Early Access

10-KPeriod: FY2009

ABBOTT LABORATORIES Annual Report, Year Ended Dec 31, 2009

Filed February 19, 2010For Securities:ABT

Summary

Abbott Laboratories (ABT) filed its 2010 Form 10-K, reporting on its 2009 fiscal year. The company operates across four key segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products. A significant event during the reporting period was the acquisition of Advanced Medical Optics, Inc. (AMO) for approximately $1.4 billion in February 2009, aimed at strengthening its vision care technologies portfolio. Additionally, Abbott announced its agreement to acquire Solvay's pharmaceuticals business for approximately $6.2 billion, which closed shortly after the reporting period ended in February 2010, significantly expanding its pharmaceutical offerings and global reach. The company's financial performance in 2009 demonstrated resilience, with net sales increasing from the prior year. Key growth drivers included its flagship drug Humira®, which continued to show strong sales growth, and advancements in its Vascular Products segment with the launch of the Xience V drug-eluting stent. However, the company also faced challenges, including generic competition impacting certain pharmaceutical products like Depakote® and Omnicef®, and ongoing litigation, notably a significant jury verdict related to Humira® patent infringement, which Abbott is appealing. The company's strategic focus remains on innovation, strategic acquisitions, and expanding its presence in emerging markets.

Financial Statements
Beta
Revenue$30.76B
Cost of Revenue$13.21B
Gross Profit$17.56B
SG&A Expenses$8.41B
Operating Expenses$24.53B
Operating Income$6.24B
Interest Expense$519.66M
Net Income$5.75B
EPS (Basic)$3.71
EPS (Diluted)$3.69
Shares Outstanding (Basic)1.55B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Abbott Laboratories reported robust performance in 2009, with net sales showing growth across its diversified health care segments.
  • 2The company made a strategic acquisition of Advanced Medical Optics, Inc. (AMO) for approximately $1.4 billion, enhancing its position in vision care.
  • 3Abbott announced its intention to acquire Solvay's pharmaceuticals business for approximately $6.2 billion, a transaction that closed shortly after the fiscal year, significantly bolstering its pharmaceutical segment.
  • 4Humira®, a key pharmaceutical product, continued its strong sales trajectory, with significant contributions from both U.S. and international markets.
  • 5The Vascular Products segment saw growth, driven by the Xience V drug-eluting stent, a market-leading product in the U.S.
  • 6Generic competition negatively impacted sales of certain pharmaceutical products, notably Depakote® and Omnicef®.
  • 7Abbott is actively managing significant legal proceedings, including a notable patent infringement case related to Humira®, with substantial damages awarded but currently under appeal.

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