Abbott completes $6.2bn Solvay acquisition

Abbott has announced that it has completed its acquisition of Solvay Pharmaceuticals in a deal worth $6.2bn (€4.5bn). The takeover of the Belgian company provides Abbott with a large and complementary portfolio of pharmaceutical products, helping to expand the company' presence in key global emerging markets.

"The acquisition of Solvay Pharmaceuticals is a key part of Abbott's strategy to bolster our presence in key markets and deliver sustainable, industry-leading growth," said Miles D White, chairman and CEO of Abbott.

"In addition to taking both Abbott and Solvay products into new and expanding markets, the acquisition enhances our R&D investment, providing Abbott with the opportunity to drive future pharmaceutical growth."

The acquisition is expected to add around $2.9bn to Abbott's total reported sales for 2010. The majority of which will be outside the US and will add around $500m to the company's annual pharmaceutical R&D investment.

Included in the deal are milestone payments of up to €300m if certain sales points are met between 2011 and 2013.

The products gained from Solvay include treatments for men's and women's hormonal health; and exocrine pancreatic insufficiency (inability to properly digest food), which is associated with several underlying conditions including cystic fibrosis and chronic pancreatitis. These therapies will complement Abbott's presence and expertise in speciality markets such as cardiovascular disease, neuroscience and gastroenterology and help Abbott to further diversify its business, providing significant growth opportunities.

Olivier Bohuon, executive vice president, Pharmaceutical Products Group at Abbott said: "The addition of Solvay Pharmaceuticals is the catalyst for Abbott's growth and leadership in this [key emerging markets] area, and will ensure Abbott has the infrastructure, reach and product offerings to continue meeting the needs of patients around the world."