GSK acquires Argentine pharma firm

GSK's Abbas Hussain: “This is an important step forward in our strategy to grow our business in Latin America."

GlaxoSmithKline has acquired a leading Argentine pharma firm Laboratorios Phoenix in a move to make further inroads into Latin America.

GSK acquired the branded generics firm for a cash consideration of around $253 million to gain full ownership of the Argentine pharma company.

The move is set to extend GSK’s presence in Latin America and extend its own branded generics portfolio and pipeline. Phoenix currently develops treatments in cardiology, gastroenterology, neuroscience, metabolic, urology and analgesic therapy areas.

Abbas Hussain, president of emerging markets at GSK, said: “This is an important step forward in our strategy to grow our business in Latin America; a key group of emerging markets for GSK. 

“By acquiring Phoenix, we will rapidly expand our presence in the fast growing Argentine market. In addition, Phoenix’s broad portfolio and rich pipeline of branded generics will enable us to bring more medicines of value to patients in Argentina.”

GSK Argentina reported total sales of approximately £100 million in 2009 across its pharma, vaccines and consumer healthcare businesses. It is currently positioned number 14 in the Argentine pharmaceutical market with IMS reported sales of £56 million.

Industry analysts IMS Health have placed Argentina in its Tier 3 of ‘fast followers’ for emerging markets. The group includes 13 countries: Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan and the Ukraine.

Each are estimated to contribute $1 - $5 billion each in annual sales growth by 2013.

Argentina currently has a total market value of $3 billion and the third highest ‘pharmerging’ growth rate at 22%.

Ben Adams