BASF Pharma/Abbott deal clears HSC in USA

Abbott Laboratories says that the 30-day waiting period under theHart-Scott-Rodino Antitrust Improvements Act for US government review of its pending $6.9 billion acquisition of German company BASF's pharmaceutical business (Marketletter January 1 & 8) has now expired, and so satisfies one of the principal conditions for the deal, first announced in late December last year. The transaction, which Abbott notes is still subject to other regulatory approvals and customary closing conditions, is expected to be completed in the first quarter of this year.

According to the US drugmaker, the acquisition of the BASF Pharma business (which had third-quarter 2000 sales of around $577 million, operating profit of $143 million and includes the Knoll subsidiary and a stake in Japan's Hokuriku Seiyaku) complements the product portfolio in several of Abbott's core franchises, including cardiovascular, neuroscience/pain and metabolic diseases. Notable in BASF's R&D pipeline is its potential drug for the treatment of rheumatoid arthritis, D2E7.

It also gives Abbott "best-in-class" R&D capabilities at the Worcester, Mass, facility where, the firm says, "outstanding scientists are focused on advanced monoclonal antibody programs for the development of drugs with application for autoimmune diseases."