Fagron Group announces today that it has signed an agreement for the acquisition of the Brazilian Pharma Nostra, a leading supplier of raw materials for pharmaceutical compounding to pharmacies in Brazil. Pharma Nostra is the market leader in Brazil with a turnover of approximately € 45 million in 2010.
Ger van Jeveren, founder and CEO of Fagron: “We are delighted that in addition to the Brazilian company DEG, we can now welcome Pharma Nostra to the Fagron Group. Both acquisitions play an essential role in Fagron’s strategy to further expand its global market leadership in the rapidly growing niche market of pharmaceutical compounding. The acquisition of Pharma Nostra enables us to gain clear advantages, not only with regard to purchasing, analysis and production, but also with respect to product assortment and sales and marketing. Due to the excellent track record and the quality of the organisation of both Pharma Nostra and Fagron, we expect an equally rapid and smooth integration as with DEG.”
Antonio Bolognani, CEO of Pharma Nostra: “I am looking forward to combining forces with the Fagron Group. Fagron’s network in Europe, the United States, Brazil, and from 1 September also in Argentina, offers great potential to roll out successful products internationally.
Our clients will benefit from an excellent range of products and services and our employees will enjoy opportunities for further development in an international environment. I also look forward to making a real contribution to the further growth of both Pharma Nostra and the Fagron Group after the acquisition too.”
About Pharma Nostra
Pharma Nostra (www.pharmanostra.com.br) was founded in 2000. In 2010, Pharma Nostra achieved a turnover of € 45 million with 300 employees. Around 75% of the turnover is generated by the sale of pharmaceutical raw materials to compounding pharmacies. Industrial sales contribute around 25% to the turnover. Pharma Nostra has branches in Rio de Janeiro, Anápolis and Campinas (near São Paulo). The company’s GMP production facilities, approved by ANVISA (Agência Nacional de Vigilância Sanitária), are located in Anápolis.
About the Brazilian market
Despite the global economic crisis, the market for pharmaceutical compounding in Brazil has grown significantly over the past years, a development that is expected to continue in the coming years. Patients in Brazil have a great deal of choice, which means they tend to opt for tailor-made pharmaceutical compounds which virtually always have fewer side effects and are therefore a valuable alternative. Partly because of this, Brazil is by far the largest market in the world for pharmaceutical compounding.
In addition to 25,000 regular pharmacies, Brazil also has approximately 7,000 compounding pharmacies. These Farmácia de Manipulaçáo are specialised in preparing tailor-made medications for patients. The compounding pharmacies offer a unique concept in which the direct contact between the pharmacist and the prescriber regarding the possibilities of and developments in tailor-made pharmaceutical medication plays an important role. The compounding pharmacies in Brazil have a very high level of knowledge and quality.
Fagron will further strengthen its market leadership in the rapidly growing market for pharmaceutical compounding through an active buy-and-build strategy, starting up greenfields and robust organic growth. The emphasis lies on acquisitions in the existing markets, and in Scandinavia and Central and Eastern Europe.