Abbott looking for buyer to sell low-end brands
July 19, 2016
Abbott, the second largest drug maker in India, is hunting for a buyer to sell its tail-end brands, a move that highlights the consolidation woes of large acquisitions in India, according to two people familiar with the development.
Abbott acquired the generic business of Piramal Healthcare in 2010 for $3.72 billion and has been looking to cut down the portfolio of products that are of low margin, besides being present in a crowded therapy space.
The total value of products that Abbott is looking to hive off is about Rs 100 crore. Abbott might also be looking to restructure the True Care division of the company which employs close to 2,000 people, one of the people quoted above said.
The acquisition of Piramal’s generic business helped Abbott enter into the 1 lakh crore Indian pharma market, which helped the US pharma giant corner close to Rs 5,000 crore of the market, with a growth rate of 14 per cent in 2015. Until Sun pharma acquired Ranbaxy, Abbott was the biggest drug maker in India, followed by Cipla.