What's drugs got to do with it? Abbott Q3 fine post-Abbvie
This article was originally published in Clinica
Executive Summary
Abbott’s long-suffering devices business saw growth of 2% during its third fiscal quarter, helping group sales increase by the same amount as it continues to adjust to life without its Abbvie pharma division. The diagnostics division, a long-time stronghold of Abbott, was up 8%. Much of the expansion in Abbott’s devices franchise came from its medical optics unit, which posted 7% revenue growth at $276m. Abbott bolstered its ophthalmology offering earlier this year with the acquisition of OptiMedica (www.clinica.co.uk, 16 July 2013). Vascular and diabetes care sales were both flat at $747m and $319m, respectively. The former has been problematic for some time, with drug-eluting stent sales stalling – but Abbott is pinning its hopes on its bioresorbable vascular scaffold Absorb, as well as the peripheral stent gained with its purchase of IDEV Technologies in July (www.clinica.co.uk, 16 July 2013). Abbott reiterated full-year 2013 EPS guidance of $1.98-2.04 ($1.46-1.52 on a GAAP basis).