2nd UPDATE: Pfizer In Advanced Talks To Buy Brazil Teuto
29 Avril 2010 - 6:58PM
Dow Jones News
U.S.-based Pfizer Inc. (PFE) is in advanced talks to acquire
control of Brazilian generic drugs manufacturer Teuto, local
newspaper Valor Economico reported Thursday.
According to the newspaper, citing an unnamed source close to
talks, Pfizer has concluded the due diligence process already and
may announce the deal in the next few weeks.
Although in advanced talks with Pfizer, Teuto is also in talks
with Pfizer's U.K.-based rival, GlaxoSmithKline PLC (GSK, GSK.LN);
Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV); Blackstone
Group LP (BX); and various international investment funds, the
newspaper said.
Teuto is based in Goias state and in 2009 posted revenue of
about 300 million Brazilian reals ($171 million).
"Pfizer will not comment on market speculation," the company's
press office said in an email to Dow Jones Newswires.
Teva and GlaxoSmithKline also said they wouldn't comment on
market rumors.
Israel-based Teva already has shown a clear interest in
expanding outside of its core North American market. It has
estimated the majority of growth in the generics and branded drug
market through 2015 will come from the markets of Brazil, Russia,
India, China, Turkey, Mexico and Japan.
"These are really the strategic countries," Chaim Hurvitz,
president of Teva International, said in January. "Three-quarters
of the growth is going to come from that side...and we have to be
there."
The possible interest of Pfizer in acquiring generic-drug
manufactures comes as the company faces the end of patent
protection for some of its key products within the Brazilian
market.
Late Wednesday, the Brazilian Federal Appeals Court ordered an
end to patent protection for the drug Viagra, manufactured by
Pfizer.
The court ruled that patent protection within Brazil will end
for the drug as of June 20. With the decision, Pfizer lost its
exclusive right to produce the erectile-dysfunction medication
within Brazil. The ruling paved the way for generic versions of the
drug to be manufactured by other companies for the Brazilian
market.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071;
rogerio.jelmayer@dowjones.com
(Thomas Gryta in New York and Marietta Cauchi in London
contributed for this report)