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Teva buys Peruvian drug company

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Thursday, February 10th, 2011

As reported in Globes.co.il: The deal to buy Corporación Infarmasa is estimated to be in the hundreds of millions of dollars.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced today that it was buying Corporación Infarmasa, a top ten pharmaceutical company in Perú, from The Rohatyn Group and Altra Investments.The value of the transaction was not disclosed, but it is estimated to be in the hundreds of millions of dollars.

Infarmasa manufactures and commercializes branded and unbranded generic drugs, primarily corticosteroids, antihistamines, analgesics and antibiotics. Its portfolio consists of over 600 registered products, of which over 500 are currently marketed.

Teva said that Infarmasa’s product offerings would greatly enhance its portfolio in the market, especially in the area of antibiotics, where Infarmasa has the leading brand in Perú. The company also has two manufacturing facilities in Lima and a comprehensive development pipeline. According to Teva, the combination of Corporación Medco (Teva’s existing operation in Perú) and Infarmasa will be one of the top two pharmaceutical companies in the country.

Teva CEO Shlomo Yanai said, “The acquisition of Infarmasa in Perú expands our activity in Latin America, and highlights our growth strategy for the coming years. Infarmasa complements Teva’s activity in Perú and will advance our position as a market leader in this region.”

Teva said that the Peruvian pharmaceutical market grew at a CAGR of 12% from 2005 to 2010 and is expected to reach $1.8 billion in 2015, and that expenditure per capita on pharmaceuticals in Perú is one of the lowest in Latin America, providing significant opportunities for future growth.