Aspen Pharmacare Holdings (APN) – Not Made in China

We present the case that Aspen will continue to face increased pricing pressures both in Europe and in China. The launch of biosimilars in Europe will put pressure on Aspen’s thrombosis portfolio. In China, the increasingly regulated environment will put pressure both on medicine pricing and Australasia infant nutritional sales growth. We however believe Aspen Australia’s Chinese GMP accreditation to export baby formula into China, could benefit the company. We believe an opportunity exists to further expand the nutritionals portfolio in emerging markets.