Abbott to Purchase Russian Generics Firm Veropham
Abbott said it will purchase Russian generic drugmaker Veropham for up to $495 million in a deal that expands the company's worldwide drug manufacturing presence and strengthens its 40-year commitment to Russia.
According to the agreement, Abbott will acquire Garden Hills, a holding company that owns a controlling interest in Veropharm. The amount it pays will depend on the amount of Veropharm shares that Garden Hills owns at the time of close, which is expected to be more than 95 percent, up from the current 80 percent. Abbott will also assume $136 million in debt, it said.
Abbott will take over Veropharm’s three existing Russian facilities as well as a new state-of-the-art manufacturing plant now under construction. The company has a chemical and pharmaceutical plant in Voronezh, and plants in Belgorod and Pokrov that specialize in ready-made medications, Abbott said, adding that it plans to expand Veropharm’s capabilities and enhance the existing infrastructure.
The Chicago-based Abbott will also obtain a portfolio of more than 100 medicines that align with the company’s focus on central nervous system, cardiovascular, women's health and gastroenterology, while adding an oncology offering, it said.
Abbott has operated in Russia since 1978, and maintains a headquarters in Moscow. The deal comes on the heels of Abbott’s $2.9 billion purchase last month of another generic drugmaker, Chilean company CFR Pharmaceuticals. — Kellen Owings
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