Sales in India to be over $2.5 bn: Abbott

He said the company anticipates sales from the acquired Piramal entity to exceed USD 500 million in 2011,”growing 20 per cent over the next several years”.

Abbott India had reported revenues of Rs 760.92 crore for the year ended November 30,2009.

Abbott had recently acquired Piramal Healthcare’s solutions business (domestic formulations) to become the largest drug-maker in India. The deal envisaged an upfront payment of USD 2.12 billion and the remaining amount to be paid in four annual installments of USD 400 million each.

White said the acquisition could provide an opportunity to export drugs from India. “Today,Piramal Healthcare Solutions and its products are focused on India,but we have the ability to export some products from our combined portfolios to other markets over the long term,” he said.

Terming India as the cornerstone of its emerging markets strategy,White said the latest acquisition was in sync with the company’s strategic moves to expand its footprint in fast-growing emerging markets.

“Emerging markets are expected to account for 70 per cent of the pharmaceutical industry’s growth over the next several years. Currently an eight billion dollar market,India pharmaceutical sales are expected to more than double in the next five years,” he added.

Following the acquisition,Abbott has also worked out a new management structure,under which the newly acquired Indian unit will come under its Established Products

Division,which is focused on maximising the opportunity for branded generics in emerging markets.

“Abbott veteran Michael Warmuth will lead our new Established Products Division (EPD). Piramal will operate independently,reporting into EPD,” White said.

Abbott employs around 83,000 employees at 100 facilities worldwide and its revenue in 2009 stood at USD 30.8 billion.

The company’s products are sold in over 130 countries.

With the acquisition of Piramal Healthcare’s solutions business,Abbott is now India’s largest pharmaceutical firm,with seven per cent of the estimated Rs 55,000 crore market.

Piramal Healthcare had a consolidated revenue of USD 656 million in FY’2009. It is ranked fourth in terms of size in the Indian market,with a diverse portfolio.