TEVA buys Mexico’s RIMSA for $2.3bn

TEVA has bought Mexican drug manufacturer Representaciones e Investigaciones Médicas SA (RIMSA) for $2.3bn.

The acquisition comes a few months after the Israeli-based firm agreed to buy Allergan's generics for $40.5bn, further consolidating its position as the world's number one generic drug manufacturer.

Erez Vigodman, president and CEO of TEVA, said: “This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position TEVA for long-term growth.

“Rimsa will provide… the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence.”

Rimsa had revenue of $227m in 2014 with annual growth rate of over 10.6% since 2011 and TEVA expects the deal to close in early 2016.

Luis Jorge Pérez Juarez, CEO of Rimsa, said: “We share TEVA's focus on providing quality healthcare and we are excited to be a part of TEVA in meeting the needs of a population of 120m.”

In August, TEVA also bought a 51% share in Immuneering, a genomic analysis company, as part of a drive to develop personalised medicines for central nervous system diseases.

TEVA's acquisition of Allergan involved the Israeli firm paying $33.8bn in cash as well as shares of TEVA, valued at $6.8bn. The purchase meant TEVA's long-term pursuit of generics company Mylan was ended as it fought to stop takeover.

According to GlobalData, Mexico's healthcare market value will be worth approximately $28bn by 2020, growing from $17.6bn in 2013. 

TEVA's annual revenue in 2014 was $18.3bn and it currently has a programme in place to reduce expenses by $1.3bn by the end of 2017.