Abbott agrees to deal its specialty and branded generic pharmaceutical line to Mylan for $5.3 billion.
Abbott to Deal Pharma Line to Mylan for $5.3B
Abbott agrees to deal its specialty and branded generic pharmaceutical line to Mylan for $5.3 billion.
Once consummated, the deal would see Abbott receive 105 million shares of the combined company, for a roughly 21% stake in the new entity.Mylan (NSDQ:MYL) said today that it agreed to pay $5.3 billion toAbbott (NYSE:ABT) for its non-U.S. developed markets specialty and branded generics business in an all-stock deal.
The acquired assets are to include more than 100 cardio/metabolic, gastrointestinal, anti-infective/respiratory, CNS/pain and women's and men's health products (among them Creon, Influvac, Brufen, Amitiza and Androgel), which are expected to generate annual sales of some $1.9 billion, according to a press release. Abbott said it will keep its branded generics pharmaceuticals business and products in emerging markets and 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," Abbott chairman & CEO Miles White said in prepared remarks. "Our branded generics pharmaceuticals business will focus on emerging markets, where demographic changes and increasing access to healthcare are expected to drive sustainable growth."