Teva moves into top emerging market with Rimsa acquisition

Last month, names like Sanofi ($SNY), Pfizer ($PFE), Abbott ($ABT) and Takeda were flying around as potential suitors for Mexico-based Representaciones e Investigaciones Medicas, aka Rimsa. In July, the firm made a $40.5 billion cash and stock deal with Allergan to acquire its generic drug business.

Teva’s deal with Rimsa will have similar effects, solidifying the company’s position as the number one drug company in Mexico and the second-largest manufacturer in Latin America.

Rimsa, which had revenue of $227 million in 2014, will add to earnings from the first quarter of 2017, Teva said in a statement on Thursday. “This acquisition delivers on our strategy of increasing our presence in key emerging markets in order to position Teva for long-term growth in these markets”, said Chief Executive Erez Vigodman.

“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. When all is said and done, Teva will be among the top five companies in emerging markets globally. The generics giant plans to use the acquisition as a platform for further expansion in the fast-growing region, and it expects Rimsa’s sales prowess to give its own products a boost. The transaction will be completed in the early part of next year.