In February 2006, we realized our investment in Fada Pharma, Argentina’s leading manufacturer of generic pharmaceuticals for the institutional market.
Founded in 1938, the company is a major supplier to the nation’s leading healthcare institutions, such as Fleming, Fundacion Favaloro, Hospital Italiano, Hospital Britanico and the Ministry of Health. It also sells to nearly all major private hospitals in the Buenos Aires metropolitan area as well as to clinics and retail pharmacies across the country. With a core focus on injectable drugs, the group offers more than 180 products in 200 presentations, including injectable fluids, antiseptic liquids, oral solids, syrups, drops and topical creams.
Advent acquired Fada in 2001 and transitioned the company from a successful family-run business to a highly professional organization with multinational standards. Led by new management, Fada developed a more competitive product portfolio, improved production capabilities and established a presence in the retail channel through sales to drugstore chains. In 2003, the company acquired a production plant from Wyeth-Whitehall that allowed it to expand capacity and enter the fast-growing oral solids market. It also increased exports from 4% to 15% of total sales during Advent’s investment.
Despite a prolonged economic crisis that saw the devaluation of the Argentina peso and collapse of several competitors, Fada increased revenue by 61% over three years, to $25 million in 2005, and remained profitable. Through sound management, the company had emerged from a difficult period with an expanded product portfolio and greater market share, resulting in a stronger position overall in the generics market. With the acquisition by Polygon Labs, Fada joins a larger generics group that includes Argentine companies Hexa and Ahimsa.