The French firm is going to pay 1.5 billion reals (around 500 million euros) for Medley, which is Brazil’s third-largest pharmaceutical company and number one generics group, with annual sales of about 153 million euros, The deal will be completed during the second quarter.
Family-owned Sao Paulo-based Medley sells 17 of the 20 top generics in Brazil, and Sanofi noted that it employs nearly 1,550 “collaborators”, which includes a sales force of 500. The Paris-headquartered group added that the acquisition will reinforce its number one ranking among pharmaceutical companies in Brazil, with a 12% market share and make it the leading player in the field of generics in Latin America.
Sanofi noted that the Medley purchase “carries on with its strategy to build-up on growth platforms, accelerate sales and further extend its pharmaceutical portfolio in emerging markets”.
The deal comes a week after it acquired Mexican generics firm Laboratorios Kendrick. Financial details of the Kendrick purchase were not disclosed, but sales last year reached 500 million pesos, about 26 million euros. Generics is an area that Sanofi is clearly determined to expand in, having acquired the Czech firm Zentiva at the end of February for 1.8 billion euros.
A number of observers believe that Sanofi’s spending will not stop there. Rumours are doing the rounds that a bid will be forthcoming for Solvay’s pharmaceutical business, while Sanofi’s name has been linked as a possible suitor for Biogen Idec.
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