Abbott Laboratories' (ABT) second-quarter profit fell 2.6% on
restructuring and acquisition costs while maintaining steady sales
of its Humira arthritis drug and its Xience stent.
Revenue fell short of expectations due to currency moves and
patent-loss effects, and the maker of drugs and medical devices
gave a cautious earnings forecast for the current quarter. As such,
shares fell 2.2% premarket to $45.45.
Abbott, which reiterated its 2009 earnings target, expects
third-quarter earnings of 88 cents to 90 cents a share. The mean
estimate of analysts surveyed by Thomson Reuters was 90 cents.
Abbott's results have held up fairly well despite the recession
as its broad product base and minor exposure to patent expirations
shield it against the woes that have hit big pharmaceutical makers.
But the company's Humira drug, long a driver of success, has been
the focus of concern since Abbott's scaling back its forecast for
full-year Humira sales growth seemed to confirm some investors'
fears that prescription growth is slowing.
Abbott reported second-quarter earnings of $1.29 billion, or 83
cents a share, down from $1.32 billion, or 85 cents a share, a year
earlier. Excluding items such as restructuring and acquisition
costs, earnings rose to 89 cents from 84 cents. The company's April
forecast was 87 cents to 89 cents.
Net sales rose 2.5% to $7.5 billion, but increased 10.5%
excluding the stronger dollar's impact. A further
four-percentage-point reduction was due to loss of patent
protection for the anti-epilepsy drug Depakote. Analysts were
expecting revenue of $7.55 billion.
Gross margin rose to 58.3% from 57.3%.
Pharmaceutical sales - Abbott's biggest business - fell 4.3% but
rose 4% excluding currency effects. Humira sales rose 21% globally
while Depakote tumbled 79% in the U.S. In April, Abbott called for
Humira 2009 growth of 15% to 20%, versus a previous projection of
more than 25%, citing market dynamics and currency rates.
U.S. stent sales more than tripled as Abbott's Xience
drug-coated stent - used to prop open damaged arteries - has
vaulted to a leading position in the stent market since hitting the
U.S. last year.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com