2nd UPDATE: Abbott Not Interested In Solvay's Tricor Operations
15 Juillet 2009 - 5:47PM
Dow Jones News
U.S. pharmaceuticals company Abbott Laboratories (ABT) said
Wednesday it isn't interested in Belgium's Solvay SA's (SOLB.BT)
Tricor business, one of its best-selling drugs in which the two
companies have a partnership, denying earlier press reports.
"We have no interest in expanding our participation in the
fenofibrate market, which was implied in the article," Chief
Financial Officer Thomas Freyman told analysts on a conference
call, referring to a Financial Times article reporting an Abbott
interest in Solvay's Tricor. "We already have a strong presence
there and an adequate investment," he said.
The newspaper reported Wednesday that Solvay has narrowed the
list of bidders for its pharma unit to private-equity owned Swiss
company Nycomed and Abbott, which would be only bidding for Tricor.
Solvay and Abbott sell fenofibrate, which aims to cut cholesterol
levels, under the brand name Tricor.
Solvay said in April it is reviewing different options for its
pharma unit, as a general trend to higher drug development costs,
lower government healthcare spending and recent money-rich
acquisitions prompted the company to consider different business
strategies.
It has hired Morgan Stanley (MS), Citigroup (C) and Rothschild
to advise on a possible sale, people familiar with the situation
said. Solvay has said it isn't in a rush to make a decision, and
the pharma business is helping the company to offset sharp demand
declines in its core plastics and chemical activities, heavily hit
by the current economic downturn.
With patents expiring on their blockbuster drugs, many big
pharmaceutical companies are keen to snap up smaller competitors,
to secure new products, analysts said.
Solvay Pharmaceuticals posted EUR2.7 billion in sales last year.
The unit is valued around EUR5 billion, according to analyst
estimates.
-By Marietta Cauchi and Alessandro Torello, Dow Jones Newswires;
+44 207 842 9241; marietta.cauchi@dowjones.com
(Peter Loftus from Philadelphia contributed to this story.)