Bloomberg Línea — Eurofarma, one of the Brazil’s largest pharmaceutical companies, takes another step in its strategy for growth in international markets with the completion of its acquisition of Genfar in Colombia last Friday (29). The company has chosen Genfar as its unified brand for generic drugs in Latin America, excluding Brazil, as reported by Bloomberg Línea.
“The acquisition consolidates our regional presence and allows us to advance in our internationalization plans, growing and reinvesting continuously in the business through our commercial strength, innovation, and merger and acquisition (M&A) activities,” said Marco Billi, International CEO of Eurofarma, in a statement.
In the first semester, 19% of the net revenue originated from operations outside Brazil, with a focus on Mexico, Central America, Colombia, and Chile.
The acquisition of Genfar, previously owned by the French company Sanofi, was announced in March of this year for a value of 299 million euros. The company has a presence in its home country, Colombia, as well as in Peru and Ecuador.
Latin America, in particular, has proven to be one of the most important markets for global pharmaceutical companies, including Sanofi, Novartis from Switzerland, Bayer from Germany, and Pfizer from the United States, among others, due to its above-average growth compared to other regions.
Genfar, founded in 1967, offers approximately 350 products in 12 therapeutic classes, a factory, and a development center in Cali, Colombia, with over 500 employees. The company’s General Manager, Agustín Vincent, will continue to lead the company.
Before adopting the Genfar brand for Latin America (excluding Brazil), Eurofarma operated with the Momenta brand in Colombia, Peru, Ecuador, and Chile, and with the Eurofarma brand in other markets in the region.
“We will work to expand the Genfar brand to other geographies and maintain our leadership position in the region,” said Maria del Pilar Muñoz, Vice President of Sustainability and New Businesses at Eurofarma, in a statement.
According to the company, which has its main production and research complex in Itapevi, Greater São Paulo, with the acquisition, it now ranks second in the sale of drugs to the retail market in Latin America. The business focuses on prescription and generic drugs.
Eurofarma, often considered a candidate for an initial public offering (IPO) due to the size and scope of its business, obtained registration as a publicly-traded company with the CVM (Securities and Exchange Commission) in 2022. It operates in 22 countries, including all of Latin America, the United States, and African markets, with over 11,000 employees.
The company, founded by Italian immigrants Galliano and Maria Teresa Billi in 1972 and led by their son Maurizio Billi for over two decades, generated net revenues of R$8 billion last year, representing a growth of 13.3% compared to 2021. Adjusted EBITDA (operational cash generation metric) increased by 22.6% to reach R$2.37 billion.
In the first half of this year, net revenues totaled R$4,34 billion ($857,43 million), an increase of 12.7%.
Investments in research and development (R&D) amounted to R$590,6 million ($116,93 million), with an annual expansion of 63%, reflecting the company’s plan to advance in new medications. The projection for this year is that investments will remain around R$600 million ($118,81 million). Over 600 researchers are working on a pipeline that includes more than 400 products currently in development.
The company also operates in over-the-counter (OTC) medications and in the hospital and oncology segments. This year, it debuted with the OAZ brand in personal care and hygiene as part of its strategy to expand its portfolio.