Abbott completes Solvay acquisition
pharmafile | February 16, 2010 | News story | Sales and Marketing | Abbott, Solvay
Abbott has completed its $6.2 billion acquisition of Solvay’s pharma division.
The acquisition is expected to add $2.9 billion to Abbott’s 2010 reported sales and boost its investment in R&D by $500 million.
Abbot is also expecting Solvay to further enhance its geographic reach through established presences in key emerging markets in Eastern Europe and Asia.
“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 Abbott chief executive Miles White.
“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.”
Oliver Bohoun, executive vice president of Abbott’s pharmaceutical products group, said: “The combination of Solvay and Abbott’s pharmaceutical businesses will enable Abbott to attain leadership in key emerging markets, where there is significant opportunity for branded generics.
“The addition of Solvay Pharmaceuticals is the catalyst for Abbott’s growth and leadership in this area, and will ensure Abbott has the infrastructure, reach and product offerings to continue meeting the needs of patients around the world.”
Abbott was one of several pharma companies, among them Nycomed and Belgium-based pharma company UCB, competing to acquire Solvay in 2009. Abbott eventually won out, aided by existing agreements with Solvay that include US marketing rights for its best-selling anti-cholesterol fenofibrate franchise.
Solvay intends to reinvest the proceeds of the sale in high value-added activities and strategic projects in chemicals and plastics.
It will do this by continuing it geographical expansion into regions with growth potential and developing new low energy footprint products to reduce the cyclicality in Solvay’s portfolio of activities.
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