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September 22, 2019
BUSINESS

Abbott buys CFR Pharmaceuticals for USD 2.9 bn

Abbott Laboratories agreed to buy CFR Pharmaceuticals for USD 2.9 billion to expand its business in the fast-growing Latin American markets, according to a press release.
Abbott will acquire the holding company that indirectly owns about 73 percent of Santiago, Chile-based CFR and will conduct a public cash offer for all outstanding shares of CFR. Abbott will also assume CFR’s debt of about USD 430 million.
The transaction, which more than doubles Abbott’s Latin American branded generics business, will make the company among the top 10 drug companies in the region, according to usatoday.com. In branded generics manufacturing arrangements, a company makes a drug that is equivalent to the original product but is marketed under another company’s brand. CFR operates in 15 Latin American countries, with more than 1,000 products that match Abbott’s current focus areas in women’s health, central nervous system, cardiovascular and respiratory diseases. With about 7,000 employees, CFR runs R&D and manufacturing facilities in Chile, Colombia, Peru and Argentina.
The deal will add about USD 900 million to Abbott’s sales in 2015, and the company expects “double-digit” sales growth in the next several years. The pharmaceutical market in Latin America is projected to reach USD 73 billion in sales this year and grow to USD 124 billion by 2018, Abbott said. The deal is expected to be completed by the end of the third quarter.

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