Abbott completes acquisition of Solvay Pharmaceuticals
Based on the timing of the close, Abbott expects the acquisition to add approximately $2.9 billion to Abbott's 2010 total reported sales, the majority outside the U.S., and add approximately $500 million to Abbott's annual pharmaceutical R&D investment.
Solvay brings consistently performing products that 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 (inability to properly digest food), which is associated with several underlying conditions including cystic fibrosis and chronic pancreatitis.
"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," said Olivier Bohuon, executive vice president, Pharmaceutical Products Group, Abbott.
Solvay Pharmaceuticals is now part of Abbott's global Pharmaceutical Products Group. Werner Cautreels, chief executive officer of Solvay Pharmaceuticals, will serve in a transitional role and will then leave the company.
The impact of the Solvay Pharmaceuticals acquisition has been reflected in Abbott's previously issued earnings-per-share guidance for the first-quarter and full-year 2010. The transaction also includes payments of up to EUR 300 million if certain sales milestones are met between 2011 and 2013. ■