Abbott buys Piramal's Healthcare Solutions

Abbott has completed its acquisition of Piramal's Healthcare Solutions business - one of the largest pharmaceutical companies in India with a growth track record of above 30 per cent CAGR since 1988 and consolidated revenues of $602m in 2006-07 – making it the leading pharmaceutical company in India.

Abbott, through a wholly-owned subsidiary, purchased the assets of Piramal's Healthcare Solutions business for a $2.2bn up-front payment with additional payments of $400m annually for the next four years, beginning in 2011.

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, maximising the opportunity in emerging markets. The business will continue to be led by its current India-based management team.

Commenting on the acquisition, Miles D White, chairman and chief executive officer of Abbott stated that it further strengthened Abbott's growing presence in emerging markets.

"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," he said.

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.

India's rapid pharmaceutical market growth is being driven largely by branded generics. The market will generate nearly $8bn 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 $2.5bn by 2020.

Over the past ten years, Abbott has established a leading presence in emerging markets and now more than 20 per cent of the company's total sales are generated in these growing economies.