R-PR To Take Over Rhone-Poulenc Pharma Businesses

Franco-American group Rhone-Poulenc Rorer, controlled by France's Rhone-Poulenc, will acquire two elements of the latter's remaining pharmaceutical operations: the pharmaceutical business in Brazil and the Cooper pharmacists/distributor group in France. The two units will be transferred to R-PR in return for around $260 million in a mix of preferred shares to be issued by R-PR SA (France) and cash. The impact on earnings per share will be slightly positive in 1995, according to the company.

Cooperation Pharmaceutique Francaise, generally known as Cooper, manufactures and sells medicines and other products to retail pharmacies, and was acquired by R-P in 1994. It has consolidated sales of some $450 million. Reorganization of Cooper's legal structure is planned.

The R-P pharmaceutical business in Brazil, which had sales last year of $92 million, will become a full part of R-PR's pharmaceutical operations. The company adds that Brazil is the world's seventh largest pharmaceutical market, with 1994 sales of $6.2 billion. Investments are being made there to increase market penetration and to develop the manufacturing base for other countries in the region.