Biotech Values

[DewDiligence]

I like the ABT-MYL deal from ABT’s standpoint insofar as >100% of the growth in ABT’s branded-generics business comes from emerging markets rather than from developed* markets. (I.e. ABT’s branded-generics business in developed markets has negative growth.)

As ABT’s PR states, in due course ABT intends to sell the 105M shares of MYL acquired in today’s transaction and deploy the proceeds for general corporate purposes such as M&A and increased share buybacks.

What ABT will likely continue to do is to bulk up in branded generics for emerging markets by doing more deals such as the ones with CFR in Latin America (#msg-102107675) and with Verophram in Russia (#msg-103616483).

All told, these transactions make ABT an even more compelling investment to capitalize on The Global Demographic Tailwind (#msg-104130001).

*Europe, Japan, Canada, Australia, New Zealand. (ABT does not sell branded generics in the US market.)