Abbott Flees Struggling Business to Explore New Deals -- Market Talk
July 14 2014 - 06:21PM
Dow Jones News
1330 GMT By selling its mature-market branded generics unit to
Mylan (MYL) for $5.3 billion in stock, Abbott (ABT) will dump a
business that has been a drag on its sales and earnings growth,
Bernstein says. Abbott has struggled to revitalize the generics
business, which declined 4% last year, in the face of downward
pricing pressures from European austerity, Bernstein says. JPMorgan
now expects ABT "to be an aggressive acquirer going forward, with a
bolstered balance sheet and a strong cash flow position." ABT up
1.7 pre-market; MYL up 4.6%. (joseph.walker@wsj.com)
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