Abbott Piramal Deal

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Abbott Piramal Deal- Merge , Acqusitions

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Abbott Piramal Deal

  1. 1. •Indian Pharma sector likely to grow 11% over the years. •Optimum regulatory situation & patent regime is getting established. •Increased revenue growth. •India is currently the fifth largest emerging market in the world today with ~$9 bn of sales in 2010
  2. 2. INDIA AS AN EMERGING MARKET •Doubling the disposable income and the number of middle class households •Expansion of medical infrastructure •Penetration of health insurance •Rising prevalence of chronic diseases •Adoption of product patents Aggressive market penetration driven by smaller companies
  3. 3.  On 21 May 2010, Abbott Laboratories announced the acquisition of the Piramal healthcare solutions  For an up-front payment of US$2.12 billion. In addition to this, Abbott will also pay US$400 million annually for the next four years, beginning in 2011.
  4. 4. ► Abbott is a global health care company engaged in the discovery, development, manufacture and marketing of pharmaceuticals and medical products. ►Piramal Healthcare Solutions is a MUMBAI based leading provider of Indian branded generics, with a portfolio of around 350 products, including therapeutic areas such as antibiotics, respiratory diseases, diabetes and cardiovascular diseases.
  5. 5.  Abbott is following a Emerging market penetration strategy.  Near saturation of the western market is bringing MNCs to India.  This deal would help them give an edge over their competitors.  Added attraction: In India, individuals and not govt pay for a big portion of the health care costs.
  6. 6. ► According to the terms of the agreement, Abbott will obtain access to Piramal's manufacturing facilities in Baddi in Himachal Pradesh as well as the rights to sell more than 350 brands in the domestic market . ► Around 5,000 employees of Piramal's Healthcare Solutions will now become part of Abbott, which will take Abbott’s headcount to 7,500 in India2012 ► Piramal Healthcare will retain its Custom Manufacturing business, its Critical Care business etc.....
  7. 7. ► Abbott could become the leading pharmaceutical company in India ►With this deal, Healthcare Solutions and Abbott’s businesses will cumulatively become the market leader in India

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