Medley for sale at US$ 1 billion
O Estado de S. Paulo - 06/17/2008
Businessman Alexandre Negrão, Medley's controller, put its pharmaceutical laboratory for sale. According to market sources, in the last months the multinationals Teva and Sanofi-Aventis started conversations with that company, located in Campinas (SP). The Brazilian Development Bank (BNDES) would also have entered the game. It would be interested in buying up to 49% of the stocks in case some Brazilian party intended to buy it. Its purpose is to stimulate the development of a large pharmaceutical laboratory of national capital. The business is assessed at more than US$ 1 billion. The bank has already talked to three national entrepreneurs, according to sources. EMS, the largest pharmaceutical company of the Country, would have stayed out of the proposal. The reason: it and Medley have, together, 70% of the market of generic medicines, a situation that would face barriers before the free market defense agencies. The Vice-President of operations of the Brazilian Eurofarma, Nelson Mussolini, declares he hadn't even analyzed the possibility. Aché, another of the three Brazilian companies at issue, did not want to make any comments. Until yesterday, there was no order under development with the BNDES concerning a possible purchase of Medley. Medial is also pointed as a possible purchaser. Brazil's fourth largest laboratory, Medley has an income of R$ 700 million (US$ 429.4 million) a year and fights for the leadership of the market of generic medicines with EMS. When questioned, the company denied it is for sale. Teva, largest manufacturer of generic medicines in the world, has little presence in the Country. It still has no local production, but Brazil - together with Japan, Mexico and Russia - appears as a priority for the company. According to information from the headquarters' strategic planning, released for the investors this year, the Brazilian market of generic medicines is the one that will grow the most in the world up to 2012. It will leave the current US$ 1.5 billion to reach US$ 4.6 billion. Sanofi-Aventis is still far from its goal in Brazil. Its generic medicines are sold under the Winthrop brand, created in the world in January/2005. In Brazil, the sales started only last August. Since it is a new company, it has a small share in this segment. According to Sanofi's press department it has no interest in Medley.