Under the contract, Pfizer will make an upfront payment of $240m and Teuto will be eligible to receive a performance-based milestone payment.
Pfizer has an option to acquire the remaining 60% of Teuto’s shares beginning in 2014 and Teuto’s shareholders have an option to sell their 60% stake to Pfizer beginning in 2015.
Following the current agreement, Pfizer and Teuto have also decided to enter into a series of commercial agreements.
As a result of the acquisition, Pfizer will have access to distribution networks in rural and sub-urban areas in Brazil.
Pfizer will also have the opportunity to register and commercialise Teuto’s portfolio of approximately 250 products in Brazil and various markets outside of the country under its own brands, including branded and unbranded generic medicines, covering a broad range of therapeutic areas, such as pain and inflammation, cardiovascular, anti-infectives, central nervous system and respiratory, among others.
Pfizer Emerging Markets Business Unit president Jean-Michel Halfon said that they believe this partnership will enable both companies to effectively build upon one another’s core capabilities and areas of expertise to help address the needs of more patients than ever before.