Valeant Pharmaceuticals International will acquire Tecnofarma S.A. de C.V., a privately held company located in Mexico for approximately $33 million. Tecnofarma is a producer of generic pharmaceuticals, with $33 million in annual sales primarily to the government and private label markets. Valeant’s subsidiary in Mexico works in the branded generics field and does not currently serve either of those two markets.

The deal will allow Valeant Latin America to reduce its dependence upon third party manufacturers, since Tecnofarma has several manufacturing sites, including a new 160,000 sq. ft. manufacturing plant. Technofarma has 80 registered products that Valeant can bring into its branded generics marketing efforts.

“The acquisition of Tecnofarma is consistent with our business plan strategy,” stated J. Michael Pearson, Valeant’s chairman and chief executive officer. “The government and private label markets in Mexico are large and growing components of the overall pharmaceutical industry in the region and are complementary to Valeant Mexico’s current market focus on the commercial branded generic market. Adding two well-established businesses to our current branded generic portfolio mix, a new pipeline of products for our branded generic business, as well as a manufacturing infrastructure capable of expanding to meet future demand, we believe we are well positioned to reach our growth objectives in Latin America.”

Sign up today for Contracting &Outsourcing 2009!