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Abbott Labs to Buy Indian Drug Maker
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Recently Abbott has expanded in international markets with the acquisition of Belgium's Solvay Pharmaceuticals, and collaboration with India's Cadila Healthcare Ltd. for generic drugs. Abbott CEO says he is comfortable with the price of the Piramal acquisition in India because he lost out in a bid for another company in an emerging market a few years ago. Piramal Healthcare will receive from Abbott an upfront $2.12 billion, and $400 million to be paid every year for 4 years beginning in 2011. Advantages Abbott's CEO White sees in this acquisition of Piramal, is that 70% of the Indian market is self-pay. And therefore not subject to government cuts in payment for drugs.
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