News

Posted On: 11/11/2005

Brazilian Drug Giant Formed

PharmaManufacturing.com

The recent acquisition of Biosintética by Aché, Brazil's third-largest pharmaceutical company based on annual revenues, creates a new Latin giant in the South American marketplace, ready and able to dispute market leadership with multinational like Sanofi-Avenis and Pfizer. Aché's 2004 turnover of R$ 918 million ($US 418 million) and Biosintética's 2004 turnover of $R 684 million ($US 311 million) creates a 100% Brazilian-owned company that should surpass the current number one producer, Sanofi-Aventis, as well as the number two player, Pfizer, in annual sales in Brazil.

Aché, with over 40 years in the marketplace and 2,300 employees, is making a major move. Victor Siaulys, President of the Aché's Administrative Council, started the process with the acquisition of Asta Medica. Elio Bosio, President & Director, led the negotiations that concluded with the merger with Biosintética in just six months. Aché's portfolio of 104 products includes a strong position in nasal decongestants, anti-inflammatories and it's branded muscle relaxant, Tandrilax®. This past year saw Aché launch a phyto-therapeutic anti-inflammatory product, Acheflan® (Cordia verbenacea), a landmark product in Brazil as all research and development for the drug was conducted in Brazil.

Biosintética, led by Omilton Visconde Jr., 21 years in the marketplace and 800 employees, markets products in the cardiovascular, CNS, dermatology, respiratory, and oncology therapies as well as being a leader in the manufacturer of generic drugs. The company also has a tradition of investigation and drug development of medicines in Brazil, and recently has been active in bio-technology, making it, along with Aché, as two pharmaceutical companies with high levels of investment in R&D. Biosintética's Sinergen®, used in the treatment of hypertension, is representative of this new trend. Biosintética has 30 international patents and exports throughtout South America.

Financial analysts applaud the merger of a large "similar" company with a large "generic" company to meet the challenge of competing with multinationals in Brazil. A closer look reviews a far more significant play, says Peter Schmitt, senior consultant with Montesino Associates LLC. "The new company clearly intends to push forward in R&D and drug development, and to commercialize new drugs for a market that is often ignored by big Pharma, given its insatiable appetite for global blockbusters. Only time will tell how this strategy plays out," says Schmitt.