UPDATE 1-Hungary's Richter takes control of Mexican partner DNA
* Richter pays about $10 mln for 70 pct stake in Mexican partner DNA
* To acquire remaining 30 pct in next three years, full cost not disclosed
* Sees revenues from Esmya medicine at 20-30 mln euros in LatAm from 2015-16 (Adds details on price, size of market, expected turnover, market reaction)
By Gergely Szakacs
BUDAPEST, Dec 19 (Reuters) - Hungarian drugmaker Richter has bought a 70 percent stake in Mexican marketing partner DNA Pharmaceuticals for about $10 million, it said on Thursday, as the company expands its presence in the fast-growing Latin American market.
Richter, which makes gynaecological, cardiovascular and central nervous system drugs, earns most of its revenue from exports to Russia, the former Soviet bloc and the European Union, with its home market making up about a tenth of turnover.
Thursday's move to buy into DNA, with an option to acquire the remaining 30 percent stake in the next three years, comes after this week's acquisition of a 51 percent stake in Brazil's Next Pharma, a private company, for less than $0.5 million.
Richter did not disclose the final price it would pay for the full stake in DNA.
"Subsequent to the recently announced acquisition in Brazil, this cooperation with DNA is considered to be another strategic move aimed towards the diversification of Richter's geographic presence in Latin America, one of the regions with the fastest growing pharmaceutical markets worldwide," a statement cited Richter Chief Executive Erik Bogsch as saying.
"The targeted activities of DNA include the registration of speciality products belonging to the Female Healthcare product portfolio, focusing primarily on Esmya and the establishment of a related sales network," Richter said.
Esmya is a medicine for the pre-operative treatment of uterine fibroids. Richter has forecast sales of Esmya worth 15 million euros this year.
However, if the drug is authorised in Europe for a longer therapeutic period, that could lead to a "significant increase" in sales, Richter has said without giving a firm estimate.
Richter spokeswoman Zsuzsa Beke told Reuters that DNA has been selling Richter's female health care products in Mexico since 2003.
"We now want to expand that with Esmya and further oral contraceptive products," she said, adding that Esmya could be launched within 1 or 2 years in Mexico from the start of a registration process planned in the first quarter of next year.
In Latin America, Richter expects sales of Esmya to be worth about 20-30 million euros a year from 2015 or 2016, Beke said. ($1 = 216.46 Hungarian forints) (Reporting by Gergely Szakacs; editing by Keiron Henderson)
- Search planes find no sign of missing airliner at spot located by China |
- Missing jet may have strayed to west, Malaysia military says |
- Malaysia failing credibility test as flight confusion deepens
- UPDATE 1-U.S. investigators suspect missing Malaysian plane flew for hours -WSJ
- White House tried to mediate dispute between Senate, CIA panel: source