Aspen Pharmacare : Settlement discussion in respect of the UK Competition Authority Investigation

ASPEN PHARMACARE HOLDINGS LIMITED - Settlement discussion in respect of the UK Competition Authority Investigation

14 August 2019 8:00

APN 201908140013A Settlement discussion in respect of the UK Competition Authority Investigation 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') SETTLEMENT DISCUSSION IN RESPECT OF UNITED KINGDOM ('UK') COMPETITION AUTHORITY INVESTIGATION Shareholders are referred to Aspen's SENS announcement of 13 October 2017 wherein it was confirmed that the UK Competition and Markets Authority ('CMA') had opened an investigation into Aspen's alleged anti-competitive conduct under Articles 101 and 102 of the Treaty on the Functioning of the European Union ('TFEU') in relation to the supply of Fludrocortisone acetate 0.1 mg tablets ('Fludrocortisone') and Dexamethasone 2 mg tablets ('Dexamethasone') in the UK. Subsequently, the CMA advised Aspen that it would not be proceeding with its investigation in relation to Dexamethasone. Aspen has offered commitments ('Commitments') to the CMA for the purposes of addressing the competition concerns arising from certain aspects of the CMA's investigation. The CMA has given notice that it proposes to accept the Commitments. In terms of the Commitments: - 1. Aspen will dispose of its rights to the ambient Fludrocortisone in the UK to an independent third party in accordance with a prescribed process, overseen by the CMA; 2. Aspen will reintroduce the cold storage Fludrocortisone into the UK market in accordance with a prescribed process, overseen by the CMA; and 3. Aspen will make an ex-gratia payment in the aggregate amount of £8million to - 3.1 the Secretary of State for Health and Social Care in the amount of £6,485,600; 3.2 the Scottish Ministers in the amount of £788,000; 3.3 the Welsh Ministers in the amount of £455,200; and 3.4 the Department of Health, Social Services and Public Safety for Northern Ireland in the amount of £271,200. The giving of the Commitments does not constitute an admission of any wrongdoing by Aspen with respect to the alleged anti-competitive conduct under Article 102 of the TFEU. In addition, the Commitments remain subject to the CMA's final approval. The CMA and Aspen have entered into settlement discussions in respect of Aspen's alleged anti- competitive conduct under Article 101 of the TFEU. Within the context that historically Aspen had the only Fludrocortisone in the UK, Aspen has admitted liability for entering into an agreement to acquire a potential competitor Fludrocortisone with the consequence that the conclusion of this agreement resulted in anti-competitive behaviour. Pursuant to Aspen's aforesaid admission, the CMA will impose a penalty on Aspen for an infringement under Article 101 of the TFEU which shall not exceed GBP 2,101,954. The Commitments offered by Aspen and the settlement discussions being undertaken between the CMA and Aspen reflect the Group's willingness to address the concerns raised by Competition Authorities into alleged anti-competitive conduct by Aspen. The Group remains committed to the resolution of other outstanding investigations in the interest of patients. Durban 14 August 2019 Sponsor: Investec Bank Limited Date: 14/08/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.