Piramal to get $2.12 bn in 4-6 weeks from Abbott

Piramal Healthcare expects to get $2.12 billion in 4-6-weeks following completion of the sale of its branded generics business to Abbott Laboratories, a top company official said.

"We expect the first tranche of $2.12 billion in 4-6 weeks after several approvals, as we close the deal with Abbott Laboratories," Piramal Group's Chief Financial Officer, Rajesh Laddha, told reporters on the sidelines of its annual general meeting (AGM) here today.

The US-based Abbott will pay a total of $3.72 billion, of which it will pay $2.12 billion upfront and make annual payment of $400 million for four-years from 2011 for Piramal's healthcare solutions business.

As part of the deal, Abbott would get Piramal's manufacturing facilities and rights to market over 350 brands in the domestic business.

The promoters of Piramal Healthcare, however, would retain their R&D, overseas and active pharmaceutical ingredients' (drug raw materials) business.

Under the terms of the agreement, Piramal has agreed not to engage in generic pharmaceutical business in the country for the next eight-years.

The company will invest these funds aggressively in various existing businesses, Piramal Healthcare's COO N Santhanam, told shareholders.