Abbott poised to take top spot in India
pharmafile | May 21, 2010 | News story | Sales and Marketing | Abbott, India, Piramal, em
Abbott has acquired Indian firm Piramal’s Healthcare Solutions business in a deal that is set to make it the number one pharma company in the country.
Abbott will pay $2.1 billion for the business, which is a leader in the Indian branded generics market, with an additional $400 million a year earmarked for the four years from 2011.
Miles White, chairman and chief executive of Abbott, said: “This strategic action will advance Abbott into the leading market position in India, one of the world’s most attractive and rapidly growing markets.
The company says the addition of Piramal’s Healthcare Solutions business to its existing Indian operations will propel it into the number one spot in India, with annual sales growth forecast to reach 20% and sales expected to exceed $2.5 billion by 2020.
Ajay Piramal, chairman of the Piramal Group, said: “With this deal, the combined healthcare solutions and Abbott businesses will become the clear market leader in India, with a market share of approximately seven percent.”
“This was our collective vision and I am glad that those who are part of Piramal’s Healthcare Solutions business will realise this dream.”
India is already one of the world’s largest-growing markets, generating nearly $8 billion in sales this year and this expected to double by 2015.
White continued: “Our strong position in branded generics and growing presence in emerging markets is part of our ongoing diversified pharmaceutical strategy, complementing our market-leading proprietary pharmaceutical offerings and pipeline in developed markets.”
“Emerging markets represent one of the greatest opportunities in healthcare – not only in pharmaceuticals – but across all of our business segments. Today, emerging markets represent more than 20% of Abbott’s total business,” he said.
The Piramal deal add to recent activity that saw Chicago-based Abbott acquire Solvay and seal a recent deal with Zydus Cadila, both moves aimed at furthering the company’s reach into emerging markets.
Ben Adams
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