Abbott Laboratories

Last modified by Asif Farooqui on 2023/07/17 04:40

Contents

Summary
Recent Developments
Financial Highlights
Company Overview
Company History
References

Summary

Abbott Laboratories is a global healthcare company with operations in more than 160 countries.
Abbott develops, manufactures, and sells a wide range of products in the areas of diagnostics, medical devices, and nutrition.
Abbott Receives FDA Approval for World's First Dual Chamber Leadless Pacemaker

Abbott Laboratories (NYSE: ABT) is a global healthcare company that develops, manufactures, and sells a wide range of products in the areas of diagnostics, medical devices, and nutrition. Some of its most well-known brands include Similac, PediaSure, Pedialyte, Ensure, FreeStyle, and iStat.

Abbott is a global company with operations in more than 160 countries. It employs over 115,000 people worldwide. The company's headquarters are located in Abbott Park, Illinois, United States.

Recent Developments

Abbott Receives FDA Approval for World's First Dual Chamber Leadless Pacemaker¹

July 5, 2023; Abbott announced that the U.S. Food and Drug Administration (FDA) has approved the AVEIR™ dual chamber (DR) leadless pacemaker system, the world's first dual chamber leadless pacing system that treats people with abnormal or slow heart rhythms. With more than 80% of people who need a pacemaker requiring pacing in two chambers of the heart (both the right atrium and right ventricle), the approval significantly increases access to leadless pacing for millions of people across the U.S.

The AVEIR DR leadless pacing system is made up of two devices that communicate with each other beat-to-beat using Abbott's proprietary i2i™ communication technology. This technology uses high-frequency pulses to relay messages via the naturally conductive characteristics of the body's blood. The AVEIR DR system is roughly one-tenth the size of a traditional pacemaker and offers dual chamber therapy, which is when both the right atrium and right ventricle are paced. This can improve the heart's pumping efficiency and reduce symptoms of bradycardia.

Unlike traditional pacemakers, leadless devices are implanted directly into the heart through a minimally invasive procedure and eliminate the need for cardiac leads. As a result, leadless pacemakers reduce people's exposure to potential lead and infection-related complications and offer a less restrictive and shorter recovery period post-implantation.

Abbott Receives FDA Approval for TactiFlex™ Ablation Catheter for Treatment of Abnormal Heart Rhythm²

May 19, 2023; bbott (NYSE: ABT) today announced that the U.S. Food and Drug Administration (FDA) has approved the company's TactiFlex™ Ablation Catheter, Sensor Enabled™, the world's first ablation catheter with a flexible tip and contact force technology.

Used to perform an ablation procedure to treat atrial fibrillation (AFib), the most common abnormal heart rhythm, the TactiFlex catheter can result in reduced procedure times and better safety when compared to the company's previous generation catheters.

More than 37 million people worldwide live with AFib and numbers are predicted to more than double by 2050. An additional five million cases are diagnosed every year, indicating a growing health challenge that demands innovative solutions for patients and their physicians.

Abbott Completes Acquisition of Cardiovascular Systems³

April 27, 2023; Abbott (NYSE: ABT) today announced it has completed the acquisition of Cardiovascular Systems, Inc. (CSI), a medical device company with an innovative atherectomy system used in treating peripheral and coronary artery disease.

The transaction provides Abbott with a complementary solution for treating vascular disease. CSI's leading atherectomy system prepares vessels for angioplasty or stenting to restore blood flow.

Pursuant to the terms of the merger agreement, upon completion of the acquisition, CSI became a wholly owned subsidiary of Abbott

Financial Highlights

First-Quarter 2023 Results

April 19, 2023 — Abbott announced financial results for the first quarter ended March 31, 2023.⁴

First-quarter GAAP diluted EPS of $0.75 and adjusted diluted EPS of $1.03, which excludes specified items.
Projected full-year 2023 diluted EPS from continuing operations on a GAAP basis of $3.05 to $3.25 remains unchanged.
Projected full-year adjusted EPS from continuing operations of $4.30 to $4.50 remains unchanged and now reflects an increased outlook for the underlying base business offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.
Abbott now projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales, of at least high single-digits and COVID-19 testing-related sales of approximately $1.5 billion.
In January, Abbott announced U.S. Food and Drug Administration (FDA) approval of Navitor®, its second-generation transcatheter aortic valve implantation system, for people with severe aortic stenosis who are at high risk for surgery.
In March, data was presented at the American College of Cardiology Scientific Sessions showing Abbott's TriClip® system was superior to current medical therapy in treating patients with severe tricuspid regurgitation, or a leaky tricuspid heart valve.
In March, Abbott's market-leading FreeStyle Libre® continuous glucose monitoring system received U.S. FDA clearance for integration with automated insulin delivery systems. Abbott is partnering with leading insulin pump manufacturers to integrate their systems with FreeStyle Libre 2 and FreeStyle Libre 3 as soon as possible.

Full-Year 2022 Results

Abbott Laboratories reported its full-year 2022. The company's sales for the year were $43.7 billion, an increase of 1.9% from 2021. GAAP diluted EPS was $5.34, and adjusted diluted EPS was $5.75.

The company's performance was driven by strong growth in its diagnostics and medical devices businesses. Diagnostics sales increased 9.7%, driven by growth in COVID-19 testing and molecular diagnostics. Medical devices sales increased 3.5%, driven by growth in cardiovascular and neuromodulation products.

Abbott's nutrition business was impacted by manufacturing disruptions in its U.S. infant formula facility. Sales in the nutrition business decreased 6.7%.

Looking ahead, Abbott expects full-year 2023 diluted EPS from continuing operations on a GAAP basis of $3.05 to $3.25 and adjusted EPS from continuing operations of $4.30 to $4.50.

Gross profit margins were 51.5 percent of net sales in 2022, 52.2 percent of net sales in 2021, and 50.5 percent in 2020. The decrease in 2022 reflects the impact of the voluntary infant product recall and Sturgis manufacturing stoppage as well as the prioritization of infant formula sales related to the WIC Program in the Nutritional business.

Research and development (R&D) expenses were $2.9 billion in 2022, $2.7 billion in 2021, and $2.4 billion in 2020. The increase primarily reflects higher spending on various projects to advance products in development as well as the impairment of certain in-process R&D intangible assets partially offset by the favorable impact of foreign exchange. The increase in 2021 R&D spending was primarily driven by higher spending on various projects to advance products in development.

Company Overview

Abbott is a global healthcare company with a presence in over 160 countries. The company's products are used by millions of people around the world.

Diagnostics: Abbott's diagnostics business develops, manufactures, and markets a broad range of diagnostic products and services, including in vitro diagnostic tests, point-of-care tests, and molecular diagnostics. These products help doctors and patients make better decisions about health and treatment.

Medical Devices: Abbott's medical devices business develops, manufactures, and markets a broad range of medical devices, including cardiac rhythm management devices, diabetes care devices, and vascular devices. These devices help to improve the lives of patients with chronic diseases and other conditions.

Nutrition: Abbott's nutrition business develops, manufactures, and markets a broad range of nutritional products, including infant formula, adult nutrition products, and specialty nutrition products. These products help to support the health and well-being of people of all ages.

Pharmaceuticals: Abbott's pharmaceuticals business develops, manufactures, and markets a broad range of pharmaceutical products, including branded generics, generic injectables, and specialty pharmaceuticals. These products help to treat a wide range of diseases and conditions.

Abbott Vascular: This business develops, manufactures, and markets a broad range of vascular devices, including stents, balloons, and guidewires.

Abbott Diabetes Care: This business develops, manufactures, and markets a broad range of diabetes care products, including continuous glucose monitors, insulin pumps, and test strips.

Abbott Nutrition International: This business markets Abbott's nutrition products in markets outside of the United States.

Reportable Segments	Manufacturing Sites
Medical Devices	28
Diagnostic Products	22
Established Pharmaceutical Products	24
Nutritional Products	14
Worldwide Total	88

Company History

The company was founded in 1888 by Dr. Wallace Calvin Abbott in Chicago, Illinois.⁵

Year	Milestone
1888	Production of “alkaloidal” medicine granules by Dr. Wallace C. Abbott, a 30-year-old practicing physician, begins in the rear of his People's Drug Store in Chicago. Remedies contain the active ingredients of plants and herbs. First-year total sales reach $2,000.
1894	Incorporated as the Abbott Alkaloidal Company. Abbott is a medical publisher as well as a manufacturer.
1907	Expansion outside the United States for the first time with an office in London, England.
1916	Production of our first synthetic medicine, Chlorazene, a breakthrough antiseptic developed by British chemist Dr. Henry Dakin to treat wounded soldiers in World War I.
1929	Initial public offering provides shares for the first time in the year of the stock market crash that began the Great Depression. While the timing seems inauspicious, our stock grows in value from that first day—and approximately 10,000 times over so far.
1935	Introduction of Pentothal, which will be the world’s leading anesthetic for years to come and win our inventors, Dr. Volwiler and Dr. Donalee Tabern, induction into the U.S. National Inventors Hall of Fame.
1942	Abbott joins a consortium of pharmaceutical makers, at the behest of the U.S. Government, to ramp up production of penicillin for wartime use. Together we increase production more than 20,000%.
1964	Acquisition of M&R Dietetics, with its popular baby formula, Similac, makes us a leader in nutrition.
1972	Introduction of the ABA-100 blood chemistry analyzer as well as Ausria, a breakthrough radioimmunoassay test for detecting serum hepatitis. This marks the beginning of our modern diagnostics business, in which we quickly became a world leader.
1985	Approval of the first licensed test to identify the HIV virus in blood, helping to secure the safety of the blood supply. This is one of our greatest achievements and the first significant medical victory against what had, until then, seemed an unstoppable threat.
1998	Introduction of Glucerna, a group of cereals, health shakes and snack bars formulated specifically for diabetics and others with dietary restrictions.
2002	FDA approval of Humira, the first fully-human monoclonal antibody drug. It will go on to become the world's leading pharmaceutical product.
2006	Launch of the Xience V drug-eluting stent. It goes on to become the market leader.
2014	With the launch of its cutting-edge continuous glucose monitoring system, FreeStyle Libre, Abbott revolutionizes diabetes care by eliminating the need for routine fingersticks
2016	Abbott launches the first systems in its Alinity series, a family of diagnostics and informatics systems that represent a major leap forward in terms of reliability, cost, capacity, space efficiency, and ease of use. We are creating the future of diagnostic labs.
2017	In its largest acquisition ever, Abbott acquires St. Jude Medical, adding breakthrough inventions and extensive expertise across the areas of cardiovascular and neuromodulation. Abbott now competes in nearly every area of cardiovascular health and holds the No. 1 or 2 positions in a variety of large, high-growth markets.
2017	Abbott acquires Alere Inc., making Abbott the leader in point-of-care diagnostic technology filling out its array of diagnostics technologies. Abbott now holds the No. 1 position in rapid testing for cardiometabolic disease, infectious disease and in toxicology.
2020	Following the outbreak of the COVID-19 pandemic, Abbott quickly launches multiple new COVID-19 diagnostic tests, from assays that run on high-throughput instruments capable of handling large volumes of tests at once, to self-contained point-of-care devices that deliver reliable, on-the-spot results, fast. Employees work tirelessly to support communities in need and ensure continued access to medical devices, diagnostics, medicines and nutrition products without disruption.