Amgen (NASDAQ: AMGN), the world's largest biotechnology company, announced today the expansion of its operations in Brazil, including the acquisition of Bergamo, a privately-held Brazilian pharmaceutical company. Amgen has also agreed to reacquire rights in Brazil to its products that were previously granted to Mantecorp (subsequently acquired by Hypermarcas). Together, these transactions will provide Amgen a significant presence in Brazil and immediate, direct access to one of the fastest growing pharmaceutical markets in the world.
Bergamo is a leading supplier of medicines to the hospital sector in Brazil with capabilities in oncology medicines and has manufacturing facilities in Sao Paulo state. Bergamo had gross revenues of US $80 million in 2010 and has been growing at an annual rate of 19 percent since 2007. Under terms of the transaction announced today, Amgen gained full ownership of Bergamo by purchasing it for approximately US $215 million.
Amgen has entered into an agreement in principle with Hypermarcas to reacquire the rights in Brazil to several of Amgen's innovative medicines, two of which are already approved in Brazil, Vectibix® (panitumumab) and Mimpara® (cinacalcet), and a third, romiplostim, (registered as Nplate® in the United States), a treatment for the blood disorder ITP, which is currently under review by ANVISA, the regulatory authority in Brazil.
"Amgen's strategic goal is to make our innovative medicines available to patients in major markets around the world," said Kevin Sharer, Amgen's chairman and chief executive officer. "Acquiring Bergamo, a profitable company with an established local infrastructure, and regaining the rights to our products in Brazil, provides us an attractive entry into the Brazilian market."
The focus on Brazil is part of a wider international expansion strategy for Amgen. Brazil is among the top 10 pharmaceutical markets in the world and in recent years has been growing at a rate of about 12 percent per year. It is expected to be the world's fifth largest pharmaceutical market by 2015.
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