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Hypermarcas SA, a Brazilian consumer products company, agreed to buy drugmaker Laboratorio Neo Quimica Ltda to expand into the generic medicine market.

Hypermarcas SA, a Brazilian consumer products company, agreed to buy drugmaker Laboratorio Neo Quimica Ltda to expand into the generic medicine market. The Sao Paulo-based company will pay about 1.3 billion reais ($751 million) in cash and shares for Neo, according to a regulatory filing. Hypermarcas beat out New York-based Pfizer Inc., the world's largest drugmaker, in the bidding, Chief Executive Officer Claudio Bergamo said. "The little ant walked faster than the elephant," Bergamo said. "We competed against a giant in this transaction. We are very proud." The purchase will add the Neo Quimica generic brand to Hypermarcas's portfolio of over-the-counter medicines, which includes the Engov hangover treatment and Lisador pain reliever. The company has made five acquisitions this year for about 2 billion reais, including Jontex, the leading condom brand in Brazil, and the Pom Pom and BigFral diaper brands.

Hypermarcas will pay 686.7 million reais in three cash installments for Neo Quimica, based in Anapolis in Goias state, and will issue 17.5 million voting shares as part of a payment to shareholders. The holders will own 7.3% of Hypermarcas's stock after the transaction, the filing said.
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Publication:MondayMorning
Article Type:Brief article
Geographic Code:3BRAZ
Date:Dec 14, 2009
Words:192
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