Abbott will sell its developed markets branded generics pharmaceuticals business to Mylan for equity ownership of a newly formed entity that will combine Mylan’s existing business and Abbott’s developed markets pharma business, and will be a publicly traded company. Abbott will retain its branded generics pharma business and products in emerging markets. Abbott also retains its other businesses and products in developed markets.
“This transaction provides Abbott with additional strategic flexibility as we continue to actively manage and shape our portfolio, reflecting our commitment to long-term, durable growth,” said Miles D White, Chairman and Chief Executive Officer, Abbott. “Our branded generics pharma business will focus on emerging markets, where demographic changes and increasing access to healthcare are expected to drive sustainable growth.”
Following the closing of the transaction, Abbott’s branded generics pharma business will focus in emerging geographies where demographics and growing healthcare systems are combining to create an increased rate of patient access to healthcare and where the majority of healthcare products are paid for by the consumer.
Under the terms of the agreement, Abbott will sell its developed markets branded generics pharma business to Mylan for 105 million shares or approximately 21 per cent, on a fully diluted basis, of a newly formed entity that will combine Mylan’s existing business and Abbott’s developed markets pharmaceuticals business, and will be a publicly traded company.
The business to be sold operates in Europe, Japan, Canada, Australia and New Zealand and includes approximately 3,800 employees. It includes a broad portfolio of medicines, as well as manufacturing facilities in France and Japan. Abbott will retain its product portfolio and manufacturing facilities in other geographies as well as its manufacturing facilities in the Netherlands, Germany and Canada.
EP News Bureau– Mumbai