The Group’s international operations have expanded significantly over the last 18 months with the acquisition of businesses in Latin America and East Africa. Aspen’s recently acquired portfolio of recognised global brands is supplied to approximately 100 worldwide territories through the establishment of an international distribution platform.

EXTENDING ASPEN’S INTERNATIONAL FOOTPRINT TO APPROXIMATELY 100 COUNTRIES

An important element of Aspen’s international strategy has been implemented through the development of an international distribution platform to facilitate supply of the global brands into numerous worldwide territories. Key markets include Asia Pacific, Latin America and Europe. Aspen Global Incorporated ("Aspen Global") manages and maintains the intellectual property pertaining to this portfolio of specialist, branded products.

A transitional distribution arrangement is in place with GSK, whereby the four acquired products purchased on 30 June 2008 are being phased into Aspen’s distribution network on a territory-by-territory basis. Transition to Aspen's distribution network is scheduled to be materially complete by the end of the 2010 financial year.

In order to meet the diverse regulatory requirements across all of the markets concerned, significant investment has been made in the establishment of a dedicated regulatory team to ensure compliance with the applicable pharmaceutical legislation in the various territories into which these products are sold. In addition to managing the registration process of products for multiple territories, the regulatory team also facilitates adherence to specific packaging, product quality and stability requirements which may be unique to a territory. An electronic document management system has been implemented to facilitate effective communication and sharing of regulatory information across the regional regulatory teams.

A new representation office, Aspen Healthcare FZ LLC, was set up in Dubai during the year to manage and represent the global brands portfolio in the European, Middle Eastern, North African and Canadian (EMENAC) region.

Senior Executives:
Asia Pacific
Gregory Lan
Managing Director
(Appointed 2001).

Trevor Ziman
Finance and Commercial Director
(Appointed 2001).

Aspen Global
Samer Kassem
Chief Operating Officer
(Appointed 2008).

Duncan Westcott
Finance Director
(Appointed 2008.)

EMENAC
Brandon Jabour
Chief Operating Officer
(Appointed 2008).

Tarique Saiyed
Commercial Finance Manager
(Appointed 2009).

ASPEN AUSTRALIA CONTINUES TO DELIVER GROWTH IN CHALLENGING

MARKET CONDITIONS

The management team, which has successfully led the Australian business in the past, has been assigned regional responsibilities for the Asia Pacific territory which incorporates Australia. An office has been established in Hong Kong and distribution of the global brands has already been transitioned in Japan. Opportunities to extend the Group’s influence in this region are being explored. Aspen Australia Pty Ltd ("Aspen Australia") posted yet another year of strong growth in a difficult market, driven by consistent performance from the existing product portfolio and by the introduction of new licensing arrangements. Marketing arrangements with Merck, Sharpe & Dohme for Proscar, a product used for the treatment of an enlarged prostrate gland, and with Union Swiss for the rights to market and distribute Bio-Oil, a specialist skincare product, were negotiated for Australia.

The 25% Pharmaceutical Benefits Scheme price cut was enacted in August 2008, followed by a 2% price cut in August 2009. The resultant margin losses have weighed heavily on generic companies in Australia. A further 2% price cut is anticipated to be applied in 2010. However, despite pricing and exchange rate challenges, Aspen Australia has continued to deliver positive results. This has been achieved through the experience and initiatives of the Australian management team which is supported by a committed sales force. Innovative marketing and pricing strategies were implemented to respond to pricing pressures. A survey assessing the quality of pharmaceutical sales forces in Australia, carried out by Cegedim Strategic Data for the pharmaceutical industry, ranked Aspen’s sales team as the best in the country. Aspen Australia is currently ranked seventh in terms of the number of scripts written for medicines in Australia, with 5,3% of all scripts prescribing an Aspen brand.