Aspen Pharmacare agreed to a partnership with India’s Laurus Labs to boost the supply of active pharmaceutical ingredients that will help reduce the cost of HIV drugs.
The Durban-based company plans to license intellectual property rights owned by Laurus, executive Stavros Nicolaou said by phone on Friday. The Indian company will gain a trading entity in South Africa as part of the deal, he said.
The move will put Aspen in a better position to bid for government contracts as the country plans to scale up treatment to 6 million people, Nicolaou said. The deal was first reported by Business Day newspaper.
The shares rose 1.3% in early trade in Johannesburg.
© 2019 Bloomberg L.P.