Aspen: Healthcare Business Boosts Healthy Financials

Aspen Pharmacare Holdings Ltd (JSE: APN) stands tall as Africa’s largest pharmaceutical manufacturer, with its stock reflecting an impressive ascent in recent times. With a year-to-date share price surge nearing 10%, echoing the remarkable 49.27% climb witnessed in 2023, Aspen’s trajectory is captivating both investors and industry observers alike. 

The company’s latest financial report for the first half of 2024 paints a picture of resilience and growth. Bolstered by a 10% revenue increase to R21.1 billion, driven notably by a 33% surge in manufacturing revenue alongside a 3% rise in commercial pharmaceuticals revenue, Aspen demonstrates its prowess in both production and market presence. Moreover, its normalized EBITDA saw a 2% uptick to R5.2 billion, underscoring operational efficiency and profitability. 

An even more impressive feat lies in the surge of operating cash flow per share, skyrocketing by 44% to 553.2 cents. Such robust financial performance not only solidifies Aspen’s position in the pharmaceutical landscape but also hints at strategic prowess and adaptability in navigating market dynamics. 

Looking ahead, Aspen projects sustained growth momentum, forecasting mid-single-digit core earnings growth for the full year, driven by the anticipated commercialization of new products. As the company continues to innovate and expand its portfolio, investors eagerly anticipate the unfolding chapters of Aspen’s success story, poised at the intersection of pharmaceutical innovation and economic prosperity. 


Aspen’s price action reflects a compelling uptrend, supported by technical indicators signalling bullish momentum. Currently trading above the 100-day moving average, the stock’s ascent is underscored by an ascending channel pattern, reinforcing the optimistic trajectory. 

Recent price movements have seen Aspen finding support just above the 100-day moving average at the R189.50 per share level, indicating resilience amidst market fluctuations. However, with the share price reaching the upper boundary of the ascending channel pattern, caution arises as overbought RSI conditions prevail. This suggests a potential stall in upside momentum, signalling a possible reversal in the near term. 

Should a reversal occur, market attention may turn to the 100-day moving average as a key level of interest to the downside. Conversely, if the upward momentum persists, a breakout above the upper boundary of the ascending channel pattern could ignite further market interest in the upside. In such a scenario, the 23.60% Fibonacci Extension level emerges as a potential target for bullish continuation, highlighting investor optimism and market sentiment favouring upward price movements.  


Aspen exhibits robust financial health alongside a promising uptrend in its stock price. With revenue growth, strong EBITDA, and bullish technical indicators, Aspen’s trajectory is poised for further upside potential. Investors will likely eye the R189.50 support and the 23.60% Fibonacci Extension level for market sentiment cues. 

Sources: Aspen Pharmacare Holdings Ltd, Reuters, MoneyWeb, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.