Abbott completes acquisition of Solvay Pharmaceuticals

The deal gives Abbott a footprint in Eastern Europe and Asia, where it has so far had a limited presence, as well as more exposure in Latin America and the Middle East, while also adding new drugs for hypertension and Parkinson’s disease to Abbott’s pipeline.

“The acquisition of Solvay Pharmaceuticals further diversifies our pharmaceutical portfolio, expands our presence in key high-growth emerging markets, enhances our investment in R&D and accelerates our long-term earnings-per-share growth outlook,” according to Miles D. White, chairman and CEO of Abbott. The addition of Solvay provides Abbott with “a large and complementary portfolio of pharmaceutical products and a significant presence in key global emerging markets,” he adds, and also includes full global rights to the fenofibrate franchise. Previously, Abbott had U.S. rights to fenofibrate and paid royalties to Solvay.

The acquisition also includes Solvay’s vaccines business, which will provide Abbott entry into the expanding global vaccines market. Solvay also has a small molecular diagnostics unit that will become part of Abbott’s diagnostics organization upon the transaction close.

The European Commission, however, had initiated an antitrust probe of Abbott’s planned deal and early this monthThe European Union gave the green light to the deal with the decision being conditional upon the divestment of the cystic fibrosis testing business of Solvay’s subsidiary Innogenetics in Europe.

“In anticipation of future market needs, we are ensuring we have the technologies, products, infrastructure and reach to serve patients globally and continue to deliver sustainable industry-leading growth,” White says. “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. 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.”

Abbott notes that it has a strong portfolio of specialty pharmaceuticals and Solvay brings successful, consistently performing products—including branded generics—that will further diversify Abbott’s pharmaceutical business. These products complement Abbott’s presence and expertise in specialty markets such as cardiovascular disease, neuroscience and gastroenterology, and include treatments for men’s and women’s hormonal health, and exocrine pancreatic insufficiency, which is associated with several underlying conditions such as cystic fibrosis and chronic pancreatitis.

Solvay’s pharmaceutical unit generated just over $2.75 billion in sales in the first nine months of 2009, up 5 percent from the same period a year earlier. Products for cardio-metabolic needs and for men’s and women’s health made up most of the company’s sales.

Source: DDN