Abbott to acquire Veropharm

Abbott will obtain a portfolio that is well aligned with its current areas of focus in women's health, central nervous system, cardiovascular, and gastroenterology, while also adding an offering in the field of oncology

Abbott has reached a definitive agreement to acquire leading Russian pharmaceutical manufacturer Veropharm. The transaction is expected to close in the fourth quarter, subject to customary closing conditions and regulatory approvals.

Under the terms of the agreement, Abbott will acquire Limited Liability Company Garden Hills, the holding company that currently owns a controlling interest in Veropharm, for between RUB13.6bn and RUB17bn (US$395-495m) depending on Garden Hills' share ownership of Veropharm at time of close. Garden Hills currently owns more than 80%of Veropharm but is expected to own more than 95%by the time the transaction closes. Abbott will also assume net debt of RUB4.7bn ($136m).

Veropharm employs more than 2,000 people and its production facilities comprise three pharmaceutical manufacturing sites in Pokrov, Belgorod and Voronezh. The company's product portfolio includes more than 100 pharmaceutical products.

Through this acquisition Abbott will obtain a portfolio of medicines that is well aligned with its 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.

Upon completion of the transaction, Abbott would also establish a manufacturing presence in Russia through its ownership of Veropharm's existing production facilities as well as a new state-of-the-art manufacturing facility that is currently under construction by Veropharm. Abbott intends to utilise its manufacturing expertise to expand Veropharm's capabilities and enhance the existing infrastructure.

Abbott has had a presence in Russia for nearly 40 years and is committed to providing a reliable supply of its health care products to Russian patients. Its Russian operations are headquartered in Moscow.

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