Teva to buy Mexican drugmaker Rimsa for $2.3 bn

Israeli generic drug giant Teva Pharmaceutical Industries yesterday struck a deal to buy Mexican drugmaker Representaciones e Investigaciones Médicas SA (Rimsa) for $2.3 billion in order to expand its foothold in Latin America.

The deal comes just two months after the Jerusalem-based company offered to buy Allergan's generics drug business for $40.5 billion in cash and stock. (See: Teva in $40.5-bn pact to buy Allergan's generics, ends Mylan bid)

Teva, which expects the Rimsa acquisition to close by early first quarter in 2016, will fund it through cash on hand and lines of credit.

The acquisition was unanimously approved by Teva's Board of directors, led by the chairman, Prof. Yitzhak Peterburg.

Mexico City-based Rimsa develops and markets a wide range of prescription pharmaceuticals, over-the-counter drugs. It specialises in osteomuscular, ginecourología, metabolic, dolorgastro-respiratory, and main customers are in the hospital and government sector.

Rimsa had 2014 revenue of $227 million with an annual growth, year over year of 10.6 per cent since 2011.

With this acquisition, Teva will become a leading pharmaceutical company in Mexico, the second-largest market in Latin America and one of the top five emerging markets globally. Teva expects the deal to yield substantial and achievable synergies and offer a platform for growth in the region.

''This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets. Rimsa will provide Teva with a significant platform for growth by combining the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence,'' said Erez Vigodman, president and CEO of Teva.

''For 45 years, Rimsa has operated as a leading pharmaceutical company in Mexico, the second largest healthcare market in Latin America, with a high growth, unique and diversified business model. We share Teva's focus on providing quality healthcare and we are excited to become a part of Teva in meeting the needs of a population of 120 million,'' said Luis Jorge Pérez Juárez, CEO of Rimsa.''

''In addition to this unique portfolio of patent-protected products, Rimsa differentiates itself as a leading provider of branded specialty drugs, including fixed-dose combinations, which increase adherence and reduce overall costs to patients,'' said Siggi Olafsson, president and CEO of Teva Global Generic Medicines.

''We will build on their brand reputation, successful sales force model, well-established commercial footprint and loyal customer base to introduce additional specialty and generic Teva medicines to patients in Mexico and across the region,'' Olafsson added.