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Abbott Laboratories (ABT)

  • Aug. 15, 2013, 10:03 AM
    • A shareholder resolution from the $160B New York state pension to link executive pay and bonuses to performance at Abbott Labs (ABT) has once again failed after receiving 39% of the vote.
    • Still, the fund is getting closer, with the figure higher than last year, and it will probably try again in 2014.
    • New York has already been instrumental in persuading Bristol-Myers Squibb to adopt such a policy, while five other big pharmaceutical companies have recently taken it on as well following investor pressure.
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  • Aug. 8, 2013, 7:32 AM
    • China's National Development & Reform Commission (NDRC) has threatened companies with "increasingly severe" fines if they "knowingly breaking the law."
    • The remarks were made by the head of the NDRC's pricing unit, Xu Kunlin, who was discussing the $110M fine levied on six foreign companies for the price fixing of baby milk formula.
    • Xu said the companies deleted emails and told employees not to leave a paper trail when negotiating prices with retailers. The actions are "a clear example of knowingly violating the law," Xu said.
    • The companies fined include Mead Johnson Nutrition (MJN), Abbott Labs (ABT) and France's Danone (DANOY.PK).
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  • Aug. 7, 2013, 3:16 AM
    • China has fined six foreign companies a combined $110M for price fixing and anti-competitive practices in the market for baby formulas.
    • The firms punished include Mead Johnson Nutrition (MJN), which will pay 203.8M yuan ($33.29), Abbott Labs (ABT), whose penalty is 77M yuan, and France's Danone (DANOY.PK) with a fine of 172M yuan.
    • Some companies, including Nestle (NSRGY.PK), escaped punishment, as "they cooperated with the investigation, provided important evidence and carried out active self-rectification," Xinhua said.
    • Analysts reckon that despite the fines, foreign companies could increase their market share, because they cut prices after China started a probe into their business practices.
    • China's FDA wants to tighten the conditions for the granting of licenses for milk powder production.
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  • Aug. 5, 2013, 10:55 PM
    • China asks Abbott Laboratories (ABT) to recall some infant formula products after the New Zealand embassy says two batches produced by the company could have been tainted by Clostridium botulinum.
    • The warning is tied to Fonterra Co-Operative Group's disclosure that some of its products might contain a bacteria that can cause botulism.
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  • Jul. 17, 2013, 9:49 AM
    Abbott Labs (ABT +1.8%) forecasts EPS of $0.51-0.53 vs consensus of $0.53. On the earnings call, Abbott (ABT) CEO Miles White says the Chinese market remains strong despite the investigation into the price-fixing of infant formula. "We can manage this," White says. China "doesn't represent a disproportionate part" of Abbott's nutrition or even pediatrics businesses, and "doesn't disproportionately affect our performance." Meanwhile, Abbott has walked away a lot from a lot of acquisitions, because valuations have been too high. "We're careful buyers." (Earnings)
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  • Jul. 17, 2013, 7:55 AM
    More on Abbott's (ABT) Q2: Worldwide sales ex-currency impact rise 4.2% driven by 8.4% growth in nutrition sales and 7.6% growth in diagnostics. Emerging market sales rise 13.4% during the period. Gross margin "exceeds previous expectations" at 55% (49.7% GAAP). Medical device sales (a hot topic in the industry these days) fell 1.8% taking into account FX impact. "All things considered … this was a good quarter," CEO Miles White says. Full year guidance is confirmed at $1.98-2.04/ share. (PR)
  • Jul. 17, 2013, 7:45 AM
    Abbott Labs (ABT): Q2 EPS of $0.46 beats by $0.02. Revenue of $5.45B misses by $0.08B. (PR)
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  • Jul. 17, 2013, 12:05 AM
    Notable earnings before Wednesday’s open: ABT, ASML, BAC, BK, FCFS, FRC, GWW, IGTE, MAT, MTB , NTRS, NVS, PNC, STJ, TXT, USB
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  • Jul. 16, 2013, 5:30 PM
    Notable earnings before Wednesday’s open: ABT, ASML, BAC, BK, FCFS, FRC, GWW, IGTE, MAT, MTB , NTRS, NVS, PNC, STJ, TXT, USB
  • Jul. 15, 2013, 2:08 PM
    Mylan (MYL -0.3%) has launched Fenofibric Acid Delayed-release Capsules, a generic version of Abbott's (ABT) Trilipix Capsules. Fenofibric Acid is used as an adjunct to diet in combination with a statin to reduce triglyceride and increase high-density lipoprotein cholesterol in patients with mixed dyslipidemia and CHD or a CHD risk equivalent.
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  • Jul. 15, 2013, 8:52 AM
    Abbott Labs (ABT) has agreed to acquire privately held IDEV Technologies for $310M and ophthalmic device firm OptiMedica for $250M up front and up to $150M in milestone payments. IDEV develops a stent for treating blockages in blood vessels due to peripheral artery disease, while the acquisition of OptiMedica enables Abbott to enter into the laser-cataract surgery market.
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  • Jul. 12, 2013, 9:56 AM
    The sector "has been driven by income investors [and] Q2 earnings look tough in this context," Jefferies says, in a note on Big Pharma. Analyst Jeffrey Holford likes Novartis (NVS -0.1%), Sanofi (SNY -1.2%), Roche (RHHBY.OB +0.4%), Abbott (ABT -0.1%), AbbVie (ABBV +1.5%), and Bayer (BAYZF.PK +2.3%), and takes a more cautious approach on Bristol-Myers (BMY -0.8%) and Pfizer (PFE -0.7%).
  • Jul. 10, 2013, 12:31 PM
    Mead Johnson Nutrition (MJN +3.8%) finally caves-in to pressure and says it will reduce the ex-factory price of its main products by 7% - 15% as of July 16. China's Bureau of Price Supervision and Anti-Monopoly recently launched an investigation into price-fixing in the infant formula market, prompting other firms such as Abbott Labs (ABT), Nestle (NSRGY.PK) and Danone to already reduce prices.
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  • Jul. 9, 2013, 8:46 AM
    Abbott Labs (ABT) is lowering the prices of its infant formula brands in China by 4-12%, becoming the fourth foreign company to make such a move after the government opened an investigation into price-fixing in the sector. Abbott follows Nestle and France's Danone in cutting prices, although Mead Johnson (MJN) appears to be still holding out.
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  • Jul. 3, 2013, 1:07 PM
    More on Goldman's downgrade of Mead Johnson Nutrition (MJN): Price target is lowered to $83 from $96 on a lower multiple assumption (23x from 24x) as analyst Jason English cites a "lack of visibility" regarding regulatory outcomes in China. In related news, Wells Fargo (which also downgraded MJN today after some negative commentary) says Abbott Labs' (ABT) lower market share in China will work to its advantage in this case, as "Chinese formula sales account for only 3% total" revenue.
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  • Jul. 3, 2013, 7:46 AM
    Nestle's (NSRGY.PK) infant nutrition brand Wyeth is cutting prices of certain formula products in China by an average of 11% as it looks to head off a government investigation into high prices. Wyeth says it's taking the action after it discovered in its own checks that some distributors and resellers had undertaken "price control measures." Will Mead Johnson Nutrition (MJN), Abbott Laboratories (ABT) and other foreign firms under investigation act in kind?
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Company Description
Abbott Laboratories discovers, develops, manufactures and sells health care products. Its products include branded generic pharmaceuticals manufactured internationally, marketed and sold outside the United States.