A leading Israeli pharmaceutical firm announced on Oct. 1 a $2.3 billion dollar deal to set itself up as a market leader in Mexico, the second largest medical market in Latin America and one of the five fastest growing worldwide.
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) will acquire Representaciones e Investigaciones Médicas, S.A. de C.V. (Rimsa), a pharmaceutical manufacturing and distribution company in Mexico, along with a portfolio of products, companies and patents in Latin America and Europe.
“This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets,” said Erez Vigodman, President and CEO of Teva. “Rimsa will provide Teva with a significant platform for growth by combining the strong Rimsa brand, licensed portfolio of differentiated, patent-protected products, promising pipeline, significant relationships with physicians, patients and healthcare providers and its strong commercial presence.”
The transactions are slated to be completed in the first quarter of 2016 with cash-on-hand and existing lines of credit. Rimsa reported revenue of $227 million in 2014, and an annual growth of 10.6 percent since 2011.
“For 45 years, Rimsa has operated as a leading pharmaceutical company in Mexico, the second largest healthcare market in Latin America, with a high growth, unique and diversified business model," Luis Jorge Pérez Juárez, CEO of Rimsa, said. "We share Teva’s focus on providing quality healthcare and we are excited to become a part of Teva in meeting the needs of a population of 120 million."
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