MEDIA RELEASE PR41134
Abbott Completes Acquisition of Piramal's Healthcare Solutions Business, Becomes Leading
Pharmaceutical Company in India
ABBOTT PARK, Ill., Sept. 8 /PRNewswire-AsiaNet/ --
Deal propels Abbott to top position in India with
pharmaceutical sales expected to exceed US$2.5 billion by 2020
Abbott (NYSE: ABT) has completed its acquisition of Piramal's Healthcare
Solutions business, propelling it to market leadership in the Indian
pharmaceutical market and further accelerating the company's growth in
emerging markets.
Throughout the past decade, Abbott has established a leading presence in
emerging markets - today, more than 20 percent of the company's total sales
are generated in these growing economies.
"The acquisition of Piramal's Healthcare Solutions business further
strengthens Abbott's growing presence in emerging markets," said Miles D.
White, chairman and chief executive officer, Abbott. "Piramal's portfolio of
well-known, trusted products has served patients in India for decades.
Combined with existing product offerings, Abbott is uniquely positioned to
meet the needs of one of the world's fastest-growing pharmaceutical markets."
India's rapid pharmaceutical market growth is being driven largely by
branded generics. The market will generate nearly US$8 billion in
pharmaceutical sales this year, a number that is expected to more than double
by 2015. Abbott expects its pharmaceutical sales in India to exceed US$2.5
billion by 2020.
Piramal's Healthcare Solutions business has a comprehensive portfolio of
branded generics, including market-leading brands in multiple therapeutic
areas, including antibiotics, respiratory, cardiovascular, pain and
neuroscience.
The Healthcare Solutions business will operate as a separate business
unit, reporting into Abbott's newly-created Established Products Division
(EPD), which was formed to focus on branded generics, maximizing the
opportunity in emerging markets. The business will continue to be led by its
current India-based management team.
"Piramal's proven business model in India and experienced local
leadership team, combined with the global resources of Abbott, will allow us
to build upon Piramal's commitment to quality and service," said Michael J.
Warmuth, senior vice president, Established Products, Pharmaceutical Products
Group, Abbott.
Abbott now employs approximately 10,000 people across all of its
businesses in India.
Abbott, through a wholly-owned subsidiary, purchased the assets of
Piramal's Healthcare Solutions business for a US$2.2 billion up-front payment
with additional payments of US$400 million annually for the next four years,
beginning in 2011. This transaction will not impact Abbott's ongoing earnings
per share guidance in 2010.
About Abbott
Abbott is a global, broad-based health care company devoted to the
discovery, development, manufacture and marketing of pharmaceuticals and
medical products, including nutritionals, devices and diagnostics. The
company employs nearly 90,000 people and markets its products in more than
130 countries.
Abbott's news releases and other information are available on the
Abbott Forward-Looking Statement
Some statements in this news release may be forward-looking statements
for purposes of the Private Securities Litigation Reform Act of 1995. Abbott
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect Abbott's
operations are discussed in Item 1A, "Risk Factors," to our Annual Report on
Securities and Exchange Commission Form 10-K for the year ended Dec. 31,
2009, and in Item 1A, "Risk Factors," to our Quarterly Report on Securities
and Exchange Commission Form 10-Q for the period ended March 31, 2010, and
are incorporated by reference. Abbott undertakes no obligation to release
publicly any revisions to forward-looking statements as a result of
subsequent events or developments.
SOURCE: Abbott
CONTACT: Media,
Scott Stoffel,
+1-847-682-8403,
scott.stoffel@abbott.com,
or Adelle Infante,
+1-847-938-8745,
adelle.infante@abbott.com,
or Financial, Larry Peepo,
+1-847-935-6722, all of Abbott
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