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Abbott strikes $3.3bn Latin America generics deal

Boosts portfolio in region with acquisition of CFR Pharmaceuticals
Abbott headquarters

Abbott has expanded its presence in the Latin American region with the purchase of CFR Pharmaceuticals and its portfolio of generic medicines.

Abbott, which spun out its research-focused pharma division as AbbVie last year, will pay a total of $3.33bn for Chile-based CFR, comprising a purchase price of $2.9bn and the assumption of net debt of $430m.

The deal more than doubles Abbott's presence in Latin America and makes the company among the top 10 pharma firms in the region.

It is a region that is growing in significance for the industry, with the market for pharmaceutical products in Latin America set to grow in value from $73bn in 2014 to $124bn by 2018.

With the purchase of CFR, Abbott will add a portfolio of generic products covering women's health, infectious diseases, skincare and more. These products are currently marketed by CFR in 15 regions in Latin America, led by Chile, Peru, Argentina and Columbia.

Abbott said it expects the acquisition to add $900m to its sales in the first full year after completion and help it achieve double-digit sales growth over the next several years, thanks to strong growth at CFR, whose annual revenues climbed from $490m in 2011 to $767m in 2013.

Miles White, chairman and chief executive officer at Abbott, said: "This acquisition will significantly enhance and broaden Abbott's Latin American footprint, and is well aligned with our long-term strategy and commitment to fast-growing markets."

In addition to acquiring CFR's product portfolio, Abbott will also take control of 7,000 employees as well as R&D and manufacturing facilities in several South American countries.

Article by
Thomas Meek

19th May 2014

From: Research, Sales

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