Abbott in

123jump.com Staff
28 Sep, 2009
New York City

Abbott agreed to pay

[R]11:00 AM New York – Abbott agreed to pay €4.5 billion or $6.6 billion in cash for pharmaceutical business of Belgium based Solvay SA and said the transaction will add 10 cents a share to 2010 earnings.[/R]

Abbott agreed to pay €4.5 billion or $6.6 billion in cash for pharmaceutical business of Belgium based Solvay SA.

The purchase of Solvay Pharmaceuticals will add more than $3 billion in annual sales and a staff of 9,000 with significant presence in emerging markets.

The acquisition will also add approximately $500 million to Abbott''s annual pharmaceutical R&D investment accelerating new drugs development.

The transaction is expected to add 10 cents a share in 2010 and 20 cents in 2012 and the transaction also includes payments of up to €300 million if certain sales milestones are met between 2011 and 2013.

Solvay Pharmaceuticals is a research driven group of companies that focus on therapeutic areas of neuroscience, cardiometabolic, influenza vaccines, gastroenterology and men''s and women''s health.

Belgium based Solvay SA reported in fiscal year 2008 revenues fell 1% to €9.5 billion from €9.6 billion a year ago. Net profit for the year fell 46% to €449 million compared to net profit of €828 million a year ago.

Solvay SA, in the last one year traded as high as €78.00 in September 2008 and as low as €71.11 in March 2009. Based on the yesterday’s closing price of €74.81 the company has market cap of €6.15 billion.

Abbott Laboratories is a global pharmaceuticals and medical devices and diagnosis company and employs 72,000 people in 130 countries.

In fiscal year 2008 revenues rose 14% to $29.5 billion from $25.9 billion a year ago. Net profit from for the year rose 35% to $4.88 billion or $3.12 per diluted share compared to net profit of $3.61 billion or $2.31 per share a year ago.

Abbott Laboratories, in the last one year traded as high as $60.78 in October 2008 and as low as $41.27 in May 2009. Based on the yesterday’s closing price of €48.90 the company has market cap of $75.55 billion.