Aspen Pharmacare Holdings, the South Africa–based multinational drugmaker led by billionaire Stephen Saad, has signed a landmark licensing agreement with MSD, a subsidiary of Merck & Co., that could significantly expand access to next-generation HIV prevention across Africa.

The agreement gives Aspen licensing rights to develop, manufacture and commercialize alimatravir, an investigational once-monthly oral HIV pre-exposure prophylaxis (PrEP) medicine currently in Phase III clinical trials in 129 countries, including every African nation. MSD will also provide Aspen with a technical package to support future production if the medicine secures regulatory approval.

The partnership strengthens Aspen’s strategy to expand local pharmaceutical manufacturing while improving access to innovative medicines across the continent, where HIV continues to pose one of the world’s biggest public health challenges.

Monthly HIV pill could transform prevention

If approved by regulators, alimatravir would become the world’s first once-monthly oral HIV prevention tablet, offering a simpler alternative to daily PrEP medication. Health experts believe a monthly treatment could improve adherence and widen access, particularly in underserved communities where healthcare resources remain limited.

South Africa, which continues to record one of the world’s highest rates of new HIV infections, is expected to play a central role in the medicine’s rollout. The country also hosts the largest portion of the ongoing Phase III clinical program.

“This agreement reflects Aspen’s commitment to expanding access to important medicines across Africa,” Aspen Group CEO Stephen Saad said. “Through our agreement with MSD, we have the opportunity to support the future supply of an innovative HIV prevention option while strengthening local pharmaceutical manufacturing and healthcare resilience across the continent.”

South African Health Minister Dr. Aaron Motsoaledi described the licensing announcement as a major milestone, saying it complements the country’s recent rollout of lenacapavir as part of broader efforts to curb new HIV infections.

Aspen and MSD deepen healthcare investment

Founded in 1997 and headquartered in Durban, Aspen has grown into Africa’s largest pharmaceutical manufacturer and one of the world’s leading specialty drugmakers. Saad, who has led the company since 1999, owns about 13.2% of Aspen, making him its largest shareholder.

The company recently received Health Canada approval for Aspen-Semaglutide, a generic version of Novo Nordisk’s blockbuster diabetes treatment, Ozempic.

MSD, known as Merck Sharp & Dohme outside the United States and Canada, is the international business of Merck & Co.

The company operates in more than 140 countries, developing medicines and vaccines for cancer, infectious diseases—including HIV and Ebola—and cardio-metabolic conditions, alongside a global animal health business.