Abbott Acquires CFR Pharmaceuticals, Expands Generics Portfolio

Abbott has announced that it has entered into an agreement to acquire CFR Pharmaceuticals. CFR is a Latin American company based in Santiago, Chile. This acquisition will help Abbott to enter into the regional market and expand its presence in Latin America. According to the press release, , Abbott’s branded generics has more than doubled following this acquisition, making it one of the top 10 pharmaceutical companies in Latin America overnight.

CFR has operations in 15 Latin American countries and focuses on therapeutic areas such as women’s health, the central nervous system, and cardiovascular and respiratory diseases. Entrance into the Latin American market is a big step for Abbott, considering the market is expected to reach $73 billion in total sales this year and as much as $124 billion in sales by 2018.

Abbott will be paying about $2.9 billion to buy the company, in addition to taking on a debt load of about $430 million. Under the terms of the deal, Abbott will be purchasing the holding company that owns about 73 percent of CFR, with a public cash tender offer available for all remaining shares. Abbott believes that the purchase of CFR could immediately help the company’s bottom line, adding as much as $900 million to its global sales as soon as 2015. The purchase is expected to add double digit growth to Abbott over the next few years.

Miles D. White, the chairman and CEO of Abbott, said in the company’s press release,  “With its scale and leadership positions in the region, strong commercial and development organizations, well-respected leadership team and a trusted portfolio of recognized brands, CFR is one of the leading branded generic companies in Latin America,” said White. “This acquisition will significantly enhance and broaden Abbott's Latin American footprint, and is well aligned with our long-term strategy and commitment to fast-growing markets.”