
– Support for public health initiatives number of countries to support and assist – See page 67 planning especially employees within our – See page 78
– Affordable public health outcomes with various initiatives aimed at improving – See page 78 – Equitable remuneration packages, manufacturing operations – remain safe and – See page 83
– Social and environmental impact of the health of patients suffering from – See page 83 performance incentives and benefit protected from contracting COVID-19, while – See page 87
operations COVID-19 structures retaining production and distribution capacity
– See page 87
– Tax revenues and local investment – With both the Europe and the UK pricing – Gender equality, diversity and inclusivity to ensure ongoing supply of critical medicines
matters being settled, ongoing engagements – Equitable policies, practices and – Engagement of office-based staff working
procedures from home using virtual engagement tools for
with the relevant competition authorities
– Clearly articulated employee value most of the year
continue in relation to the implementation of
proposition – Employee transfers to Mylan Ireland Limited
the agreed Commitments made by
– Performance management, skills (“Mylan”) as a result of the disposal of the
Aspen when concluding these matters development and career planning assets of the European Thrombosis business
– Product recalls – Reputation as an ethical employer – Organisational design and restructuring
– Our tax commitments – Employee health, safety and wellness implemented at some businesses to ensure
– SED spend, contribution to healthcare – Employee bargaining and organisational operational efficiencies and sustainability,
enhancement and equitable access rights resulting in job losses but impacting positively
to medicines – Aspen’s constructive engagement with on our efficiencies and realigned structures
employees through organised labour and roles. The negative impacts of these
organisations and forums such as works losses were offset by proactive social plans
councils, bargaining units and formalised and outplacement offerings to assist
workplace engagement committees impacted employees and communities
How we engage How we engage
– Audits of manufacturing sites by regulatory authorities to ensure Good Manufacturing Practice (“GMP”) and regulatory – Direct engagements by supervisors and business management
compliance – Internal communication measures such as the Group intranet, announcements and digital posts
– Registration of products and maintenance of marketing authorisations through submissions and direct engagements with – Conferences
regulatory authorities – Digital townhall meetings for businesses and the Group
– Participation in industry bodies – Onboarding and internal training
– Reports and interactions aimed at confirming legislative and regulatory compliance policies and processes – Employee surveys
– Involvement in government programmes aimed at creating jobs and uplifting disadvantaged communities – Meetings and other interactions with work councils, trade unions and trade union representatives
– Employee wellness campaigns
– Exit and stay interviews
– Active encouragement of employees to participate in Nelson Mandela International Day (“Mandela Day”)
– Tip-offs Anonymous Whistleblowing hotline
Link to our strategic objectives and capitals Relationship Indicator Link to our strategic objectives and capitals Relationship Indicator
¤¤¤ ¤¤¤¤Who Creating Our leadership
15 \ Aspen Pharmacare Holdings Limited Corporate Brochure 2021 we are sustainable value and governance Referencing
Engaging with our stakeholders continued
Suppliers, service providers, consultants and business partners Investors and funders
Aspen considerations Aspen considerations
These stakeholders play an important role in enabling us to meet our commitments to As providers of capital, these stakeholders need to be kept informed of material
patients, HCPs, customers and other stakeholders developments impacting the Group and our future prospects
Material matters engaged on since Reference to value Material matters engaged on since the Reference to value
Stakeholder interests the previous report created for stakeholder Stakeholder interests previous report created for stakeholder
– Fair engagement terms and timely – Supply chain constraints mainly due to – See page 78 – Strategy and business model – Strategy and medium-term prospects – See page 78
settlement COVID-19 complications – See page 83 – Growth in revenue, EBITDA – Sterile manufacturing capacity and how this positions – See page 83
– Ongoing communication about our – Suppliers’ ability to ensure continuity of – See page 87 and return on invested capital Aspen to manufacture sterile products, Johnson & – See page 87
expectations and service levels supply and impact on Aspen’s own ability – Appropriate management of Johnson COVID-19 vaccines and other vaccines
provided to ensure continued supply capital expenditure, working – Impact of COVID-19 on commercial performance,
– Fair tender and selection processes – Negotiation of contract terms and capital and expenses profitability, manufacturing operations and organic
extensions – Capital allocation growth prospects
– Gearing, solvency and liquidity – Mitigation of funding and gearing risks
– Dividends/returns to – Material business disposals, including the announcement
shareholders of the disposal of the European Thrombosis assets and a
– Security over assets, ethical cautionary announcement to shareholders regarding the
stewardship of investments structured process undertaken to facilitate offers for
and good corporate Aspen’s API business
governance – Fair remuneration outcomes, with a focus on the fixed
– Implementation of business and variable incentives of executives and performance
continuity measures to measurement in respect of these incentives
mitigate impact of COVID-19 – Engagements on ESG aspects, including carbon
– Fair executive remuneration emissions and related disclosures
and incentivisation – Resolution of pricing investigations in Europe and the
– Aspen’s standing in terms United Kingdom, with both matters being settled
of Environmental, Social and – Product pipeline and development
Corporate Governance – Material capital investment in Aspen’s manufacturing
(“ESG”), including progress on capacity to ensure cost reduction and supply consistency
reducing carbon emissions – Group senior executive succession planning
and related disclosures – Negotiation and conclusion of International Finance
Corporation (“IFC”) loan of EUR600 million
How we engage How we engage
– Tender, procurement and “expression of interest” processes – Dedicated face-to-face and virtual funder, investor and analyst presentations, roadshows and one-on-one meetings, including
– One-on-one meetings to discuss service levels or other commercial aspects engagements regarding financial performance, ESG matters and the Group’s remuneration policy and implementation report
– Interactions regarding safety, health, environmental and ethical compliance – Stock exchange announcements, media releases and published results
– Visits to manufacturing sites, both virtually and physically – Annual general meeting
– Investor relations section of the Aspen website
– Engagements with the financial media
Link to our strategic objectives and capitals Relationship Indicator Link to our strategic objectives and capitals Relationship Indicator
¤¤¤¤ ¤¤¤¤You can also read
