Boston, MA 05/29/2014 (wallstreetpr) – Abbott Laboratories (NYSE:ABT) announced that it expects its acquisition of Chile’s biggest drugmaker, CFR Pharmaceuticals SA, to close in 3Q 2014.
Abbott, earlier this month, offered to acquire CFR for $2.9 billion. The acquisition move adds the string of deals that the company intends to enter as it seeks growth and bigger value for the shareholders in the markets that it does not already enjoy good performance.
CFR sells a wide range of products that are mostly targeted at women’s health and heart and respiratory diseases. The CFR’s business captures 15 markets in the Latin America region. The acquisition of CFR will double Abbott Laboratories (NYSE:ABT)’s drug sales in Latin America as the company moves to gain the lion’s share of the $73 billion Latin American drug sales industry.
No Constrain
In addition to CFR whose acquisition is as good as done, Abbott Laboratories (NYSE:ABT) looks forward to more interesting businesses that it can acquire. According to the company’s Chief Executive Officer, Miles White, Abbot is not constrained by resources as at now. In other words, the company continues to look for more acquisition opportunities to enhance its market share in the segments that shareholders have been worried about in the past.
It is not surprising that Abbot intends to make more acquisitions because the healthcare industry is awash with deals as players move to secure revenue amid widespread loss of market exclusivity.
As for Abbott Laboratories (NYSE:ABT), investment in Latin America seems like a good deal because of the anticipated growth in the market at a time when sales in Europe and North America regions are showing signs of a slowdown amid price controls.
Mixed Financial Results
Abbott Laboratories (NYSE:ABT) reported its 1Q2014 results last month during which the company posted mixed results. While its earnings exceeded consensus estimates, coming in at 41 cents per share against 36 cents per share, revenue faltered to come in at $5.24 billion against the consensus estimate of $5.29 billion. Both revenue and EPS were down on a year-over-year basis.
