With this acquisition, EMS strengthens its position as the leading generics drug manufacturer in Brazil.
EMS Group has agreed to acquire 100% of Brazilian generics producer Medley from Sanofi, the companies said, concluding a sale process that drew bids from several pharmaceutical groups.
Financial terms were not disclosed, though local media including Valor Econômico reported the transaction at about BRL3.6bn ($670 million).
The agreement follows a bidding process that also included proposals from Sun Pharma, Hypera Pharma, Biolab Farmacêutica and Aché Laboratórios Farmacêuticos. Medley was founded in 1996 and became part of Sanofi in 2009 through a purchase worth about BRL1.5bn.
The company runs a manufacturing site in Campinas producing tablets, capsules, liquids, ointments, creams and suspensions, and employs about 1,800 people.
EMS said the acquisition will expand its medicines portfolio and increase its presence in Brazil’s generics segment. The company leads pharmaceutical retail sales in the country, ahead of groups including Eurofarma, Hypera Pharma and Sanofi.
“The company has built a very solid and respected brand in the Brazilian market and possesses important medications. This acquisition is significant for the Brazilian people and for the national industry,”
said Carlos Sanchez, chairman of EMS.
“Our plans are, through Medley, to continue providing access to quality medicines to the entire Brazilian population, always keeping operations separate and guaranteeing the health supply chain.”
Sanofi said the sale fits a strategy to focus investment on biopharmaceutical treatments and vaccines.
The deal still requires approval from Administrative Council for Economic Defense and other regulatory clearances. Until then, Medley will continue operating under Sanofi management.
Generic medicines, approved in Brazil by National Health Surveillance Agency, account for about 40% of the country’s pharmaceutical market, according to PróGenéricos.
Source: MarketScreener
