Pact covers drug development deals and potential for acquisition of remaining stake in 2014.
Pfizer is buying 40% of Brazilian generics firm Teuto Brasileiro for about $240 million up front plus performance-based milestones. The U.S. drugs giant also retains an option to acquire the remaining 60% of Teuto in 2014, while the latter’s shareholders have an option to sell their 60% stake to Pfizer beginning in 2015. The two companies are in addition embarking on a series of agreements to develop and commercialize generic medicines.
Teuto has a portfolio of about 250 products in over 400 presentations. Pfizer claims having a stake in the firm will boost its position in Brazil as a key emerging market. The deal will give Pfizer access to significant distribution networks in the country along with and the opportunity to register and commercialize a range of Teuto’s products in markets outside Brazil under its own brands. Teuto will separately have access to certain Pfizer products for distribution and marketing in Brazil under the Teuto brand.
“We believe this partnership will enable both companies to effectively build upon one another’s core capabilities and areas of expertise,” comments Jean-Michel Halfon, president of Pfizer’s emerging markets business. “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.”
Pfizer maintains branded and unbranded generics now accounts for approximately 60% of the Brazilian retail pharmaceuticals market, driven by the increasing purchasing power of middle and lower-middle income patients.