Drug maker Valeant Pharmaceuticals International of Aliso Viejo said Wednesday it is buying a Mexican generic drug maker for about $33 million.
Tecnofarma SA de CV makes generic drugs and has about $33 million in yearly sales, primarily to the Mexican government and private label markets.
Valeant said it was buying Tecnofarma because while it operates in Mexico, it doesn’t serve those markets.
The Tecnofarma deal brings Valeant several manufacturing plants, including a 160,000-square-foot facility that would allow it to reduce its dependence on contract manufacturers, as well as 80 registered products that can be introduced into Mexico’s branded generic drug market, Valeant said.
Chief Executive J. Michael Pearson said the deal was consistent with Valeant’s business plan and complements Valeant Mexico’s focus on branded generic drugs.
Valeant’s major Mexican product is Bedoyecta, a vitamin B supplement with vitamin C and iron whose sales fell 15% last year to $37.3 million. Bedoyecta accounted for 5% of Valeant’s $657 million in 2008 revenue.
