Takeda to acquire Multilab in Brazil
Takeda Farmacêutica Brasil, a wholly-owned subsidiary of Takeda Pharmaceutical, has agreed to acquire Multilab Industria e Comercio de Produtos Farmaceuticos of Sao Paulo, Brazil.
Takeda expects the transaction to be finalized by the end of Q2 of its FY2012. Takeda Brazil will acquire Multilab in cash for approximately $250 million upfront and up to $20 million in additional future milestone payments to the owners of Multilab. Other financial conditions were not disclosed.
Multilab is a mid-sized pharmaceutical company with annual net revenues of $70 million in 2011. Its business consists of branded generics and over-the-counter pharmaceutical products. Retail sales for the company grew in excess of +20% p.a. over the period 2009 – 2011. Multilab also has well-established distribution through regional wholesalers and small to mid-sized independent pharmacies, in particular in emerging regions of the country, which is expected to complement Takeda’s strong relationships with major wholesalers, key chains and pharmacies in more established cities and state capitals.
The acquisition of Multilab will position Takeda as one of the top 10 pharmaceutical companies in Brazil, enriching its offering to better cater to the diverse needs of the Brazilian population. Multilab’s leading products include Multigrip, the country’s best-selling OTC product for cold and flu treatment in units, which Takeda believes will be an excellent addition to its existing OTC product line in Brazil.
“This acquisition significantly reinforces Takeda’s position in Brazil, which is the world’s sixth largest economy and the biggest in South America,” said Jostein Davidsen corporate officer, head of emerging markets commercial operations, Takeda. “Takeda has ambitious plans for growth in emerging markets. Brazil is our second largest emerging market after Russia/CIS in terms of revenues and the acquisition of Multilab is a clear signal of our intention to become a significant player both in Brazil and other high-growth markets.”