Pfizer Buys Stake in Brazilian Generic Drugmaker
October 20, 2010
Pfizer Inc. said it will pay about $240 million upfront to enter a partnership with Brazilian drugmaker, Laboratorio Teuto Brasileiro S.A., to develop and sell generic drugs, reports the Associated Press. Pfizer will buy a 40 percent stake in the company and will have an option to buy the remaining 60 percent stake beginning in 2014. New York-based Pfizer will gain access to Teuto''s portfolio of about 250 products and its Brazilian distribution networks. Teuto makes both branded and unbranded generic drugs. Pfizer will be able to register and sell the Brazilian company''s products in markets outside Brazil under its own brands. Teuto will be able to sell some Pfizer products under its own brand in Brazil. It also could receive a performance-based milestone payment, and its shareholders have an option to sell their 60 percent stake to Pfizer starting in 2015. The deal is expected to close by the end of the year.