Thu Dec 19, 2013 4:47am EST
<span id="articleText"/>* Richter pays about $10 mln for 70 pct stake in Mexican partner DNA
<span id="midArticle_0"/>* To acquire remaining 30 pct in next three years, full cost not disclosed
<span id="midArticle_1"/>* Sees revenues from Esmya medicine at 20-30 mln euros in LatAm from 2015-16 (Adds details on price, size of market, expected turnover, market reaction)
<span id="midArticle_2"/>By Gergely Szakacs
<span id="midArticle_3"/>BUDAPEST, Dec 19 (Reuters) - Hungarian drugmaker Richter has bought a 70 percent stake in Mexican marketing partner DNA Pharmaceuticals for about $10 million, it said on Thursday, as the company expands its presence in the fast-growing Latin American market.
<span id="midArticle_4"/>Richter, which makes gynaecological, cardiovascular and central nervous system drugs, earns most of its revenue from exports to Russia, the former Soviet bloc and the European Union, with its home market making up about a tenth of turnover.
<span id="midArticle_5"/>Thursday's move to buy into DNA, with an option to acquire the remaining 30 percent stake in the next three years, comes after this week's acquisition of a 51 percent stake in Brazil's Next Pharma, a private company, for less than $0.5 million.
<span id="midArticle_6"/>Richter did not disclose the final price it would pay for the full stake in DNA.
<span id="midArticle_7"/>"Subsequent to the recently announced acquisition in Brazil, this cooperation with DNA is considered to be another strategic move aimed towards the diversification of Richter's geographic presence in Latin America, one of the regions with the fastest growing pharmaceutical markets worldwide," a statement cited Richter Chief Executive Erik Bogsch as saying.
<span id="midArticle_8"/>"The targeted activities of DNA include the registration of speciality products belonging to the Female Healthcare product portfolio, focusing primarily on Esmya and the establishment of a related sales network," Richter said.
<span id="midArticle_9"/>Esmya is a medicine for the pre-operative treatment of uterine fibroids. Richter has forecast sales of Esmya worth 15 million euros this year.
<span id="midArticle_10"/>However, if the drug is authorised in Europe for a longer therapeutic period, that could lead to a "significant increase" in sales, Richter has said without giving a firm estimate.
<span id="midArticle_11"/>Richter spokeswoman Zsuzsa Beke told Reuters that DNA has been selling Richter's female health care products in Mexico since 2003.
<span id="midArticle_12"/>"We now want to expand that with Esmya and further oral contraceptive products," she said, adding that Esmya could be launched within 1 or 2 years in Mexico from the start of a registration process planned in the first quarter of next year.
<span id="midArticle_13"/>In Latin America, Richter expects sales of Esmya to be worth about 20-30 million euros a year from 2015 or 2016, Beke said. ($1 = 216.46 Hungarian forints) (Reporting by Gergely Szakacs; editing by Keiron Henderson)
<span id="midArticle_14"/>
<span id="articleText"/>* Richter pays about $10 mln for 70 pct stake in Mexican partner DNA
<span id="midArticle_0"/>* To acquire remaining 30 pct in next three years, full cost not disclosed
<span id="midArticle_1"/>* Sees revenues from Esmya medicine at 20-30 mln euros in LatAm from 2015-16 (Adds details on price, size of market, expected turnover, market reaction)
<span id="midArticle_2"/>By Gergely Szakacs
<span id="midArticle_3"/>BUDAPEST, Dec 19 (Reuters) - Hungarian drugmaker Richter has bought a 70 percent stake in Mexican marketing partner DNA Pharmaceuticals for about $10 million, it said on Thursday, as the company expands its presence in the fast-growing Latin American market.
<span id="midArticle_4"/>Richter, which makes gynaecological, cardiovascular and central nervous system drugs, earns most of its revenue from exports to Russia, the former Soviet bloc and the European Union, with its home market making up about a tenth of turnover.
<span id="midArticle_5"/>Thursday's move to buy into DNA, with an option to acquire the remaining 30 percent stake in the next three years, comes after this week's acquisition of a 51 percent stake in Brazil's Next Pharma, a private company, for less than $0.5 million.
<span id="midArticle_6"/>Richter did not disclose the final price it would pay for the full stake in DNA.
<span id="midArticle_7"/>"Subsequent to the recently announced acquisition in Brazil, this cooperation with DNA is considered to be another strategic move aimed towards the diversification of Richter's geographic presence in Latin America, one of the regions with the fastest growing pharmaceutical markets worldwide," a statement cited Richter Chief Executive Erik Bogsch as saying.
<span id="midArticle_8"/>"The targeted activities of DNA include the registration of speciality products belonging to the Female Healthcare product portfolio, focusing primarily on Esmya and the establishment of a related sales network," Richter said.
<span id="midArticle_9"/>Esmya is a medicine for the pre-operative treatment of uterine fibroids. Richter has forecast sales of Esmya worth 15 million euros this year.
<span id="midArticle_10"/>However, if the drug is authorised in Europe for a longer therapeutic period, that could lead to a "significant increase" in sales, Richter has said without giving a firm estimate.
<span id="midArticle_11"/>Richter spokeswoman Zsuzsa Beke told Reuters that DNA has been selling Richter's female health care products in Mexico since 2003.
<span id="midArticle_12"/>"We now want to expand that with Esmya and further oral contraceptive products," she said, adding that Esmya could be launched within 1 or 2 years in Mexico from the start of a registration process planned in the first quarter of next year.
<span id="midArticle_13"/>In Latin America, Richter expects sales of Esmya to be worth about 20-30 million euros a year from 2015 or 2016, Beke said. ($1 = 216.46 Hungarian forints) (Reporting by Gergely Szakacs; editing by Keiron Henderson)
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