Abbott sells developed market generics business to Mylan

Abbott has announced the sale of its developed markets branded generics pharmaceuticals business to Mylan as part of a wider strategic refocusing.

The company has exchanged the business unit for equity ownership of a newly formed corporate entity that will combine it with Mylan's existing business. This will become a publicly traded company.

Following the closure of this deal, Abbott will retain its branded generics pharmaceuticals business and products in emerging markets, while maintaining its other business interests and products in developed markets.

Abbott does not expect to be a long-term shareholder in Mylan and plans to ultimately redeploy net proceeds from this transaction for new opportunities that would be accretive to earnings over time.

Miles White, chairman and chief executive officer at Abbott, said: "Our branded generics pharmaceuticals business will focus on emerging markets, where demographic changes and increasing access to healthcare are expected to drive sustainable growth."

The company is building its business around its core offering of medical devices and life science technology, following the spinoff of its former proprietary pharmaceutical operations into the independent organisation AbbVie last year.