Abbott pairs generics with tax benefit

Share this article:

Abbott and Mylan are going into business together. Abbott announced Monday that it was selling its branded generics business to Mylan, with two things to note: Mylan's rights are limited to developed markets—Europe, Japan, Canada, Australia and New Zealand—and the drugs flowing away from Abbott and towards Mylan will be housed in a brand-new publicly traded company.

The deal is the latest of a host of the pharmaceutical industry's tax-oriented strategies. Bloomberg notes that the new business will be headquartered in the Netherlands, which will drop Abbott's tax rate to less than 21% at the beginning and which will continue to fall.

Abbott says the businesses being handed to Mylan in the all-stock deal garnered around $2 billion in 2013 sales and that the branded generics it's hanging on to earned around $2.9 billion in sales last year.

Abbott and Mylan expect the deal will close in the first quarter of 2015. Abbott noted in its announcement that it doesn't expect to hang onto its Mylan shares for the long haul “and plans ultimately to redeploy the net proceeds from this transaction to opportunities that would be accretive to earnings over time.”

Share this article:
You must be a registered member of MMM to post a comment.
close

Next Article in Business Briefs

Email Newsletters

MM&M Future Leaders


Register now

Early bird $1,950 before 31 October 2014

*Group discounts available on request 

MM&M EBOOK: PATIENT ACCESS

Patient access to pharmaceuticals is a tale of two worlds—affordability has improved for the majority, while the minority is hampered by cost, distribution and red tape. To provide marketers with a well-rounded perspective, MM&M presents this e-book chock full of key insights. Click here to access it.

More in Business Briefs

Monday Moves: September 15

Hires and promotions for manufacturers, regulatory and agencies

Kantar acquires Evidências, expands Brazilian presence

The company's acquisition signals the growing importance of understanding the Brazilian healthcare market and evidence-based healthcare management services.

Study says statins not enough for diabetic hearts

Researchers using an experimental test have discovered that the 50% of surveyed diabetics may also have undetected heart muscle damage.