Andrey Yakunin Reflects on Abbott Laboratories' Investment into Russian Pharmaceutical Manufacturers, Veropharm - WDAM - TV 7 - News, Weather and Sports

Andrey Yakunin Reflects on Abbott Laboratories' Investment into Russian Pharmaceutical Manufacturers, Veropharm

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE UK Press Office for Andrey Yakunin

LONDON, June 26, 2014 /PRNewswire/ --

On Monday, the American healthcare corporation Abbott Laboratories announced the purchase of the Russian pharmaceutical company Veropharm.

Abbott Laboratories announced it will assume a 95% stake in Veropharm for a reported $495USD. The American company will take a controlling interest in Veropharm by buying into the holding company, Garden Hills. Abbott has conducted business in Russia for 40 years, but welcomes the purchase of Veropharm as an opportunity to establish a manufacturing presence in the country.

This deal is not only the biggest move of American capital into a Russian investee company in 2014, but also one of the largest non-oil & gas transactions to date. Additionally, this acquisition bucks the trend of Russian M&A activity in the current climate.

This M&A highlights the prominence and fortitude of this specialised and high-tech sector of the Russian economy. Andrey Yakunin, co-founder of VIY Management, has personal experience of investment in this area, as the fund invested in the Moscow-based chain of medical clinics, Family Doctor, in January.

Mr Andrey Yakunin said:

"Despite contentious media focus of late, this deal reflects those investors in the know are still prepared to make investments into the non-politicised, innovative and high tech sectors of the Russian market. 

"We at VIYM have long been advocates of the exceptional potential of the Russian pharmaceuticals and medical services industries and we welcome that foreign investors are also recognising its potential and profitability.  

"Additionally, foreign investors would do well to follow Abbott's lead in seizing the investment opportunities available away from the western hubs of Moscow and St Petersburg. Veropharm has manufacturing sites in the cities of Pokrov, Belgorod and Voronezh, which people outside Russia will not have heard of, let alone recognise their strong industrial attributes.    

"All we can hope is other companies recognise the benefits - and limited risks - of investing in specialised and established industries offered by the Russian market.  

"After a dull Spring for Russian Private Equity, the first Summer month suggests a turning point, with a number of other landmark foreign direct investments also on the cards."

©2012 PR Newswire. All Rights Reserved.