Nov. 17--Abbott Laboratories is selling its veterinary surgical division for $255 million to New Jersey-based animal-health company Zoetis, the companies said today.
Spending on veterinary care for pets with serious illnesses such as cancer and diabetes has been increasing, a Zoetis spokeswoman said. The American Pet Products Association estimates that spending on veterinary care and over-the-counter medicine will increase by $1.46 billion, or about 5 percent, in the United States from 2013 to 2014 to nearly $29 billion. The acquisition will help strengthen Zoetis' portfolio of animal pain medications and diagnostic tools, the company said.
Zoetis will add several well-known brands in the veterinary world to its portfolio, including PropoFlo, a general anesthetic; Simbadol, a feline pain reliever; and AlphaTRAK, a glucose monitoring system pet owners can use at home.
Zoetis focuses on animal health, manufacturing products for veterinarians and livestock producers in 120 countries.
Lake County-based Abbott makes products such as infant formula, medical devices and drugs. The company has been narrowing the focus of its portfolio for several years.
In 2013, Abbott spun off its proprietary pharmaceuticals division into AbbVie. So far this year, the company has acquired a Chilean generic pharmaceutical company and plans to close a deal to buy a Russian pharmaceutical company by year's end. Abbott also plans to sell its European generic drugs business early next year.
"This transaction is another example of Abbott actively shaping and refining its portfolio to focus on key growth areas," the company said in an email. "The proceeds will provide additional flexibility for us to pursue our growth strategies."
The deal should close in the first quarter of 2015, pending regulatory and legal reviews.
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