Biolab will invest R$ 450 million in a pharmaceutical manufacturing plant in MG

O Estado de S.Paulo | 07/24/2017
Fonte: Mônica Scaramuzzo
A LEAD IN SEGMENT OF PRESCRIPTION DRUGS IN CARDIOLOGY, THE LABORATORY WANTS TO SEEK CERTIFICATES TO SELL TO FOREIGN MARKET; WITH A NEW INVESTMENT, PHARMACEUTICAL COMPANY INTENDS TO STRENGTHEN EXPANSION STRATEGY IN VETERINARY SEGMENT

National pharmaceutical company, Biolab, announced this Thursday, 20, an investment of R$ 450 million in a new manufacturing plant. The drug laboratory will be built in Pouso Alegre, south of Minas Gerais state, and will have the capacity to produce 200 million drug units per year.

Biolab is one of the greatest pharmaceutical companies with a national capital, with a turnover of R$ 1.25 billion in 2016, according to IMS Health consultancy. According to the company, the new plant will be also designed to provide services to external market. From the planned investment, 40% will be paid with their own resources; the rest will be raised in the market.

In an interview to Estado, Cleiton Castro Marques, partner and president of the group, stated that Biolab has already been planning for a while. He said that current economic and politic crisis in the country did not affect the plans of the company. “Despite of the crisis, pharmaceutical sector shall increase 8% this year. Biolab sales are expected to increase between 8% and 10%.”

The operations of the new industry complex shall begin from 2020, still partially. The group, which owns three production units, all of them in the State of São Paulo, gained incentives from Minas Gerais government to build its new unit.
Between 2009 and 2012, pharmaceutical sector received great investments, with the construction of new units and also with a movement of mergers and acquisitions, mainly of multinational companies searching for production laboratories of generic drugs. 

This movement started to cool down in the last years because of the crisis. “Multinational companies took the foot off the gas, but have still invested in the country”, stated Nelson Mussolini, executive director of Sindicato das Indústrias Farmacêuticas do Estado de São Paulo (Sindusfarma). 

However, he is sorry the State has been losing investments of the sector to other units of the federation. “The government of São Paulo has to pay attention to incentives that have been given to neighboring states. São Paulo has lost an investment due to tax war.”

DIVERSIFICATION.

A lead company in prescription drugs for cardiology and working in pediatrics, gynecology and orthopedics, Biolab has been prepared to expand its operation to veterinary sector. Currently, this business division represents 1% of total revenue of the group, but shall be more relevant in the next three years. 

Veterinary market focused on small-size animals has grown in Brazil and will be the focus of the group, according to Cleiton Marques. “The segment of big-size animals has lower margins and is more competitive.” Therefore, Biolab follows the same path of others groups, such as national companies Eurofarma and União Química.

Unlike part of the pharmaceutical sector, which has paid attention to dermocosmetics segment, Biolab does not want to expand its operations in this area. Marques is interested in working with dermatology, but for prescription drugs.

Biolab has 276 patent applications in several health areas, including radical innovation. The pharmaceutical group is not interested in entering into the segment of generic drugs (copies of drugs, which lost patent). “Our focus will be innovation”, said the entrepreneur.
 
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