Pfizer Inc., the world's largest drugmaker, said Wednesday it will pay about $240 million upfront to enter a partnership with a Brazilian drugmaker to develop and sell generic drugs.
Pfizer will buy a 40 percent stake in Laboratorio Teuto Brasileiro S.A. and has an option to buy the remaining 60 percent stake beginning in 2014. New York-based Pfizer will gain access to Teuto's portfolio of about 250 products and its Brazilian distribution networks.
Teuto makes both branded and unbranded generic drugs. Pfizer will be able to register and sell the Brazilian company's products in markets outside Brazil under its own brands.
Pfizer officials said in a statement the deal shows the company's commitment "to pursue focused investments in key emerging markets to accelerate our growth and increase patient access to high-quality medicines."
Teuto will be able to sell some Pfizer products under its own brand in Brazil. It also could receive a performance-based milestone payment, and its shareholders have an option to sell their 60 percent stake to Pfizer starting in 2015.
The deal is expected to close by the end of the year.