BOGOTA, Colombia – French health care company Stallergenes SA announced the acquisition of Argentina's Alergo Pharma Srl as part of a plan to boost its presence in Latin America, while focusing on the diagnosis and treatment of allergies through diverse allergen immunotherapy-based solutions.

Based in Antony, France, Stallergenes acquired the entire share capital of the Argentinean company as part of its long-term strategy to penetrate fast-growing markets such as those in Latin America, that have a combined population of almost 600 million people.

"This acquisition will significantly enhance Stallergenes´ footprint in Latin America, and is consistent with our long-term strategy and commitment to fast-growing markets," said Stallergenes´ CEO Christian Chavy.

For Chavy, the strategy of consolidating Stallergenes presence in the Latin American market through Argentina has interesting potential, while Alergo Pharma´s experience and leadership in allergen immunotherapy (AIT) in the southern country becomes a key asset for Stallergenes.

"With its excellent market knowledge, an extensive distribution network and longstanding relationships with allergy specialists, Alergo Pharma is the leader in the AIT market in Argentina," Chavy said.

After this purchase, Stallergenes expects to consolidate its presence in Latin America, by tapping into Argentina and its larger neighbor Brazil.

According to Stallergenes, the prevalence of allergic rhinitis in Argentina ranges between 20 percent and 30 percent of the population, while 2.3 million people are diagnosed with allergy symptoms every year. But out of that figure, only 150,000 patients are treated with AIT.

"There is therefore a strong need for innovative standardized allergen immunotherapy treatments," said the French company last week.

As much as 7 percent of the population of Latin America is diagnosed with nasal allergies, according to a 2010 study titled, "Nasal allergies in the Latin American population: results from the Allergies in Latin America survey," published in Allergy and Asthma Proceedings. The allergies study was conducted in 2008 in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela. Two-thirds of the surveyed patients claimed to suffer from seasonal allergies and most of the patients stated to have taken medications to treat their allergies, mainly with over-the-counter drugs.

"The aim of the acquisition is to combine two complementary dedicated allergen immunotherapy companies, working together to provide a more comprehensive and broader range of diagnosis and treatment solutions to patients suffering from allergic respiratory diseases," Stallergenes said. The firm didn't disclose the value of the transaction.

The French company has about 1,000 employees and reported revenues of €248 million (US$333.1 million) in 2013, with operations in 20 countries in which as many as 500,000 patients are treated with the company´s products.

On July 23, Stallergenes´ board approved the financial statements for the first half of 2014, which counted €130 million in total revenues, up 1.2 percent from a year earlier.

The company noted that "the performance of international markets, which grew by 22.3 percent, reinforces the group's expansion strategy into new geographies. As market leader in Australia, Russia and the Middle East, Stallergenes achieved strong growth in these countries thanks to the increase in the number of prescribing physicians and patients," a strategy that would have to be tested in the Latin American region with the purchase of Alergo Pharma.

The company is confident in achieving positive results in South America, due to its performance in other developing markets. Now, with the recent introduction of AIT product Oralair, to the global markets, the company is expecting to maintain its 2014 total revenue target and to increase its EBITDA margin by three points to 28 percent in the year, and excluding the noncurrent income and expenses.

Oralair is a five-grass pollen sublingual allergen immunotherapy tablet with pre- and co-seasonal protocols.

"In the sublingual segment, the five-grass pollen immunotherapy tablet Oralair achieved sales growth of 26 percent to €18.1 million in the first half of 2014," the company said. According to Stallergenes, Oralair is now available in 23 countries and has achieved a 47 percent global market share in the grass pollen tablet segment, only in the countries where Oralair and its competitor Glazax, developed by ALK-Abelló A/S, from Hoersholm, Denmark, are available.

"This strong financial position allows the group to continue the international expansion plans as well as its clinical development programmes," the company said.