Abbott Steps Up Presence in Emerging Markets through Deal with Zydus
Company also created a division to focus on broadening the reach of branded generics.!--h2>
Abbott inked a licensing and supply agreement with Indian firm Zydus Cadila for at least 24 pharmaceutical products that Abbott will commercialize in 15 emerging markets. The company also reported the creation of a stand-alone established products division, which will work to expand the market for its branded generics beyond the U.S. and particularly into emerging markets.
“Our new established products division, with $5 billion in sales, will focus on expanding our presence and product offerings in the world's fastest-growing emerging markets,” says Olivier Bohuon, evp pharmaceutical products group.
Under the Zydus agreement Abbott has an option to add more than 40 Zydus products to the collaboration. The deal currently includes medicines for pain, cancer, as well as cardiovascular, neurological, and respiratory diseases. Product launches are expected to begin early 2012. “The Zydus agreement complements our established products strategy, augmenting this business with a broad portfolio of branded generics,” points out Bohuon.
Abbott notes that it has built its established products offering over the past decade through its own products as well as those acquired with the 2001 acquisition of Knoll's pharmaceutical business. Its recent take-over of Solvay Pharmaceuticals similarly padded its branded generics portfolio.
Solvay also provided the firm with a presence in certain emerging markets. Abbott also reports a doubling in growth in Russia, India, and China. Approximately 20% of its pharmaceutical sales today are in emerging markets, according to the company.