Abbott Laboratories

Intro
Abbott Laboratories is a 125 year old global diversified pharmaceuticals and health care company. Abbot is a fortune 200 company that has 90,000 employees with a market cap of 58.5 billion trading on the NYSE as the ABT ticker symbol. Abbotts diversifies their business by serving the following biomedical segments: diagnostics, vascular, diabetes, vision, nutrition, pharmaceuticals and animal care. The global presence is in 130 countries and 70% of Abbott’s net sales’ coming from oversees operations and generated 5.96 billion in net income in 2012. The stock price has increase 25.8% in 52 weeks and 19.7% year to date with a range of $29.48-$38.77. The ABT stock yields 1.5% divined yield annually with an earnings per share of 3.29 and a price per earning of 11.4. Abbott current equity holders are 67.9% institutionally held and 32.10% other. Assets held by Abbott are 67.23 bil. and liabilities of 40.51 bil. equaling 26.72 bil. in stockholders equity.
Mission Statement
We are here for the people we serve in their pursuit of healthy lives. This has been the way of Abbott for more than a century—passionately and thoughtfully translating science into lasting contributions to health.
Our products encircle life, from newborns to aging adults, from nutrition and diagnostics through medical care and pharmaceutical therapy.
Products and Segments * Diagnostics * Immunoassay and clinical chemistry * Hematology * Molecular * Point-of-care * Vascular * Coronary * Endovascular * Diabetes Care * Personal Use * Hospital Use * Vision Technologies * Cataract Products * Refractive Eye Surgery Products * Corneal Products * Nutrition * Pediatric * Adult and Healthy Living * Therapeutic Nutrition * Pharmaceuticals * Trusted Brands * Abbott Brands * Abbvie Brands * Animal Health * Glucose Monitoring * Anesthesia * Wound Care * Fluid Therapy * Nutritionals * Pain Management

Growth & Prospects
Medical Optics — Abbott is developing a number of new products for patients undergoing cataract surgery, which are designed to improve physician efficiency and patient outcomes. Abbott has developed advanced intraocular lenses (IOLs) that address astigmatism as well as presbyopia. An insertion system that is designed to improve surgeon efficiency is also currently under regulatory review in the U.S.; the product was launched in Europe in 2012. Abbott is continuing the development activities required to obtain U.S. approval. Abbott has also developed a new diagnostic instrument and laser treatment planning software, which is designed to improve visual outcomes.
Molecular Diagnostics — Various new molecular in vitro diagnostic (IVD) products, including oncology and infectious disease assays and a next generation instrument system are in various stages of development and commercialization. Abbott's companion diagnostic test for an ALK gene rearrangement test for non-small-cell lung cancer has been approved in more than 40 countries around the world.
Core Laboratory Diagnostics — Abbott is working on the development of assays in various areas including infectious disease, cardiac care, fertility and metabolics, and on next-generation blood screening, hematology, and immunochemistry instrument systems.
Diabetes Care — In the first quarter of 2012, Abbott obtained U.S. regulatory approval for its FreeStyle InsuLinx blood glucose monitoring system that includes a touch-screen interface and other features designed to support the insulin-using patient.
Nutrition — Abbott is focusing its research and development spend on six benefit platforms that span the pediatric, adult and performance nutrition areas: immunity, cognition, lean body mass, inflammation, metabolism and tolerance.
Abbott’s growth and prospects come from the expansion of their product line and providing better products in the future. This is done through research and development, which Abbott needs to do in order to stay competitive in the market. The previous products listed are areas of growth due to the advancements in technology provided by Abbotts’ team.

Risk Factors
The following quotes are from Abbotts’ 10Q statement.
“Abbott may acquire other businesses, license rights to technologies or products, form alliances, or dispose of or spin-off businesses, which could cause it to incur significant expenses and could negatively affect profitability.”
“The expiration or loss of patent protection and licenses may affect Abbott's future revenues and operating income.”
“Competitors' intellectual property may prevent Abbott from selling its products or have a material adverse effect on Abbott's future profitability and financial condition.”
“Abbott is subject to cost containment efforts that could cause a reduction in future revenues and operating income.”
The risks that Abbott face are of the double edge sword of growth and overleveraging. They can finance the growth of their business by acquisitions but those acquisitions must prove to be profitable on the credit terms or they can see negative returns on their investments. These investments are also shortly lived due to the expiration of the patents and licenses that they acquire. Continuous research and development is needed to come with the next product to sustain the profitability of the company and satisfy their shareholders. Abbott goal improving their international production facilities will contain their costs at a relatively low level but with many global uncertainties in countries like European nations can cause difficulties in their operations and exchange rates.