Abbott Reports Strong First Quarter Results; Forecasts Double-Digit Ongoing Earnings Growth in 2010
Worldwide Sales Increased 14.6 Percent - - First Quarter Ongoing EPS Growth of 11.0 Percent - - Four Major Worldwide Business Segments Delivered Double-Digit Sales Growth -
ABBOTT PARK, Ill., April 21 /PRNewswire-FirstCall/ -- Abbott
(NYSE:ABT)
today announced financial results for the first quarter ended March
31, 2010.
-- Diluted earnings per share, excluding specified items, were $0.81,
reflecting 11.0 percent growth, at the high end of Abbott's previously
issued guidance range of $0.79 to $0.81. Excluding an unfavorable
$0.03 per share impact from U.S. health care reform, first quarter
ongoing earnings per share would have been $0.84, up 15.1 percent.
Diluted earnings per share under Generally Accepted Accounting
Principles (GAAP) were $0.64.
-- Worldwide sales increased 14.6 percent to $7.7 billion, including a
favorable 4.1 percent effect of exchange rates. Sales were reduced by
approximately $60 million as a result of higher Medicaid rebates under
U.S. health care reform. Excluding this impact, sales would have
increased 15.5 percent.
-- Worldwide pharmaceutical sales increased 12.9 percent, including a
favorable 4.4 percent effect of exchange rates, driven by double-digit
growth for HUMIRA and Abbott's lipid management franchise.
-- Worldwide vascular products sales increased 15.8 percent, including a
favorable 3.2 percent effect of exchange rates, driven by strong
international growth. Abbott's XIENCE is now the number one
drug-eluting stent in the world with its successful launch in Japan
during the first quarter.
-- Worldwide nutritional sales increased 11.8 percent, including a
favorable 2.6 percent effect of exchange rates, driven by strong
double-digit growth in international nutritionals.
-- Worldwide diagnostics sales increased 12.1 percent, including a
favorable 5.5 percent effect of exchange rates, driven by strong
growth in molecular, point of care and international core laboratory
diagnostics.
"We delivered double-digit sales growth across each of our
worldwide businesses in the first quarter, reflecting our balance,
diversity and strength," said Miles D. White, chairman and chief
executive officer, Abbott. "We also enhanced our emerging markets
presence and pharmaceutical pipeline with the closing of the Solvay
Pharmaceuticals acquisition and the announced acquisition of Facet
Biotech, augmenting Abbott's long-term growth outlook."
The following is a summary of first-quarter 2010 sales.
Quarter Ended
3/31/10
(dollars in
millions) % Change vs. 1Q09
-----------------
Foreign
Sales Reported Exchange Operational
----- -------- -------- -----------
Total Sales $7,698 14.6 4.1 10.5
Total
International
Sales $4,445 19.6 7.4 12.2
Total U.S.
Sales $3,253 8.4 -- 8.4
Worldwide
Pharmaceutical
Sales $4,103 (a) 12.9 4.4 8.5
International
Pharmaceuticals $2,394 (a) 13.5 7.6 5.9
U.S.
Pharmaceuticals $1,709 (a) 12.0 -- 12.0
Worldwide
Nutritional
Sales $1,320 11.8 2.6 9.2
International
Nutritionals $678 18.1 5.4 12.7
U.S.
Nutritionals $642 5.9 -- 5.9
Worldwide
Diagnostics
Sales $915 12.1 5.5 6.6
International
Diagnostics $672 13.1 7.6 5.5
U.S.
Diagnostics $243 9.3 -- 9.3
Worldwide
Vascular Sales $747 15.8 3.2 12.6
International
Vascular $333 33.1 8.4 24.7
U.S. Vascular $414 4.9 -- 4.9
Other Sales $613 (b) 39.2 3.5 35.7
Note: See "Consolidated Statement of Earnings" for more information.
(a) Includes a partial quarter impact from the acquisition of Solvay
Pharmaceuticals, which closed on Feb. 15, 2010.
(b) Includes the full quarter impact of the acquisition of Advanced
Medical Optics, which closed on Feb. 25, 2009.
The following summarizes the impact of foreign exchange on global
sales for selected products.
Quarter Ended
3/31/10
(dollars in
millions)
Global Sales
Global % Change vs. 1Q09
-----------------
Foreign
Sales Reported Exchange Operational
----- -------- -------- -----------
Pharmaceutical
Products
HUMIRA $1,397 36.5 7.0 29.5
TriCor/TRILIPIX $291 15.2 -- 15.2
Kaletra $292 0.1 4.5 (4.4)
Niaspan $205 14.8 -- 14.8
Lupron $172 (10.4) 3.4 (13.8)
Synthroid $123 18.1 3.5 14.6
Nutritional
Products
Pediatric
Nutritionals $700 10.9 2.3 8.6
Adult
Nutritionals $605 15.0 3.2 11.8
Medical Products
Core Laboratory
Diagnostics $763 9.7 5.9 3.8
Coronary Stents $455 13.1 3.1 10.0
Diabetes Care $295 3.9 5.4 (1.5)
Medical Optics $260 n/m n/m n/m
Molecular
Diagnostics $87 30.1 4.5 25.6
n/m = Not meaningful
The following is a summary of Abbott's first-quarter 2010 sales for
selected products.
Quarter Ended 3/31/10
(dollars in millions) International
-------------
U.S.
----
% Change
Sales vs. 1Q09 Sales
----- -------- -----
Pharmaceutical
Products
HUMIRA $542 32.4 $855
TriCor/TRILIPIX $278 10.2 $13
Kaletra $72 (15.4) $220
Niaspan $205 14.8 --
Lupron $108 (18.7) $64
Synthroid $98 14.8 $25
Nutritional Products
Pediatric Nutritionals $309 4.8 $391
Adult Nutritionals $318 10.3 $287
Medical Products
Core Laboratory
Diagnostics $147 1.2 $616
Coronary Stents $261 (2.7) $194
Diabetes Care $123 2.6 $172
Medical Optics $100 n/m $160
Molecular Diagnostics $44 32.3 $43
Quarter Ended 3/31/10
(dollars in millions) International
-------------
% Change vs. 1Q09
-----------------
Foreign
Reported Exchange Operational
-------- -------- -----------
Pharmaceutical
Products
HUMIRA 39.2 11.6 27.6
TriCor/TRILIPIX n/m n/m n/m
Kaletra 6.4 6.3 0.1
Niaspan -- -- --
Lupron 8.2 10.9 (2.7)
Synthroid 33.1 19.4 13.7
Nutritional Products
Pediatric Nutritionals 16.3 4.2 12.1
Adult Nutritionals 20.6 7.1 13.5
Medical Products
Core Laboratory
Diagnostics 11.9 7.5 4.4
Coronary Stents 44.3 9.2 35.1
Diabetes Care 4.8 9.2 (4.4)
Medical Optics n/m n/m n/m
Molecular Diagnostics 27.9 9.1 18.8
n/m = Not meaningful
Business Highlights
-- Completed Acquisition of Solvay Pharmaceuticals: Completed the
acquisition of Solvay Pharmaceuticals, providing Abbott with a large
and complementary portfolio of pharmaceutical products and expanding
Abbott's presence in key global emerging markets. Abbott expects the
acquisition to add nearly $3 billion to Abbott's 2010 total reported
sales, the majority outside the U.S., and add approximately $500
million to Abbott's annual pharmaceutical R&D investment.
-- Announced the Acquisition of Facet Biotech Corporation: Announced the
acquisition of Facet, which enhances Abbott's mid- and late-stage
pharmaceutical pipeline, including a promising investigational
biologic for multiple sclerosis that is expected to enter Phase III
development this year as well as compounds that complement Abbott's
diverse oncology program.
-- Presented New Data from the EVEREST II Trial at ACC: Presented
late-breaking data at the American College of Cardiology's (ACC)
annual scientific session from the landmark EVEREST II (Endovascular
Valve Edge-to-Edge REpair STudy) trial demonstrating that Abbott's
investigational MitraClip® system met both its primary safety and
effectiveness endpoints, suggesting that the minimally invasive
MitraClip procedure may be an important treatment option for patients
with significant mitral regurgitation (MR). MR is the most common type
of heart valve insufficiency in the United States and Europe,
affecting more than eight million people.
-- Announced Positive Data from ABSORB Trial at ACC: Announced positive
30-day results from the first 101 patients enrolled in the second
phase of the ABSORB trial at ACC, which incorporates device
enhancements designed to improve deliverability and vessel support.
Patients treated with Abbott's investigational bioresorbable vascular
scaffold (BVS) demonstrated no cases of blood clots (thrombosis), no
need for repeat procedures (ischemia-driven target lesion
revascularization) and a very low rate of major adverse cardiac events
(MACE).
-- Completed Acquisition of STARLIMS Technologies: Completed the
acquisition of STARLIMS Technologies Ltd., a leader in laboratory
information management systems. The acquisition provides Abbott with
leading products and expertise to build its position in laboratory
informatics, an emerging and rapidly growing field.
-- Received Approval for New Cataract Multifocal Intraocular Lens (IOL):
Announced U.S. Food and Drug Administration approval for the TECNIS®
Multifocal 1-Piece IOL for cataract patients with and without
presbyopia. Its unique optic design gives patients superior near
vision and reading speed compared to other presbyopia-correcting IOLs.
-- Entered Collaboration for Molecular Diagnostic Test: Abbott entered
into an agreement to develop a molecular diagnostic test intended for
use as an aid in selecting patients who may benefit from a skin cancer
treatment in development by a third party.
-- Announced Advancement of Hepatitis C Program: Announced initiation of
a Phase II clinical trial evaluating three of Abbott's hepatitis C
antiviral agents, including the investigational protease inhibitor
ABT-450, part of a collaboration with Enanta Pharmaceuticals, and
polymerase inhibitors ABT-333 and ABT-072, currently being developed
exclusively by Abbott.
Abbott updates 2010 outlook; continues to forecast double-digit
earnings-per-share growth for 2010
Abbott is updating ongoing earnings-per-share guidance for the
full-year 2010 to $4.13 to $4.18, excluding specified items. This
guidance includes the impact of the recently enacted U.S. health
care reform legislation in 2010. The midpoint of this guidance
range reflects continued double-digit growth of approximately 12
percent over 2009.
Abbott forecasts specified items for the full-year 2010 of
approximately $0.34 per share, primarily associated with health
care reform impact on deferred tax assets, previously announced
acquisitions, previously announced cost reduction initiatives, and
the one-time impact of the devaluation of the Venezuelan bolivar on
balance sheet translation. Including these specified items,
projected earnings per share under Generally Accepted Accounting
Principles (GAAP) would be $3.79 to $3.84 for the full-year 2010.
This forecast excludes additional integration costs associated with
the Solvay Pharmaceuticals acquisition that may occur, to be
specified at a later date.
Abbott declares quarterly dividend
On Feb. 19, 2010, the board of directors of Abbott increased the
company's quarterly common dividend to 44 cents per share, an
increase of 10 percent over the prior period. The cash dividend is
payable May 15, 2010, to shareholders of record at the close of
business on April 15, 2010. This marks the 345th 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 approximately 83,000
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 www.abbott.com. Abbott will webcast its
live first-quarter earnings conference call through its Investor
Relations Web site at 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 purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. 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, 2009, and are incorporated by reference. Abbott undertakes
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
First Quarter Ended March 31, 2010 and 2009
(in millions, except per share data)
(unaudited)
2010 2009 % Change
---- ---- --------
Net Sales $7,698 $6,718 14.6
------ ------
Cost of products sold 3,335 2,936 13.6
Research and development 730 650 12.2
Selling, general and administrative 2,162 2,071 4.4
----- -----
Total Operating Cost and Expenses 6,227 5,657 10.1
----- -----
Operating earnings 1,471 1,061 38.6
Net interest expense 89 88 0.6
Net foreign exchange (gain) loss 70 14 n/m
Other (income) expense, net (10) (974) n/m 1)
--- ----
Earnings before taxes 1,322 1,933 (31.6)
Taxes on earnings 319 494 (35.4)
--- ---
Net Earnings $1,003 $1,439 (30.3) 1)
====== ======
Net Earnings Excluding Specified Items, as
described below $1,267 $1,142 10.9 2)
====== ======
Diluted Earnings per Common Share $0.64 $0.92 (30.4) 1)
===== =====
Diluted Earnings Per Common Share, Excluding
Specified Items,
as described below $0.81 $0.73 11.0 2)
===== =====
Average Number of Common Shares Outstanding
Plus Dilutive
Common Stock Options and Awards 1,561 1,556
1) In 2009, other (income) expense, net earnings, and diluted
earnings per common share included the one time favorable impact of
the derecognition of a contingent liability ($797 million pre-tax,
$505 million after-tax, or $0.32 per share). Since this did not
recur in 2010, this results in a 2010 decline in net earnings and
diluted earnings per common share on a GAAP basis when compared to
2009. For ongoing purposes, as discussed in footnote 2 below, this
item was excluded from 2009 net earnings and diluted earnings per
common share.
2) 2010 Net Earnings Excluding Specified Items excludes after-tax
charges of $115 million, or $0.07 per share, for the one-time
impact of the devaluation of the Venezuelan bolivar on balance sheet
translation, $60 million, or $0.04 per share, for specific health
care reform impact on deferred tax assets, $53 million, or $0.04 per
share, relating primarily to closing and other costs associated with
the acquisition of Solvay and other recent acquisitions, and $36
million, or $0.02 per share, for cost reduction initiatives and
other.
2009 Net Earnings Excluding Specified Items excludes an after-tax
gain of $505 million, or $0.32 per share, relating to the
derecognition of a contingent liability that was recorded in
connection with the conclusion of the TAP joint venture. This was
partially offset by $60 million, or $0.04 per share, relating to
costs associated with the acquisition of Advanced Medical Optics
(AMO), $41 million, or $0.02 per share, for a litigation settlement
and $107 million, or $0.07 per share, for cost reduction initiatives
and costs associated with a delayed product launch.
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 growth of Worldwide Pharmaceutical sales?
A1) Worldwide Pharmaceutical sales increased 12.9 percent,
including a favorable 4.4 percent effect of exchange rates. Sales
included a partial quarter contribution from the Solvay
acquisition, which closed in mid-February, partially offset by the
continuing decline in Depakote sales due to generic competition.
The quarter included six weeks of Solvay sales in the United
States, and only two weeks of international sales from Solvay given
Abbott's standard practice of reporting international sales on a
one-month lag. In addition, the negative impact of higher Medicaid
rebates as a result of U.S. health care reform has been reflected
in the respective U.S. pharmaceutical product sales in the
quarter.
Growth in the quarter was driven by strong performance from key
franchises including HUMIRA and lipid management. HUMIRA global
sales growth was 36.5 percent, with international growth of 39.2
percent. International anti-TNF market growth trends remain strong,
and HUMIRA maintains a market-leading position in many of the
international markets. U.S. HUMIRA sales were up 32.4 percent as
demand for HUMIRA continues to outpace the market, with
particularly strong growth in the dermatology and gastroenterology
segments. The U.S. HUMIRA growth rate also benefited from a
favorable comparison to the prior year.
Global lipid management franchise sales were up double-digits,
including a modest partial quarter contribution of international
fenofibrate sales, following the close of the Solvay acquisition.
Niaspan sales continue to benefit from favorable clinical data
presented last year. Total prescription growth for the franchise
continues to exceed the growth rate of the cholesterol
market.
Q2) What drove the strong performance in Worldwide Vascular,
Worldwide Nutritional and Worldwide Diagnostics sales?
A2) Double-digit growth in Worldwide Vascular sales were driven
by the continued global growth of XIENCE, which is now the number
one drug-eluting stent (DES) in the world following the successful
launch in Japan. Launched in February in Japan, XIENCE V captured
the number one share position with share in excess of 40 percent.
With the addition of Promus, the XIENCE platform share is already
well in excess of 50 percent in Japan. As a reminder, the quarter
included only February sales in Japan given Abbott's one-month lag
for international reporting. In addition, strong international
sales of XIENCE and XIENCE PRIME in Europe and other international
markets also contributed to growth in the quarter.
Worldwide nutritional products sales increased 11.8 percent,
including a favorable 2.6 percent impact from exchange.
International nutritional product sales increased 18.1 percent,
including 5.4 percent favorable exchange, reflecting strong growth
in key emerging markets, including Latin America and Asia. Both
pediatric and adult international nutritionals grew
double-digits.
Double-digit growth in Worldwide Diagnostics reflects continued
double-digit growth in Abbott's Molecular and Point of Care
diagnostics businesses as well as strong growth in our
international Core Laboratory Diagnostics business.
Q3) How did U.S. health care reform impact the first
quarter?
A3) During the first quarter, U.S. healthcare reform legislation
was enacted. Beginning in 2010, this legislation includes an
increase in the basic Medicaid rebate rate from 15.1 percent to
23.1 percent and extends the rebate to drugs provided through
Medicaid managed care organizations. As a result, sales in the
first quarter were reduced by approximately $60 million, and
ongoing earnings per share in the first quarter were reduced by
$0.03 per share. Excluding this impact, first quarter ongoing
earnings per share would have been $0.84, up 15.1 percent.
In addition, Abbott recorded a one-time charge in the first
quarter of $60 million, or $0.04 per share, related to the impact
on deferred tax assets associated with a provision of the U.S.
health care reform legislation that will eliminate the Federal
income tax deduction for prescription drug expenses of retirees for
which companies receive reimbursement under the Medicare Part D
drug subsidy program. See Questions and Answers 7 for further
discussion.
Q4) What was the first-quarter gross margin ratio?
A4) The gross margin ratio before and after specified items is
shown below (dollars in millions):
1Q10
----
Cost of Gross Gross
------- ----- -----
Products Margin Margin
-------- ------ ------
Sold %
---- ---
As reported $3,335 $4,363 56.7%
Adjusted for specified items:
Acquisition related ($8) $8 0.1%
Cost reduction
initiatives and other ($48) $48 0.6%
---- --- ---
As adjusted $3,279 $4,419 57.4%
The adjusted gross margin ratio of 57.4 percent, above our
previous forecast, was driven by strong performance across several
businesses, including vascular and diagnostics, and less of a
negative impact from foreign exchange than originally forecast.
This was partially offset by the additional Medicaid rebates
required under U.S. health care reform in the first quarter, which
reduced sales by approximately $60 million.
Q5) What drove SG&A and R&D investment in the
quarter?
A5) In the first quarter, both SG&A and R&D reflect
Abbott's continued investment in programs to drive future growth,
as well as increases associated with the partial quarter addition
of Solvay Pharmaceuticals. R&D investment, up 12.2 percent,
reflected continued investment in our broad-based pipeline,
including programs in vascular devices, immunology, neuroscience,
oncology and hepatitis C.
Q6) What was the tax rate for the first-quarter 2010?
A6) The ongoing tax rate this quarter was 16.3 percent, in line
with our previous forecast. The reported first-quarter tax rate is
reconciled to the ongoing rate below (dollars in millions):
1Q10
----
Pre-Tax Taxes on Tax
Income Earnings Rate
As reported $1,322 $319 24.1%
Specified items $192 ($72) (37.8%)
---- ---- -------
Excluding specified
items $1,514 $247 16.3%
Q7) How did specified items affect reported results?
A7) Specified items impacted first-quarter results as follows:
1Q10
----
(dollars in millions, except
earnings-per-share) Earnings
--------
Pre- After- EPS
---- ------ ---
tax tax
--- ---
As reported $1,322 $1,003 $0.64
Adjusted for specified items:
Venezuela devaluation - balance
sheet impact $86 $115 $0.07
Health care reform - tax asset
impact -- $60 $0.04
Acquisition related $63 $53 $0.04
Cost reduction initiatives and other $43 $36 $0.02
As adjusted $1,514 $1,267 $0.81
As previously disclosed, Venezuela devaluation reflects the
one-time non-cash impact of the bolivar devaluation, which occurred
in early January, on the translation of the balance sheet
associated with Abbott's business in Venezuela. Health care reform
reflects a one-time charge from the recently enacted U.S. health
care reform legislation related to deferred tax assets, due to the
elimination of the Federal income tax deduction for prescription
drug expenses of retirees for which companies receive reimbursement
under the Medicare Part D drug subsidy program. Acquisition related
is associated with closing costs related to Solvay and the costs to
integrate the acquisitions of Solvay, AMO, Evalve and Visiogen.
Cost reduction initiatives include actions to improve efficiencies,
including the previously announced efforts in the core laboratory
diagnostic business.
The impact of specified items by Consolidated Statement of
Earnings line item is as follows (dollars in millions):
1Q10
----
Cost of R&D SG&A Foreign Other
------- --- ---- Exchange -----
Products (Income)/
--------
Sold Expense
---- -------
As reported $3,335 $730 $2,162 $70 ($10)
Adjusted for specified items:
Acquisition related ($8) ($1) ($52) -- ($2)
Venezuela devaluation -- -- -- ($86) --
Cost reduction
initiatives and other ($48) -- $5 -- --
---- --- --- --- ---
As adjusted $3,279 $729 $2,115 ($16) ($12)
Q8) What are the key areas of focus in Abbott's broad-based pipeline?
A8) Abbott is conducting leading-edge research across the
company. In 2010, we expect to see continued advancement in our
broad-based pipeline, including the anticipated approval for five
new products or indications and data for numerous Phase I and Phase
II compounds. In our leading vascular pipeline, Abbott expects to
launch more than 10 new products over the next five years,
including MitraClip device in 2011 for mitral regurgitation, the
most common heart valve defect. In addition, we are planning
numerous new product launches in our U.S. and international
nutritionals business, as well as several key diagnostic assay
launches in our core laboratory diagnostics business. Following are
select highlights from breakthrough research across both
pharmaceuticals and medical products pipelines:
-- Oncology
-- Abbott's oncology pipeline includes therapies that represent
promising, unique scientific approaches to treating cancer. Abbott
is focused on the development of targeted, less-toxic treatments
that inhibit tumor growth and improve response to common cancer
therapies.
-- Our oncology pipeline includes: ABT-263, a Bcl-2 family protein
antagonist; ABT-869, a multi-targeted kinase inhibitor; and
ABT-888, a PARP-inhibitor. Additionally, Abbott is also evaluating
a number of promising mechanisms in our pre-clinical pipeline,
including work with Pierre Fabre on an early stage cMET antibody
biologic for cancer.
-- The acquisition of Facet Biotech will bring several oncology
collaborations, including early- and mid-stage compounds that are
being studied for difficult to treat types of cancer, including
multiple myeloma and chronic lymphocytic leukemia.
-- Neuroscience
-- Abbott is conducting innovative research in neuroscience, where we
have developed compounds that target receptors in the brain that
help regulate mood, memory and other neurological functions to
address conditions such as Alzheimer's disease and schizophrenia.
Abbott recently advanced two compounds into Phase II development
for Alzheimer's disease.
-- The acquisition of Facet Biotech will expand our neuroscience
pipeline with the addition of a novel, next-generation antibody
entering Phase III development for multiple sclerosis.
-- Pain
-- Abbott is also pursuing compounds that could provide relief across
a broad spectrum of pain states, such as osteoarthritis,
postoperative pain and cancer pain.
-- We recently expanded our early-stage pain portfolio with the
addition of an anti-nerve growth factor (NGF) biologic for chronic
pain.
-- Immunology
-- Abbott's scientific experience with the anti-TNF biologic HUMIRA
serves as a strong foundation for our continuing research in
immunology. In our pipeline, we continue to explore additional
indications for HUMIRA and have ongoing studies for ABT-874,
Abbott's anti-IL 12/23 biologic. We are also working to advance
development of our early discovery programs, including oral DMARD
therapies, as well as other potential biologic targets.
-- Additionally, our proprietary DVD-Ig technology represents an
innovative approach that can target multiple disease-causing
antigens with a single biologic agent. This technology could lead
to combination biologics for complex conditions such as cancer or
rheumatoid arthritis, where multiple pathways are involved in the
disease.
-- Hepatitis C
-- Abbott recently advanced three HCV compounds into Phase II
clinical trials, spanning multiple mechanisms of action, with
additional compounds in pre-clinical development. Abbott is well
positioned to explore combinations of these new therapies, a
strategy with the potential to markedly transform current
treatment practices by shortening therapy duration, improving
tolerability and increasing cure rates.
-- Abbott's antiviral program is focused on the treatment of
hepatitis C, a disease that affects more than 180 million people
worldwide, with approximately 3 to 4 million people newly infected
each year. Abbott's broad-based hepatitis C development programs
include our partnership with Enanta Pharmaceuticals to discover
protease inhibitors, as well as our internal programs focused on
additional viral targets, including polymerase inhibitors.
-- Molecular Diagnostics
-- In the fourth quarter, Abbott launched its first RealTime cancer
test on the m2000 platform to detect a gene linked to colorectal
cancer. Abbott is developing a number of automated molecular tests
for oncology, including tests that would screen for skin, bladder,
prostate, gastric and non-small cell lung cancers.
-- Diagnostics
-- In 2010, Abbott will launch a number of key assays on its
ARCHITECT immunochemistry platform, which will significantly
broaden its industry-leading menu. These tests include assays to
assess ovarian cancer, acute kidney injury and HIV. Abbott also
plans to complete its metabolic panel in the United States.
-- Abbott is developing a blood-screening test for Chagas disease for
its Abbott PRISM instrument. Chagas disease afflicts millions of
people in Mexico, Central America and South America. If left
untreated, Chagas is often fatal. Already available
internationally, Abbott's Chagas test is in development in the
United States.
-- Vascular Devices
-- MitraClip - Abbott presented late-breaking data at the American
College of Cardiology (ACC) meeting from the landmark EVEREST II
trial demonstrating that MitraClip met both its primary safety and
effectiveness endpoints, suggesting that the minimally invasive
MitraClip procedure may be an important treatment option for
patients with significant mitral regurgitation. Abbott's MitraClip
is on the market in Europe and in development in the United States
for the treatment of mitral regurgitation, with an expected 2011
approval.
-- XIENCE PRIME - Abbott's next-generation DES that capitalizes on
the proven attributes of XIENCE V while offering a novel stent
design and a modified delivery system for improved deliverability.
XIENCE PRIME is off to a strong start in Europe, where it was
launched in September. XIENCE PRIME is in clinical trials in the
United States, where it is expected to launch in 2012.
-- XIENCE Nano - XIENCE V for small vessels is in clinical trials in
the United States. This 2.25 mm diameter stent was launched in
Europe in 2008, and is expected to launch in the U.S. in 2011.
-- "Thinman" DES - Abbott is developing an ultra thin DES, which
would be the thinnest DES on the market at the time of launch.
Thin stent struts are designed to improve clinical outcomes by
reducing vessel injury upon deployment, enabling faster healing
and improving deliverability in complex anatomy.
-- Bioresorbable Vascular Scaffold (BVS) - Abbott is developing a BVS
that is gradually resorbed into the vessel wall - much like
sutures are absorbed after healing a wound - with the potential to
return the vessel to full motion. Abbott has the most advanced
clinical program, with an opportunity to reach the market years
ahead of competitors.
-- Core products - Abbott recently received CE Mark for its
next-generation bare metal stent, MULTI-LINK 8, which is in
development in the United States Other devices in active
development include next-generation frontline and high-pressure
balloons, and new guidewires.
-- Vision Care
-- Synchrony, a next-generation accommodating intraocular lens, is
currently under FDA review, and we anticipate a U.S. launch in
2011. This new technology is designed to mimic the eye's natural
ability to change focus and deliver improved vision at all
distances for patients following cataract surgery. Synchrony
received CE mark designation and is currently marketed in Europe.
Source: Abbott
CONTACT: Financial, John Thomas, +1-847-938-2655, or 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/
Posted: April 2010
