Pfizer takes US$240m stake in Brazilian generics firm
Has option to acquire remaining Teuto shares in 2014
New York-based pharmaceutical company Pfizer is expanding its presence in emerging markets by buying a 40% stake in Laboratorio Teuto Brasileiro, a leading company in the Brazilian generics industry, for US$240m.
The move will give Pfizer access not only to Teuto's portfolio of approximately 250 products but also the opportunity to commercialise Teuto's products in various markets outside Brazil.
Under the terms of the agreement, Teuto will be eligible to receive performance-based milestone payments. Pfizer also has an option to acquire the remaining 60% of Teuto’s shares beginning in 2014.
Pfizer can register and commercialise Teuto products in Brazil and various markets outside of the country under its own brands, including generic medicines for areas such as pain and inflammation, cardiovascular, anti-infectives, CNS and respiratory, among others.
‘We believe this partnership will enable both companies to effectively build upon one another's core capabilities and areas of expertise,’ said Jean-Michel Halfon, president of Pfizer's Emerging Markets Business Unit.
The deal is expected to close by the end of the year.
In 2008, the global generics marketplace represented US$750bn and is anticipated to grow to US$920bn by 2013, with the bulk of this growth generated in emerging markets, including Brazil.
The Teuto transaction follows Pfizer’s recent deals to acquire pain-drug specialist King Pharmaceuticals and a biosimilar insulin products tie-up with India's Biocon.
