KARACHI: Abbot Laboratories Group is presently evaluating an asset purchase transaction, whereby, it may acquire certain assets of Johnson & Johnson in Pakistan, market sources told The News on Thursday.
Johnson & Johnson is for sale in Pakistan and Abbot along with Organon Bio Sciences (OBS) is left in the race for this proposed acquisition.
Sources said that ICI and Pfizer were also in the competition but both the multinationals have now stepped back.
According to Malik Saadatullah, company secretary of Abbot Laboratories Pakistan, the Abbot Group is presently evaluating an asset purchase transaction, whereby, it may acquire certain assets in Pakistan from another entity.
“It is yet to be determined as to whether the proposed acquisition will be effected by the Abbot Group from overseas or through its local subsidiary, Abbot Laboratories (Pakistan) Limited.”
“The proposed acquisition is subject to an affiliate member of the Abbot Group being selected as the preferred bidder, the completion of due diligence satisfactory to the Abbot Group and negotiation and execution of the necessary transaction documents and satisfaction of all conditions in such documents. It will also be subject to the receipt of all relevant regulatory consents.”
If the proposed acquisition occurred and if the acquiring entity was Abbot Pakistan, then such acquisition is likely to have a minor but positive impact on the business of Abbot Pakistan, which is estimated to be less than 10 percent of Abbot Pakistan’s turnover, he said.
Johnson & Johnson Pakistan (Pvt) Limited has decided to wrap up its operations in Pakistan. The American pharmaceutical giant listed on the New York Stock Exchange is the fifth pharmaceutical multinational to decide to end the operations of its subsidiary in Pakistan in the last few years.
Other multinational pharmaceuticals quitting Pakistan include Bristol-Myers Squibb, Merck Sharp & Dohme Limited (MSD), Searle Pharmaceuticals, and Organon. The reason is Pakistan’s poor economic conditions and the absence of a functional regulatory setup.
According to industry sources, Johnson & Johnson is looking to sell Janssen, its pharmaceutical business, in Pakistan.
This includes all Janssen brands being produced at its manufacturing facility in Karachi’s Korangi industrial area.
Abbott Pakistan is part of the global healthcare corporation of Abbott Laboratories, Chicago, USA.
Source: The NEWS