Abbott (NYSE: ABT) today announced financial results for the fourth quarter ended Dec. 31, 2009.
- Diluted earnings per share, excluding specified items, were $1.18, reflecting 11.3 percent growth, at the high end of Abbott's previous forecast. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.98, up 10.1 percent.
- Worldwide sales increased 10.6 percent to nearly $8.8 billion, including a favorable 2.4 percent effect of exchange rates. Excluding the expected decline in Depakote® sales due to generic competition, worldwide reported sales increased 12.7 percent. Full-year 2009 sales were $30.8 billion.
- Worldwide pharmaceutical sales increased 5.2 percent, including a favorable 2.5 percent effect of exchange rates. Excluding the impact of Depakote, worldwide pharmaceutical sales increased 8.9 percent. International pharmaceutical sales increased 22.1 percent, including a favorable 5.6 percent effect of exchange rates.
- Worldwide medical products sales increased 23.4 percent, including a favorable 3.2 percent effect of exchange rates.
- Worldwide nutritional sales increased 8.8 percent, including a favorable 0.9 percent effect of exchange rates.
- Abbott is issuing ongoing earnings-per-share guidance for the full-year 2010 of $4.20 to $4.25, excluding specified items. The midpoint of this range reflects growth of approximately 13.5 percent over 2009, including an expected February 2010 close of the Solvay Pharmaceuticals acquisition.
"Abbott's 2009 results demonstrated the sustainable strength and balance of our broad-based businesses," said Miles D. White, chairman and chief executive officer, Abbott. "We took decisive long-term strategic actions in 2009 to ensure our strong results continue for years to come. As a result, we're positioned to deliver another year of top-tier performance in 2010."
- Completed Acquisitions of Evalve, Inc. and Visiogen, Inc.: Completed the acquisition of Evalve, Inc., the global leader in the development of devices for minimally invasive repair of mitral valves. In addition, completed the acquisition of privately-held eye care company, Visiogen, Inc., expanding our vision care business with a next-generation accommodating intraocular lens (IOL) technology to address presbyopia for cataract patients.
- Acquired Novel Biologic to Treat Chronic Pain: We completed the acquisition of global rights to PanGenetics' PG110, a novel biologic in development for the treatment of chronic pain. This fully humanized antibody to Nerve Growth Factor (NGF) expands Abbott's early stage pain care pipeline and leverages our biologics platform. NGF is released at sites of tissue damage and inflammation, and plays a significant role in the transmission of pain signals by the central nervous system.
- Presented Three-Year Bioabsorbable Stent Data at AHA: Announced three-year data from its fully bioabsorbable drug-eluting stent clinical trial, ABSORB. These results showed that patients experienced no stent thrombosis out to three years and no new major adverse cardiac events (MACE) between six months and three years. In addition, Abbott announced a large-scale trial called ABSORB EXTEND, which will enroll up to 1,000 patients with more complex coronary artery disease from approximately 100 centers around the world.
- Announced Acquisition of STARLIMS Technologies Ltd.: Announced a definitive agreement to acquire STARLIMS Technologies Ltd., a leading provider of laboratory information management systems. The acquisition strengthens Abbott's competitive position in the global diagnostics market, providing advanced web-based software applications to help laboratories efficiently store, retrieve and analyze clinical, managerial and administrative data.
- Announced Regulatory Filing for Simcor® 40mg and Arbiter-6 HALTS Data Presented at AHA: Announced U.S. regulatory filing for two new 40mg dosage strengths of Simcor, Abbott's fixed dose combination of niacin extended-release and simvastatin. In addition, the Arbiter-6 HALTS study, presented at AHA, showed that adding Abbott's Niaspan to statin therapy resulted in significant carotid atherosclerosis regression and significantly fewer major adverse cardiac events (MACE) than ezetimibe (Zetia).
- Received Approval for Two New HUMIRA® Indications in Japan: Recently received regulatory approval in Japan for two new HUMIRA indications, psoriasis and psoriatic arthritis. HUMIRA was approved for rheumatoid arthritis in Japan in 2008. In addition, Abbott has completed regulatory submissions in Japan for Crohn's disease and ankylosing spondylitis, and review is currently underway.
- Received Approval for XIENCE V® in Japan and Mexico: Abbott recently received regulatory approval for XIENCE V in Japan, the second largest DES market in the world. XIENCE V was also approved in Mexico in January. The launches of XIENCE V in Japan and Mexico are expected to begin shortly. In addition, the COMPARE trial results were published in The Lancet. These results showed XIENCE V demonstrated superior safety and efficacy outcomes compared to Boston Scientific's TAXUS® Liberte drug-eluting stent.
Abbott issues earnings-per-share outlook for 2010
Abbott is issuing ongoing earnings-per-share guidance for the full-year 2010 of $4.20 to $4.25, excluding specified items. The midpoint of this range reflects growth of approximately 13.5 percent over 2009, including an expected February 2010 close of the Solvay Pharmaceuticals acquisition.
Abbott forecasts specified items for the full-year 2010 of approximately $0.28 per share, primarily associated with previously announced acquisitions and cost reduction initiatives, as well as the one-time impact of the devaluation of the Venezuelan Bolivar on translation of the balance sheet. Including these specified items, projected earnings per share under Generally Accepted Accounting Principles (GAAP) would be $3.92 to $3.97 for the full-year 2010. This forecast excludes integration costs associated with the Solvay Pharmaceuticals acquisition, which will be quantified at a later date.
Abbott declares quarterly dividend; double-digit increase over prior year
On Dec. 11, 2009, the board of directors of Abbott declared the company's quarterly common dividend of 40 cents per share, an increase of 11 percent over the prior period. The cash dividend is payable Feb. 15, 2010, to shareholders of record at the close of business on Jan. 15, 2010. This marks the 344th consecutive dividend paid by Abbott since 1924.