Abbott Laboratories agreed to acquire the controlling
shareholder in Russian drug maker Veropharm for between 13.6
billion rubles and 17 billion rubles ($395 million and $495
million), a deal that give the U.S. pharmaceutical company a
manufacturing presence in that country.
Under the deal, Abbott will acquire Garden Hills, a holding
company with a current Veropharm stake of more than 80% that is
expected to rise to more than 95% by the deal's closing. The final
price will be based on Garden Hill's stake in Veropharm when the
acquisition is completed. Abbott also will assume net debt of 4.7
billion rubles.
Abbott expects the acquisition, expected to close in the fourth
quarter, will add $150 million to its sales next year but won't
affect its per-share earnings outlook for 2014.
Abbott said it is acquiring a portfolio of more than 100
products that are well aligned with its areas of focus in women's
health, central nervous system, cardiovascular, and
gastroenterology, while also adding an offering in oncology.
Earlier Monday, Shire PLC and Abbott spinoff AbbVie Inc.
separately set out new financial targets to investors, after
Dublin-based, U.K.-listed Shire rejected a $46 billion takeover
advance from its U.S. rival Friday. AbbVie, which Abbott spun off
in early 2013, is trying to reduce its reliance on the
rheumatoid-arthritis treatment Humira--the world's top-grossing
prescription drug and responsible for more than half AbbVie's
sales.
Write to Tess Stynes at tess.stynes@wsj.com
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