Abbott closes Veropharm deal amidst US-Russia political tension
- Abbott has completed a deal to buy Veropharma from billionaire, Roman Avdeev, for $305 million, in spite of political tensions between the West and Russia.
- Abbott has had a presence in Russia for 40 years and is pleased to be able to strengthen its presence in that market.
- Abbott anticipates $150 million in revenues from the Veropharm acquisition in the upcoming fiscal year.
Despite the fact that there are simmering tensions between Russia and the West, with the Ukrainian problem at the epicenter, there is a growing middle class in Russia. With the Veropharm acquisition, Abbott is gaining a strong portfolio, including therapeutics for women's health, CNS, cardiovascular, oncology and gastroenterology. While other companies that were considering acquisitions in the Russian pharma market, such as Fresenius, have decided to opt out, Abbott has a history of thriving in emerging markets. It has proven its mettle in India with the acquisition of Piraml and in Chile with the acquisition of CFR Pharmaceuticals.