Merial, Sanofi, invests € 9 million in country

Even in the midst of political and economic crisis plaguing Brazil, Merial animal health arm of the French pharmaceutical Sanofi, reinforced this year the bet to make the country a major export platforms.
In this sense, said Jorge value Spain, President of the brazilian subsidiary of Merial, the company is investing only in this year € 9 million (36.7 million to Exchange R$ of yesterday) to double its production capacity of injectable drugs aimed at cattle market.
In the assessment of the Executive, the new investment shows that the decision to export from Brazil is a hit. "This was a bet of Merial in the back, and the country is proving that its cost [production] is competitive for export". Spain pointed out that, in the last ten years, the company has invested about € 115 million in Brazil.
But it was only in the last three years that Merial has accelerated the pace, according to Spain. Among the major investments made in this period are a factory of vaccines against foot-and-mouth disease virus, budgeted at € 55 million, and the construction of a chewable parasiticides for dogs, which cost around € 35 million and was inaugurated in 2014.
In the case of foot-and-mouth disease vaccine factory, the contributions are ongoing and the forecast is that unity among commercial operation in 2017. According to Spain, spending on vaccine factory could be less, in euros, due to the depreciation of the real.
In the three investments, including the latest, Spain emphasizes the relevance of the exports. Located at the company''s plant in Paulínia (SP), the unit of parasiticides chewable exports most of its production to the us. Even in relation to foot-and-mouth disease, responsible for most of the revenue in the domestic market, he sees potential for exporting to countries in the African continent.
Latest investment, the new production line of injectable drugs-such as ivermectin, antibiotics and parasiticides-will be facing the external market, especially in the case of a parasicitida for cattle that was recently released in the us. "The product was a success and have limited production," argued Spain. The forecast is that the new production line is ready in the middle of the year.
According to the Executive, Merial already exports 45% of which is produced in Brazil. In all, the company''s subsidiary in the country made about 750 million in 2015 from R$, according to market sources-the company does not disclose results by country. The company''s turnover surpasses € 2.5 billion, and Brazil is its third major market, behind the us and France.