Pfizer sells slice noTeuto the national partners

The American multinational Pfizer hit your sale 40% stake in the Brazilian Teuto laboratory for family Melo, who was ahead of business since 1986 and was the parent company of the company, as it was the '' State ''. Pfizer had entered the company in 2010, with an investment of R $400,000,000, but decided to leave the German even getting a lower value in the output, said market sources.
For more than a year, the parties were trying to find a solution to the deal because Pfizer had taken a global decision leave the generic segment, the German flagship, based in Goiás. The parties had a hurry: the acquisition of 40% of German, the American would have to exercise the right of purchase of the slice that was with Melo, but had no interest in doing that.
After some postponements, Pfizer had until June 30 to buy the rest of the business, paying a multiple of 14.5 times the company''s cash generation, as measured by earnings before interest, taxes, depreciation and amortization (Ebitda). The deal that produced the opposite effect – the purchase of Pfizer slice by Melo-family was closed on deadline, last Friday, said a source.
The partners have had no success in finding a new investor for the lab-funds such as Advent and Bain Capital were among those who looked at the active, but decided not to buy. In an attempt to sell the business as a whole was valued between R and R $1 billion $1.5 billion.
According to another source, although the relationship between family Melo and Pfizer wasn''t confrontational, Brazilian managers believed that the multinational partner processes reduced the speed of decision-making.
In addition, the Teutonic wouldn''t make sense in a scenario in which Pfizer wanted to back off of generics. In recent years, the lab – which was renamed Teutonic/Pfizer-went on to take other paths, such as injectable and hospital products, but with still little relevance for billing.
The generics market today represents more than 30% of medicines sold in Brazil, according to ProGenéricos, an association that gathers the manufacturers of the sector, of which the German is not part. From January to April this year, sales in units of these products went up 9.28%, as compared to the same period in 2016, points to the Association. Despite the expansion, industry sources also that generics offer much smaller profit margin than the brand name remedies to laboratories.
History. Founded in 1947 by the German immigrant Adolf Krumeir, the Teutonic passed through the hands of another controller before being bought by family, in 1986, for about $ $2,000,000. In the years 1990, Mao decided to transfer the company of Minas Gerais for Goiás. Later, the entrepreneur Walterci de Melo – known for bold style – decided to build the largest generic factory of Latin America. The investment left the company in difficulty, and the business had to go through a restructuring before attracting the attention of Pfizer, in 2010.
Sought the German lab/Pfizer did not return the contacts of the report.