Japan-based Takeda Pharmaceuticals has increased its presence in Brazil with a BRL500m ($251.4m) acquisition of Multilab Indústria e Comércio de Produtos Farmacêuticos.

The owners of Multilab could also be eligible for a further BRL40m ($20.1m) in additional future milestone payments and the deal is expected to be finalised by the end of Q2, 2012. Other financial conditions have not been disclosed.

The deal will see Takeda Brazil, a wholly-owned subsidiary of Takeda, acquire the company, which sells both branded generics and over-the-counter (OTC) pharmaceutical products. Multilab achieved annual net revenue of BRL140m ($70.39m) in 2012, having seen retail sales grow 20% between 2009 and 2011.

Multilab’s portfolio consists of well known brands including Neosaldina, Eparema and Nebacetin, however Takeda will be most buoyed by adding Multigrip, Brazil’s best-selling OTC cold and flu treatment, to its OTC product line.

"Takeda will become one of the top ten pharmaceutical companies in Brazil."

As a result of the acquisition, Takeda will become one of the top ten pharmaceutical companies in Brazil and benefit from Multilab’s established regional distribution channels within the country.

Jostein Davidsen, Takeda emerging markets commercial operations head and corporate officer, said the acquisition reinforces Takeda’s position in Brazil.

"Takeda has ambitious plans for growth in emerging markets. Brazil is our second largest emerging market after Russia / CIS in terms of revenues and the acquisition of Multilab is a clear signal of our intention to become a significant player both in Brazil and other high-growth markets," added Davidsen.