Roche sees LatAm exports, denies merger

15 October 1999 16:33  [Source: ICIS news]

SAO PAULO (CNI)--Swiss pharmaceutical giant Roche will expand it operations in Brazil, Mexico and Argentina, with a view to exporting, Roche chief executive Franz Humer told a press conference here Friday.

"We will maintain our investment plans for the region and Brazil intact, despite the fact that revenues have fallen much more than expected here [Brazil]," Humer said.

Roche will invest $260m (Euro241m) in Latin America over the next two years, he noted. Humer said that Roche "will spend $60m in Brazil, another $30m in Argentina, and around $40m in Mexico" in each of the next two years.

Humer said the company believes demand will rise slightly next year and will reach pre-Asian crisis levels by 2001. "We will use this period to strengthen our operations in the region," he said.

The company also plans to make use of the region's competitive advantages and start exporting to other markets. "I see a time in the near future when countries with a market like Brazil's will make certain products for global supply," said Humer. He declined to expand on the company's plans.

Roche reported profits of $425m from its Brazilian operations last year, $348m of which came from the sales of drugs.

Humer also categorically denied the rumours of a merger with Roche's arch-competitor Novartis. "There is no reason to merge with Novartis. We have looked at our pipeline, our cashflow and our position as global market leader in vitamins and pharmaceutical distribution and cannot justify such a move," he said.

By: Alastair Stewart
+1 713 525 2653

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