By Brad Haynes
SAO PAULO, March 11 (Reuters) - Hypermarcas SA's chief executive said on Monday the Brazilian drugmaker hasstarted the year with weaker sales than expected, but reaffirmedits target for operating profit this year.
Strong pharmaceutical sales led to a better-than-expectedprofit to end 2012, but a tough holiday calendar and uncertaintyabout new taxes on imported ingredients have weighed on demandto start the new year.
"We believe those factors should be compensated over thecourse of the year, but at this point it looks like growth inthe first quarter will be below our expectations," CEO ClaudioBergamo told analysts on a call to discuss earnings.
The company is still aiming for earnings before interest,taxes, depreciation and amortization of 950 million reais ($487million) this year, up 10 percent from 2012.
Ongoing frustration with weaker growth in Brazil mayeventually strengthen Hypermarcas' strategic position, Bergamosuggested, after a decade of robust economic expansion attractedthe attention of major global rivals.
"A lot of foreigners in Brazil were spooked to find it's acomplex country where it's difficult to compete. And the initialeuphoria is beginning to cool. I actually see a less competitiveenvironment now than we had in the past two years," he said.
Shares of the company were little changed in Sao Paulotrading on Monday, retreating from a nearly 10-month high earlyin the session.
NOT BIDDING ON ACHE LABS
Asked about the possible sale of rival Brazilian drugmakerAche Laboratorios Farmaceuticos, Bergamo said Hypermarcasremains focused on organic growth and is not participating inthe bidding process.
"An eventual merger with Ache could indeed make strategicsense for both companies, given their hugely complementaryproduct lineups," Bergamo said. "But you would have to make adetailed evaluation to be sure it's advantageous for Hypermarcasshareholders."
Hypermarcas has spent the past year streamlining operationsto generate cash after two dozen acquisitions since 2008 droveup debt levels and weighed on profitability.
Global drugmakers GlaxoSmithKline Plc, NovartisAG, Pfizer Inc and Abbott Laboratories are among those interested in Ache, which could be sold for $3billion or more, sources told Reuters last month.
Ache and representatives for all four companies havedeclined to comment on the matter.
Glaxosmithkline (GSK)