Veropharm acquisition boosts Abbott’s generic business


Global healthcare major Abbott Laboratories has completed its acquisition of Russian pharmaceutical company Veropharm for 16.7 billion rubles ($305 million) in an all-cash deal. Veropharm is one of the leading generic drug manufacturers in Russia, and the deal will give Abbott a manufacturing presence in the country. The deal makes sense in light of Abbott’s recent efforts to expand its generic drug business in high-growth emerging markets such as China, India, Latin America and Russia because of sustained sluggishness in developed markets. Per the terms of the deal, Abbott acquired limited liability company Garden Hills, which currently owns 98% of Veropharm. Abbott also assumed Veropharm’s net debt of 4.7 billion rubles ($136 million) as part of the deal. Veropharm is expected to contribute about $150 million to company sales in 2015.

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