DOW JONES NEWSWIRES
Abbott Laboratories (ABT) posted a 53% jump in first-quarter net
income, boosted by a gain from the sale of a joint venture and
continuing strong sales of its new Xience stent and Humira
arthritis drug.
But shares fell 4.3% in premarket trading Wednesday to $42.78 as
revenue was short of analysts' expectations and the company
reiterated its second-quarter and full-year earnings targets. The
stock through Tuesday was down nearly one-quarter the past two
months.
The results of the maker of drugs and medical devices have held
up well against their rivals, while the company has been able to
navigate through the recession thanks to its broader product base
than many drug companies and relatively little exposure to patent
expirations, the bane of Big Pharma.
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 summer, helping Abbott's
medical-products sales. That segment saw 8.8% growth amid a more
than 40% surge in stent sales.
Abbott reported first-quarter net income of $1.44 billion, or 92
cents a share, up from $938 million, or 60 cents a share, a year
earlier. Excluding items such as a gain from the end of its Tap
Pharmaceuticals joint venture, the company's earnings from
continuing operations rose to 73 cents a share from 63 cents. In
January, the company projected 69 cents to 71 cents, below
analysts' estimates at the time.
Net sales slipped 0.7% to $6.72 billion due to the stronger
dollar and the loss of patent protection for the anti-epilepsy drug
Depakote. On average, analysts were most recently expecting sales
of $7.06 billion.
Gross margin edged up to 56.3% from 56.2%.
Pharmaceutical sales - Abbott's biggest business - fell 5.7%.
Its Humira treatment for various forms of arthritis,
gastrointestinal disorder and other disorders had a 17% worldwide
sales jump. Depakote reported a 68% plunge in U.S. sales to $110
million.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com