Zydus solidifies Brazilian presence

Indian pharmaceutical company, Zydus Cadila, has purchased a 100 per cent stake in Quimica e Farmaceutica Nikkho do Brasil (Nikkho), a mid-sized, privately held company in Brazil.

The acquisition will boost Zydus' existing generic business in Brazil by providing existing infrastructure. Zydus already has a Brazilian subsidiary, which was set up in 2002, and markets 22 different products under 13 generic brands in the region.

The acquisition is being made through Zydus Healthcare Brasil, a wholly owned subsidiary of Cadila Healthcare. An agreement signed will come into effect after the satisfaction of closing conditions. Financial terms remain undisclosed.

Nikkho posted sales of USD 26m in 2006. The Brazilian pharmaceutical market is the largest in the LATAM region, with a value estimated at approximately USD 8bn.

With the acquisition, Zydus gains an existing manufacturing facility, which will benefit Zydus as Brazilian pharmaceutical regulations will eventually make it mandatory for companies to have a manufacturing base in the region. Zydus already has its own QC lab there.

The Nikkho acquisition is the second so far in 2007. Other recent acquisitions include the 2000 purchase of Recon Healthcare (India 2000), German Remedies (India 2001), Banyan Chemicals (India 2002), Alpharma France (France 2003), Liva Healthcare (India 2003) and Nippon Universal Pharmaceuticals (Japan 2007).

Nikkho's sales force of 125 people covers major markets in Brazil. The company's product range includes those for general medicine, paediatrics, gynaecology, neurology, gasteroenterology, otolaryngology, respiratory products and dermatology.