Stephen Saad raises Aspen stake by $5.6 million amid stock slump

Key Points

• Stephen Saad increases his stake in Aspen Pharmacare, signaling confidence as the company battles mRNA disputes and regulatory setbacks.
• Aspen shares have plunged over 28% this year, wiping $1.2 billion from its value amid earnings warnings and FDA compliance issues.
• Aspen must resolve contract disputes, regain regulatory approval, and manage debt pressures to stabilize after its sharpest stock drop in two decades.

Stephen Saad, the South African billionaire who founded and runs Aspen Pharmacare, is standing firmly behind Africa’s largest pharmaceutical company as it battles one of the toughest periods in its history.

A regulatory filing on May 8 showed that Saad, who already owns 12.8 percent of Aspen (about 57.2 million shares), bought even more stock through his investment company, K2019068922 (South Africa) Pty Ltd, where he serves as a director. The transaction, disclosed in a “directors’ dealings” notice to the Johannesburg Stock Exchange, was executed on May 6 and 7.

The move comes as Aspen’s shares have been under heavy pressure this year, mainly due to a contract dispute over mRNA technology that has wiped more than R22 billion ($1.2 billion) off its market value. Earlier this year, Aspen was valued at over $4.2 billion. Saad’s decision to buy more shares sends a strong message: he still believes in the company’s future.

Aspen shares tumble amid regulatory woes

Aspen has seen its stock price tumble more than 28 percent since January, with the biggest blow coming on April 22 when the stock dropped over 30 percent in a single day to R112 ($6.15). It was Aspen’s sharpest one-day fall in more than two decades. The selloff followed a warning that a potential R2.77 billion ($147.2 million) loss could hit the company’s earnings in 2025, linked to the mRNA manufacturing dispute.

Adding to the pressure, Aspen is facing regulatory challenges after a key South African plant failed to meet U.S. Food and Drug Administration standards. Analysts have also flagged concerns about its debt levels and warned that rising U.S. tariffs could hurt pharmaceutical supply chains around the world.

Saad’s decision to invest more of his own money looks like an attempt to shore up confidence among investors. Since plunging to R112 ($6.15), Aspen’s shares have steadied, closing at R118.79 ($6.52) on May 8, giving the company a market value of about R53 billion ($2.9 billion).

Stephen Saad’s journey with Aspen continues

Stephen Saad, who started Aspen in 1997, has been central to building it into a leading manufacturer across emerging markets. His fortune, closely tied to Aspen’s fortunes, has taken a knock during the recent selloff. But even as Aspen faces some of the biggest challenges in its history, it remains a critical player in Africa’s pharmaceutical industry.

There’s no doubt the road ahead will be tough. Aspen must resolve the mRNA contract dispute, win back regulatory trust, and manage its debt carefully in a volatile global market. Major shareholders like the Public Investment Corporation and the Government Employees Pension Fund will be watching closely.