Pharmaceutical giant Pfizer said Wednesday it has bought 40% of Brazilian drug company Teuto for 238 million dollars as part of its strategy to boost its presence in emerging markets.
The purchase could lead to the 100-percent acquisition of Teuto in 2014, it said in a statement.
The 40-percent stake "allows Pfizer to increase its participation in Brazil's pharmaceutical market," the head of Pfizer Brazil, Victor Mezei, said in the statement.
He explained that the deal could result in Teuto producing generic versions of Pfizer medicines, and Pfizer using Teuto products in its output.
Pfizer is the world's second-biggest pharmaceutical company in the world after US rival Johnson & Johnson, according to Fortune magazine.
The maker of Viagra to treat erectile dysfunction and Lipitor to lower cholesterol, it had 2009 revenues of 50 billion dollars and profits of 8.6 billion dollars.
Pfizer Brazil generated 703 million dollars in revenues last year.
I can only speculate on the reason why Pfizer has ploughed 238 million dollars into a Brazilian pharmaceutical company is because Pfizer still don't have the trade mark on Viagra in Brazil and this move could be a step in the right direction in getting that.
i think that is a great strategy of pfizer to buy Teuto stakes. Brazil is a large market with high population
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