Abbott Reports Net Earnings Of $1.4 Billion For Q1 2009

Diluted earnings per share, excluding specified items, were $0.73, reflecting 15.9% growth, and $0.03 above the mid-point of Abbott’s previous first-quarter guidance range. Diluted earnings per share under were $0.92, up 53.3%.

Worldwide operational sales, which excludes an unfavorable 6.1% effect of exchange rates, increased 5.4%. Reported sales, including the impact of exchange, declined 0.7%. Excluding the expected decline in Depakote sales, due to generic competition, worldwide operational sales increased 8.9%.

Worldwide medical products operational sales, which excludes an unfavorable 6.8% effect of exchange rates, increased 15.6%. Global vascular sales increased more than 40% driven by the continued success of the XIENCE V drug-eluting stent (DES).

Worldwide pharmaceutical operational sales,which excludes an unfavorable 6.6% effect of exchange rates, increased 0.9%. The decline in Depakote sales lowered worldwide pharmaceutical sales growth by 6.1% age points. Global HUMIRA operational sales increased 27.7%, which excludes an unfavorable 11.0% effect of exchange rates.

Global nutritional operational sales,which excludes an unfavorable 4.2% effect of exchange rates, increased 10.6%. Reported sales increased 6.4%. International nutritional operational sales increased 17.7%.

“Our first-quarter results demonstrate again the value of a well-balanced and highly diverse portfolio of businesses capable of top-tier earnings performance in even the most difficult market conditions,” said Miles D. White, chairman and chief executive officer, Abbott. “This quarter our collective businesses delivered mid-teens earnings-per-share growth, including continued strong double-digit operational sales growth in global nutritionals, global vascular and international pharmaceuticals. We also saw significant profitability improvements in our vascular and diagnostics segments.”

Business Highlights

Presented Long-Term XIENCE V Data at ACC

Three-year data from the SPIRIT II clinical trial of Abbott’s add-market leading drug-eluting stent, XIENCE V, demonstrated that the clinical advantages of Xience V continued to increase between two and three years compared to Boston Scientific’s TAXUS Express2/TAXUS Liberte drug-eluting stents. Between two and three years, XIENCE V maintained a low cardiac death rate of 0.5%, while the observed cardiac death rate for TAXUS Express2/Liberte more than tripled to 4.2%; and XIENCE V maintained a low, single-digit major adverse cardiac event (MACE) rate of 6.4%, while the MACE rate for TAXUS Express2/Liberte increased 40% to 14.9%. No stent thrombosis occurred for XIENCE V between two and three years, maintaining a low rate of stent thrombosis (1.0%). The stent thrombosis rate for TAXUS Express2/Liberte at three years increased to 2.9%.

Presented TRILIPIX / CRESTOR Combination Data at ACC

A new study of Abbott’s fenofibric acid , TRILIPIX, used in combination with the lowest available dose of CRESTOR (5 mg) showed that the combination led to greater improvements in all three lipids – LDL, HDL and triglycerides – than the corresponding monotherapies. TRILIPIX has now been studied with all of the most commonly prescribed doses of CRESTOR (5, 10 and 20 mg) in large, controlled clinical trials. In all studies, TRILIPIX combination therapy improved HDL and triglycerides compared to CRESTOR alone and improved LDL compared to TRILIPIX alone. These data will support the US regulatory submission for the TRILIPIX / CRESTOR fixed dose combination, now planned for the third quarter of this year.

Announced Next Phase of the ABSORB Clinical Trial; The Lancet Publishes Two-Year Results

Abbott announced the initiation of the next phase of the ABSORB clinical trial to evaluate the safety and performance of the company’s fully bioabsorbable drug-eluting coronary stent currently in development. This second phase of the ABSORB clinical trial will enroll approximately 80 patients at 10 centers in Europe, Australia and New Zealand, and will incorporate device enhancements designed to improve deliverability and vessel support. Also, a comprehensive analysis published in The Lancet from the ABSORB clinical trial demonstrated that Abbott’s bioabsorbable drug-eluting stent successfully treated coronary artery disease and was absorbed into the walls of treated arteries within two years.

Launched VOYAGER NC Coronary Balloon Catheter

Abbott launched VOYAGER NC Coronary Dilatation Catheter, a next-generation balloon dilatation catheter with high-pressure capability designed to optimize the treatment of patients with coronary artery disease during angioplasty procedures.

Completed Acquisition of Advanced Medical Optics

Abbott completed its acquisition of Advanced Medical Optics (AMO). Renamed Abbott Medical Optics, AMO strengthens and expands Abbott’s medical device business by adding a leader in vision care.

Initiated Phase 1 Clinical Trial for ABT-450 HCV Protease Inhibitor

Abbott and Enanta Pharmaceuticals announced the advancement of their Hepatitis C (HCV) collaboration with a first-in-human study evaluating ABT-450, an oral protease inhibitor for the treatment of chronic HCV. ABT-450 is the third Abbott compound currently in human trials for the treatment of HCV.

Received FDA Clearance for New CELL-DYN Emerald Hematology Instrument

Abbott announced it received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its new, compact hematology instrument, CELL-DYN Emerald for small to mid-sized clinical laboratories.

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.

For the first time, Abbott is providing earnings-per-share guidance for the second-quarter 2009 of $0.87 to $0.89, excluding specified items. Abbott forecasts net specified items for the second-quarter 2009 of approximately $0.07 per share, primarily associated with previously announced acquisitions and cost reduction initiatives. Including these specified items, projected earnings per share under GAAP would be $0.80 to $0.82 for the second-quarter 2009.

Abbott declares quarterly dividend; double-digit increase over prior year

On February 20, 2009, the board of directors of Abbott declared the company’s quarterly common dividend of 40 cents per share, an 11% increase over the prior year. The cash dividend is payable May 15, 2009, to shareholders of record at the close of business on April 15, 2009.