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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.

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Pfizer Timeline

November 23 2015

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