Healthy Skepticism Library item: 12557

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Publication type: news

Humira propels Abbott results
The Daily Herald 2008 Jan 24
http://www.dailyherald.com/story/?id=120119

Full text:

Pharmaceutical and medical products maker Abbott Laboratories Inc. reported a $1.2 billion fourth-quarter profit Wednesday on the strength of strong drug sales worldwide, capping a year which saw international sales account for a majority of its business for the first time.

Blockbuster anti-inflammatory drug Humira led the way with a 43 percent jump in sales from a year earlier to top $3 billion in sales for 2007. Other Abbott drugs Depakote, TriCor and Kaletra also posted double-digit sales gains, as pharmaceuticals helped Abbott increase companywide sales by 16 percent.

Abbott’s first-quarter outlook for earnings was slightly below analysts’ expectations, but the strong fourth-quarter results still sent shares up 48 cents to $57.97 Wednesday.

Both the company and analysts painted an optimistic view of longer-term prospects for the Libertyville Township-based company, however.

“Humira represents the primary growth and profitability driver for the company, and fourth-quarter performance continues to support our bullish view of the product,” Cowen and Co. analyst Sara Michelmore said in a note to investors.

The fourth-quarter gain represented a turnaround from a loss a year earlier, when results were reduced by hefty acquisition charges for Kos Pharmaceuticals Inc. For the quarter ended Dec. 31, the company’s net income amounted to 77 cents per share and compared with a loss of $476.2 million, or 31 cents per share, in the same period of 2006.

Revenue rose to $7.22 billion from $6.22 billion, exceeding the $6.97 billion estimated by analysts polled by Thomson Financial. Favorable exchange rates contributed 4.5 percent to the increase.

Adjusted earnings, excluding certain items, rose to 93 cents per share from 75 cents per share in the year-earlier period. That was a penny better than analysts’ consensus estimate.