Abbott has entered a definitive agreement with Piramal Healthcare Ltd. to acquire Piramal’s Healthcare Solutions business (Domestic Formulations), a leader in the Indian branded generics market, for $2.1 billion, plus $400 million annually for the next four years, for a total purchase price of $3.7 billion. The acquisition expands Abbott’s branded generics portfolio. Abbott recently acquired Solvay Pharmaceuticals and created a new stand-alone Established Products Division to focus on expanding global markets for branded generics.

“This strategic action will advance Abbott into the leading market position in India, one of the world’s most attractive and rapidly growing markets,” said Miles D. White, chairman and chief executive officer, Abbott. “Our strong position in branded generics and growing presence in emerging markets is part of our ongoing diversified pharmaceutical strategy, complementing our market-leading proprietary pharmaceutical offerings and pipeline in developed markets.”

“With this deal, the combined Healthcare Solutions and Abbott businesses will become the clear market leader in India, with a market share of approximately 7%,” said Ajay Piramal, chairman, Piramal Group. “This was our collective vision and I am glad that those who are part of Piramal’s Healthcare Solutions business will realize this dream.”