Abbott buys Piramal's drug business

Abbott, which is celebrating its 100th year in India and owns such brands as Creamffin, Brufen and Digene, will make an upfront payment of $2.12 billion to Ajay G Piramal-led firm, apart from $400 million annually for four years, the two companies said.

“With this deal, the combined healthcare solutions of Abbott businesses will become clear market leader in India, with a market share of around 7 per cent,” said Chairman Piramal, whose company owns brands like Phensedyl, Paraxin and Pentids.  Abbott estimates the growth of its pharmaceutical business in India after Piramal acquisition to touch 20 per cent annually and log $2.5 billion by 2020. The Piramal group’s turnover across several business had exceeded $1 billion in 2009-10.

Of this, Piramal’s portfolio of branded generics is expected to log sales of over $500 million, with brands spanning multiple therapeutic drugs and formulations, including antibiotics, respiratory, cardiovascular, pain and neuroscience. “This strategic action will advance Abbott into the leading market position in India — one of the world’s most attractive and rapidly growing markets,” said Miles D White, Chairman & Chief Executive Officer of Abbott.
Indo-Asian News Service