Watson Pharmaceuticals, Inc.
(NYSE: WPI) and Moksha8, based in Sao Paulo, Brazil, today announced that they have
entered into an agreement that will expand Watsons commercial presence in Latin Americas
two largest markets, Brazil and Mexico. Watson will invest $30 million in Moksha8 as part of
Moksha8s approximately $61 million USD financing that includes investments from existing
investors TPG Biotechnology and Montreux Equity Partners. As a result of this agreement,
Watson immediately gains a significant minority ownership position in Moksha8. Watson has
also committed to invest an additional $20 million, further increasing its equity position,
contingent upon successful execution by Moksha8 of additional third-party product acquisitions
over the next year. In conjunction with its investment in Moksha8, Watson has designated a
representative to serve as a member of the Moksha8 board of directors.
\"This unique partnership further demonstrates our commitment to expand our global footprint
through creative business solutions that maximize the commercial opportunities for our current
portfolio of brands and branded generics, establish the foundation for future growth in high value
and expanding markets, and creates immediate value for both partners,\" said Paul Bisaro,
Watson\'s President and Chief Executive Officer.
\"The management team of Moksha8, led by Simba Gill, has a proven track record of effectively
commercializing products within the brand and branded generic markets of Mexico and Brazil.
This agreement, which provides Watson with an initial equity position, enables us to help fund
Moksha8s expansion and to share in their continued success. The partnership complements
Watsons existing commercial operations in Brazil, while establishing an expanded longer-term
strategy to grow our presence in Brazil, establish our presence in Mexico and develop a pan-
Latin American growth strategy, Bisaro continued.
The addition of Watson to our current business expands our existing portfolio and pipeline of
high quality products for the Latin America market, said Simba Gill, Chief Executive Officer of
Moksha8. Further, this partnership marks moksha8s entry into the rapidly growing branded
generics market and immediately strengthens our position as a leader in the treatment of CNS
disorders including depression, anxiety and schizophrenia.
Watson will manufacture and supply select products to Moksha8, which will have exclusive
rights to market, sell and distribute these products in Brazil and Mexico. Moksha8 and Watson
have initially identified approximately one dozen product candidates, with the opportunity to
expand the commercialization and marketing agreement to include additional products in the
Watson will continue to own all marketing authorizations, and Moksha8 will be responsible for
sales, marketing and commercialization expenses.
Moksha8 currently markets 21 branded products for third parties in Latin America, utilizing a
field force of approximately 180 sales representatives in the areas of CNS, infectious disease
and pain. Combined, Brazil and Mexico make up 75% of the $40 billion USD Pharmaceutical
market in Latin America. Moksha8 is the high quality partner of choice for pharmaceutical and
biotechnology companies seeking to capture value in Latin America.
Watson currently manufactures and markets select generic products in the Brazilian
marketplace through a Brazilian subsidiary. This venture will have no impact on that
subsidiarys current operations, including current management, manufacturing and supply chain;
Moksha8 will complement Watsons Brazilian sales and marketing capabilities.
Moksha8 is a leading pharmaceutical company in Latin America. The company is partnered with Roche, Pfizer, BioCryst and Watson in Brazil and Mexico. Moksha8 was founded in 2007 by Simba Gill and TPG Biotechnology. Major investors include TPG Biotechnology and Montreux Equity Partners. For additional information on Moksha8, please visit the companys Web site at email@example.com
Media: Brian Reid (WCG) (212) 267-6725