Eurofarma builds complex to go beyond generics
Valor Econômico 11/07/2007
Eurofarma is taking a step ahead the manufacturing of generic medicines, the area that leveraged its great growth in recent years. The intention is not to abandon the production of the generic medicines that have lost the protection of patents, but to advance in more complex segments of the pharmaceutical industry. The goal is to produce innovative medicines in a not very distant future - whether they are incremental or even radical products. Eurofarma was born 35 years ago manufacturing medicines for third parties - it was only seven years later that it started manufacturing its own medicines. Outsourcing continues making part of the focus of the company. However, like other companies of national capital, Eurofarma leveraged its business in the beginning of this decade due to the sale of generic medicines. In order to achieve the goal dreamed by Maurízio Billi, Eurofarma's CEO, the company decided to make some bets: it entered into partnerships with universities, established a joint-venture with a national lab, started making investments in biotechnology and is now investing in a new industrial complex. Recently, Valor, accompanied by the businessman, has visited the industrial complex of Itapevi, at 40 kilometers from São Paulo. In an area of 80 thousand square meters, the company expects to triple its production capacity, gathering four industrial units which are currently spread around the neighborhoods of the city of São Paulo, in addition to the Rio de Janeiro unit. The line of production of liquid, cream and ointment medicines has been in operation since March - the complex is to be complete in 2009. The investment amounts to R$ 260 million (US$ 149.4 million), out of which R$ 35 million (US$ 20.1 million) were released by the Brazilian Social and Economic Development Bank (BNDES). Eurofarma intends to set the route of its strategy from the Itapevi plant. Its plan is to increase the exportation of medicines to Europe, accessing the market via Portugal where it already sells small volumes. The company is waiting for the certification of the plant from the European sanitary authority. That should substantially increase sales that may reach R$ 900 million (US$ 517.2 million) in 2007, R$ 100 million (US$ 57.5 million) more than last year's results.