Pfizer buys 40-% stake in Brazilian generics firm Teuto for $240 million
20 Oct 2010
Continuing its investments in smaller drug firms to broaden its product pipeline and markets, the $50-billion drug giant Pfizer Inc today said that it will pay about $240 million for a 40-per cent stake in Brazilian drugmaker Laboratório Teuto Brasileiro S/A (Teuto) to develop and sell generic drugs, the second such deal in two days with a BRIC country.
Founded in 1947, the Anapolis, Brazil-based Teuto is a generic drug specialist, which offers products in the areas of generics, pharmaceuticals, over the counter, hospital, and cosmetics. It also provides contract manufacturing services for the production of liquids, injectables, and eye drops.
New York-based Pfizer will buy a 40-per cent stake in Teuto with an option of buying the remaining 60 per cent in 2014.
The deal comes after Pfizer was rumoured to acquire Teuto in March this year. Other drug companies like UK's GlaxoSmithKline, Israel's Teva Pharmaceutical and several global investment funds and private equity firm Blackstone Group had also shown interest in buying the generic drug maker.
The deal will enhance Pfizer's position in Brazil, a key emerging market, by providing access to Teuto's broad portfolio of approximately 250 products in more than 400 presentations and its Brazilian distribution networks.
Through this partnership, Pfizer will be able to register and commercialise Teuto's products in various markets outside Brazil. In addition, Pfizer will have two representatives on Teuto's board of directors.
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