Pfizer is once again expanding in the emerging markets and has bought a 40% stake in leading Brazilian generics drugmaker Laboratorio Teuto Brasileiro.
Under the terms of the agreement, Pfizer will pay an upfront fee of 400 million reals, some $240 million, and Teuto will be eligible to receive a performance-based milestone payment. The US giant has an option to acquire the remaining 60% stake beginning in 2015.
The deal gives Pfizer access to Teuto's 250 products and "significant distribution networks in rural and suburban areas in Brazil". It will also have the opportunity to register and commercialise Teuto's generics in various markets abroad under its own brands.
The generics, both branded and unbranded, cover a broad range of therapeutic areas, such as pain and inflammation, cardiovascular, anti-infectives, central nervous system and respiratory. Jean-Michel Halfon, president of Pfizer's Emerging Markets Business Unit, said the agreement demonstrates the firm's commitment to "pursue focused investments in key emerging markets to accelerate our growth".
The deal comes a couple of days after Pfizer announced it is paying up to $350 million to market four insulin biosimilars being made by India's Biocon.