Eurofarma evaluates acquisitions in LA
Gazeta Mercantil - 03/04/2008
Eurofarma Laboratórios, the third largest Brazilian national-capital pharmaceutical company and the fifth in the Brazilian ranking, goes through a phase of great development. In order to deal with both the growth it has registered in recent years, and with the future plans of expansion, the company which has in progress investments estimate in R$ 280 million (US$ 159.1 million) in the construction of a manufacturing complex to gather the activities and triple the production, started, in the end of 2007, an organizational restructuring with the purpose of going public, if necessary, and it seeks opportunities of acquisitions in the main Latin American markets, in order to intensify the internationalization process, increase the exportations and attract agreements for the licensing of products. The works of the new complex, located in Itapevi (SP), are at full steam. Tomorrow, the company starts the operations of its second block of production, the one of hormonal products, exactly one year after the inauguration of the production lines of liquid, cream and ointment medicines and at about 13 or 14 months from the start of the operations of the units of tablets and injections, foresees Eurofarma's CEO, Maurizio Billi. Until January 182 million had been invested in the complex, and approximately 35% of the total resources are from a line of credit of the Brazilian Social and Economic Development Bank (BNDES) and the remaining comes from funds of the company itself. The project started being outlined about four years ago and its audacious lines differ from the traditional plants of the sector. "The production blocks are surrounded by glass. The plant is projected for the employees to be able to appreciate the green area around. When it is finished, it will amount to nearly 70 thousand square meters of built area on a piece of land of 300 thousand square meters, and nearly 35 thousand square meters will be an environmental preservation area, including native species and even a waterfall". This complex will guarantee the plans of expansion of Eurofarma. When in full operation, it will triple the capacity, which was previously spread through five plants in São Paulo and Rio. Today, the company produces close to 80 million units (boxes) per year. According to Billi, besides supplying the domestic market, the idea is to increase the exportations, currently little significant - near 2% of the annual sales. The focus will first be on the countries of Latin America. The company has the goal of covering 90% of the Latin American market and the businessman stated that, in order to so, they have to be present in Mexico, Colombia, Venezuela, Chile and Argentina, which the company intends to do by acquiring small local laboratories and portfolio.