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news.US-based healthcare firm Abbott has entered into a definitive agreement to acquire a Russian pharmaceutical manufacturer Veropharm.
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As part of the deal, Abbott will acquire Garden Hills, which currently owns more than 80% of Veropharm, for about $395m or $495m, depending on Garden Hills’ share ownership of Veropharm at time of close.
The company said that Garden Hills is expected to own more than 95% when the transaction closes.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to be closed in the fourth quarter of 2014.
According to Abbott, through the acquisition it 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.
After completion of the deal, Abbott would also setup a manufacturing presence in Russia through its ownership of Veropharm’s current production facilities, as well as a new manufacturing facility, which is currently under construction by Veropharm.