With buy of Veropharm, Abbott to significantly increase revenue in Russia

US drugmaker Abbott (NYSE: AB) plans to significantly increase its revenue in the Russian market over the next several years, thanks to its recent acquisition of Veropharm, one of Russia’s largest drugmakers, and the current recession of the Russian economy, caused by Western sanctions imposed on the country.

According to analysts of the Russian Ministry of Industry and Trade, devaluation of the Russian national currency- the rouble - made the deal more profitable for Abbott, as payments for the total transaction are estimated at 16.7 billion roubles ($305 million), are divided into several parts over the next few months.

In addition, the acquisition of Veropharm will help Abbott to localize its own production in Russia, which is very important for the US company, despite the fact that it has plans to continue production of the majority of Veropharm range.