After failing to find a buyer for its 40% holding in Laboratorio Teuto Brasileiro SA, Pfizer (PFE) is now exiting the generic drug making venture for an undisclosed amount.
"Following a careful assessment, Pfizer has decided to exit its partnership with Laboratorio Teuto (Teuto)," said Sharon Castillo, Director of Pfizer's Media Relations. "Pfizer recognizes Teuto's longstanding industry leadership in Brazil and commitment to improving the health and well-being of patients. We wish the company continued success in the future.
Heirs of Teuto, the Melo family, acquired Pfizer's 40% stake, but the exact terms of the transaction are confidential. Melos and Pfizer both had hired Goldman Sachs Group Inc (GS) and Grupo BTG Pactual SA to find a buyer, but failure to find a third party buyer rekindled an old rift between the two parties.
According to Castillo, "Pfizer arrived at this decision as a result of a desire to focus resources on ensuring the success of its existing portfolio and pipeline."
Pfizer's decision to exit its partnership with Teuto adds another notch to difficulties generic drugmakers have faced in debt-ridden Brazil. As Brazil's annual inflation continues to rise, it does so in sync with its increasing mortgage rates and ever-weakening local currency. For the past 65 years, Pfizer conducted operations in Brazil.
Pfizer stock was down 46 cents to $33.18 by Thursday's close.
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