Is Pfizer on the verge of beefing up its presence in Brazil? A Sao Paulo newspaper reports that buyout talks between the drugmaker and Brazilian generics firm Neo Quimica are about to bear fruit. Pfizer would pay up to $525 million for the smaller company, in yet another example of Big Pharma seeking its fortunes in emerging markets, generics, or both.
As Reuters notes, a Neo Quimica buyout would fall right in line with Pfizer CFO Frank D'Amelio's strategy of scouting for smaller deals as Pfizer wraps its big merger with Wyeth. The Brazilian newspaper, O Estado de S. Paulo, said Neo Quimica recommends itself with a broad distribution network in its home country. Neo Quimica also has upgraded manufacturing to more than double its annual production.
Apparently, the two companies have been talking about some sort of deal since early this year. It was reported that they had considered forming a joint venture, but ultimately decided an actual buyout would work best. Neither Pfizer nor Neo Quimica would comment on a potential merger, however, and a deal isn't a deal until it's done.
- read the Reuters piece