In a year of consolidation of the global pharmaceutical industry, the American diversified pharmaceuticals health care company Abbott Laboratories said yesterday that it would acquire the pharmaceutical business of Belgium's Solvay for $6.6 billion in cash and take full control of its joint cholesterol drug venture.

This deal includes additional potential payments of up to $439 million if certain milestones are met between 2011 and 2013. It also includes Abbott taking on $584 million of assumed certain liabilities of Solvay.

Abbott plans to fund the entire transaction with the cash it currently has on its balance sheet and said that the transaction is expected to close in the first quarter of 2010, pending antitrust approval from the EU and the US.

The Abbott Park- (Illinois) based Abbott and Solvay co-promote and sell the Belgian company's cholesterol lowering drug fenofibrate called TriCor, meant to raise "good" HDL cholesterol and reduce triglycerides and "bad" LDL cholesterol.

Currently, Abbott has the US rights to TriCor and pays royalties to Solvay-a drug that generated more than $1.3 billion in sales for Abbott last year.

With the with patent expiring in 2011 for TriCor and exposing it to generic competition, Abbott will get the sole rights to its successor, Solvay's Trilipix, which was approved last December by the US Food and Drug Administration.

Abbott, the company that developed the first HIV blood screening test in 1985, said, "The acquisition of Solvay Pharmaceuticals further diversifies our pharmaceutical portfolio, expands our presence in key high-growth emerging markets, enhances our investment in R&D and accelerates our long-term earnings-per-share growth outlook."

The acquisition will also add approximately $500 million to Abbott's annual pharmaceutical R&D investment, providing Abbott with the opportunity to further accelerate near and long-term pharmaceutical growth.

Sales in Solvay's pharmaceutical business were €2.7 billion in 2008 and its portfolio complements Abbott's presence and expertise in specialty markets such as cardiovascular disease, neuroscience and gastroenterology.

Solvay has treatments for Parkinson's disease, Ménière's disease (abnormality of the inner ear), vertigo, and irritable bowel syndrome. Solvay also offers products to treat men's and women's hormonal health, and exocrine pancreatic insufficiency (inability to properly digest food), which is associated with several underlying conditions including cystic fibrosis and chronic pancreatitis.

The acquisition also includes Solvay's vaccines business, which will provide Abbott entry into the expanding global vaccines market. Solvay has a small molecular diagnostics unit that will become part of Abbott's diagnostics organization upon the transaction closing.

Miles White, chairman and chief executive officer of Abbott said, "In anticipation of future market needs, we are ensuring we have the technologies, products, infrastructure and reach to serve patients globally and continue to deliver sustainable industry-leading growth. This acquisition, as well as the others we've announced this year all contribute to achieving that long-term goal."

Abbott, with 2008 revenue of $39 billion, employs more than 72,000 people and develops, manufactures and markets pharmaceuticals and medical products in more than 130 countries.

Since the past two years, Abbott has acquired contact lens maker Advanced Medical Optics, India-based Wockhart's nutritional business, Synchrony-an eye care company, Evalve-maker of heart repair equipment and this month, Visiogen. (See: Abbott Laboratories acquires Advanced Medical Optics in $2.8 billion cash-and-debt deal  / Wockhardt sells its nutrition businesses to Abbott for $130 million / Abbott expands vision care portfolio; buys Visiogen)

In a year, despite the economic downturn, the pharmaceutical industry has consolidated through multi-billion dollar acquisitions.

Pfizer  acquired Wyeth for $68 billion in January, Merck paid $41 billion to acquire Schering Plough in March and Roche bought the remainder of Genentech for $47 billion in March. (See: Pfizer-Wyeth create $68-billion blockbuster deal / Merck to acquire Schering- Plough for $41 billion / Roche clinches Genentech deal for $47 billion)