Medication Guide App

Abbott Reports 14.4 Percent Sales Growth in Third Quarter

- Worldwide Pharmaceutical Sales Increased 19.6 Percent -

ABBOTT PARK, Ill., October 17, 2007 /PRNewswire-FirstCall/ -- Abbott today announced financial results for the third quarter ended Sept. 30, 2007.

     *    Diluted earnings per share, excluding specified items, were $0.67,

          above Abbott's previously announced guidance range of $0.64 to

          $0.66. Diluted earnings per share under Generally Accepted

          Accounting Principles (GAAP) were $0.46.


     *    Based on its strong results year to date, Abbott is confirming its

          2007 earnings-per-share outlook and raising the lower end of its

          previous guidance range.  In addition, the company is confirming its

          outlook for an accelerating rate of earnings-per-share growth in

          2008 compared to 2007.


     *    Worldwide sales increased 14.4 percent to $6.4 billion, including a

          favorable 2.8 percent effect of exchange rates.


     *    U.S. pharmaceutical sales increased 17.5 percent and International

          pharmaceutical sales increased 22.2 percent, driven by double-digit

          growth in HUMIRA(R), Kaletra(R) and TriCor(R), and included $167

          million of Niaspan(R) sales. Based on the continued strong sales

          performance of HUMIRA, which contributed more than $800 million in

          worldwide sales in the third quarter, Abbott estimates 2007 global

          sales of $3 billion.


     *    Worldwide medical products sales increased 12.0 percent, driven by

          13.8 percent growth in worldwide Diabetes Care sales, 14.9 percent

          growth worldwide in Abbott Vascular, and 14.4 percent growth in

          International diagnostics sales.


     *    Worldwide nutritional products sales were led by 15.6 percent growth

          in International nutritionals, with continued strong performance in

          key emerging growth markets.


"Abbott's strong performance this quarter was again balanced across our major broad-based businesses," said Miles D. White, chairman and chief executive officer, Abbott. "We expect this momentum to continue in the fourth quarter and into 2008, when the strength of our diversity will drive an accelerating rate of earnings-per-share growth compared to 2007."

    The following is a summary of third-quarter 2007 sales.




                                                                Impact of

    Sales Summary -                     3Q07     % Change      Exchange on

     Quarter Ended 9/30/07          ($ millions)  vs. 3Q06      % Change


    Total Sales                        $6,377       14.4           2.8


        Total U.S. Sales               $3,125       10.2           ---


        Total International Sales      $3,252       18.8           5.7


    Worldwide Pharmaceutical Sales     $3,531       19.6           3.0


        U.S. Pharmaceuticals           $1,896       17.5           ---


        International Pharmaceuticals  $1,635       22.2           6.5


    Worldwide Nutritional Sales        $1,102        4.4 (a)       1.8


        U.S. Nutritionals                $587       (3.8)(a)       ---


        International Nutritionals       $515       15.6           4.4


    Worldwide Diagnostics Sales (b)      $790        9.8           3.9


        U.S. Diagnostics                 $201       (1.7)          ---


        International Diagnostics        $589       14.4           5.5


    Worldwide Vascular Sales             $403       14.9           2.4


         U.S. Vascular                   $201        1.2           ---


         International Vascular          $202       33.0           5.6


    Other Sales (c)                      $551       10.9           2.3



     (a)  Reflects the impact of the completion of the U.S. co-promotion of

          Synagis in 2006. Excluding the U.S. sales of Synagis in 2006,

          Worldwide Nutritional Sales increased 10.8 percent and U.S.

          Nutritional sales increased 6.9 percent.


     (b)  Includes sales from the molecular diagnostics and core laboratory

          diagnostics businesses, which includes point of care.


     (c)  Includes sales from diabetes, bulk pharmaceuticals, spine and animal

          health businesses.


    Note:  See "Consolidated Statement of Earnings" for more information.




    The following is a summary of sales for the first nine months of 2007.




                                                                    Impact of

    Sales Summary -                              9M07    % Change  Exchange on

     Nine Months Ended 9/30/07              ($ millions)  vs. 9M06   % Change


    Total Sales                                $18,693      15.0        2.7


        Total U.S. Sales                        $9,283      12.5        ---


        Total International Sales               $9,410      17.5        5.5


    Worldwide Pharmaceutical Sales             $10,435      17.8        2.8


        U.S. Pharmaceuticals                    $5,500      20.3        ---


        International Pharmaceuticals           $4,935      15.1        5.8


    Worldwide Nutritional Sales                 $3,201      (1.4)(a)    1.4


        U.S. Nutritionals                       $1,733     (12.3)(a)    ---


        International Nutritionals              $1,468      15.6        3.6


    Worldwide Diagnostics Sales (b)             $2,299      10.5        3.9


        U.S. Diagnostics                          $607       2.5        ---


        International Diagnostics               $1,692      13.6        5.4


    Worldwide Vascular Sales                    $1,246      80.0        2.4


         U.S. Vascular                            $667      58.1        ---


         International Vascular                   $579     114.2        6.1


    Other Sales (c)                             $1,512       9.6        3.4



     (a)  Reflects the impact of the completion of the U.S. co-promotion of

          Synagis in 2006. Excluding the U.S. sales of Synagis in 2006,

          Worldwide Nutritional Sales increased 9.0 percent and U.S.

          Nutritional sales increased 4.0 percent.


     (b)  Includes sales from the molecular diagnostics and core laboratory

          diagnostics businesses, which includes point of care.


     (c)  Includes sales from diabetes, bulk pharmaceuticals, spine and animal

          health businesses.


    Note:  See "Consolidated Statement of Earnings" for more information.




    The following is a summary of Abbott's third-quarter 2007 sales for

selected products.




    Quarter Ended 9/30/07

                                         Percent       Percent         Percent

    (dollars in millions)                 Change  Rest  Change          Change

                                    U.S.    vs.    of     vs.    Global   vs.

                                   Sales   3Q06   World  3Q06    Sales   3Q06

    Pharmaceutical Products

    HUMIRA                         $427    40.0   $376   59.6 (a) $803   48.5

    Depakote                       $358    12.3    $25   27.2     $383   13.1

    Kaletra                        $136    (0.5)  $202   28.8 (b) $338   15.2

    TriCor                         $300    12.8   ---     ---     $300   12.8

    Ultane/Sevorane                 $49   (12.7)  $139    3.9 (c) $188   (1.0)

    Niaspan                        $167     n/a   ---     ---     $167    n/a

    Biaxin (clarithromycin)          $9   (43.0)  $122  (0.4) (d) $131   (5.2)

    Synthroid                      $110   (16.5)   $20   18.7     $130  (12.6)


    Nutritional Products

    Pediatric Nutritionals         $326    14.2   $275   18.5     $601   16.1

    Adult Nutritionals             $253    (1.1)  $240   12.6 (e) $493    5.1


    Medical Products

    Abbott Diabetes Care           $146    10.0   $176   17.2 (f) $322   13.8

    Coronary Stents                 $68    89.4    $95   81.3     $163   84.6

    Other Coronary                  $69   (21.7)   $75    1.9     $144  (11.0)

    Endovascular                    $63   (15.3)   $33   23.3      $96   (5.2)



     (a)  Without the positive impact of exchange of 10.5 percent, HUMIRA

          sales increased 49.1 percent internationally.

     (b)  Without the positive impact of exchange of 6.7 percent, Kaletra

          sales increased 22.1 percent internationally.

     (c)  Without the positive impact of exchange of 5.8 percent, Sevorane

          sales decreased 1.9 percent internationally.

     (d)  Without the positive impact of exchange of 3.4 percent,

          clarithromycin sales decreased 3.8 percent internationally.

     (e)  Without the positive impact of exchange of 4.3 percent, Adult

          Nutritionals sales increased 8.3 percent internationally.

     (f)  Without the positive impact of exchange of 7.0 percent, Abbott

          Diabetes Care sales increased 10.2 percent internationally.


    n/a = Percent change is not applicable due to the acquisition of Niaspan

          in the fourth-quarter 2006.



The following is a summary of sales for the first nine months of 2007 for selected products.



    Nine Months Ended 9/30/07

                                       Percent         Percent         Percent

    (dollars in millions)               Change  Rest    Change          Change

                                  U.S.    vs.    of       vs.    Global   vs.

                                 Sales   9M06   World    9M06    Sales   9M06

    Pharmaceutical Products

    HUMIRA                      $1,123    39.3   $986   59.8 (a) $2,109  48.2

    Depakote                    $1,045    23.5    $69   20.2     $1,114  23.3

    Kaletra                       $385     2.7   $569   22.6 (b)   $954  13.7

    TriCor                        $826    14.4   ---     ---       $826  14.4

    Ultane/Sevorane               $150   (26.2)  $409    1.9 (c)   $559  (7.6)

    Biaxin (clarithromycin)        $21   (78.4)  $504    3.9 (d)   $525  (9.6)

    Niaspan                       $480     n/a   ---     ---       $480   n/a

    Synthroid                     $325    (8.6)   $55   15.4       $380  (5.8)


    Nutritional Products

    Pediatric Nutritionals        $908     8.9   $792   18.5     $1,700  13.2

    Adult Nutritionals            $797    (0.9)  $677   12.4 (e) $1,474   4.8


    Medical Products

    Abbott Diabetes Care          $419     1.8   $496   14.1 (f)   $915   8.1

    Coronary Stents               $229     n/m   $260    n/m       $489   n/m

    Other Coronary                $238    33.8   $223   87.4       $461  55.3

    Endovascular                  $201    11.8    $95   51.8       $296  22.1





     (a)  Without the positive impact of exchange of 11.7 percent, HUMIRA

          sales increased 48.1 percent internationally.

     (b)  Without the positive impact of exchange of 7.0 percent, Kaletra

          sales increased 15.6 percent internationally.

     (c)  Without the positive impact of exchange of 5.1 percent, Sevorane

          sales decreased 3.2 percent internationally.

     (d)  Without the positive impact of exchange of 3.9 percent,

          clarithromycin sales were flat internationally.

     (e)  Without the positive impact of exchange of 4.0 percent, Adult

          Nutritionals sales increased 8.4 percent internationally.

     (f)  Without the positive impact of exchange of 7.2 percent, Abbott

          Diabetes Care sales increased 6.9 percent internationally.


    n/a = Percent change is not applicable due to the acquisition of Niaspan

          in the fourth-quarter 2006.


    n/m = Percent change is not meaningful.




    Business Highlights


     *    Abbott and AstraZeneca to Advance ABT-335 in Fixed-Dose Combination

          -- Abbott and AstraZeneca announced the decision to advance Abbott's

          next-generation fenofibrate, ABT-335, as part of the fixed-dose

          combination program with Crestor. The combination program is

          proceeding on schedule and a regulatory application for the new

          combination therapy remains on target for submission in 2009.


     *    Clinical Study Initiated for Renal Artery Stenosis (RAS) -- Abbott

          enrolled its first patient in a clinical study to evaluate the use

          of the investigational RX Herculink(R) Elite(TM) Renal Stent System

          to treat patients with RAS. Patients with RAS have plaque buildup in

          the renal arteries that can lead to high blood pressure.

          Approximately 5 million people in the United States, most often men

          age 50 to 70, are affected by RAS.


     *    Abbott Submits Kaletra(R) for Approval for Pediatric Use -- In July,

          Abbott submitted global regulatory applications for a new,

          lower-strength version of its leading HIV protease inhibitor tablet

          known as Kaletra and Aluvia(R). Kaletra/Aluvia would be the only

          co-formulated protease inhibitor tablet that could be used in

          children. More than 2 million children worldwide are living with

          HIV/AIDS.


     *    Psoriasis Data for HUMIRA(R) and ABT-874 -- At the World Congress of

          Dermatology, Abbott presented Phase III study results for HUMIRA in

          the treatment of psoriasis. HUMIRA represents a major advancement in

          the treatment of psoriasis, with exceptional skin clearance and a

          well-established safety profile that has been demonstrated in more

          than 10 years of patient use. Abbott has submitted its global

          regulatory application for HUMIRA in the treatment of psoriasis and

          expects a response from regulatory agencies in the first quarter of

          2008.


          Abbott also presented psoriasis data from ABT-874, its fully-human

          monoclonal antibody designed to target and neutralize interleukin-12

          and interleukin-23 (IL-12/23). These data are excellent,

          demonstrating a significant reduction of psoriasis symptoms in the

          majority of patients treated. Abbott expects to advance ABT-874 into

          final Phase III psoriasis studies before year-end.


     *    HUMIRA Wins Scientific Innovation Award -- Abbott's leading anti-TNF

          therapy, HUMIRA, has been honored with the 2007 Galen Prize for Best

          Biotechnology Product. The Galen Prize, considered equivalent to the

          Nobel Prize and awarded by Prix Galien USA, is one of the highest

          accolades in the pharmaceutical and biomedical industry, recognizing

          excellence in medical and scientific research and innovation.


     *    Abbott Launches NutriPals(TM) Fruit Bars -- Abbott launched

          PediaSure(R) NutriPals Fruit Bars, the only kids' snack bar made

          with one serving of real fruit in every bar. With 9 times more fruit

          than a leading cereal bar, NutriPals Fruit Bars are a good source of

          protein, fiber and more than 20 vitamins and minerals.


     *    U.S. Food and Drug Administration (FDA) Waiver Allows Broader Use of

          the i-STAT Handheld Analyzer -- The FDA granted waived status under

          the Clinical Laboratory Improvement Amendments of 1988 (CLIA) for

          its handheld i-STAT CHEM8+ test cartridge, making it more widely

          available for use beyond the hospital setting. The waiver indicates

          the device can be made more broadly available to health care

          providers where fast results are needed.




    Abbott confirms earnings-per-share outlook for 2007 and 2008

Based on the company's strong results year to date, Abbott is confirming its 2007 earnings-per-share outlook and raising the lower end of its previous guidance range. As a result, Abbott's earnings-per-share guidance for 2007 is now $2.82 to $2.84 and for the fourth quarter is $0.91 to $0.93, both excluding specified items.

Abbott forecasts specified items for the full-year 2007 of approximately $0.44 per share, primarily associated with acquisition integration, cost reduction initiatives, a write-down of Omnicef inventory and adjustments related to Abbott's ownership of Boston Scientific stock, as previously disclosed. Including specified items, projected earnings per share under GAAP would be $2.38 to $2.40 for the full-year 2007.

Abbott forecasts specified items for the fourth-quarter 2007 of approximately $0.07 per share, primarily associated with acquisition integration and cost reduction initiatives. Including these specified items, projected earnings per share under GAAP would be $0.84 to $0.86 for the fourth-quarter 2007.

For 2008, Abbott continues to forecast an accelerating rate of earnings-per-share growth over 2007.

Abbott declares quarterly dividend

On Sept. 14, 2007, the board of directors of Abbott declared the company's quarterly common dividend of 32.5 cents per share. The cash dividend is payable Nov. 15, 2007, to shareholders of record at the close of business on Oct. 15, 2007. This marks the 335th consecutive dividend paid by Abbott since 1924.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs 65,000 people and markets its products in more than 130 countries.

Abbott's news releases and other information are available on the company's Web site at http://www.abbott.com. Abbott will webcast its live third-quarter earnings conference call through its Investor Relations Web site at http://www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.


             - Private Securities Litigation Reform Act of 1995 -

               A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2006, and are incorporated by reference. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.



                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

               Third Quarter Ended September 30, 2007 and 2006

                                 (unaudited)


                                                           Percent

                                 2007            2006      Change


    Net Sales               $6,376,706,000  $5,573,770,000   14.4

    Cost of products sold    2,864,030,000   2,391,218,000   19.8

    Research and

     development               640,718,000     617,625,000    3.7

    Acquired in-process

     research and development          ---     214,000,000   n/m

    Selling, general and

     administrative          1,945,404,000   1,661,761,000   17.1

    Total Operating Cost

     and Expenses            5,450,152,000   4,884,604,000   11.6


    Operating earnings         926,554,000     689,166,000   34.4


    Net interest expense       106,224,000      86,884,000   22.3

    Net foreign exchange

     (gain) loss                 4,959,000      10,231,000  (51.5)

    (Income) from TAP

     Pharmaceutical Products

     Inc. joint venture       (114,084,000)   (121,469,000)  (6.1)

    Other (income) expense,

     net                        36,036,000     (12,797,000)  n/m     1)

    Earnings before taxes      893,419,000     726,317,000   23.0

    Taxes on earnings          176,414,000      10,475,000   n/m     2)


    Net Earnings              $717,005,000    $715,842,000    0.2


    Net Earnings Excluding

     Specified Items, as

     described below        $1,046,437,000    $898,838,000   16.4    3)


    Diluted Earnings Per

     Common Share                    $0.46           $0.46   --


    Diluted Earnings Per

     Common Share, Excluding

     Specified Items, as

     described below                 $0.67           $0.58   15.5    3)


    Average Number of Common

     Shares Outstanding Plus

     Dilutive Common Stock

     Options and Awards      1,557,758,000   1,541,988,000



     1)   Other (income) expense, net in 2007 and 2006 is primarily associated

          with adjustments related to Abbott's ownership of Boston Scientific

          stock. These items have been reflected as specified items in both

          periods as discussed in Q&A Answer 6.


     2)   2006 Taxes on earnings includes a favorable adjustment to tax

          expense of $132 million, or $0.09 per share, as a result of the

          resolution of prior years' tax audits, which was classified as a

          specified item and excluded from ongoing results.


     3)   2007 Net Earnings Excluding Specified Items excludes after-tax

          charges of $111 million, or $0.07 per share, for a contract

          termination and other litigation, $79 million, or $0.05 per share,

          for reestablishment of suspended depreciation and amortization

          expense on the long-term assets of the core laboratory diagnostics

          business, $52 million, or $0.03 per share, for acquisition

          integration, $21 million, or $0.01 per share, for fair value loss

          adjustments related to Boston Scientific stock, and $66 million, or

          $0.05 per share, for cost reduction initiatives and other.


          2006 Net Earnings Excluding Specified Items excludes after-tax

          charges of $133 million, or $0.09 per share, for acquired in-process

          research and development related to the Guidant acquisition, $69

          million, or $0.05 per share for costs associated with Abbott's

          decision to discontinue the commercial development of the ZoMaxx

          drug-eluting stent, $53 million or $0.03 per share, for a

          philanthropic contribution to the Abbott Fund, $52 million, or $0.03

          per share, for acquisition integration and $25 million, or $0.02 per

          share, for cost reduction/integration activities and other. These

          specified items were partially offset by an after-tax gain of ($17

          million), or ($0.01) per share, for a fair-value adjustment for the

          gain-sharing aspect of the Boston Scientific stock purchase and a

          favorable adjustment to tax expense of ($132 million), or ($0.09)

          per share, as a result of the resolution of the prior years' tax

          audits.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

    n/m = Percent change is not meaningful.




                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

                Nine Months Ended September 30, 2007 and 2006

                                 (unaudited)


                                                           Percent

                                2007             2006       Change


    Net Sales              $18,692,887,000  $16,258,353,000  15.0

    Cost of products sold    8,260,366,000    6,949,535,000  18.9

    Research and

     development             1,843,248,000    1,659,104,000  11.1

    Acquired in-process

     and collaborations

     research and development          ---      707,000,000  n/m

    Selling, general and

     administrative          5,528,729,000    4,646,573,000  19.0

    Total Operating Cost

     and Expenses           15,632,343,000   13,962,212,000  12.0


    Operating earnings       3,060,544,000    2,296,141,000  33.3


    Net interest expense       355,245,000      203,086,000  74.9

    Net foreign exchange

     (gain) loss                16,058,000       17,638,000  (9.0)

    (Income) from TAP

     Pharmaceutical Products

     Inc. joint venture       (376,442,000)    (357,283,000)  5.4

    Other (income)

     expense, net               78,960,000      (85,770,000) n/m    1)

    Earnings before taxes    2,986,723,000    2,518,470,000  18.6

    Taxes on earnings          583,436,000      325,501,000  79.2


    Net Earnings            $2,403,287,000   $2,192,969,000   9.6


    Net Earnings Excluding

     Specified Items, as

     described below        $2,976,580,000   $2,727,860,000   9.1   2)


    Diluted Earnings Per

     Common Share                    $1.54            $1.43   7.7


    Diluted Earnings Per

     Common Share, Excluding

     Specified Items, as

     described below                 $1.91            $1.77   7.9   2)


    Average Number of Common

     Shares Outstanding Plus

     Dilutive Common Stock

     Options and Awards      1,559,074,000    1,537,780,000



     1)   Other (income) expense, net in 2007 and 2006 is primarily associated

          with adjustments related to Abbott's ownership of Boston Scientific

          (BSX) stock. 2007 also includes realized gains on the sales of the

          BSX stock. These items have been reflected as specified items in

          both periods.


     2)   2007 Net Earnings Excluding Specified Items excludes after-tax

          charges of $164 million, or $0.11 per share, for acquisition

          integration, $111 million, or $0.07 per share, for a contract

          termination and other litigation, $41 million, or $0.03 per share,

          for fair value loss adjustments, net of realized gains, related to

          Boston Scientific stock, $34 million, or $0.02 per share, for

          write-down of Omnicef inventory, $19 million, or $0.01 per share,

          for transaction and separation costs relating to the terminated sale

          of the core laboratory diagnostics business, and $204 million, or

          $0.13 per share, for cost reduction initiatives and other.


          2006 Net Earnings Excluding Specified Items excludes after-tax

          charges of $438 million, or $0.29 per share, for acquired in-process

          and collaborations research and development, $69 million, or $0.05

          per share, for costs associated with Abbott's decision to

          discontinue the commercial development of the ZoMaxx drug-eluting

          stent, $53 million or $0.03 per share, for a philanthropic

          contribution to the Abbott Fund and $178 million, or $0.12 per

          share, for cost reduction/integration activities and other,

          primarily related to the Guidant acquisition. These specified items

          were partially offset by an after-tax gain of ($71 million), or

          ($0.05) per share for fair-value adjustments for the gain-sharing

          aspect of the Boston Scientific stock purchase and a favorable

          adjustment to tax expense of ($132 million), or ($0.09) per share,

          as a result of the resolution of prior years' tax audits.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

    n/m = Percent change is not meaningful.




                             Questions & Answers


     Q1)  What drove the 19.6 percent worldwide pharmaceutical sales growth?


     A1)  U.S. pharmaceutical sales growth of 17.5 percent was led by TriCor,

          Niaspan and HUMIRA, which increased 40.0 percent. HUMIRA

          prescription trends are growing at nearly twice the rate of the

          self-injectable biologics market, as HUMIRA continues to gain share

          across rheumatology, dermatology and gastroenterology market

          segments. The Crohn's launch is proceeding ahead of schedule, with

          HUMIRA market share exceeding 30 percent in just six months since

          launch. As a result, Abbott estimates 2007 full-year global HUMIRA

          sales of $3 billion. Abbott's lipid franchise also had a strong

          quarter, with TriCor sales increasing 12.8 percent and Niaspan

          contributing $167 million in sales.


          International pharmaceutical sales increased 22.2 percent during the

          quarter, including a 6.5 percent favorable impact from exchange.

          International growth was driven by HUMIRA, which grew 59.6 percent,

          and Kaletra, which grew 28.8 percent, based on the continued

          strength of the international launch of Kaletra Tablets.


     Q2)  What drove the 15.6 percent increase in international nutritionals?

          What drove the 12.0 percent increase in worldwide medical products

          sales?


     A2)  Global Nutritional sales performance was led by 15.6 percent growth

          in International nutritionals, with particularly strong growth in

          Latin American and Asian markets. Partially offsetting this growth

          was an expected decline in U.S. nutritional sales, consistent with

          previous forecasts and reflecting the completion of the co-promotion

          of Synagis in the United States during 2006. Excluding the impact of

          Synagis, U.S. nutritional sales increased 6.9 percent, driven by

          14.2 percent growth in pediatric nutritional sales.


          Medical products sales growth of 12.0 percent was led by global

          Diabetes Care sales, which increased 13.8 percent, 10.0 percent in

          the United States, driven by the successful launch of Abbott's

          next-generation FreeStyle Lite blood glucose meter. In addition, the

          core laboratory diagnostics business performed well with sales of

          immunochemistry and hematology products up 9.2 percent and point of

          care sales up 21.6 percent. Abbott Vascular achieved sales of more

          than $400 million, up nearly 15 percent in the first full quarter

          with Guidant sales in both periods. This performance was driven by

          international sales of Xience V and continued growth in bare metal

          stents, partially offset by other coronary sales, reflecting lower

          third-party catheter sales.


     Q3)  What drove increased investment spending in the quarter?


     A3)  The company remains on track for a record number of major new

          product launches and regulatory submissions supported by continued

          strong investment spending in R&D and SG&A this quarter and year to

          date.


          R&D investment reflects continuing progress in our pharmaceutical

          and medical products pipelines, including new HUMIRA indications,

          ABT-335, ABT-335/Crestor fixed-dose combination, ABT-874,

          controlled-release Vicodin and Xience V, as well as several

          promising Phase I and Phase II clinical programs in neuroscience and

          oncology. SG&A expense included new and ongoing promotional

          initiatives, including the launch of the Crohn's indication for

          HUMIRA, and the international launch of Xience V.


     Q4)  How does the third-quarter gross margin profile compare to the prior

          year?


     A4)  The gross margin ratio before and after specified items is shown

          below (dollars in millions):



                                         3Q07                   3Q06

                                Cost of          Gross Cost of          Gross

                                Products Gross  Margin Products Gross  Margin

                                  Sold   Margin    %     Sold   Margin    %

    As reported                  $2,864  $3,513  55.1%  $2,391  $3,183  57.1%

    Adjusted for specified items:

      Reestablishment of

       depreciation and

       amortization expense

       (Diagnostics)               ($83)    $83   1.3%       -       -      -

      Product discontinuation         -       -      -    ($44)    $44   0.9%

      Cost reduction initiatives

       and other                   ($67)    $67   1.0%    ($21)    $21   0.3%

      Acquisition integration      ($20)    $20   0.3%    ($21)    $21   0.3%

    As adjusted                  $2,694  $3,683  57.7%  $2,305  $3,269  58.6%




          The third-quarter 2007 adjusted gross margin ratio was 57.7 percent.

          The comparison to 2006 was favorably impacted by improved product

          mix, offset by the reduction in the contribution from Synagis in the

          United States and generic competition for Omnicef.


     Q5)  Why did Net Interest Expense increase from the prior year?


     A5)  Net Interest Expense increased over the prior year primarily as a

          result of debt related to the Guidant Vascular and Kos

          Pharmaceuticals acquisitions.


     Q6)  How did specified items affect reported results?


     A6)  Specified items impacted third-quarter results as follows (dollars

          in millions, except earnings-per-share data):




                                           3Q07                  3Q06

                                     Earnings              Earnings

                                           After-                After-

                                 Pre-tax    tax   EPS   Pre-tax   tax    EPS

    As reported                    $893    $717  $0.46    $726   $716   $0.46

    Adjusted for specified

     items:

      Acquired in-process R&D         -       -      -    $214   $133   $0.09

      Reestablishment of

       depreciation and

       amortization expense

       (Diagnostics)                $99     $79  $0.05       -      -       -

      Contract termination/other

       litigation                  $116    $111  $0.07       -      -       -

      Acquisition integration       $63     $52  $0.03     $69    $52   $0.03

      Fair-value adjustments for

       BSX stock and gain on

       financial instruments        $34     $21  $0.01    ($23)  ($17) ($0.01)

      Philanthropic contribution      -       -      -     $70    $53   $0.03

      Product discontinuation         -       -      -     $90    $69   $0.05

      Tax audit resolution            -       -      -       -  ($132) ($0.09)

      Cost reduction initiatives

       and other                    $81     $66  $0.05     $33    $25   $0.02

    As adjusted                  $1,286  $1,046  $0.67  $1,179   $899   $0.58




          The reestablishment of depreciation and amortization expense relates

          to the core laboratory diagnostics business. As discussed last

          quarter, under GAAP, once a decision to divest a business has been

          reached and the business is classified as Discontinued Operations,

          depreciation and amortization expense on the related long-term

          assets is suspended. The proposed diagnostic divestiture was treated

          this way in the first half of 2007. Since the business was

          subsequently reclassified to Continuing Operations from Discontinued

          Operations, cumulative depreciation and amortization expense

          previously suspended must be recorded. As a result, the after-tax

          impact of suspended depreciation and amortization expense from the

          first-half 2007 of $79 million, or $0.05 per share, was recorded in

          the third quarter and treated as a specified item. This fully

          offsets the favorability of this item in the first half, resulting

          in no impact for the full year.


          The other third-quarter 2007 specified items are primarily related

          to integration costs associated with 2006 acquisitions and

          continuing cost reduction initiatives in global manufacturing

          operations. Also included in specified items are expenses associated

          with a contract termination, as noted in the second-quarter 10-Q,

          and other litigation. As in prior quarters, specified items include

          a fair-value adjustment for the Boston Scientific (BSX) stock. In

          accordance with accounting standard SFAS 159, changes to the fair

          value of the BSX investment are required to be reflected in the

          income statement, which is tracked as a specified item, along with

          any related realized gains/losses on disposition of this stock.


          The pre-tax impact of the specified items by Consolidated Statement

          of Earnings line item is as follows (dollars in millions):




                                                         3Q07

                                           Cost of                     Other

                                           Products                  (Income)/

                                             Sold     R&D      SG&A   Expense

    As reported                             $2,864    $641    $1,945     $36

    Adjusted for specified items:

      Reestablishment of depreciation and

       amortization expense (Diagnostics)      $83      $8        $8       -

      Contract termination/other litigation      -       -      $116       -

      Acquisition integration                  $20      $6       $37       -

      Fair-value adjustments for BSX

       stock                                     -       -         -     $34

      Cost reduction initiatives and other     $67     ($7)      $21       -

    As adjusted                             $2,694    $634    $1,763      $2




     Q7)  What was the tax rate in the quarter?


     A7)  In line with the previous forecast, the tax rate this quarter,

          excluding specified items, was 18.6 percent. As a result, the tax

          rate year-to-date, excluding specified items, is 19.5 percent,

          consistent with the full-year guidance previously provided.


     Q8)  How did the TAP joint venture perform this quarter?


     A8)  Income from the TAP joint venture was in line with previous

          forecasts. Prevacid sales were $566 million and Lupron sales were

          $152 million.


     Q9)  What are some near-term opportunities in Abbott's broad-based

          pipeline?


     A9)  Abbott is making significant progress across a number of late-stage

          programs in its broad-based pharmaceutical and medical products

          pipeline, including:


          *    HUMIRA

               o    Crohn's disease -- Launched in the United States and

                    Europe in the first half of this year.

               o    Psoriasis -- Submitted for global regulatory approval,

                    expect to launch first-quarter 2008.

               o    Juvenile RA -- Submitted for global regulatory approval,

                    expect to launch in early 2008.

               o    Ulcerative colitis -- Entered into Phase III development

                    in 2006.


          *    Xience V Drug-Eluting Stent (DES) -- In May, Abbott submitted

               the final module of its FDA application for U.S. approval and

               we continue to expect a U.S. launch in the first half of 2008.

               We continue to work toward a Nov. 29 date for the Xience V

               advisory panel meeting. As a reminder, Xience V was launched

               internationally in 2006. At the Transcatheter Cardiovascular

               Therapeutics (TCT) meeting next week, Abbott will present new

               data from the Xience V clinical program. Abbott will host an

               investor meeting at TCT on October 23.


          *    Controlled-release Vicodin -- A controlled-release form of

               Abbott's pain brand, Vicodin, is currently in Phase III

               development. Abbott plans to submit for regulatory approval in

               the fourth quarter of this year.


          *    Simcor -- Abbott has submitted its regulatory application for

               Simcor, a combination therapy to address both HDL and LDL

               cholesterol, and expects to launch early next year. Phase III

               Simcor data will be presented at the American Heart Association

               meeting in November.


          *    ABT-335 -- Abbott's next-generation fenofibrate is currently in

               Phase III development as a stand-alone therapy. A U.S.

               regulatory submission is expected in the fourth-quarter 2007.


          *    ABT-335/Crestor (ABT-143) -- Abbott and AstraZeneca recently

               chose to advance ABT-335 in its fixed-dose combination with

               Crestor to address all three lipid parameters in a single pill.

               This program is on track for a regulatory submission in 2009.


          *    ABT-874 -- In immunology, Abbott's anti-IL-12/23 biologic,

               ABT-874, has demonstrated promising results in early studies

               for Crohn's disease and psoriasis. The company plans to move

               ABT-874 into Phase III development for psoriasis before

               year-end.


          *    Flutiform -- A combination asthma treatment in Phase III

               development by SkyePharma. Flutiform is expected to launch in

               2009 and Abbott will handle promotion in the United States.



          *    Diabetes Care Pipeline -- Abbott's FreeStyle Navigator

               Continuous Glucose Monitoring System was recently launched in

               Europe and is under active U.S. FDA review. Also in development

               is a fully integrated blood glucose monitoring system combining

               a meter, test strips and lancing capabilities in one device.


          *    m2000 Molecular Diagnostics System -- In May, Abbott received

               FDA approval for the RealTime HIV-1 viral load test for use on

               the m2000 molecular diagnostics system. Abbott expects to

               expand its menu of infectious disease assays over the next few

               years.


          *    Abbott PRISM -- In July, Abbott received FDA approval for its

               hepatitis C (HCV) test for use on the Abbott PRISM diagnostics

               system. This approval completes the PRISM hepatitis panel,

               which also includes three additional hepatitis B tests.

               Additional retrovirus screening tests for use on Abbott PRISM

               are currently under FDA review.



     Q10) What are some mid- and early-stage opportunities in Abbott's broad-

          based pipeline?


     A10) Abbott is advancing leading-edge scientific discoveries in its mid-

          and early-stage pharmaceutical and medical products pipeline.

          Following are selected highlights:


          *    Oncology

               o    In the second quarter, Abbott announced a collaboration

                    with Genentech to develop and commercialize two Abbott

                    oncology compounds. Developed by Abbott scientists,

                    ABT-869, a multi-targeted kinase inhibitor and ABT-263, a

                    Bcl-2 protein antagonist, represent promising, unique

                    approaches to treating cancer. Abbott and Genentech will

                    work together on all aspects of research, development and

                    commercialization.


               o    Additional oncology compounds in Abbott's pipeline that

                    are not part of the collaboration include: ABT-888, a

                    PARP-inhibitor, which prevents DNA repair in cancer cells,

                    enhancing the effectiveness of current cancer therapies;

                    ABT-751, an oral anti-mitotic in Phase II for non-small

                    cell lung cancer and neuroblastoma; and, ABT-828, a

                    biologic anti-tumor agent with a novel mechanism of

                    action.


          *    Neuroscience

               o    Abbott's neuroscience pipeline includes several unique

                    approaches for treating a number of diseases including

                    schizophrenia, ADHD, Alzheimer's disease and pain.

                    Compounds under development include neuronal nicotinic

                    receptor agonists (NNR's) and dopamine 3 (D3) receptor

                    antagonists, both of which play a role in regulating pain,

                    memory and other neurological functions.


               o    Abbott's neuroscience pipeline includes ABT-089 and

                    ABT-894, two NNRs in Phase II, ABT-925, a D3 receptor

                    antagonist in Phase II, and several compounds in earlier

                    stage development.


          *    Hepatitis C

               o    Abbott has partnered with Enanta Pharmaceuticals to

                    develop protease inhibitors for the treatment of hepatitis

                    C (HCV), which affects more than 170 million people


                    worldwide. Abbott also has an internal HCV polymerase

                    program in early-stage development.


          *    Bioabsorbable Drug-Eluting Stent

               o    Abbott has presented encouraging data from the world's

                    first clinical trial (ABSORB) for a fully-bioabsorbable

                    drug-eluting stent (DES) to treat coronary artery disease.

                    Abbott will present one-year data from the ABSORB trial

                    next week at TCT. The bioabsorbable DES is designed to be

                    slowly and completely metabolized by the body over time.


CONTACT: Financial, John Thomas, +1-847-938-2655, Larry Peepo,+1-847-935-6722, or Tina Ventura, +1-847-935-9390, or Media, Melissa Brotz,+1-847-935-3456, or Scott Stoffel, +1-847-936-9502, all of Abbott

Web site: http://www.abbott.com//

Ticker Symbol: (:ABT)

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Copyright © 2007 PR Newswire Association LLC. All rights reserved.
A United Business Media Company

Posted: October 2007


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