Nycomed plans investment of US$ 300 million in Brazil
Valor Econômico
Danish Nycomed intends to invest nearly US$ 300 million to promote the expansion of its businesses in Brazil. Luiz Eduardo Violland, the President of pharmaceutical group in the country, told Valor that the growth of the company will occur through acquisitions and, especially, the licensing of brand drugs. "The company has chosen Brazil to make its investments. We will also grow organically with our current portfolio and by the research and development of new products", said Violland. The investments shall be made over the next five years, starting in 2010.
The selection of Brazil as a new pharmaceutical expansion platform reflects the potential of the national market with growth of the income of the population and increased access to medicines. Violland also uses the data of the WHO (World Health Organization), which projects a growth of 9% in the sector in Brazil until 2013. "We intend to make an investment in the country that is 10 times bigger than our last acquisition [of US$ 33 million]", said Violland.
The market of generic drugs is not a priority for the group yet, but the company does not fully rule out this segment. According to Violland, the acquisition in this area will only occur if there is a good opportunity. The laboratory is waiting for the approval of the Anvisa (National Health Surveillance Agency) for the release of the Roflumilast medicine, which should be approved within the next two years, said Giles Platford, Executive Vice President of Commercial Operations of the company in the country. The medicine is indicated for the treatment of chronic obstructive pulmonary disease (COPD).
The sales of hospital medicines have also become a good bet for the company. The company focuses on medicines for breathing and gastrointestinal problems. The Danish group, headquartered in Switzerland, is one of the largest of the pharmaceutical sector controlled by private equity funds. In 2008, the company registered net sales of € 3.4 billion. The company is among the top 30 in the world and it ranks 15th in the global OTC market.
In Brazil, the company has one plant in the São Paulo city of Jaguariúna. The company still has no plans to enlarge it or to build new units in the country. The company has 19 factories all over the world. Besides Brasil, the Group is also betting on other countries of the Bric (Brazil, Russia, India and China). Russia should receive investments to build a new plant.