Abbott Wraps Up Acquisition Of Russian Firm Veropharm

Abbott announced that it has completed its acquisition of leading Russian pharma manufacturer Veropharm.

RBTH reports that Veropharm is known as one of Russia’s largest drug makers and specializes in hospital and pharmacy prescription drugs. The drug manufacturer is also a leading company in the country’s oncology drugs industry. Veropharm reported a year-on-year revenue increase by 12.6 percent from January to June 2014, hitting $49 million.

In June, the company announced its agreement to acquire the holding company that owns a 98 percent controlling interest in Veropharm, Limited Liability Company Garden Hills. Pursuant to the previously announced agreement, Abbott paid 16.7 billion rubles or approximately $305 million for Garden Hills.

The acquisition positions Abbott to establish a manufacturing footprint in Russia thanks to Veropharm’s production facilities in Belgorod and Voronezh. Veropharm is currently building a new manufacturing site in Pokrov, which will be turned over to Abbott as well. In its press release, Abbott said the transaction allows it to acquire “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 adding an offering in the field of oncology and pharmaceutical R&D capabilities for Russia.”

At the time of the company’s announcement of its plans to acquire Veropharm, The Wall Street Journal noted that the transaction is the largest U.S. deal for a Russian company since the peak of the Ukraine crisis and the resulting tension between Russia and the U.S.

Earlier this year, Abbott also acquired CFR Pharmaceuticals, effectively expanding its pharmaceutical presence in Latin American branded generics by more than double. Abbott indirectly obtained over 99 percent of CFR’s shares for an estimated $2.9 billion.