Pfizer buys 40% stake in Brazilian generics’ manufacturer Teuto

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Pfizer buys 40% stake in Brazilian generics’ manufacturer Teuto

Home/Pharma News | Posted 21/01/2011 0 Post your comment

Pfizer, the world's biggest pharma company, is increasing its stake in emerging markets, with its announcement on 20 October 2010 that it has entered into an agreement to acquire a 40% stake in Brazilian generics’ manufacturer Laboratorio Teuto Brasileiro (Teuto) for US$240 million.

Along with the 40% stake in Teuto, the companies will also enter into a series of commercial agreements. The partnership is expected to enhance Pfizer’s position in Brazil, a key emerging market, by providing access to Teuto’s broad portfolio of approximately 250 products. Pfizer also gains access to significant distribution networks in rural and suburban areas in Brazil and the opportunity to register and commercialise Teuto’s products in markets outside Brazil.

Teuto in return will gain access to selected Pfizer products for distribution across its extensive distribution network and will have the right to commercialise them under Teuto’s own brand in Brazil.

Under the terms of the agreement, Teuto is also eligible to receive a performance-based milestone payment and Pfizer also has an option to acquire the remaining 60% of Teuto’s shares beginning in 2014.

Teuto products include both branded and unbranded generic medicines, covering a broad range of therapeutic areas, such as pain and inflammation, cardiovascular, anti-infectives, central nervous system and respiratory, among others.

In 2008, the global generics marketplace represented US$750 billion and is anticipated to grow up to US$920 billion by 2013, with the bulk of this growth generated in emerging markets. Today, branded and unbranded generics account for approximately 60% of the value of the Brazilian retail pharmaceutical market.

President of Pfizer's Emerging Markets Business Unit, Mr Jean-Michel Halfon, said “this agreement demonstrates Pfizer’s commitment to pursue focused investments in key emerging markets to accelerate our growth and increase patient access to high-quality medicines”.

The Teuto deal follows the announcement just days ago of a deal by Pfizer with Indian biotech company Biocon concerning biosimilar insulin products.

Source: Pfizer, Biocon.