Two Latin America acquisitions for Gedeon Richter

In what was a busy couple of days for Hungary’s largest drugmaker Gedeon Richter (RICHT: HB), the company announced two acquisitions, one in Mexico and the other in Brazil. Financial terms of neither transaction were disclosed.

Richter revealed last week that that it has signed an agreement with the owner of its Mexican marketing partner, DNA Pharmaceuticals, to establish its direct presence on the pharmaceutical market in Mexico. Under the terms of the agreement Richter will own an initial 70% majority stake in DNA and it will acquire the outstanding 30% stake in the next three years. Subsequent to the signature of the agreement the joint venture will be renamed as Gedeon Richter Mexico.

The targeted activities of DNA include the registration of specialty products belonging to the female healthcare product portfolio, focusing primarily on Esmya (ulipristal acetate) and the establishment of a related sales network.

“Subsequent to the recently announced acquisition in Brazil, this cooperation with DNA is considered to be another strategic move aimed towards the diversification of Richter’s geographic presence in Latin America, one of the regions with fastest growing pharmaceutical markets worldwide,” said Erik Bogsch, managing director of Richter.