AMSTERDAM: Generic drugmaker Mylan NV officially moved its corporate address to the Netherlands when it completed its acquisition of an overseas business unit from Abbott Laboratories for $5.3 billion in stock.
The controversial move permits Mylan to cut down its U.S. tax bill and gives a financial increase to its approach of developing by way of acquisitions.
Mylan officials, who will continue to run the corporation from headquarters offices in Cecil, stated the deal with North Chicago-based Abbott expands Mylan’s income and geographic reach by giving it Abbott’s generics operations in Europe, Canada, Japan, New Zealand and Australia.
This transaction substantially enhances our capacity to pursue additional extremely strategic and financially accretive possibilities,” CEO Heather Bresch mentioned.
Bresch has stated the generics sector is ripe for consolidation. Mylan announced this month that it would acquire parts of Famy Care Ltd.’s girls’s care small business in a deal that could be worth more than $800 million.
Primarily based in Mumbai, India, Famy makes a variety of contraceptives and hormone-replacement therapy merchandise that are sold in 90 nations, including emerging markets in Africa, India and Brazil.
The Abbott and Famy purchases adhere to Mylan’s $1.75 billion acquisition in 2013 of Agila, a small business unit of India’s Strides Arcolab Ltd. that specializes in manufacturing injectable medications.
Mylan had said the Abbott deal will add $2 billion to Mylan’s annual revenue, bringing it to about $10 billion in 2015, and will reduced Mylan’s tax price to 20 to 21 percent in the initially complete year, down from about 25 percent. The corporation expects its tax rate to be in the high teens in three to five years.