NEW YORK (TheStreet) -- Abbott Laboratories (ABT) is buying the Russian drugmaker Veropharm for up to $495 million, now giving the health care company a manufacturing presence there where it has been operating for about 40 years, according to Abbott.
The deal bucks a drought in Russian M&A activity this year due to the country's faltering economy and the Ukraine crisis. U.S. companies have been particularly stymied from investing here with Washington advising top executives to steer clear of a major Russian investment forum in May, Reuters reports.
TheStreet Ratings team rates ABBOTT LABORATORIES as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABBOTT LABORATORIES (ABT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: