Abbott Laboratories has suffered heavy setback during the third quarter ended September 2011 on account litigation reserves related to Depakote settlement. Its net profit declined sharply by 66 per cent to US$ 303 million from $891 million in the corresponding period of last year due to provision of $1.5 billion for litigation reserves related to Depakote settlement.
Its worldwide sales increased 13.2 per cent to $9,817 million during the quarter from $8,675 million. Proprietary pharmaceutical sales increased by 13.5 per cent to $4,298 million during the quarter ended September 2011 and that of innovation-driven devices moved up by 6 per cent to $1,208 million. HUMIRA was a significant contributor to growth with sales of $2,111 million. Further, double-digit growth for Lupron and Synthroid also contributed to the growth. The sales of Kaletra declined by 9.4 per cent to $81 million.
Sales of proprietary pharmaceuticals in US increased by 6.9 per to $2,420 million and that in international markets touched to $1,878 million. Emerging markets sales were $2.6 billion, up 21.0 per cent from the prior year and representing 26.1 per cent of total sales, with strong growth across all of Abbott's operating divisions. The gross margin ratio was 60.4 per cent in the third quarter, above Abbott's previous guidance, driven by favorable product mix.
“Strong performance across our businesses allowed Abbott to continue to deliver superior results,” said Miles D White, chairman and chief executive officer, Abbott. “We also experienced strong growth in emerging markets and success in our broad-based pipeline, including several new product approvals, regulatory submissions and clinical trial initiations.”
Abbott is confirming its guidance for double-digit ongoing earnings-per-share growth for the full-year 2011 and is narrowing its previous guidance range. Abbott's ongoing earnings-per-share guidance for full-year 2011 is $4.64 to $4.66, excluding specified items, reflecting 11.5 per cent growth at the midpoint.
The company announced the initiation of ABSORB BTK, an international clinical trial evaluating the safety and efficacy of the ABSORB BVS for the treatment of below-the-knee (BTK) critical limb ischemia, a severe form of peripheral artery disease. Additionally, the first patient in Japan has been treated with Abbott's ABSORB BVS as part of the ABSORB EXTEND clinical trial, which is now enrolling patients in 20 countries in Europe, Latin America and Asia Pacific.
For the first nine months ended September 2011, Abbott's sales increased by 13 per cent to $28.5 billion from $25.2 billion in the similar period of last year. Its net profit, however, declined by 2.4 per cent to $3.1 billion from $3.2 billion. Its R&D expenditure increased by 11.7 per cent to $2.10 billion from $2.67 billion. The sales of HUMIRA moved up by 23.2 per cent to $5.8 billion and that of Synthroid and Lupron increased by 20 per cent and 9.8 per cent.