Endo to acquire Somar
Endo International will acquire Grupo Farmaceutico Somar, a privately owned specialty pharmaceuticals company based in Mexico City, Mexico. Endo expects the transaction to be immediately accretive to adjusted earnings per share. Financial details have not been disclosed.
"The acquisition of Somar is well-aligned with our goal of pursuing accretive acquisitions that enhance Endo's strategic positioning and diversifying our pharmaceutical business beyond the U.S. by accessing attractive emerging markets," said Rajiv De Silva, president and CEO of Endo. "The transaction provides Endo with a strong growth platform in Mexico that we believe can be further leveraged more broadly in Latin America, a proven sales team and scalable manufacturing facilities. This acquisition allows us to fully benefit from the starting point that Paladin Labs established in Mexico.”
De Silva said Somar's pipeline currently includes over 60 products expected to launch over the next three years.
Jose Miguel Ramos R., CEO of Somar, said, "We are excited about the combination with Endo, joining a best-in-class global organization with access to valuable resources that will help us realize the full potential of our opportunities across branded, generic and OTC pharmaceuticals in Mexico and Latin America more broadly.”
Somar is focused on the development, manufacturing, marketing and commercialization of high-quality products across all key market segments in Mexico. Its portfolio targets Mexico's non-patented pharmaceutical market through three primary segments: generics (private label and traditional generics, as well as products for government tender), branded generics (dermatology and infectious disease platforms) and OTC (women's health and child care products). The company generated approximately $100 million of revenue in 2013 and has approximately 1,200 employees.
The transaction is expected to close in the third quarter.