Scrip is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Abbott sells spine business to Zimmer

This article was originally published in Scrip

Executive Summary

Abbott Laboratories tis to sell its Spinebusiness for $360 million to the US-based spine speciality companyZimmer. The business was formed by Abbott's acquisitions of Spinal Concepts for $60 million in 2003 and Spine Next for $200 million in 2004. Abbott Spine, which employs about 300 people globally, had revenues of $109 million last year, while Zimmer Spine's revenues for the same period were $197 million. Zimmer expects to fund the acquisition from cash and borrowings under existing credit facilities. The business has become increasingly unprofitable for Abbott and has received diminished attention due to successes in it pharmaceutical businesses. Morgan Stanley analysts said that Abbott Spine would have required significant investment to grow into a competitive business and that the deal makes sense as Abbott can deploy internal capital at higher returns elsewhere. Zimmer intends to maintain a presence at Abbott Spine's Austin, Texas, and Bordeaux, France, sites and also expects to incur charges of $40-50 million in restructuring and integration costs.

You may also be interested in...



Myotec and Hybrid merge to form PsiOxus

Myotec Therapeutics and Hybrid Biosystems are to merge to form PsiOxus Therapeutics with £3.6 million in funding from a syndicate led by the former's previous backer Imperial Innovations.

Trophos's MitoCare programme receives €6 million EU funding

A Phase II efficacy and safety study of Trophos' cholesterol-oxime compound TRO40303 to treat cardiac ischaemia-reperfusion injury in acute myocardial infarction patients will be substantially underwritten by funds from the European Union, the Marseilles-based company says. Trophos is to head a new 16-partner consortium called MitoCare, a 2.5 year international translational medicine project that has received a €6 million award under the European Union Seventh Framework Programme for research. The project will begin in January 2011.

Novartis and Alcon reach compromise to settle merger saga

Alcon's board of directors has finally approved a merger agreement with Novartis for the Alcon shares the latter does not already own, drawing a close to protracted negotiations that first began nearly a year ago.

Topics

Related Companies

UsernamePublicRestriction

Register

MT126735

Ask The Analyst

Please Note: Click here for more information on the Ask the Analyst service.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel