Drug manufacturer has forayed into the Brazilian market through its acquisition of 100% equity stake in Medquímica Indústria Farmacêutica S.A., Brazil, (Medquímica). The size of the deal is estimated at around $100 million (about Rs 640 crore), according to industry experts.
However, the deal is subject to certain closing condition, the company said in a release. “The acquisition marks Lupin’s foray into the high growth Brazilian market and would also shore up its position in the Latin American pharmaceuticals market given the company’s acquisition of Laboratorios Grin in Mexico last fiscal,” it said.
Medquímica, which is incorporated in 1975, is a broad-based pharmaceutical company engaged in the development, manufacturing & commercialisation of branded generics, pure generics and OTC products, Lupin said.
“It is one of the fastest growing companies in the Brazilian branded generics market and a trusted brand with the distribution channel in Brazil. Medquimica recorded net revenues of approximately BRL 94 million (nearly $31 million) in calendar year 2014 and has over 550 employees,” the company said.
Brazil’s pharmaceutical market has nearly doubled in size from 2009-2013, expanding at a CAGR of 17%, driven by growing public health expenditure and increasing household income. In 2013, retail drug sales reached a value of $25.9 billion (BRL 58 billion), making Brazil the sixth largest market in the world, accounting for 3.98% of global sales (based on ex-factory prices, taxes included, no discounts).
Vinita Gupta, chief executive officer, Lupin Ltd, said, “There are a lot of synergies to the acquisition and Lupin would not only leverage its research & technology strengths to build a high quality product pipeline but also use Medquímica’s commercial presence to expand business by targeting niche high-growth therapy segments.”