ABBOTT LABORATORIES (ABT)
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Abbott Laboratories is a diversified healthcare company. Its principal business lines are pharmaceutical products, consumer nutritional, medical devices and diagnostics.[1]
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Snapshot
Abbott is organized into four different revenue reporting segments:
- Pharmaceutical Products
- Diagnostic Products
- Nutritional Products (Ross)
- International
However, it seems with the recent organizational changes, such as Guidant vascular business acquisition, Hospital Products/Hospira spin-off and the sale of the bulk of its diagnostics business to GE, this reporting segment might be reorganized in the future.
Abbott also owns 50% of TAP Pharmaceuticals, a 50-50 joint venture with the Japanese company, Takeda Pharmaceuticals.
Business Segments
In the past few years, under the leadership of CEO Miles White, Abbott has been puting more focus into its pharmaceutical segment and high growth medical products.[2] It spun off its low return hospital products division into a new company, Hospira (HSP) and sold the bulk of its in-vitro diagnostics business to General Electric (GE).
Pharmaceuticals
It is estimated by Citi analysts that the Pharmaceutical segment would contribute for about 80% of Abbott's operating profit. [2]
In December 2006, Abbott completed the acquistion of Miami, FL based Kos Pharmaceuticals for $3.7 billion. [3] This acquisition gives Abbott a portfolio of Cardiovascular drugs for Lipid Management (Niaspan and Advicor) and Hypertension (Teveten and Cardizem). Abbott also obtained an asthma drug (Azmacort) and a pipeline of metabolic and cardiovascular drugs from Kos.
Medical Products
In April 2006, Abbott acquired part of Guidant's Vascular business for $4.2 billion.[5]
In mid-January 2007, Abbott announced that it would sell its core medical diagnostics business to General Electric (GE) for $8.1 billion in cash. The deal does not include Abbott's Diabetes Care business. As a unit, Abbott's diagnostic division makes up for over 14% of Abbott's sales. The division as a whole grew at 11%, but most of it came from Abbott Diabetes Care that grew 35% over the last year. [6]
Recent Events
| 10/10/08 1:10 pm | FDA approves long-delayed Boston Scientific stent (AP) |
| 10/10/08 12:10 pm | Midday Glance: Medical companies (AP) |
| 10/10/08 12:10 pm | Basic Economics for Washington and You (at Motley Fool) |
| 10/10/08 10:10 am | Our Favorite Health-Care Safe Havens (Morningstar.com) |
| 10/10/08 10:10 am | Early Glance: Medical companies (AP) |
| 10/10/08 10:10 am | PREVIEW-Doctors, investors get latest data on heart devices (at Reuters) |
| 10/10/08 7:10 am | Global pharma Q3 earnings estimates (at Reuters) |
| 10/09/08 5:10 pm | Abbott Labs Shows Textbook Case For Turnaround (at Investopedia) |
| 10/09/08 5:10 pm | Drug firms agree to invest more in AIDS research-UN (at Reuters) |
| 10/09/08 5:10 pm | Final Glance: Medical Devices companies (AP) |
Leadership
- Miles D White, CEO and Chairman of the Board
- Richard A. Gonzales, President and Chief Operating Officer
- Thomas C. Freyman , Executive Vice President, Finance and Chief Financial Officer
Complete list at Reuters
Risks
- Risk factors section from 2005 10-k
- In 2005, Brazil threatened to break Abbott's patent and produce cheaper generic version of Kaletra. A deal was ultimately reached for Abbott to sell cheaper version of Kaletra in the country. [1]
- Patent expirations: [2]
- Meridia(sibutramine) 4Q 2007
- Mavik(trandolapril) 4Q 2007
- Depakote(divalproex sodium) 3Q 2008
History
Official Links
Research Links
Create a list of relevant links with information about the equity.
Message Boards
- BoardCentral All-In-One Message Boards Search
- Investor Village
- Investors Hub
- ValueWiki Message Board
- ValueWiki Chat
Options
- Options Prices and Data at Yahoo Finance
- Options Prices and Data at IVolatility.com
- Call Options Data at OptionsBuddy.com
Notes
- ↑ http://www.abbott.com
- ↑ 2.0 2.1 Johnson, Avery. "Abbott's Makeover Attracts Investors," Wall Street Journal, January 19, 2007; Page A10.
- ↑ http://abbott.com/global/url/pressRelease/en_US/60.5:5/Press_Release_0401.htm
- ↑ Abbott's 2005 Annual report
- ↑ http://www.abbott.com/global/url/pressRelease/en_US/60.5:5/Press_Release_0309.htm
- ↑ Casale, Ralph. "Win-Win for Abbott and GE?" Fool.com, January 23, 2007.
