Abbott has signed a definitive agreement to acquire Solvay’s pharmaceuticals business for €4.5 billion ($6.6 billion) in cash, providing Abbott with a large and complementary portfolio of products.
The acquisition will give Abbott full global rights to the fenofibrate franchise, for which Abbott currently pays royalties to Solvay.
Solvay will add more than $3 billion in annual sales, as well as approximately $500 million to Abbott’s annual pharma R&D investment. Solvay also has significant presence and infrastructure in key high-growth emerging markets, including Eastern Europe and Asia.
“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.”
Solvay’s portfolio complements Abbott’s presence 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. The company also offers products to treat men’s and women’s hormonal health and exocrine pancreatic insufficiency (inability to properly digest food).
“With this transaction Solvay Pharmaceuticals has found a new strong home, within a respected company with a solid and committed position in the industry,” commented Christian Jourquin, Chief Executive Officer, Solvay.
The deal includes Solvay’s vaccines business and a small molecular diagnostics unit that will become part of Abbott’s diagnostics organisation.