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."
- 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.