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Teva reaches into Peru for a purchase
JERUSALEM—Israel-based generics behemoth Teva Pharmaceutical Industries Ltd. announced at the end of January that it bought Corporacion Infarmasa, a top 10 pharmaceutical company in Peru, from the Rohatyn Group and Altra Investments.
Infarmasa makes and sells branded and unbranded generic drugs, primarily corticosteroids, antihistamines, analgesics and antibiotics. Its portfolio consists of more than 600 registered products, of which more than 500 are currently on the market.
In combination with Teva's existing operation in Peru, Corporacion Medco, Infarmasa's product offerings will enhance Teva's global portfolio in the market, especially in the area of antibiotics, where Infarmasa boasts the leading brand in Peru in that drug category. The potent pairing will create one of the top two pharmas in that country. Infarmasa also has two manufacturing facilities in Lima and a comprehensive drug development pipeline.
Shlomo Yanai, Teva's president and CEO, said in a prepared statement that "the acquisition of Infarmasa in Peru expands our activity in Latin America, and highlights our growth strategy for the coming years. Infarmasa complements Teva's activity in Peru and will advance our position as a market leader in this region."
According to financial market reports, Teva missed its earnings estimates for the fourth quarter of last year, even though quarterly global sales rose and were double the amount posted in the fourth quarter of 2009. Reported sales in the U.S. generics drug market declined by five percent.
Analysts opine that the sales outlook for the company will improve, as the company recently raised the price of one of its most noteworthy drugs, Copaxone, which is the No. 1 prescribed treatment for multiple sclerosis.
Teva representative refused to answer ddn's questions beyond the content of a January news release. Corporacion Infarmasa employees did not respond to requests for comment.
Those keeping watch on Peruvian pharmaceutical sales say that growth in that country's market is likely in the future. Peruvian spending on pharmaceuticals per capital is one of the lowest in Latin America. Teva officials say this fact, coupled with the improvement in access to healthcare coverage in Peru, will provide significant opportunities for future growth. The company says that 36 percent of the population had medical coverage in 2005, and by the end of 2009, 63 percent of citizens enjoyed the same benefit.
Teva is a global pharmaceutical company that develops, produces and markets generic drugs as well as innovative and specialty pharmaceuticals and active pharmaceutical ingredients. Headquartered in Israel, Teva has a global product portfolio of more than 1,250 molecules and a direct presence in approximately 60 countries. Teva's branded businesses focus on neurological, respiratory and women's health therapeutic areas as well as biologics. Teva employs more than 40,000 people around the world.