Abbott Reports 2008 Results

Financial results for the fourth quarter ended Dec. 31, 2008.

Diluted earnings per share, excluding specified items, were $1.06, reflecting 14.0% growth, in line with Abbott’s previous forecast. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.98, up 27.3%.

Worldwide sales increased 10.1% to $8 billion, including an unfavorable 2.5% effect of exchange rates. Full-year 2008 sales were nearly $30 billion.

Worldwide pharmaceutical sales increased nearly 10% driven by double-digit growth in HUMIRA, Niaspan, and the TriCor/TRILIPIX franchise. Global HUMIRA sales in the quarter exceeded $1.3 billion; full-year 2008 global HUMIRA sales were more than $4.5 billion.

Worldwide medical products sales increased 15.6%; with 58.9% growth in global vascular sales driven by the continued success of the XIENCE V drug-eluting stent (DES), which became the market-leading DES in the U.S. during the fourth quarter. Last week, Abbott announced the acquisition of Advanced Medical Optics (AMO), strengthening and expanding Abbott’s medical device business with a global market leader in ophthalmology.

Global nutritional sales increased 11.0%, up more than 15% internationally and nearly 7% in the US.

Abbott is confirming previously issued earnings-per-share guidance for the full-year 2009 of $3.65 to $3.70 under both Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. The midpoint of this 2009 guidance range reflects double-digit growth over 2008 earnings per share.

“2008 was another highly productive and successful year for Abbott,” said Miles D. White, chairman and chief executive officer, Abbott. “We significantly outperformed our original growth expectations for the year and added to our diverse portfolio with a significant number of major new product launches. The strategic actions we’ve taken and our ongoing business momentum position Abbott to deliver continued double-digit growth in 2009.”

Business Highlights

Abbott to Acquire Advanced Medical Optics (AMO)

Abbott announced an agreement to acquire AMO, an established global leader in the large and growing eye care market. This acquisition strengthens and expands Abbott’s current medical device business, providing further diversification for the long term. AMO participates in three segments: cataract surgery, refractive surgery, or LASIK laser vision correction, and eye care products, such as contact lens solutions. AMO holds the number-one market position in LASIK, the number-two position in cataract surgery and the number-three position in eye care products. The ophthalmology market is supported by strong demographic trends, including a large population of people 60 years of age and older, and increased demand for advanced vision care procedures and products.

Abbott Receives FDA Approval for TRILIPIX

The U.S. FDA approved Abbott’s TRILIPIX (fenofibric acid), the first fibrate to be approved for use in combination with a statin. The FDA approval of TRILIPIX was based on the largest clinical trial program designed to evaluate the efficacy and safety of a fibrate in combination with various statins.

Abbott Begins US Study of XIENCE V Designed for Small Vessels

Abbott began SPIRIT Small Vessel, a clinical trial evaluating a 2.25 mm size of the XIENCE V Everolimus Eluting Coronary Stent System. The 2.25 mm stent system, to be called Xience NANO in the United States upon FDA approval would offer physicians an option for treating coronary artery disease in narrower vessels that is based on the proven efficacy, safety and deliverability of XIENCE V. Last year, the XIENCE V 2.25 mm stent system received CE Mark approval and was launched in various countries in Europe, Asia and Latin America.

HUMIRA May Help Prevent Further Joint Damage For Up To Five Years

Presented new HUMIRA data demonstrating half of patients with moderate to severe early rheumatoid arthritis (RA) showed no progression of joint damage at five years. These results were seen in patients who initially received HUMIRA in combination with methotrexate (MTX) for two years and continued on HUMIRA for an additional three years in an open-label extension study. Five-year results of the PREMIER study found that patients with early RA achieved the best results with an initial combination of HUMIRA and methotrexate.

HUMIRA Demonstrates Fistula Healing for Up to Three Years in Crohn’s Patients

Presented new HUMIRA data in the long-term treatment of fistulas, with more than half of patients with moderate to severe Crohn’s disease experiencing fistula healing at three years. Data also showed response to HUMIRA in difficult-to-treat patients — those with fistulas who had failed to respond, lost response to, or were intolerant of infliximab.

TCT Data Presentations

Presented results from a new meta-analysis of XIENCE V drug-eluting stent clinical trials, SPIRIT II and SPIRIT III, which showed XIENCE V outperformed Boston Scientific’s TAXUS in key efficacy and safety endpoints out to two years. We also presented new two-year data from our ABSORB trial, which demonstrated that our bioabsorbable drug-eluting stent successfully treated coronary artery disease and absorbed within two years.

Abbott Exercises Its Option to Acquire IBIS Biosciences

Abbott completed the purchase of the remaining equity ownership in IBIS Biosciences, Inc.

Abbott confirms double-digit earnings-per-share growth outlook for 2009

Abbott is confirming previously issued earnings-per-share guidance for the full-year 2009 of $3.65 to $3.70 under both Generally Accepted Accounting Principles (GAAP) and on a non-GAAP, or adjusted basis. The midpoint of this 2009 guidance range reflects double-digit growth over 2008 earnings per share.