ABBOTT LABORATORIES, which is in the process of splitting into two companies, has reported second-quarter earnings that beat analysts’ estimates as sales increased for the company’s top-selling drug, the arthritis medicine Humira.
Earnings excluding one-time items of $1.23 a share were marginally ahead of expectations.
Revenue rose 2 per cent to $9.8 billion, helped by $2.3 billion in Humira sales, the company said.
Abbott, which has extensive operations in Ireland, said the break-up into one company focused on new drugs and the other on medical devices, generic medicines and nutritional drinks is still set for the end of the year.
Bond investors were looking for Abbott to provide details on what will happen with its credit ratings at that point, said Joel Levington, managing director of corporate credit at Brookfield Investment in New York.
Abbott shares have gained 25 per cent in the last 12 months.
Net income declined 11 per cent to $1.73 billion, or $1.08 a share, from $1.94 billion, or $1.23, Abbott said.
Costs relating to the split reduced results by four US cents a share, while expenses from asset acquisitions cut five cents a share.
Excluding the foreign currency impact, global sales would have risen 6.7 per cent, the company said.
Abbott reiterated its forecast of full-year earnings, excluding one-time items, of $5 to $5.10 a share.
The pharmaceutical side of Abbott has experimental therapies for the treatment of hepatitis C, and is in a race with drugmakers including Bristol-Myers Squibb and Gilead Sciences to develop new methods of treatment for the virus. – (Bloomberg)
