Pennsylvania-based healthcare company Mylan Inc. has announced the completion of a deal with Abbott Laboratories, which will see Mylan acquiring Abbott's specialty and branded generics business intended for non-U.S. developed markets.
The deal will cost Mylan an estimated $5.3 billion, with the company taking over Abbott's portfolio of more than 100 products in several key areas, including cardiology, metabolic and gastrointestinal conditions. Upon completion of the deal Abbott will get 105 million shares in a new, combined company, which will give it an approximately 21 percent share in Mylan.
The new public company, called Mylan N.V., will be based in the Netherlands, Mylan announced. Thanks to the transaction, the company will instantly boost its market in regions such as Europe, Japan, Australia and New Zealand. Some of the products featured in the portfolio are patent protected, innovative and hard-to-manufacture and are expected to bring extra growth potential to the company. Mylan estimated that the deal could generate an additional $1.9 billion in revenue per year.
According to Mylan's executive chairman Robert J. Coury, the company had been looking at a series of options for further development, but decided on buying Abbott's portfolio because it was considered to be the perfect opportunity to build on the company's momentum, while diversifying its offerings in major markets outside the United States.