Comprehensive portfolio of market-leading branded generics spans multiple therapeutic areas
Abbott has reached a definitive agreement with India’s Piramal Healthcare to acquire full ownership of the company’s Healthcare Solutions business (Domestic Formulations), for an up-front payment of US$2.12bn, plus $400m annually for the next four years.
Piramal Healthcare Solutions is a leader in the Indian branded generics market, and the deal will give Abbott the number one position in the Indian pharmaceutical market with annual sales growth approaching 20% in India, and expected to exceed $2.5bn by 2020.
The Mumbai-based Piramal Healthcare Solutions business has a comprehensive portfolio of branded generics with annual sales expected to exceed $500m next year in India, and market-leading brands in multiple therapeutic areas, including antibiotics, respiratory, cardiovascular, pain and neuroscience. This business grew 23% in the year ended 31 March 2010), faster than the market in India.
‘This strategic action will advance Abbott into the leading market position in India, one of the world's most attractive and rapidly growing markets,’ said Miles D. White, chairman and ceo, Abbott. ‘Our strong position in branded generics and growing presence in emerging markets is part of our ongoing diversified pharmaceutical strategy, complementing our proprietary pharmaceutical offerings and pipeline in developed markets.
‘Emerging markets represent one of the greatest opportunities in healthcare across all of our business segments. Today, emerging markets represent more than 20% of Abbott's total business,’ he added.
The move further accelerates Abbott's emerging markets growth following the recent acquisition of Solvay Pharmaceuticals and its collaboration with Zydus Cadila as well as the creation of a new stand-alone Established Products Division to focus on expanding the global markets for its branded generics portfolio. Piramal's Healthcare Solutions business will become part of the Established Products Division.