Sanofi-aventis announced that it has signed an agreement to acquire Medley in Brazil. Medley is the third largest pharmaceutical company and the number one generic company in Brazil. In 2008 Medley's sales amounted to 458 million BRL (around 153 million euros), including two third of those sales in generics.
With a generic portfolio of 127 products, Medley is very well positioned to benefit from the growth of the Brazilian generic market, which is expected to remain over 20 per cent per annum in the coming years.
This acquisition will enable sanofi-aventis to reinforce its number one ranking among pharmaceutical companies in Brazil, with a total 12 per cent market share (IMS MAT Feb 09). Sanofi-aventis will become the leading player in the field of generics in Brazil and in Latin America.
"The acquisition of Medley will not only reinforce the leadership of sanofi-aventis in Brazil but it also reflects the tight links between sanofi-aventis and Brazil, which have existed for more than 50 years," said Heraldo Marchezini, general manager of sanofi-aventis Brazil. "It illustrates our commitment towards the people of Brazil by providing access to medicines and answering patients' needs with a broader and well-adapted product portfolio."
The acquisition values Medley at 1,500 million BRL (500 million euros). The closing of the transaction is subject to certain conditions precedent and is expected to occur in the 2nd quarter of 2009.
Medley constitutes a unique opportunity for sanofi-aventis to build a strong and integrated platform for sustained profitable growth in Brazil and Latin America. Through this new acquisition, sanofi-aventis carries on with its strategy to build-up on growth platforms, accelerate sales and further extend its pharmaceutical portfolio in emerging markets.
Medley is a family-owned pharmaceutical company established in the state of São Paulo. It employs nearly 1,550 collaborators, of which around 500 are in the sales force. In 2008, the company's sales reached 458 million BRL (153 million euros). The company is the leading generic player and the third largest pharmaceutical company in Brazil with a total 5.7 per cent market share and a CAGR – Compound Annual Growth Rate – of 28 per cent over the last 3 years (IMS MAT Feb. 09).
Sanofi-aventis is the largest pharmaceutical company in Brazil, established in the country since the end of the 1950's. Sanofi-aventis Brazil operates one manufacturing plant located in the State of Sao Paulo that provides medicines to the local market and other Latin American countries.