Medtech Insight is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

Abbott Labs finds $500 mil.

This article was originally published in The Gray Sheet

Executive Summary

Planned spin-off of hospital products company will free up about $500 mil. for Abbott to invest in development of remaining high-margin, high-growth businesses such as stents, spinal fusion systems and pharmaceuticals (1"The Gray Sheet" Aug. 25, 2003, p. 3). After transferring roughly $2.5 bil. in sales to the new company, Abbott will be left with a $16.8 bil. sales baseline, based on analysts' consensus 2003 revenue estimates. At that level, the 3% increase in gross margins projected by Abbott as a result of the spin-off (from the current 48% to 51%) translates into an extra $500 mil. in gross profit. Separately, Abbott notes that the beginning of its "pre-audit" is on track for year-end FDA inspections under its 1999 diagnostics consent decree...

Latest Headlines
See All
UsernamePublicRestriction

Register

MT018919

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel