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Vetoquinol finalizes acquisition of Brazil's Clarion Biociencias

With acquisition, Vetoquinol strengthens foothold in Brazil, with potential in livestock and parasiticides.

Vetoquinol confirmed April 16 the completion of its acquisition of Clarion Biociências, a Brazilian veterinary laboratory. Founded in 1998, Clarion develops, manufactures and distributes veterinary medicine and non-medicinal products primarily targeting the livestock market.

Due to its geographical presence at the very heart of Brazil’s bovine breeding area, the laboratory enjoys a strong market share in the bovine segment (which accounts for more than half of the Brazilian animal health market), particularly with internal and external parasiticides, Vetoquinol said.

Clarion employs around 200 people, including a salesforce of 70 people. The company generated net sales of more than 50 million Brazilian Reais (around 12 million euros) in 2018.

With this acquisition, Vetoquinol Group significantly strengthens its foothold in Brazil, the world’s third-largest animal health market. Vetoquinol first entered the market in 2011 with Vetoquinol Saúde Animal; since then, the group has been focused on the development of its Essentials products for beef and dairy cattle, swine and companion animals, the company explained.

Clarion has a strong product pipeline close to being launched in both the bovine and companion animal markets; some of these products will also be launched in the swine market in which Clarion does not currently play. All of these promising projects, together with the underlying Vetoquinol projects, are expected to generate some substantial commercial synergies, the announcement said.

Vetoquinol’s acquisition of a 90% equity stake in Clarion is entirely self-financed.

“We have been seeking to strengthen our business on this strategic market where our presence has been weak so far. Brazil is the world’s number-one bovine meat producer and exporter. Also, the companion animal market is booming. The potential for growth offered by Clarion Biociências existing and future products, and the expected synergies with the Vetoquinol Essentials products, mark an important milestone for Vetoquinol’s growth engine in the coming years,” Vetoquinol chief executive officer Matthieu Frechin said.

Vetoquinol is a global player in the animal health sector with a presence in Europe, the Americas and the Asia-Pacific region. It designs, develops and sells veterinary drugs and non-medicinal products intended for the livestock (cattle and pigs) and pet (dogs and cats) markets. Since its foundation in 1933, Vetoquinol has pursued a strategy that combines innovation with geographical diversification.

In North America, Vetoquinol USA was incorporated in 1994 in Delaware and established headquarters in Ft. Worth, Texas, in 2009. Vetoquinol USA is highly dedicated to pet health and pet care and focuses on the development, production and marketing of pharmaceutical products and health supplements.

In 2014, Vetoquinol USA launched a large animal business focused on providing high-quality and efficacious products to cattle producers and horse owners in the U.S. The large animal offerings include products for behavior, joint health, immune support and calf care.

TAGS: Business
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