WRAPUP 3-Abbott, J&J strike deals, boost vaccines

* Abbott to buy Solvay unit for $6.6 bln (4.5 bln euros)

* Johnson & Johnson takes 18 pct stake in Crucell

* Glaxo signs Brazil vaccine deal

* Abbott stock rises 3.3 percent
(Recasts first sentence, adds background on flu product
strategies, updates stock prices, adds NEW YORK to dateline)

By Aaron Gray-Block and Ransdell Pierson

AMSTERDAM/NEW YORK, Sept 28 (Reuters) - The world's two
largest diversified healthcare companies struck deals on Monday
that will propel them into vaccines, a red-hot area for
investors because of the pandemic flu threat and potential high
profits for preventing other diseases.

Jumping on the vaccines bandwagon, Abbott Laboratories
(ABT.N) agreed to buy the the drugs unit of Belgium's Solvay
(SOLB.BR) in a $6.6 billion (4.5 billion euro) cash deal.

Abbott will gain Solvay's Dutch cell-based flu vaccine
production facility, which can produce both seasonal and
pandemic influenza vaccines. Flu vaccines last year brought
Solvay $201 million (137 million euros), or 5 percent of its
pharmaceutical sales, but the new facility is expected to boost
potential output and demand for the products.

The deal also gives Abbott a slate of Solvay medicines,
including cholesterol drugs the companies now co-market, and
expands its reach into Russia and other emerging markets.

Johnson & Johnson (JNJ.N), the world's largest healthcare
company by market value, bought an 18 percent stake in Dutch
biotech company Crucell CRCL.ASCRXL.O for $444 million (302
million euros) as part of a flu vaccine development deal,
Crucell said. [ID:nLS212056].

Vaccine-makers have been desirable M&A targets recently,
particularly for large drugmakers eager to secure new products
as exclusivity on existing best-selling products nears an end.

Vaccines can be complicated to manufacture and therefore
less vulnerable to eventual generic competition.

Recent advances in preventing diseases as diverse as cancer
and flu have taken vaccines beyond their traditional
marketplace for babies and established immunization as an
option for adolescents, adults and the elderly.

Fears of a pandemic form of the H1N1 swine flu have
intensified urgency to develop vaccines.

Merck & Co (MRK.N), already a major player in vaccines,
agreed with CSL Ltd (CSL.AX) to distribute the Australian
company's seasonal flu vaccine in the United States for an
undisclosed amount. [ID:nN2868772]

GlaxoSmithKline (GSK.L) sealed a $2.2 billion deal on
Monday with Brazil guaranteeing sales of its pneumococcal
vaccine for 10 years, demonstrating how vaccines can help
drugmakers gain ground in important emerging markets.
[ID:nLS285979]

NO FINANCIAL CONSTRAINTS

Abbott expressed optimism the Solvay deal could bolster
profits over the next two years beyond its own forecast,
helping lift company shares 3.3 percent to $48.89.

"This is a great use for the assets and a heck of a good
return," Abbott Chief Executive Miles White said on a
conference call with analysts. White said Abbott is not
"financially constrained at all" in pursuing other deals.

Solvay shares were little changed, closing at 74.65 euros.

In chasing Solvay, Abbott trumped a bid from Swiss
drugmaker Nycomed [NYCMD.UL], people familiar with the matter
said. [ID:nLP178038]

Abbott said the deal should add 10 cents to ongoing
earnings per share in 2010, doubling to more than 20 cents by
2012 and increasing thereafter.

Abbott had been reviewing a potential Solvay deal for
months and had little initial interest, but changed its mind
over the summer after gaining a better understanding of
Solvay's drugs and their sales potential, White said.

"We did more homework and made the increased effort," said
White, who has overseen four other deals this year. The Solvay
transaction should help Abbott continue to deliver double-digit
percentage earnings growth in coming years, he said.

A UNIVERSAL FLU APPROACH

J&J's transaction with Crucell will focus on developing
"flu-mAb," a universal product meant to prevent infection with
all influenza A strains as well as to treat patients who are
already infected. The strains include seasonal flu and H1N1
swine flu strains, along with the H5N1, or avian, strain.

"A universal antibody or vaccine that protects against a
broad range of strains would be an important advance in helping
... control acute epidemic and pandemic outbreaks," said Paul
Stoffels, head of pharmaceuticals R&D at Johnson & Johnson.

Shares of Crucell fell 3.8 percent, as the sale of the
stake to J&J ignited worries that a speculated takeover of the
company will not happen. J&J shares were up 1.4 percent.

Crucell has previously been in takeover talks with U.S.
drugmaker Wyeth WYE.N, but discussions were broken off in
January after Pfizer (PFE.N) moved in to buy Wyeth.

Johnson & Johnson expects the deal to decrease its 2009
earnings by 2 to 4 cents per share.

Crucell issued 14.6 million new Crucell shares to J&J,
which paid about a 30 percent premium based on the average
price of Crucell shares in the past 35 days, or about 20.63
euros per share.
($1=.6810 euros)
(Additional reporting by Philip Blenkisop and Jan Harvey,
writing by Jason Neely and Lewis Krauskopf; Editing by Simon
Jessop, Maureen Bavdek and Matthew Lewis)