Watson Pharmaceuticals and Moksha8 based in Sao Paulo, entered into an agreement that will expand Watson's commercial presence in Latin America's two largest markets, Brazil and Mexico. Watson will invest $30 million in Moksha8 as part of Moksha8's approximately $61 million financing round.
Watson thus immediately gains a significant minority ownership position in Moksha8. Watson has also committed to invest an additional $20 million, further increasing its equity position, contingent upon successful execution by Moksha8 of additional third-party product acquisitions over the next year.
Watson will manufacture and supply select products to Moksha8, which will have exclusive rights to market, sell, and distribute these products in Brazil and Mexico. Moksha8 and Watson have initially identified approximately one dozen product candidates, with the opportunity to expand the commercialization and marketing agreement to include additional products in the future. Watson will continue to own all marketing authorizations, and Moksha8 will be responsible for sales, marketing, and commercialization expenses.
Moksha8 currently markets 21 branded products for third parties in Latin America, utilizing a field force of approximately 180 sales representatives in the areas of CNS, infectious disease, and pain. Combined, Brazil and Mexico make up 75% of the $40 billion pharmaceutical market in Latin America, according to Watson and Moksha8.
Watson currently manufactures and markets select generic products in the Brazilian marketplace through a Brazilian subsidiary. The agreement with Moksha8 will have no impact on the subsidiary's current operations.
“The management team of Moksha8, led by Simba Gill, has a proven track record of effectively commercializing products within the brand and branded generic markets of Mexico and Brazil,” notes Paul Bisaro, Watson's president and CEO. “This agreement, which provides Watson with an initial equity position, enables us to help fund Moksha8's expansion and to share in their continued success. The partnership complements Watson's existing commercial operations in Brazil while establishing an expanded longer-term strategy to grow our presence in Brazil, establish our presence in Mexico, and develop a pan-Latin American growth strategy.”
Simba Gill, CEO of Moksha8, adds, “Further, this partnership marks Moksha8's entry into the rapidly growing branded generics market and immediately strengthens our position as a leader in the treatment of CNS disorders including depression, anxiety, and schizophrenia.”