Abbott office premises as cars parked at the front-end (Photo : Getty images/Bloomberg)
Abbott Laboratories (ABT) declared that it will end the acquisition of St.Jude Medical, Inc.STJ. Abbott Labs shares underperformed the Zacks classified Large Cap Pharmaceuticals industry in 2016. De facto, Abbott Labs lost 10.6 percent in 2016 as compared with a drop of 4.2 percent for the industry.
Nasdaq reported that the company has acquired all regulatory clearances required for closing the transaction. The acquisition will bring in a leading position for Abbott Labs with a strong and contrasted portfolio of devices, nutritionals, diagnostics and branded generic pharmaceuticals. The merged corporate body would control more than 70 percent of the vascular closure device market.
St.Jude Medical has a preeminent position in rapidly growing areas such as atrial fibrillation, heart failure, structural heart and chronic pain that will complement Abbott Labs' leading position in the coronary interventions and mitral valve disease markets.
Post acquisition, Abbott Labs will testify in nearly every field of the $30 billion cardiovascular market and treasure a strong position across large and high-growth cardiovascular device markets.
Star tribune reported that Abbott Laboratories released no new details about integration schedule and personnel alterations in Minnesota as it concluded its long-planned acquisition of Little Canada-based medical device company, St.Jude Medical.
Established in Minnesota in 1976, St.Jude Medical was a Fortune 500 company with nearly 4,000 Minnesota employees and 18,000 collectively. It now becomes a part of Abbott's growth-focused medical device division.
The company has neither announced a timeline for how fast St.Jude's operations will be integrated into Abbott.
"Abbott has a strong track record of successfully integrating dozens of businesses on a global scale and accelerating growth," Miles White, Abbott chief executive says.
"The addition of St. Jude Medical strengthens our global medical device leadership while offering innovative products to address more areas of care, in more physicians' offices and hospitals around the world."
The acquisition pays St.Jude investors $46.75 in cash and 0.87 shares of Abbott common stock for each share of St.Jude owned by self. Abbott closed at $39.36 per share.
The deal was unexpected on St.Jude and Abbott divesting two vascular closure products and a stable sheath for perfect procedures to Japan-based Terumo Corp. for $1.1 billion.
