Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Pfizer cuts losses on Brazil drug maker with sale for nominal sum

Generic drug makers in the country have struggled due to rising raw material costs and a prolonged recession.
picture of pills
Pfizer reportedly received just one real for its stake

Pharma giant Pfizer Inc (NYSE:PFE) has bitten the bullet on its Brazil generic drug making business after failing to find a buyer for its 40% stake.

According to Reuters, Pfizer has received just one real (30c) for the stake in Laboratório Teuto Brasileiro it paid US$240mln for seven years ago.

In a statement, Pfizer confirmed the transfer "after careful consideration," but said the terms of the deal were confidential.

Teuto is negotiating the refinancing of r600mln (US$180mln) in loans according to the report.

The Melos family were Pfizer’s partner in the venture but relations soured when the US firm was pressured into buying out their interest.

Goldman Sachs was among the banks appointed to find a buyer but its lack of success sparked renewed tensions within the venture.

Generic drug makers in the country have struggled due to rising raw material costs and a prolonged recession.

View full PFE profile View Profile

Pfizer Timeline

November 23 2015

Related Articles

June 27 2018
Lancor Scientific is aiming to carry out an initial coin offering by issuing Medici, a new currency based on Ethereum to help Tumour Trace to fund further development
June 20 2018
“FLU-v is designed to protect against a broad range of influenza viral strains and this includes unexpected seasonal strains or a potentially devastating pandemic strain"
scientist in lab
September 07 2018
Normally, patients have to wait until regulators have approved a drug before they get access to it, but up to 500 lupus sufferers will receive Lupuzor as part of a Managed Access Programme

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use