Abbott Reports Second-Quarter 2013 Results

Jul 23, 2013
By PharmTech Editors

Abbott announced second-quarter 2013 financial results in a July 17 press release.  The company’s second-quarter adjusted diluted earnings per share (EPS) was $0.46, which was above the previous guidance range reported as $0.30. Abbott confirmed its full-year 2013 EPS guidance, which represents double-digit growth.

Since separating its proprietary pharmaceutical business into a separate company, AbbVie, in Jan. 2013, Abbott’s businesses include Diagnostics, Medical Devices, Nutrition, and Established Pharmaceuticals (i.e., generic medicines). Abbott’s second-quarter 2013 worldwide sales of $5.4 billion increased 4.2 percent on an operational basis, and were driven by 8.4 percent operational sales growth in Nutrition, including 18.4 percent international growth, and 7.6 percent operational sales growth in Diagnostics, including 9.1 percent international growth. 

Sales in Abbott’s Established Pharmaceuticals business increased 0.2 percent in the second quarter on an operational basis and decreased 2.3 percent on a reported basis, including an unfavorable 2.5 percent effect of foreign exchange. Abbott is focused on expanding its pharmaceuticals presence and building local product portfolios in 14 key emerging markets where access to quality healthcare is expanding. Sales in these key emerging markets increased 4.4 percent on an operational basis and 2.5 percent on a reported basis in the quarter, including an unfavorable 1.9 percent effect of foreign exchange. Sales in other markets decreased 3.4 percent on an operational basis and 6.4 percent on a reported basis in the quarter, including an unfavorable 3.0 percent effect of foreign exchange. As expected, sales growth in developed markets continues to be negatively impacted by macroeconomic conditions, including European austerity measures. Abbott expects Established Pharmaceuticals operational sales growth to improve over the course of the year, primarily driven by continued strong performance in Russia, along with acceleration of growth in India and Brazil due to portfolio expansion and execution of recent tender wins.

Worldwide sales in Abbott’s Medical Devices business increased 0.2 percent in the second quarter on an operational basis. Reported sales decreased 1.6 percent, including an unfavorable 1.8 percent effect of foreign exchange. On July 15, Abbott announced two acquisitions in its Medical Devices business: IDEV Technologies, which expands Abbott's endovascular portfolio, and OptiMedica, which provides an immediate entry point into the laser cataract surgery market.