Abbott Park, Illinois (ots/PRNewswire) -
- Diversifies Abbott's pharmaceutical products, expanding
international growth platform
- Supports long-term strategy to bolster presence in key global
- Adds substantial R&D spending capacity to accelerate promising
- Establishes Abbott's presence in the growing global vaccines
- Provides accretion of approximately US$0.10 to ongoing EPS in
2010, accelerating to more than US$0.20 by 2012, increasing
Abbott today announced a definitive agreement with the Solvay
Group for Abbott to acquire Solvay's pharmaceuticals business for EUR
4.5 billion (US$6.6 billion) in cash, providing Abbott with a large
and complementary portfolio of pharmaceutical products and a
significant presence in key global emerging markets. The acquisition
also includes full global rights to the fenofibrate franchise.
Currently Abbott has U.S. rights to fenofibrate and pays royalties to
Belgium-based Solvay Pharmaceuticals will add more than US$3
billion in annual sales, the majority outside the U.S. Solvay has
significant presence and infrastructure in key high-growth emerging
markets, including Eastern Europe and Asia. Emerging markets are
growing faster and increasing in importance due to demographics,
rising incomes and expanded treatment of chronic disease.
The acquisition will also add approximately US$500 million to
Abbott's annual pharmaceutical R&D investment, providing Abbott with
the opportunity to further accelerate near and long-term
"The acquisition of Solvay Pharmaceuticals further diversifies
our pharmaceutical portfolio, expands our presence in key high-growth
emerging markets, enhances our investment in R&D and accelerates our
long-term earnings-per-share growth outlook," said Miles D. White,
chairman and chief executive officer, Abbott.
"In anticipation of future market needs, we are ensuring we have
the technologies, products, infrastructure and reach to serve
patients globally and continue to deliver sustainable
industry-leading growth. This acquisition, as well as the others
we've announced this year all contribute to achieving that long-term
goal," said Mr. White.
"With this transaction Solvay Pharmaceuticals has found a new
strong home, within a respected company with a solid and committed
position in the industry," comments Christian Jourquin, chief
executive officer, Solvay.
Solvay's pharmaceutical portfolio complements Abbott's presence
and expertise in specialty markets such as cardiovascular disease,
neuroscience and gastroenterology. Solvay has treatments for
Parkinson's disease, Meniere's disease (abnormality of the inner
ear), vertigo, and irritable bowel syndrome. Solvay also offers
products to treat men's and women's hormonal health, and exocrine
pancreatic insufficiency (inability to properly digest food), which
is associated with several underlying conditions including cystic
fibrosis and chronic pancreatitis.
The acquisition also includes Solvay's vaccines business, which
will provide Abbott entry into the expanding global vaccines market.
Solvay has a small molecular diagnostics unit that will become part
of Abbott's diagnostics organization upon the transaction close.
"Abbott's international pharmaceutical business has grown
significantly over the past several years, driven by specialty
products in developed markets," said Olivier Bohuon, executive vice
president, Pharmaceutical Products Group, Abbott. "In emerging
markets where chronic disease is being treated more aggressively, the
combined Abbott and Solvay portfolio of branded generics expands the
global reach of these medicines. Solvay's business will also give us
a platform to enter the attractive global vaccines market."
The transaction will be approximately US$0.10 accretive to
ongoing earnings per share in 2010, accelerating to more than US$0.20
by 2012, increasing thereafter, all before one-time
transaction-related items, which will be provided at a later date.
These one-time transaction-related items are expected to occur
between 2010 and 2012. The transaction also includes payments of up
to EUR 300 million if certain sales milestones are met between 2011
Abbott plans to fund the transaction with cash currently on the
This transaction is subject to customary closing conditions and
regulatory approvals and is expected to close in the first quarter of
2010. As a result, the deal will have no impact on 2009 ongoing
earnings per share. The boards of directors of both companies have
approved the proposed acquisition.
Barclays Capital served as an exclusive financial advisor to
Abbott on this transaction.
Abbott Conference Call
Abbott will conduct a special conference call today at 7 a.m.
Central time (8 a.m. Eastern time) to provide an overview of the
transaction. The live Web cast will be accessible through Abbott's
Investor Relations Web site at www.abbottinvestor.com.
About Solvay Pharmaceuticals
Solvay Pharmaceuticals is a research driven group of companies
that constitutes the global pharmaceutical business of the Solvay
Group. These companies seek to fulfill carefully selected, unmet
medical needs in the therapeutic areas of neuroscience,
cardiometabolic, influenza vaccines, gastroenterology and men's and
women's health. Its 2008 sales were EUR 2.7 billion, and it employs
more than 9,000 people worldwide. For more information, visit
Abbott (NYSE: ABT) is a global, broad-based health care company
devoted to the discovery, development, manufacture and marketing of
pharmaceuticals and medical products, including nutritionals, devices
and diagnostics. The company employs more than 72,000 people and
markets its products in more than 130 countries.
Abbott's news releases and other information are available on the
company's Web site at www.abbott.com.
Abbott Forward Looking Statement
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual results
to differ materially from those indicated in the forward-looking
statements. Economic, competitive, governmental, technological and
other factors that may affect Abbott's operations are discussed in
Item 1A, "Risk Factors," to our Annual Report on Securities and
Exchange Commission Form 10-K for the year ended Dec. 31, 2008, and
are incorporated by reference. Abbott undertakes no obligation to
release publicly any revisions to forward-looking statements as a
result of subsequent events or developments.
ots Originaltext: Abbott Laboratories
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