Abbott says will buy more companies to bolster sales

Not content with its Rs17,000 crore acquisition of Piramal Healthcare’s domestic formulations business, which pushed it to the No.1 slot in India, ahead of local biggies Cipla and Ranbaxy, US giant Abbott is going all out to bolster its leadership.

“The Indian pharmaceutical market is believed to be growing at 15-16% per year and we are intending to exceed that growth and continue to build on leadership position,” Michael J Warmuth, senior vice-president, established products, pharmaceutical products group, Abbott said.

The growth would come from launching new products and promoting them in different parts of the country through its sales force, said Warmuth. “About 30-40 branded generics would be introduced in 2011, based on the demand, and opportunity in this market. We would also launch patented products.”

It will also look for acquisitions. “We went for Piramal as it was an excellent fit that we were sure would help us attain key position here. First, we will maximise benefits from the Piramal buy. Likewise, in future, as and when we see something which we feel would be a strategic fit, we would go for it.”

Acquisitions are a tack most MNC drugmakers will take in India, to garner marketshare in quickly, feel experts.

“Pure organic growth in India would take time as the market is highly fragmented. Hence buys of brands, companies would be key for success in this market,” Sujay Shetty, associate director, PricewaterhouseCoopers said.

The company will also focus on therapeutic areas like gastrointestinal, pain, rheumatology, neurosciences, anti-infectives and anti-virals, said Warmuth.

Abbott had in May this year purchased the assets of Piramal in a deal that included a $2.2 billion upfront payment and additional payments of $400 million annually for four years beginning in 2011. The company, which currently employs about 10,000 people in India, aims to garner sales of over $2.5 billion in India by 2020.
Miles D White, chairman and CEO, Abbott said the company is uniquely positioned to meet the needs of India, one of the world’s fastest growing markets.

Abbott’s emerging markets focus would only grow as today more than 20% of the company’s total sales are generated in emerging markets, Warmuth said.