NYSE-listed pharma major Abbott Labs has inked a deal with Piramal Healthcare to acquire Piramal’s Healthcare Solutions business. Abbott to Become No. 1 Pharmaceutical Company in India with Acquisition of Piramal’s Healthcare Solutions Business. May 21, am. N) will pay $ billion to acquire the branded generics business of Piramal’s healthcare solutions accounted for about 55 percent of its.

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Mexico, for example, is in the process of changing its healthcar to require generics to be bioequivalent, she says. You have to create a whole organization, and that takes time. In Germany, Abbott has approximately 2, employees working in manufacturing, research and development, logistics, sales and marketing.

Abbott buys Piramal unit, tops table

More news by Abbott. Related Videos ET Now: Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community.

It is paying roughly 8. For consumers, the great value in generics is getting it cheaper. Read Post a comment. But new Wharton research provides better insight into the benefits of PE buyouts. Abbott has been operating in India for of its healrhcare, and has popular pharmaceutical brands including the antacid Digene and painkiller Brufen.

Globalization is not just for manufacturers.

At the same time, hopes have receded of a wholly Indian pharmaceutical major emerging as a global player. It will, however, continue research in drug discovery through an affiliate company.

Obviously, whoever wants to strengthen Indian presence through buyouts, will have to shell out much more due to acuqisition higher demand for Indian assets.


The Indian drug piramak, which itself has made 15 acquisitions sinceinsists it will remain in the industry and invest in the remaining business.

Globally, Abbott also faces the pressure of playing catch-up with its healthcage rivals. All the same, the West continues to dominate pharmaceutical innovation, and companies in India and other emerging markets could play a supportive role, according to Danzon.

But that is also changing, she says. Analysts say the Indian firm will take time to incubate new businesses and even longer for returns to accrue. Over the past ten years, Abbott has established a leading presence in emerging markets and now more than 20 per cent of the company’s total sales are generated in these growing economies. Several other deals occurred over the past one year. This is no different for Chinese firms. Disagreements over valuation have prevented more deals from getting done.

India’s rapid pharmaceutical market growth is being driven largely by branded generics. Share on Facebook Share on Twitter. According to Abbott, this deal further accelerates Abbott’s emerging markets growth following the recent acquisition of Solvay Pharmaceuticals and announcements last week of Abbott’s collaboration with Zydus Cadila as well as the creation of a new stand-alone Established Products Division to focus on expanding the global markets for its leading branded generics portfolio.

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Abbott buys Piramal’s pharma arm for $bn – Times of India

Chaudhuri acknowledges those new realities, but with a patriotic tinge. Piramal’s Healthcare Solutions business has a comprehensive portfolio of branded generics, including market-leading brands in multiple therapeutic areas, including antibiotics, respiratory, cardiovascular, pain and neuroscience.

Abbott, which will fund the transaction with cash on the balance sheet, says, the deal will be conducted through its wholly-owned subsidiary. Please login to the form below. Business RBI to release new Rs. Combined with existing product offerings, Abbott is healyhcare positioned to meet the needs of one of the world’s fastest-growing pharmaceutical markets.


According to Reuters, Abbott was advised by Morgan Stanley.

As Abbott wanted to make a significant presence in India, they feel it is reasonable. We combine fresh and creative thinking with scientific and strategic depth These other players are not even interested in doing that.

Abbott To Acquire Piramal Healthcare Unit For $B | VCCircle

Its other businesses include third-party manufacturing and pathology laboratories. Abbott plans to fund the deal with cash on its balance sheet and said it would not change its earnings outlook for Wharton professor of healthcare management Patricia Danzon agrees.

Abbott announced it intends to close the acquisition of St. For MNCs, emerging markets, with their cheaper generic medicines, are turning out to be the new battleground, given that most are witnessing stalled sales in Western markets.

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Infibeam calls off pact to acquire Snapdeal unit Unicommerce. BOthe U. Abbott will pay Rs per share. Piramal justified the sale by saying that future value from the branded generics business would come from business growth outside India. The hunter has become the hunted. DE please activate JavaScript. Food and Drug Administration said in February Ranbaxy sold misbranded or adulterated drugs in the United States, its largest market, having earlier banned imports of over 30 generic drugs from the firm.