Fresenius Kabi expands I.V. drug business in Latin America(PresseBox) (Bad Homburg, )
Novafarma offers a comprehensive range of generic I.V. drugs, including antibiotics, analgesics and anesthetics, for the Brazilian hospital market. Founded in 1992, the company is headquartered in the state of Goiás, where it also operates a manufacturing facility and a research and development center. 2013 sales were approximately €34 million.
Fresenius Kabi entered the Brazilian market in 1977, and is one of the country's leading suppliers of clinical nutrition, infusion therapy and medical devices/transfusion technology. The acquisition significantly broadens Fresenius Kabi's generic I.V. drugs portfolio for the region, and creates an excellent platform for further growth in this product segment in other Latin American countries.
Brazil is the largest pharmaceutical market in Latin America, with 2013 sales of €14.5 billion. In recent years, this market has grown at high single-digit to low double-digit rates. This growth trend is expected to continue in the coming years.
"With this acquisition, we are building on our long-term market presence in Brazil and establishing a strong hub for the further expansion of our generic drug business in the Latin American region," said Mats Henriksson, CEO of Fresenius Kabi. "Novafarma's portfolio will enable us to provide patients and healthcare professionals with an extensive range of high quality and affordable I.V. generics."
Financial terms were not disclosed. The transaction is subject to antitrust approval in Brazil, and is expected to close in the second quarter of 2014.
IMS Health, 2013, IMS Market Prognosis 2013-2017 – Latin America - Brazil
IMS Health, 2013, Global pharma market outlook
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.