New Delhi: Zydus Cadila said on 25 June it has signed an agreement for acquiring 100% stake in the Brazilian firm, Nikkho, to mark its foray into Brazil’s branded generics market.
“Nikkho’s well entrenched presence will help Zydus Cadila in launching ‘branded speciality’ products aggressively across Brazil and enable it to step up the registration process of several molecules,” Zydus Cadila chairman and managing director Pankaj R Patel said in a release.
He said the foray in the branded generics segment is expected to fetch better margins and earnings.
The acquisition is being made through Zydus Healthcare Brasil Limitada, a wholly owned subsidiary of Cadila Healthcare but the company, however, did not disclose the investment being made in the process.
The initiative will also boost Zydus’ existing generic business in Brazil by providing enhanced reach and distribution and Nikkho’s manufacturing facility would benefit Zydus in the long term.
“The deal will also open the doors to the Latam region, which is an emerging pharmaceutical market in the world,” Zydus Cadila executive director Ganesh Nayak said.
Headquartered in Rio de Janeiro, Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho) is a mid-sized privately held firm catering to Brazil’s prescription drug market.
It markets 22 products under 13 different brands across segments like general medicine, pediatrics, gynaecology, neurology, gastroenteritis, otolaryngology, respiratory, dermatology and others and nearly 50 registered brands are yet to be launched, it added.