Our business model
We deliver on our purpose through our differentiated business model and globally integrated value chain in which we seek to preserve and create value for our stakeholders in a responsible and sustainable way.
We rely on our unique value drivers within our six capitals to effectively implement our strategy and business activities
- Trusted Aspen brand
- Targeted and efficient product portfolio renewal
- Strong presence in emerging markets
- Digital platform enabling strategy execution
- Complex manufacturing expertise
- Vertical integration advantages
- Globally competitive, scalable and widely accredited manufacturing facilities
- Strong leadership team
- High performance and innovative culture
- Empowered local management
- Industry-specific specialist skills
- Strong stakeholder relationships and corporate reputation
- Robust corporate governance framework
- Support of local communities
- Focus on environmental protection
- Initiatives to reduce consumption of scarce natural resources
- Planned prioritisation of capital allocation
- Diverse and enduring support from funders
- Strong operating cash flow generation
Value chain activities
Patient/consumer needs
Product development, acquisition and registration
Investment in a product portfolio of niche, specialty medicines that present opportunities for sustainable revenue growth achieved through:
- Targeted acquisitions that present value-enhancement opportunities
- Internal development of products that leverage our intellectual and manufacturing advantage
- Line extensions of existing intellectual property (“IP”) into new geographies
Procurement
Manufacturing:
- API
- FDF
Distribution
Efficiencies achieved through end-to-end global supply chain management performed by a highly experienced team
Capitalise on our own significant manufacturing capability of both APIs and FDFs as well as our external supply network focusing on:
- Reliable supply of high quality products
- Optimisation of operational costs
- Maximisation of vertical integration synergies
Marketing and sales
HCP engagement and support
Patient/consumer use
Generation of organic revenue and profit growth through focused promotion of our products by our teams of dedicated sales representatives
Capital is reinvested in: 1) our pipeline to provide the platform for future revenue growth; 2) improved operational synergies and 3) creating capacity for new value-adding opportunities while 4) providing returns to shareholders
Outputs
We provide high quality, affordable medicines focusing on niche therapeutic areas
Commercial Pharmaceuticals
Regional Brands – A widely diverse range of trusted medicines with strong domestic or regional presence.
Sterile Focus Brands – Comprising our branded products in anaesthetics and thrombosis therapy areas.
ManufacturingInternal and third party supply of chemical and biochemical APIs and FDF pharmaceuticals.
Emissions and wasteAn inevitable consequence of production and distribution are carbon emissions and the generation of waste.
Outcomes
Achieving outcomes that create long-term value for our stakeholders
Improved health and quality of life for the patients and consumers who use our medicines
Reliable manufacture and supply of safe, effective, high quality products that patients trust
Employment opportunities and skills development provided to our employees
Uplifting lives in the communities in which Aspen works around the world
Initiatives to reduce the impact of our operations on the natural environment
Sustainable earnings growth to fund future growth and provide a return for shareholders
Trade-offs
Optimising value inevitably involves trade-offs in how and when value is shared between different stakeholder groups, and in how that value is created, transformed or depleted across the capitals
Building a world-class sterile manufacturing platform
Building a world-class sterile manufacturing platform is a cornerstone of our organic growth strategy. Investing in building production capacity for the future has required us to make material investments in multi-year capital build and expansion projects. These material capital investments negatively impact financial returns during the period of construction and validation, but creates opportunity for improved financial performance once the manufacturing capacity is fully commercialised.
Undertaking organisational design to achieve a fit-for-purpose business
A series of organisational restructuring projects are ongoing throughout the Group. While organisational redesign projects result in increased effectiveness, improved operational efficiency and an enhanced culture of ownership and accountability, they inevitably bring anxiety and uncertainty for all of those engaged in the process and for some employees, a termination of employment or an adjustment in grading. While organisational change is complex, it is necessary to build a modern, efficient and agile organisation positioned to deliver on strategic objectives and goals.
Achieving digital transformation
The rapid shifts in digital technology and increased cyber threats require us to make significant investments in transforming our digital landscape to be a strategic enabler to support the Group’s business strategy. Our transition to digital also requires investment in the reskilling of employees and change management to enable them to work in an increasingly digital world. The significant shift to a more digital landscape requires financial capital in the shorter term, but increases operational efficiency and effectiveness, benefits our human capital and enhances our interactions with our stakeholders.
Balancing financial security with returns to our shareholders
In the 2019 and 2020 financial years, our focus on deleveraging the balance sheet while maintaining our committed plans for significant investments in capital projects, together with the added levels of uncertainty created by the COVID-19 pandemic, resulted in the Board deciding not to declare dividends. This decision impacted our shareholders’ short-term returns but was considered prudent to assure our long-term sustainability. Following the significant deleveraging of our balance sheet and the positive outlook for the Group, the Board has resumed distribution of retained income to shareholders.
