Advent reportedly backs out of bid for Pfizer’s Brazil plant
pharmafile | March 23, 2017 | News story | Sales and Marketing | Brazil, Pfizer, generics
It has been reported that Advent International Corp has pulled out of bidding for Pfizer’s stake in Brazilian generics manufacturer, Laboratório Teuto Brasileiro SA. It was reported last year that Pfizer was looking to back out of the Brazilian generics market and there was reported interest from buyout firms Advent, Bain Capital, Torrent Capital Investment Corp, as well as garnering attention from Teva and Mylan.
With Advent having backed out of any potential deal, this leaves the frontrunner to complete the deal being Bain Capital. The company has, as yet, reportedly not submitted a concrete offer but, being the sole company currently looking to take Pfizer’s stake, they have a strong negotiating hand.
Pfizer had purchased its 40% stake in the Brazilian company in 2010 for $240 million with the ability to purchase the rest of the Milo family’s stake in the company at 14.4 times profit of the company. However, the Brazilian drugs market has suffered a hit with the worst recession in 80 years gripping the country.
It reportedly led to differences of opinion, as the Melo family and Pfizer tangled over how best to take the company forward. This was not such as an issue during the preceding years, as the generics industry recorded 10% year-over-year growth between 2014 and 2015.
The failure of Pfizer to find a suitable suitor would cause more disruption for the company. The sales of medicines have slowed due to the recession, with growth falling from 15% in two years ago to 11.5% last year.
Ben Hargreaves
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