Abbott Laboratories ABT 3rd Quarter Results

  Abbott Laboratories (ABT) - 3rd Quarter Results

RNS Number : 9111O
Abbott Laboratories
17 October 2012


  Abbott Reports Double Digit Earnings Per Share Growth in the Third Quarter



- Third-Quarter Ongoing EPS of $1.30 (GAAP EPS of $1.21), an Increase of 10.2
Percent and Exceeding the Company's Quarterly Guidance Range -



- Announces Initiation of Phase 3 HCV Trial Following Positive Phase 2b
Results -



- Narrows Full-Year 2012 Ongoing EPS Guidance Range -



- On Track to Separate into Two Leading Health Care Companies on Jan. 1 -

ABBOTT PARK, Ill., Oct. 17, 2012 /PRNewswire/ --Abbott (NYSE: ABT)today
announced financial results for the third quarter ended Sept. 30, 2012.

· Diluted earnings per share, excluding specified items, were $1.30,
reflecting 10.2 percent growth, exceeding Abbott's guidance range. Diluted
earnings per share under Generally Accepted Accounting Principles (GAAP) were
$1.21, including specified items.

· Excluding foreign exchange, worldwide sales increased 4.1 percent. Reported
sales decreased 0.4 percent, including an unfavorable 4.5 percent effect of
foreign exchange.

· Abbott is announcing the initiation of a Phase 3 clinical trial evaluating
our interferon-free hepatitis C (HCV) program in genotype 1 (GT1) patients,
following positive results from the Phase 2b Aviator study, the largest and
most comprehensive HCV trial to date. Initial results from Aviator showed
sustained virological response at 12 weeks post treatment (SVR12) in 99
percent of treatment-naive and 93 percent of null responders for GT1 patients
taking a combination of ABT-450/r, ABT-267, ABT-333 and ribavirin.

· Abbott is narrowing its ongoing earnings-per-share guidance for 2012 to
$5.06 to $5.08 from $5.00 to $5.10, reflecting another year of expected strong
performance.Including specified items, projected earnings per share under GAAP
would be $3.83 to $3.85 for the full-year 2012.

"Abbott delivered another quarter of strong results with ongoing earnings per
share up more than 10 percent, despite a challenging global economy," said
Miles D. White, chairman and chief executive officer, Abbott. "There were
several product launches across pharmaceuticals, vascular and diagnostics,
which will contribute to future growth.In addition, we remain on track to
separate into two leading health care companies on January 1, 2013."

The following is a summary of Third-Quarter 2012 sales by major business
category.

                                                                          % Change vs. 3Q11
                              Sales ($ in
                            millions) 3Q12                          Int'l                   Total
                          U.S.   Int'l  Total      U.S.     Operational  Reported   Operational  Reported
Total
Sales 4,214  5,559  9,773          3.1          4.7     (3.0)           4.1     (0.4)
Proprietary
Pharmaceuticals          2,600  1,818  4,418          7.4          5.1     (4.1)           6.4       2.4
Nutritionals               715    890  1,605          5.0          7.4       4.1           6.3       4.5
Established
Pharmaceuticals             --  1,272  1,272      n/a              2.3     (7.3)           2.3     (7.3)
Core Laboratory
Diagnostics                 162    692    854          2.7          8.3       1.5           7.2       1.7
Molecular Diagnostics        47     55    102       (13.6)          4.7     (3.4)         (4.3)     (8.4)
Point of Care Diagnostics    69     17     86         19.3          6.0       3.6          16.3      15.8
Vascular^a                  296    447    743   (24.0)^a          9.3       2.0       (6.3)^a  (10.2)^a
Diabetes Care               135    182    317        (7.1)        (5.5)    (12.5)         (6.2)    (10.3)
Medical Optics               95    162    257        (1.4)        (1.2)     (5.9)         (1.3)     (4.3)
Other Sales                  95     24    119         12.2       (14.3)    (28.6)           4.7       0.7

The following is a summary of Nine-Month 2012 sales by major business
category.

                                                                       % Change vs. 9M11
                          Sales ($ in millions)
                                   9M12                                Int'l                   Total
                           U.S.   Int'l   Total       U.S.     Operational  Reported   Operational  Reported
Total
Sales 12,115  16,922  29,037          5.0          5.9     (0.1)           5.6       2.0
Proprietary
Pharmaceuticals           7,138   5,732  12,870          7.4          8.7       1.6           8.0       4.7
Nutritionals              2,163   2,592   4,755          9.6          7.2       4.7           8.3       6.9
Established
Pharmaceuticals              --   3,775   3,775      n/a              2.7     (5.0)           2.7     (5.0)
Core Laboratory
Diagnostics                  511   2,080   2,591         10.2          6.8       1.7           7.4       3.3
Molecular Diagnostics        143     171     314        (1.9)          6.7       0.2           2.7     (0.8)
Point of Care Diagnostics    203      55     258         17.6         12.7      10.8          16.5      16.1
Vascular^b                   945   1,367   2,312   (19.5)^b          7.5       2.5       (5.2)^b   (7.8)^b
Diabetes Care                418     547     965          2.6        (4.3)     (9.7)         (1.5)     (4.8)
Medical Optics               299     513     812          0.4          0.7     (2.8)           0.6     (1.6)
Other Sales                  295      90     385         13.5        (7.5)    (14.9)           7.5       5.4
Notes:         1)         See "Consolidated Statement of Earnings" for more information.
               2)         "Operational" growth reflects percentage change over the prior year excluding the
                          impact of exchange rates.
^a             In the third quarter, excluding the expected decline of certain royalty and supply arrangement
               revenues (including Promus), worldwide operational sales increased 3.9 percent, worldwide
               reported sales decreased 0.6 percent, and U.S. Vascular sales decreased 5.2 percent.
^b             Year to date, excluding the expected decline of certain royalty and supply arrangement revenues
               (including Promus), worldwide operational sales increased 4.3 percent, worldwide reported sales
               increased 1.2 percent, and U.S. Vascular sales decreased 1.3 percent.
n/a = Not applicable

The following is a summary of Third-Quarter 2012 sales for select products.

                                                      % Change vs. 3Q11
                    Sales ($ in
                  millions) 3Q12                     Int'l                  Total
                U.S.   Int'l  Total   U.S.   Operational  Reported  Operational  Reported
HUMIRA          1,135  1,190  2,325    27.0          7.5     (2.2)         15.7      10.1
TRILIPIX/TriCor
(fenofibrate)     331     73    404   (4.1)         14.3       3.6        (1.0)     (2.8)
AndroGel          279      8    287    34.1          0.1     (2.6)         32.8      32.7
Kaletra            72    195    267  (11.5)          0.4     (9.3)        (2.9)     (9.9)
Lupron            133     56    189   (9.2)        (9.1)    (14.9)        (9.2)    (11.0)
Niaspan           232     --    232   (5.3)          n/a       n/a        (5.3)     (5.3)
Synthroid         132     25    157     1.5          5.7     (5.9)          2.2       0.2
Creon              92     71    163     5.3        (3.5)    (13.7)          1.0     (4.0)
Pediatric
Nutritionals      348    507    855     7.9          5.0       2.5          6.1       4.6
Adult
Nutritionals      366    383    749     3.1         10.5       6.2          6.9       4.7
Xience
Drug-Eluting
Stents            138    257    395   (2.5)         10.4       3.9          5.8       1.6
Other Coronary
Products^c         47     99    146   (3.8)          9.3       1.8          5.0       ---
Endovascular^d     60     50    110   (3.9)          7.3     (1.7)          1.1     (2.9)

The following is a summary of Nine-Month 2012 sales for select products.

                                                      % Change vs. 9M11
                    Sales ($ in
                  millions) 9M12                     Int'l                  Total
                U.S.   Int'l  Total   U.S.   Operational  Reported  Operational  Reported
HUMIRA          2,964  3,621  6,585    26.1         14.5       6.3         19.3      14.4
TRILIPIX/TriCor
(fenofibrate)     897    224  1,121   (6.9)          2.8     (5.2)        (4.9)     (6.5)
AndroGel          787     24    811    28.0          6.4       3.1         27.2      27.1
Kaletra           196    567    763  (12.9)        (7.0)    (13.6)        (8.6)    (13.5)
Lupron            414    175    589     3.4        (8.2)    (13.2)        (0.5)     (2.2)
Niaspan           634     --    634  (11.7)          n/a       n/a       (11.7)    (11.7)
Synthroid         383     78    461   (1.0)         10.7       0.8          1.0     (0.7)
Creon             248    223    471     7.7          9.6       0.8          8.6       4.3
Pediatric
Nutritionals    1,079  1,499  2,578    15.9          7.3       5.5         10.7       9.6
Adult
Nutritionals    1,075  1,093  2,168     4.4          7.0       3.6          5.7       4.0
Xience
Drug-Eluting
Stents            427    772  1,199     4.1          7.1       3.0          6.1       3.4
Other Coronary
Products^c        147    301    448   (2.5)          4.4     (0.8)          2.2     (1.3)
Endovascular^d    182    156    338   (1.5)          8.1       1.4          2.9     (0.2)
Notes:    1)    See "Consolidated Statement of Earnings" for more information.
          2)    "Operational" growth reflects percentage change over the prior year
                excluding the impact of exchange rates.
^c        Includes guide wires, balloon catheters and other coronary products.
^d        Includes vessel closure, carotid stents and other peripheral products.
n/a = Not applicable

Business Highlights

Released Data from the Phase 2b Aviator Study in Hepatitis C
Announced the release of initial results from the Phase 2b Aviator study of
Abbott's investigational all-oral interferon-free regimen for the treatment of
HCV. Data showed sustained virological response at 12 weeks post treatment
(SVR12) in 99 percent of treatment-naive and 93 percent of null responders for
GT1 patients taking a combination of ABT-450/r, ABT-267, ABT-333 and
ribavirin.

Announced European Launch of Next-Generation XIENCE Xpedition Drug Eluting
Stent
Announced that Abbott's XIENCE Xpedition^® Drug Eluting Stent System received
CE Mark in Europe for the treatment of coronary artery disease. Xpedition
combines the safety and efficacy of XIENCE and features a new stent delivery
system designed to optimize acute performance, particularly in challenging
coronary anatomies. Xpedition is available in one of the broadest size
matrices on the European market.

Received Approval for Eighth HUMIRA Indication in Europe
Received European approval for HUMIRA^® for the treatment of axial
spondyloarthritis (axSpA), a condition associated with chronic back pain and
stiffness that can also be accompanied by arthritis and inflammation. HUMIRA
is the first and only medication for this chronic condition. This approval
marks the eighth major indication for HUMIRA in the European Union.

Launched the Absorb Bioresorbable Vascular Scaffold in More Than 30 Countries
Announced the launch of Absorb^™, the world's first drug eluting bioresorbable
vascular scaffold (BVS), in more than 30 countries across Europe and parts of
Asia Pacific and Latin America. Absorb is a first-of-its-kind device for the
treatment of coronary artery disease. It works by restoring blood flow to the
heart similar to a metallic drug eluting stent, but then dissolves into the
body, leaving behind a treated vessel.

Announced Collaboration with Astellas in CMV Vaccine Trial
Signed an agreement with Astellas Pharma Global Development for a Phase 3
clinical trial for ASP0113, an investigational vaccine for preventing
cytomegalovirus (CMV) reactivation in transplant patients. Abbott's RealTime
CMV assay, which is performed on the Abbott m2000 System, will be used to
monitor patients for CMV viral load in order to assess the vaccine's efficacy.

Received FDA Approval of Omnilink Elite Vascular Balloon-Expandable Stent
System
Announced U.S. Food and Drug Administration (FDA) approval of the Omnilink
Elite^® Vascular Balloon-Expandable Stent System for the treatment of iliac
artery disease, a form of peripheral artery disease that affects the lower
extremities.

Received CE Mark for Testosterone Assay to Measure the Hormone at Low Levels
Announced CE Marking in Europe for a testosterone assay with improved
sensitivity and clinical utility. With a simple blood test, the ARCHITECT 2nd
Generation Testosterone Assay can accurately measure the wide range of
testosterone levels to help diagnose related conditions in a number of
different patient populations and clinical settings.

Received Expanded HUMIRA Indication for Crohn's Patients in Europe
Announced that the European Commission approved HUMIRA for the treatment of
moderately active Crohn's disease in adult patients who have had an inadequate
response to conventional therapy. HUMIRA has been approved for severely active
Crohn's disease in adults in Europe since 2007.

Received U.S. FDA Approval of HUMIRA for the Treatment of Ulcerative Colitis
Announced U.S. FDA approval of HUMIRA in adult patients with moderately to
severely active ulcerative colitis (UC) who have had an inadequate response to
conventional therapy. The approval makes HUMIRA the first and only
self-administered biologic and the first new treatment approved for UC
patients in more than seven years. UC is the seventh approved indication for
HUMIRA in the United States.

Abbott narrows ongoing earnings-per-share outlook for 2012

Abbott is narrowing its ongoing earnings-per-share guidance for the full-year
2012 to $5.06 to $5.08 from $5.00 to $5.10, reflecting another year of strong
performance.

Abbott forecasts net specified items for the full-year 2012 of $1.23 per
share, primarily associated with separation costs, in-process R&D, acquisition
integration and cost-reduction initiatives, partially offset by the resolution
of various tax positions from a previous year. Including these net specified
items, projected earnings per share under Generally Accepted Accounting
Principles (GAAP) would be $3.83 to $3.85 for the full-year 2012. Our forecast
of specified items now includes approximately $0.50 per share of debt
extinguishment costs associated with the planned separation, expected to be
incurred in the fourth quarter.

Abbott declares 355^th quarterly dividend

On Sept. 13, 2012, the board of directors of Abbott declared the company's
quarterly common dividend of 51 cents per share. The cash dividend is payable
Nov. 15, 2012, to shareholders of record at the close of business on Oct. 15,
2012. This marks the 355^th consecutive dividend paid by Abbott since 1924.
Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks
companies that have annually increased their dividends for 25 consecutive
years.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery,
development, manufacture and marketing of pharmaceuticals and medical
products, including nutritionals, devices and diagnostics. The company employs
approximately 91,000 people and markets its products in more than 130
countries.

Abbott's news releases and other information are available on the company's
Web site at www.abbott.com. Abbott will webcast its live third-quarter
earnings conference call through its Investor Relations Web site at
www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of
the call will be available after 11 a.m. Central time.

             -Private Securities Litigation Reform Act of 1995 -
               A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995, including
the planned separation of the research-based pharmaceutical company from the
diversified medical products company and the expected financial results of the
two companies after the separation. Abbott cautions that these forward-looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the forward-looking
statements. Economic, competitive, governmental, technological and other
factors that may affect Abbott's operations are discussed in Item 1A, "Risk
Factors," to our Annual Report on Securities and Exchange Commission Form 10-K
for the year ended Dec. 31, 2011 and in Item 1A, "Risk Factors," to our
quarterly report on Securities and Exchange Commission Form10-Q for the
quarter ended June 30, 2012, and are incorporated by reference. Abbott
undertakes no obligation to release publicly any revisions to forward-looking
statements as a result of subsequent events or developments.



                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

                 Third Quarter Ended Sept. 30, 2012 and 2011

                     (in millions, except per share data)

                                 (unaudited)
                                                                      %
                                                2012       2011    Change
                                                  $        $ 
Net Sales                                        9,773    9,817     (0.4)
Cost of products sold                             3,698    3,973     (6.9) 1)
Research and development                          1,164    1,010      15.3
Selling, general and administrative               2,922    4,239    (31.1) 2)
Total Operating Cost and Expenses                 7,784    9,222    (15.6)
Operating earnings                                1,989      595       n/m
Net interest expense                                134      103      29.2
Net foreign exchange (gain) loss                   (6)      (5)       n/m
Other (income) expense, net                        (11)      (5)       n/m
Earnings before taxes                             1,872      502       n/m
Taxes on earnings                                 (71)      199       n/m 3)
                                                  $      $  
Net Earnings                                     1,943     303       n/m
NetEarningsExcludingSpecifiedItems,as       $        $ 
described below                                  2,084    1,850      12.6 4)
                                                $       $  
Diluted Earnings per Common Share                 1.21    0.19       n/m
Diluted Earnings Per Common Share, Excluding    $       $  
Specified Items,as described below              1.30    1.18      10.2 4)
Average Number of Common Shares Outstanding
Plus DilutiveCommon Stock Options and Awards     1,594    1,568
1)                                            2012 Cost of products sold
                                              decline was due in part to
                                              foreign exchange rates.
2)                                            2011 Selling, general and
                                              administrative expense includes
                                              $1.5 billion of litigation
                                              reserves related to previously
                                              disclosed litigation.
3)                                            2012 Taxes on earnings includes
                                              a favorable adjustment to tax
                                              expense of $386 million, or
                                              $0.24 per share, as a result of
                                              the resolution of various tax
                                              positions from a previous year.
                                              This favorable item is
                                              classified as a specified item
                                              and excluded from ongoing
                                              results, as discussed below.
4)                                            2012 Net Earnings Excluding
                                              Specified Items excludes
                                              after-tax charges of $406
                                              million, or $0.25 per share, for
                                              restructurings, and $121
                                              million, or $0.08 per share, for
                                              separation costs. These items
                                              were partially offset by a
                                              favorable adjustment from the
                                              resolution of a previous year's
                                              tax positions for $386 million,
                                              or $0.24 per share.
                                              2011 Net Earnings Excluding
                                              Specified Items excludes
                                              after-tax charges of $1.4
                                              billion, or $0.92 per share,
                                              related to litigation reserves
                                              (see Footnote 2 above), $75
                                              million, or $0.05 per share,
                                              associated with the acquisition
                                              of Solvay Pharmaceuticals, and
                                              $78 million, or $0.05 per share,
                                              for cost reduction initiatives
                                              and other. These items were
                                              partially offset by a favorable
                                              adjustment to tax expense of $51
                                              million, or $0.03 per share, as
                                              a result of the resolution of
                                              various international and U.S.
                                              tax positions from prior years.
NOTE: See attached questions and answers section for further explanation of
Consolidated Statement of Earnings line items.
n/m = Percent change is not meaningful.



                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

                  Nine Months Ended Sept. 30, 2012 and 2011

                     (in millions, except per share data)

                                 (unaudited)
                                                                    %
                                            2012        2011     Change
                                                             $
Net Sales                                $  29,037    28,474       2.0
Costofproductssold                         11,060    11,702     (5.5)  1)
Researchanddevelopment                       3,181     2,978       6.8
Acquiredin-processandcollaborations
research and development                         260       273       4.6
Selling,generalandadministrative            8,867     9,851    (10.0)  2)
Total Operating Cost and Expenses             23,368    24,804     (5.8)
Operating earnings                             5,669     3,670      54.5
Net interest expense                             350       343       2.1
Net foreign exchange (gain) loss                  4      (48)       n/m
Other (income) expense, net                     (74)       130       n/m  3)
Earnings before taxes                          5,389     3,245      66.1
Taxes on earnings                               479       135       n/m  4)
                                               $         $ 
Net Earnings                                  4,910     3,110      57.9
Net Earnings Excluding Specified               $         $ 
Items,as described below                    5,698     5,037      13.1  5)
                                             $        $  
Diluted Earnings per Common Share              3.06     1.98      54.5
Diluted Earnings Per Common Share,
Excluding Specified Items, as described     $        $  
below                                          3.56     3.21      10.9  5)
Average Number of Common Shares
Outstanding Plus DilutiveCommon Stock
Options and Awards                             1,591     1,564
1)                                       2012 Cost of products sold decline
                                         was due in part to foreign exchange
                                         rates.
2)                                       2011 Selling, general and
                                         administrative expense includes $1.5
                                         billion of litigation reserves
                                         related to previously disclosed
                                         litigation.
3)                                       Other (income) expense, net for 2011
                                         includes a charge of $137 million for
                                         the impact of Abbott's change to a
                                         calendar year end for the
                                         international operations that were
                                         previously reported on a November30
                                         year-end.
4)                                       2012 Taxes on earnings includes a
                                         favorable adjustment to tax expense
                                         of $386 million, or $0.24 per share,
                                         as a result of the resolution of
                                         various tax positions from a previous
                                         year. 2011 Taxes on earnings includes
                                         a favorable adjustment to tax expense
                                         of $570 million, or $0.36 per share,
                                         as a result of the resolution of
                                         various international and U.S. tax
                                         positions from prior years. These
                                         favorable items are classified as
                                         specified items and excluded from
                                         ongoing results, as discussed below.
5)                                       2012 Net Earnings Excluding Specified
                                         Items excludes after-tax charges of
                                         $493 million, or $0.31 per share, for
                                         restructurings, $219 million, or
                                         $0.14 per share, for separation
                                         costs, $272 million, or $0.17 per
                                         share, for acquired in-process R&D
                                         and R&D payments, $111 million, or
                                         $0.07 per share, related to
                                         litigation reserves, and $79 million,
                                         or $0.05 per share, for integration
                                         related expenses. These items were
                                         partially offset by a favorable
                                         adjustment from the resolution of a
                                         previous year's tax positions for
                                         $386 million, or $0.24 per share.
                                         2011 Net Earnings Excluding Specified
                                         Items excludes after-tax charges of
                                         $1.4 billion, or $0.92 per share,
                                         related to litigation reserves (see
                                         Footnote 2 above), $216 million, or
                                         $0.14 per share, associated with the
                                         acquisition of Solvay
                                         Pharmaceuticals, $109 million, or
                                         $0.07 per share, for restructuring in
                                         the pharmaceutical business, $161
                                         million, or $0.10 per share, for cost
                                         reduction initiatives and other, $137
                                         million, or $0.09 per share, for the
                                         2009 and 2010 impact of the change to
                                         a calendar year end for international
                                         operations, $273 million, or $0.17
                                         per share, relating to acquired
                                         in-process R&D related to the Reata
                                         and Biotest collaborations, $76
                                         million, or $0.05 per share, for the
                                         impairment of an R&D intangible
                                         asset, and $80 million, or $0.05 per
                                         share, for other litigation reserves.
                                         These items were partially offset by
                                         a favorable adjustment from the
                                         resolution of international and U.S.
                                         tax positions from prior years for
                                         $570 million, or $0.36 per share.
n/m = Percent change is not meaningful.

                             Questions & Answers

Q1) What were sources of sales growth in the quarter?

A1) Excluding foreign exchange, worldwide sales increased 4.1 percent.
Reported sales decreased0.4 percent, including an unfavorable 4.5 percent
effect of foreign exchange. In emerging markets, sales increased more than 10
percent, excluding foreign exchange, with strong double-digit growth in many
of the key emerging markets across Abbott's businesses.

Worldwide Nutritionals sales increased 6.3 percent in the quarter, excluding
an unfavorable 1.8 percent effect of foreign exchange. U.S. Nutritionals
increased 5.0 percent, with U.S. Pediatric Nutritionals sales growth of 7.9
percent on continued share gains of our infant formula, Similac^®, and
continued double-digit growth of PediaSure^®. U.S. Adult Nutritionals grew 3.1
percent, driven by growth of Ensure^® and Glucerna^®. International
Nutritionals increased 7.4 percent, excluding an unfavorable 3.3 percent
effect of foreign exchange, driven by continued growth of both the pediatric
and adult segments, partially offset by the transition to a direct
distribution model in certain markets.

Global sales of Core Laboratory Diagnostics increased 7.2 percent, excluding
an unfavorable 5.5 percent effect of foreign exchange, driven by 8.3 percent
international growth, excluding an unfavorable 6.8 percent effect of foreign
exchange. Point of Care Diagnostics also contributed to global Diagnostics
sales growth in the quarter.

Worldwide Proprietary Pharmaceuticals sales increased 6.4 percent, excluding
an unfavorable 4.0 percent effect of foreign exchange, driven by strong growth
across key franchises including HUMIRA and AndroGel^®. 

Q2) What is the status of Abbott's planned separation into two leading health
care companies?

A2) In October 2011, Abbott announced plans to separate into two publicly
traded companies, one in diversified medical products and the other in
research-based pharmaceuticals. The diversified medical products company will
consist of Abbott's branded generic pharmaceuticals, devices, diagnostics and
nutritionals businesses, and will retain the Abbott name. The research-based
pharmaceutical company, named AbbVie, will include Abbott's current portfolio
of proprietary pharmaceuticals and biologics.

The transaction is intended to take the form of a tax-free distribution to
Abbott shareholders of a new publicly traded stock for AbbVie. The stock
distribution ratio will be determined at a future date. It is expected that
the two companies will each pay a dividend that, when combined, will at least
equal the current Abbott dividend at the time of separation.

We continue to expect the separation to be completed on Jan. 1, 2013.

Q3) How did specified items affect reported results?

A3) Specified items impacted third-quarter results as follows:

                                                            3Q12
(dollars in millions, except earnings-per-share)      Earnings
                                                  Pre-tax After-tax EPS
As reported (GAAP)                                  $1,872    $1,943   $1.21
Adjusted for specified items:
Resolution of tax positions                             --    ($386) ($0.24)
Restructuring/Integration                       $478      $406   $0.25
Separation costs                                      $102      $121   $0.08
As adjusted                                         $2,452    $2,084   $1.30

Restructuring/Integration is associated with new and previously announced
restructuring actions across the businesses. Separation costs are expenses
related to the planned separation of Abbott into two leading health care
companies.

The 2012 Taxes on earnings line item of the Consolidated Statement of Earnings
includes a favorable adjustment to tax expense of $386 million, or $0.24 per
share, as a result of the resolution of various tax positions from a previous
year. The impact of the remaining specified items by line item is as follows
(dollars in millions):

                                                3Q12
                              Cost of                  Net      Other

                              Products               Interest (Income)/

                                Sold    R&D    SG&A  Expense   Expense
As reported (GAAP)              $3,698 $1,164 $2,922     $134     ($11)
Adjusted for specified items:
Restructuring/Integration       ($155) ($166) ($153)       --      ($4)
Separation costs                  ($3)   ($4)  ($75)    ($20)        --
As adjusted                     $3,540   $994 $2,694     $114     ($15)

Q4) What was the gross margin ratio in the quarter?

A4) The gross margin ratio before and after specified items is shown below
(dollars in millions):

                                          3Q12
                                Cost of

                                Products Gross   Gross

                                  Sold   Margin Margin %
As reported (GAAP)                $3,698 $6,075    62.2%
Adjusted for specified items:
Restructuring/integration/other   ($158)   $158     1.6%
As adjusted                       $3,540 $6,233    63.8%

The adjusted gross margin ratio was 63.8 percent in the third quarter, an
increase of 340 basis points from the prior year quarter. Half of this
improvement was due to exchange, while the other half resulted from the
various margin improvement initiatives we're implementing across our
businesses.

Q5) What was the tax rate?

A5) The ongoing tax rate this quarter was 15.0 percent, in line with
expectations.

                                   3Q12
                          Pre-Tax Taxes on  Tax
                          Income  Earnings  Rate
As reported (GAAP)         $1,872    ($71) (3.8%)
Specified items              $580     $439  75.6%
Excluding specified items  $2,452     $368  15.0%

Q6) What are the key areas of focus in Abbott's pharmaceutical pipeline?

A6) We have made significant progress in 2012 advancing our pharmaceutical
pipeline, which currently includes more than 20 compounds or new indications
in Phase 2 or Phase 3 development. Following are highlights:

Phase 3 Pharmaceutical Pipeline Programs

· Abbott's antiviral program is focused on developing treatments for
hepatitis C (HCV), a disease that affects more than 170 million people
worldwide. Abbott's broad-based HCV program includes three mechanisms of
action in clinical trials, including protease, polymerase and NS5A inhibitors,
with a goal to markedly transform current treatment practices by shortening
therapy duration, improving tolerability and increasing cure rates. Abbott
recently initiated a Phase 3 clinical program evaluating its interferon-free
regimen in HCV genotype 1 (GT1) patients.

· Earlier this week, data from Abbott's Phase 2b Aviator study were published
online as a latebreaking abstract, to be presented at the Annual Meeting of
the American Association for the Study of Liver Disease (AASLD) in Boston on
Nov. 12. Initial results (observed data) of Abbott's investigational all-oral
interferon-free regimen for the treatment of HCV showed sustained virological
response at 12 weeks post treatment (SVR12) in 99 percent of treatment-naive
(n=79) and 93 percent of null responders (n=45) for GT1 patients taking a
combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for 12 weeks.

· Bardoxolone, an investigational treatment for chronic kidney disease (CKD),
is a first-in-class antioxidant inflammation modulator that activates Nrf2, a
pathway involved in the progression of CKD. A global Phase 3 trial is
currently underway. Abbott's agreement with Reata Pharmaceuticals includes
international rights to bardoxolone, excluding the U.S. and certain Asian
markets.

· Abbott is partnering on the development of a novel, anti-CD25 antibody,
daclizumab, for the treatment of relapsing remitting multiple sclerosis
(RRMS). Results from the fully-enrolled Phase 3 trial are expected in 2014.

· Abbott recently announced positive results from a Phase 3 trial evaluating
levodopa-carbidopa intestinal gel (LCIG) for advanced Parkinson's disease. We
expect to submit a U.S. regulatory application for LCIG this year.

· Elagolix, a novel, first-in-class oral gonadotropin-releasing hormone
(GnRH), is currently in Phase 3 development for the treatment of
endometriosis-related pain.

· Elotuzumab, an anti-CD37 antibody, is currently in Phase 3 development with
a partner company for multiple myeloma, the second most common form of blood
cancer.

· Abbott is developing additional indications for HUMIRA. Upon approval,
several of these indications will be unique to the HUMIRA label. Phase 3
trials are currently underway for: hidradenitis suppurativa, a dermatologic
condition for which there are currently no approved treatments; uveitis, an
ophthalmologic condition for which there are currently no approved treatments;
peripheral spondyloarthropathies (SpA); and axial SpA in the United States.

Phase 2 Pharmaceutical Pipeline Programs

· ABT-719 is an investigational compound in development to prevent acute
kidney injury associated with major cardiac surgery in patients at increased
risk. Phase 2b top-line results were presented in 2011, and Abbott plans to
conduct another Phase 2b study later this year.

· Atrasentan, a compound discovered by Abbott scientists, is currently in
mid-stage development for CKD. A Phase 2b study in patients with diabetic
kidney disease is ongoing, with results expected to be presented in 2013.

· Earlier this year, we announced a global collaboration to develop and
commercialize an oral, next-generation JAK1 inhibitor in Phase 2 development
with the potential to treatrheumatoid arthritis (RA) and other autoimmune
diseases. Additionally, in late 2011, we announced plans to jointly develop
and commercialize Reata's portfolio of second-generation oral antioxidant
inflammation modulators, with potential in RA and other conditions.

· Abbott's anti-CD4 biologic, BT-061, in development with a partner company,
is currently in Phase 2 clinical trials for RA and psoriasis.

· ABT-888, our PARP inhibitor, is currently in Phase 2 for BRCA-deficient
breast cancer, lung cancer and brain metastasis.

· ABT-126, an alpha 7 neuronal nicotinic receptor agonist, is currently in
Phase 2b trials for Alzheimer's disease and cognitive deficits of
schizophrenia. Phase 2 data will be presented in 2013.

· ABT-110, our anti-NGF for the treatment of pain, is currently in mid-stage
development for chronic low back pain and osteoarthritis.

Q7) What are the key areas of focus in Abbott's diversified medical products
pipeline?

A7) Abbott's diversified medical products pipeline includes game-changing
medical technologies, next-generation diagnostic systems, new formulations,
new packaging, new flavors, and other brand enhancements. Following are
highlights:

· Vascular Devices

· Abbott has one of the industry's most robust vascular pipelines and is
working on well-staged incremental advances and transformational technologies
that have the ability to restate the market.

· Drug Eluting Stents (DES) - Abbott has several next-generation DES
platforms on the market and in development. Earlier this year, XIENCE PRIME
received approval in Japan, and is now available in all of the major markets
worldwide. In September, XIENCE Xpedition, our next-generation DES that offers
a new catheter for enhanced deliverability, as well as a broader size matrix,
received CE Mark in Europe for the treatment of coronary artery disease. We
expect Xpedition to launch in the United States in early 2013. 

· Bioresorbable Vascular Scaffold (BVS) - Abbott has the most advanced BVS
clinical program in the industry. Absorb^™, the world's first drug eluting BVS
for the treatment of coronary artery disease, restores blood flow to the heart
by opening a clogged vessel and providing support to the vessel until the
device dissolves, leaving patients with a treated vessel that may resume more
natural function and movement because it is free of a permanent metallic
stent. Last month, we launched Absorb in more than 30 countries across Europe
and parts of Asia Pacific and Latin America.

· Core Coronary products - Abbott is continuing to expand its position in the
more-than- $2 billion core coronary market. Abbott's next-generation
balloon dilatation catheter, TREK^®, is available in the United States, Europe
and Japan, and we plan to introduce additional balloon catheters and
next-generation guide wires over the next few years.

· Endovascular products - Abbott's endovascular business is led by recent key
product launches including the Absolute Pro^® Vascular Self-Expanding Stent
System for iliac artery disease and the RX Herculink Elite^® Renal Stent
System. We recently announced U.S. FDA approval of the Omnilink Elite Vascular
Balloon-Expandable Stent System for the treatment of iliac artery disease, a
form of peripheral artery disease (PAD) that affects the lower extremities. We
continue to develop a series of innovative products to treat PAD and expand
indications for vascular stents and vessel closure systems.

· MitraClip - MitraClip^® is a minimally invasive device for the treatment of
select patients with mitral regurgitation (MR), the most common valve disease
in the world. Significant MR affects more than 8 million people in the United
States and Europe, and is four times more prevalent than aortic stenosis.
Abbott's MitraClip system is on the market in Europe and a number of other
countries and is currently under U.S. FDA review.

· Nutrition

· Abbott is focused on improving six key areas through nutrition: immunity,
cognition, lean body mass, inflammation, metabolism and tolerance. Through
these platforms, we are helping to solve global health needs with nutrition
science that matters to our customers. Demographic shifts also shape our
innovation pipeline, as we focus on new and existing technologies to support
the challenges of an aging population, including lean body mass loss,
malnutrition, increase in chronic disease and the targeted needs of critical
care. We've initiated more than 100 clinical trials over the last three years.

· We have expanded our R&D capabilities, reduced innovation cycle times and
accelerated product introductions. We have increased the number of key global
product launches from eight in 2008 to approximately 80 in 2012. We're also
expanding R&D infrastructure closer to our customers to deliver relevant
regional innovation, and building external partnerships to expand on our core
capabilities and identify emerging technologies.

· Abbott has launched more than 60 products in key markets around the world
through the third quarter of 2012:

· In our pediatric nutrition business, we launched Similac Stage 1 and HQPro
protein powder in India; Similac Total Comfort in Taiwan, Brazil and Hong
Kong; Similac Mom in Taiwan; PediaSure in Turkey; and PediaSure SideKicks
Clear in the United States. We also recently launched Sterile Liquid Protein
for the NICU, expanding our portfolio of products for pre-term infants.

· The global adult nutrition market is expanding as the world's population
ages, life expectancy increases and the incidence of age-related diseases
rises. We recently expanded our portfolio of Ensure adult nutritional products
with the launch of Ensure Clear fruit-flavored beverages. We also continue to
introduce new innovations for people with diabetes, including the recent
launch of Glucerna Triple Care in Vietnam.

· In performance nutrition, our ZonePerfect portfolio continues to expand
with a new limited-ingredient nutrition bar line called Perfectly Simple. All
of the products in the line have 10 ingredients or less and are gluten-free.

· We expect to launch an additional 20 products and formulations this year
and have more than 30 clinical studies underway to demonstrate proven outcomes
with our nutrition innovation.

· Established Pharmaceuticals

· Abbott's large and growing portfolio of hundreds of established
pharmaceuticals consists of trusted, well-known brands that have broad use
throughout the world. Our strategy is focused on increasing access and being
closer to patients and other customers by operating locally in each market and
building country-specific portfolios made up of global and local
pharmaceutical brands that best meet each local market's needs.

· We continue to strengthen the depth and breadth of our established
pharmaceuticals portfolio which treats some of the world's most prevalent
diseases and covers several therapeutic areas including gastroenterology,
women's health, cardiology, metabolic disorders and primary care.

· Over the next several years, we expect to bring these medicines to broader
patient populations through registrations across multiple geographies, as well
as launches of improved formulations to enhance efficacy and improve
convenience. We are also further expanding our presence and launching new
brands, packaging enhancements and formulations.

· Diagnostics

· Abbott is focusing on near-term launches of important automation and
informatics solutions to help improve efficiencies in the laboratory. These
important innovations will play a critical role in reducing the time it takes
for a test result to be delivered to the physician to aid in patient
diagnosis. Earlier this year, Abbott announced CE Marking for the ARCHITECT
HbA1c Assay, which detects glycated hemoglobin, used primarily to monitor
long-term diabetes control. Additionally, Abbott expects to launch assays in
the areas of cardiac care, fertility, metabolics and infectious disease, which
will broaden and differentiate its industry-leading menu.

· Future growth for the Core Laboratory Diagnostics business will be driven
by its next-generation blood screening, hematology, and immunochemistry
analyzers, as well as advanced automation and informatics solutions to provide
high-quality results and information, while enhancing laboratory productivity
and reducing costs.

· Abbott expects to launch more than 15 new molecular diagnostic products
over the next few years, including several novel oncology, infectious disease
and companion diagnostic assays.

· Vision Care

· Abbott expects numerous new products and technology advancements over the
next five years from its cataract, refractive and corneal business units. In
its market-leading LASIK business, Abbott is expanding its proprietary laser
platform into new vision correction applications, including cataract surgery.
Abbott also continues to expand its portfolio of cataract technologies which
includes intraocular lenses (IOLs), phacoemulsification systems and
viscoelastics.

· Abbott recently announced CE Mark and European launch of the TECNIS^®
Multifocal Toric 1-Piece IOL and the TECNIS iTec Preloaded Delivery System for
use in cataract surgery. The TECNIS Multifocal Toric 1-Piece IOL for
astigmatic cataract patients is the latest advancement in the TECNIS portfolio
of high-quality IOLs. The TECNIS iTec Preloaded Delivery System allows a
cataract surgeon to implant the TECNIS 1-Piece Aspheric Acrylic IOL, which
delivers improved functional vision, safely into the eye and helps minimize
the risk of infection for the patient.

· Earlier this year, Abbott received U.S. FDA clearance to use Abbott's iFS
Advanced Femtosecond Laser in cataract surgery, giving surgeons the ability to
make precise, bladeless incisions during surgery and customize for each
individual patient. Abbott also expanded its Healon^® family of ophthalmic
viscosurgical devices (OVDs) with the FDA approval of Healon EndoCoat OVD, a
device intended for use as a surgical aid in cataract extraction and IOL
implantation. Additionally in 2012, Abbott launched in Europe and Japan the
iDesign Advanced WaveScan Studio aberrometer, a next-generation diagnostic
tool for mapping and analyzing corneal aberrations in the eye.



CONTACT: Financial, John Thomas, +1-847-938-2655, or Larry Peepo,
+1-847-935-6722, or Tina Ventura, +1-847-935-9390, or Media, Melissa Brotz,
+1-847-935-3456, or Scott Stoffel, +1-847-936-9502, or Adelle Infante,
+1-847-938-8745



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


QRTGGGRUUUPPGPM -0- Oct/17/2012 12:27 GMT
 
Press spacebar to pause and continue. Press esc to stop.