Nycomed foresees doubling earnings in the country
Valor Econômico
Contaminated by the boom in investments around the national pharmaceutical market in the past months, Nycomed, headquartered in Switzerland, plans doubling its size in Brazil. The modus operandi of the company not will keep in line with the strategy of other large multinationals betting in the country: it will be based on acquisitions, new businesses and purchase of brand-name drugs. The company foresees investing nearly US$ 300 million to guarantee its growth in the country between 2014 and 2015. "We've analyzed some assets this year, but the market is inflated. While we do not make an acquisition, we will negotiate the purchase of brand-name products and strengthen the bets in the division of the respiratory area", says Luiz Eduardo Violland, CEO of the group in Brazil.
The last relevant acquisition of a brand-name drug made by the group was in 2003, with the purchase of Neosaldina - the fourth best selling drug of Brazil - which belonged to Abbott, for US$ 33 million. Besides that, one of its main products, the company sells Dramin, Nebacetin and Eparema, among others. This year, the company began focusing its businesses also in the respiratory area in Brazil. At the end of 2009, the company launched Omnaris (to fight rhinitis) in the country. For 2011, it awaits the approval of the Anvisa (National Health Surveillance Agency) to sell the Daxas, launched in Germany this year, which treats chronic obstructive pulmonary disease (COPD), says Rodrigo Reis, marketing manager of the respiratory line. The asthma and COPD market generates US$ 18 billion a year worldwide.
Currently, the OTC (Over the Counter) Division of the group represents 40% of the earnings of the company. The area of prescription drugs 50%, and the other 10% is represented by the hospital area. According to Giles Platford, VP of Commercial Operations of the group, the hospital area should double its participation within the next five years. Platford, who is in the Brazilian subsidiary since last year, helped coordinate the creation of the hospital area in the country and is thinking the strategies for the Respiratory Area Division. In Brazil, the respiratory line represents 8% of the sales of the group and, according to Platford, it should get to 15% in 2015.
Also according to Platford, the company should have organic growth with the current portfolio and by means of research and development of new products already in the pipeline (in development). With net sales of R$ 447 million (US$ 227 million) in 2009 (the overall income of the company was near € 3.2 billion), the pharmaceutical company should grow 15% this year, exceeding the mark of half a billion Reais, and it should keep the rate in the coming years, says Violland. "We want to double in size in Brazil, country the international headquarters considers strategic for its businesses as well as are Russia, China and India (the Bric countries)". With a productive unit in Brazil, in operation since 1992 in Jaguariúna (SP), Nycomed has 19 plants in the world. In the opposite direction of the large multinationals, Nycomed is not interested in the generic drug market yet. "It is not our focus", says Violland. But the company does not entirely rule out that market.