Another foray into generics by Pfizer as it buys 40% stake in Brazil's Teuto for $240 million upfront

Hot on the heels of its $350 million deal for insulin biosimilars with India’s Biocon (The Pharma Letter October 19), Pfizer (NYSE: PFE) says that it is entering into a partnership with Laboratorio Teuto Brasileiro, a leading company in the Brazilian generics industry, to develop and commercialize generic medicines.

For an upfront payment of 400 million reals ($2490 million) Pfizer, the world’s largest drugmaker but which will face generic competition on its all time mega-blockbuster Lipitor (atorvastatin) next year, will acquire a 40% stake in Teuto and the companies will also enter into a series of commercial agreements. The partnership will enhance Pfizer's position in Brazil, a key emerging market, by providing access to Teuto's broad portfolio of around 250 products in more than 400 presentations.

Through this partnership, Pfizer says it will have access to significant distribution networks in rural and suburban areas in Brazil and the opportunity to register and commercialize Teuto's products in various markets outside Brazil. In addition, Pfizer will have two representatives on Teuto's board of directors.