Abbott To Acquire Russian Company Veropharm
Earlier this week, Abbott announced that it has agreed to acquire Russian pharmaceutical manufacturer Veropharm. The global healthcare company said it will acquire Limited Liability Company Garden Hills, the holding company that own a major controlling interest in Veropharm. Abbott has agreed to pay between $395 million to $495 million based on the holding company’s share ownership of Veropharm when the deal closes. At present, Garden Hills controls more than 80 percent of Veropharm but is expected to control more than 95 percent by the time the transaction has been completed. Under the terms of the agreement, Abbott will assume a net debt of approximately $136 billion dollars following this acquisition.
One of the largest Russian pharmaceutical manufacturers with more than 2,000 employees, Veropharm has production sites in three locations in Russia: Pokrov, Belgorod and Voronezh. Veropharm currently has more than 100 pharmaceutical products in its portfolio.
The company said the acquisition is a strategic move that lets it “obtain a portfolio of medicines that is well aligned with [Abbott’s] current pharmaceutical therapeutic areas of focus in women's health, central nervous system, cardiovascular, and gastroenterology, while also adding an offering in the field of oncology.” This move will also help establish Abbott’s manufacturing presence in Russia, not only through Veropharm’s existing facilities, but also through its new manufacturing facility, which is currently under construction. The company also said that its manufacturing capabilities will help expand and improve Veropharm’s existing infrastructure.
This acquisition was announced just before Abbott announced its receipt of CE Marking (Conformité Européenne) in Europe for its TECNIS Symfony Extended Range of Vision intraocular lens (IOL). TECNIS is indicated for the treatment of cataract patients who may have presbyopia, or an inability to see nearby objects clearly. Abbott is currently conducting a post-market observational study for TECNIS in EU countries.