Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2010.
- Diluted earnings per share, excluding specified items, were $1.05, reflecting 14.1 percent growth, at the high end of Abbott's previously issued guidance range of $1.03 to $1.05. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.57, primarily reflecting costs associated with recently announced restructuring actions for the integration of the Solvay Pharmaceuticals acquisition.
- Worldwide sales increased 11.8 percent to $8.7 billion, including an unfavorable 1.0 percent effect of foreign exchange rates. Growth in the quarter was driven by worldwide pharmaceutical sales, which increased 21.7 percent, including the contribution from the Solvay acquisition, as well as worldwide vascular products sales, which increased 18.6 percent.
- Third quarter results included strong investment spending, particularly in R&D, as well as an improvement in adjusted gross margin ratio to 61.6 percent.
- Abbott is confirming its 2010 ongoing earnings-per-share guidance and raising the lower end of its previous guidance range. As a result, Abbott's ongoing earnings-per-share guidance for full-year 2010 is now $4.16 to $4.18, excluding specified items.
"Abbott delivered strong performance in the quarter as we confirmed our double-digit growth outlook for the full year," said Miles D. White, chairman and chief executive officer, Abbott. "During the quarter, we announced an agreement to expand our pharmaceutical pipeline with an attractive late-stage asset for the treatment of chronic kidney disease, which follows the addition of several novel compounds earlier this year. In addition, we completed the acquisition of Piramal's Healthcare Solutions business and finalized the integration planning for the Solvay Pharmaceuticals acquisition. The strategic actions we've taken across our global businesses position us well in high-growth emerging markets as well as promising new therapeutic areas."
- Completed Acquisition of Piramal's Healthcare Solutions Business: Completed the acquisition of Piramal's Healthcare Solutions business, propelling Abbott to market leadership in the Indian pharmaceutical market and further accelerating the company's growth in emerging markets. Abbott expects its pharmaceutical sales in India to exceed $2.5 billion by 2020.
- Announced Agreement to Develop and Commercialize Bardoxolone: Announced an agreement with Reata Pharmaceuticals to develop and commercialize bardoxolone methyl for the treatment of chronic kidney disease (CKD) outside the United States, excluding certain Asian markets. Bardoxolone is an oral, first-in-class anti-inflammatory (Nrf2 activator) that works by increasing the estimated glomerular filtration rate (eGFR) of the kidneys. Early clinical studies suggest bardoxolone could be a significant improvement to the current standard of care and possibly prevent patients from progressing to the later stages of the disease and dialysis. A Phase IIb study was recently completed and initiation of a global Phase III trial is targeted to begin in the coming months.
- New Data Presented at the Transcatheter Cardiovascular Therapeutics (TCT) Meeting: Data presented from key trials at TCT reinforced the outstanding safety data supporting Abbott's market-leading XIENCE V® Everolimus Eluting Coronary Stent System. In particular, results from both Abbott's SPIRIT IV trial (XIENCE V compared to Boston Scientific's TAXUS® Express2™ drug-eluting stent) and the investigator-initiated COMPARE trial (XIENCE V compared to TAXUS® Liberte®) showed that XIENCE outperformed TAXUS in key areas of safety and efficacy through two years. Abbott also announced positive nine-month results from the first 45 patients enrolled in the second stage of the ABSORB trial, and presented six-month results for all 101 patients enrolled in the second stage of the bioresorbable vascular scaffold (BVS) study. Abbott is the only company with long-term data on a complete patient set evaluating a BVS.
- Received FDA Market Clearance for Next-Generation Contact Lens Disinfecting Solution: Received U.S. Food and Drug Administration (FDA) market clearance for RevitaLens Ocutec™, a unique next-generation multi-purpose disinfecting solution for silicone hydrogel and conventional soft contact lenses. RevitaLens Ocutec Multi-purpose Disinfecting Solution delivers high-quality disinfection and comfort for the user, with the convenience of a single bottle.
- Announced FDA Approval for First Automated Molecular Test for HBV: Announced approval from the FDA to market the Abbott RealTime HBV assay for measuring viral load or the amount of hepatitis B virus (HBV) in a patient's blood. It is the only approved test capable of automating HBV viral load testing from sample extraction to final results. The Abbott RealTime HBV assay is now available for laboratories that use the Abbott m2000 automated instrument system for molecular diagnostic testing.
- Received FDA Approval for New Dosage Strengths of SIMCOR®: Received FDA approval for two new dosage strengths of SIMCOR. The new SIMCOR dosage strengths combine 40 mg of simvastatin – the most commonly prescribed dose of simvastatin – with either 500 mg or 1,000 mg of niacin extended-release. SIMCOR is the first treatment to combine Abbott's proprietary niacin extended-release and simvastatin, the most commonly used statin.
- Submitted Regulatory Applications for Briakinumab (ABT-874): Submitted applications in the United States and Europe seeking regulatory approval for Abbott's investigational IL-12/23 biologic for the treatment of psoriasis.
Abbott confirms double-digit ongoing earnings-per-share growth for 2010
Abbott is confirming its 2010 ongoing earnings-per-share guidance and raising the lower end of its previous guidance range. As a result, Abbott's ongoing earnings-per-share guidance for full-year 2010 is now $4.16 to $4.18, excluding specified items.
Abbott forecasts specified items for the full-year 2010 of approximately $1.24 per share, primarily associated with acquisition integration, cost reduction initiatives, a litigation reserve, in-process research and development, product recall and withdrawal costs, impairment of sibutramine related intangible asset 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 $2.92 to $2.94 for the full-year 2010.
Abbott declares quarterly dividend
On Sept. 16, 2010, the board of directors of Abbott declared the company's quarterly common dividend of 44 cents per share, an increase of 10 percent over the prior year. The cash dividend is payable Nov. 15, 2010, to shareholders of record at the close of business on Oct. 15, 2010. This marks the 347th consecutive dividend paid by Abbott since 1924.