By Tatiana Bautzer

SAO PAULO (Reuters) – Brazil’s Hypera Pharma said on Monday that it has signed a contract to buy a portfolio of 18 products from Japan’s Takeda Pharmaceutical Co for $825 million.

Shares in Hypera soared on the news, and were up 14.1%, at 39.13 reais, in afternoon trading in Sao Paulo.

The acquired portfolio includes painkiller Neosaldina, as well as the motion sickness treatment Dramin and diabetes drug Nesina. Hypera Pharma said that following the transaction it will become Brazil’s top pharmaceutical company.

Hypera Chief Executive Breno Oliveira told analysts on a conference call that the purchase of the Takeda assets in Mexico would allow the Brazilian company to grow its distribution in Latin America.

Chief Financial Officer Adalmario Ghovatto do Couto said on the call that the deal would result in annual cost savings of up to 280 million reais a year.

Hypera has secured a 3.5 billion reais ($779.49 million)credit line to pay for the acquisition, which is contingent on approval by antitrust authorities and shareholders.

Two sources with knowledge of the matter said the credit was extended by Banco Bradesco SA and that Hypera is considering a potential share offering after the deal is completed to reduce the debt.

Hypera joined the bidding process for the Takeda products a month ago, the two sources added, after months of talks with Brazilian rival EMS failed to result in an agreement.

(Reporting by Tatiana Bautzer; Additional reporting by Alberto Alergiri and Paula Laier; Editing by Steve Orlofsky and Bill Berkrot)