US pharma company Abbott has completed its acquisition of Chilean firm CFR Recalcine, doubling its presence in the Latin American generics market.
US pharma company Abbott has completed its acquisition of Chilean firm CFR Recalcine, doubling its presence in the Latin American generics market. See press release
Abbott secured more than 99% of CFR’s common stock via a takeover bid worth around $2.9 billion.
In Argentina, Alejandro Wellisch retains his position as general manager of CFR’s local business, but others are sitting tight as the knife falls.
First to feel the impact are internal auditor Víctor Teijeiro; CIO Alejandro Re, regulatory affairs manager María Laura Ciciliani, and medical director Clemente Martínez.
There is speculation within the company that the positions are to be filled by executives from within Abbott’s ranks. Meanwhile, recent weeks have seen almost 100 layoffs at CFR’s Argentine manufacturing plants, Pharmabiz has learned.
The fate of the company’s seven plants in the country will be a central issue following the takeover. It is believed that the majority will fail to meet the quality standards of a multinational company such as Abbott.
Inaugurated in March 2012, the modern oncology operation in Pilar is Recalcine’s strongest plant in Argentina.
Of the older plants, the only ones likely to meet Abbott’s approval are the Quilmes operation, which focuses on injectable lyophilzed products, and possibly Pompeya, which was recently approved by INVIMA and is focused on syrups and injectable products.
Facilities in La Plata, specializing in antibiotics, Liniers (injectable products) and Atlas (two plants – one dedicated to eye drops and the other to aerosols) are assumed to be surplus to requirements.
According to the company’s press release, Abbott’s acquisition of CFR places it within the top ten pharma companies in Latin America, a market which, according to IMS, will be worth $ 128 billion by 2018, and will see an annual growth rate two or three times greater than that of the developed markets.