American company Abbott says it has finalized Indian pharmaceuticals firm Piramal acquisition deal, investment makes it India's biggest Drug firm

In a move that now turns it into the biggest drug firm in India, Abbott Thursday reported that it had successfully completed its acquisition of Indian pharmaceuticals firm, Piramal’s Healthcare Solutions operations. The finalization of the acquisition turns the American firm into a market leader in the Indian pharmaceutical space. With the enlarged market position, Abbott is as well hopeful the acquisition will enhance its growth in emerging markets, said the firm.

The Indian acquisition is in line with Abbott’s investment strategy that has continually targeted setting up an elaborate and leading foothold in emerging markets. For the last ten years, the firm has gone on an all out investment strategy in emerging economies, with over 20 per cent of its cumulative sales being generated from growing economies, said Abbott. Miles D., chairman and chief executive of Abbott reiterated that the investment acquisition for Piramal’s Healthcare Solutions business will go a long way in reinforcing Abbott’s burgeoning presence in emerging markets.

This arises from Piramal’s position as one of the foremost market leaders in India, with a portfolio of well known, trusted products that have been in the Indian market for quite a long time. As such, Piramal’s market placement, coupled with Abbott’s current product offerings places the US based pharmaceuticals firm at a better level, in terms of catering to the demands of the Indian market. Currently, the Indian market is considered one of the fastest growing pharmaceuticals markets globally.

The growth in the pharmaceuticals industry has been a result of branded generics, with an expected $8 billion in pharmaceutical sales this year. Even more encouraging to investors in the pharmaceuticals space, the figure is expected to more than double by the year 2015. On its part though, Abbott is hopeful that its Indian pharmaceutical sales will surpass $2.5 billion by the year 2020.

The acquired business, Piramal’s Healthcare Solutions business consists of a wide-ranging portfolio of branded generics, inclusive of market leading brands in various therapeutic segments such as antibiotics, respiratory, cardiovascular, pain and neuroscience.

The Healthcare Solutions business will operate as a separate business unit, reporting into Abbott's newly-created Established Products Division, which was formed to focus on branded generics, maximizing the opportunity in emerging markets. The business will continue to be led by its current India-based management team. Abbott now employs approximately 10,000 people across all of its businesses in India.

9 Sep 2010.