Teva moves into top emerging market with Rimsa acquisition

JERUSALEM — Teva announced Thursday that it would be acquiring Mexican pharmaceutical manufacturer and distributor Representaciones e Investigaciones Médica SA (Rimsa). The $2.3 transaction will move Teva into Latin America’s second largest market and one of the world’s top emerging markets.

Rimsa, which had 2014 revenue of $227 million and has seen year-over-year growth of 10.6% every year since 2011 brings to Teva its portfolio of specialty products, which includes fixed-dose combination pharmaceuticals.

“In addition to this unique portfolio of patent-protected products, Rimsa differentiates itself as a leading provider of branded specialty drugs, including fixed-dose combinations, which increase adherence and reduce overall costs to patients," Teva Global Generic Medicines CEO Siggi Olafsson said. "We will build on their brand reputation, successful sales force model, well-established commercial footprint and loyal customer base to introduce additional specialty and generic Teva medicines to patients in Mexico and across the region”

The acquisition, which will be covered by Teva’s cash on hand and lines of credit, is expected to close in the first quarter of 2016, and Teva expects it to be accretive to the company’s earnings by the first quarter of 2017.

“For 45 years, Rimsa has operated as a leading pharmaceutical company in Mexico, the second largest healthcare market in Latin America, with a high growth, unique and diversified business model,” Rimsa CEO Luis Jorge Pérez said. “We share Teva's focus on providing quality healthcare and we are excited to become a part of Teva in meeting the needs of a population of 120 million.”