Abbott Labs reports EPS in-line, revs in-line; guides Q4 EPS in-line
Showing posts with label ABT. Show all posts
Showing posts with label ABT. Show all posts
Wednesday, October 16, 2019
=Abbott Labs (ABT) reported earnings on Wed 16 Oct 2019 (b/o)
Abbott Labs reports EPS in-line, revs in-line; guides Q4 EPS in-line
Monday, October 14, 2019
Earnings this week : Oct 14 - 18, 19 (wk 42)
- None
Tuesday (Oct 15)
Wednesday (Oct 16)
- Morning: ABT ALLY ASML BAC BK CBSH CMA FHN PGR PNC USB
- Afternoon: AA CATY CCI CCK CNS CSX EGBN IBM KMI LLNW NFLX SLG STLD TBK TCBI UMPQ URI WTFC
Thursday (Oct 17)
- Morning: BBT BMI DOV ERIC EWBC FNB GPC GTLS HOMB HON HTLD IIIN KEY MS MTB PM POOL PPG SASR SNA SON STI TSM TXT UNP WNS
- Afternoon: BDN ETFC EXPO FFBC ISRG MRTN OZK PBCT TEAM WAL WDFC
Friday (Oct 18)
- JPMorgan (JPM), Johnson & Johnson (NYSE:JNJ), UnitedHealth Group (NYSE:UNH), Goldman Sachs (NYSE:GS), Wells Fargo (WFC), Citigroup (C), United Continental (NASDAQ:UAL), Charles Schwab (NYSE:SCHW) and BlackRock (NYSE:BLK) on October 15;
- Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), Bank of America (NYSE:BAC), Kinder Morgan (NYSE:KMI) and Abbott Laboratories (NYSE:ABT) on October 16;
- Philip Morris International (NYSE:PM), Morgan Stanley (NYSE:MS) and Union Pacific (NYSE:UNP) on October 17; Coca-Cola (NYSE:KO), American Express (NYSE:AXP), State Street (NYSE:STT) and Gentex (NASDAQ:GNTX) on October 18.
Monday, April 22, 2019
=Companies developing treatments for diabetes
(source : IBD)
Medical device companies are unleashing new diabetes treatment products that promise improved quality of life for patients and a potential stake for the companies in a huge and growing market.
Abbott Laboratories (ABT), Medtronic (MDT) and Tandem Diabetes (TNDM) are among those jockeying for a piece of the diabetes treatment market, which could be worth well north of $2 trillion by 2030.
The medical devices are a boon for insulin-dependent diabetics — a group BMO Capital Markets analyst Joanne Wuensch estimates at 3.3 million people in the U.S.
"We're at a unique period of time where the FDA, companies and technology are all moving in the same direction," Wuensch said.
Coping With Diabetes
One patient to benefit is Ambar Chacoma, a 12-year-old resident in Glendale, Calif. Ambar was diagnosed with type 1 diabetes at age 9.
Managing Ambar's diabetes was "a nightmare," her father, Carlos Chacoma, told Investor's Business Daily. Every two hours, Chacoma or his wife checked Ambar's blood sugar levels — day and night. The duo took turns checking on Ambar at "1 a.m., 3 a.m., 5 a.m. and 7 a.m."
"It was shots and needles for a year," he said. After that, Ambar began using a Medtronic device which measures her blood sugar and delivers insulin automatically. It was a "life-changer."
"Before, with the shots, every time she went out, always my wife or I had to go with her," he said. "We weren't going to take the risk of letting someone take our daughter without knowing about the disease. Now, she goes on field trips. She's going to New York next year by herself with the school."
How Diabetes Treatment Is Changing
Modern insulin pumps and continuous glucose monitors are changing diabetes treatment, Wuensch says. The Food and Drug Administration recently began allowing companies to pair their medical devices for diabetes, combining pumps and monitors.
New medical devices are coming down the pike, she said in an interview.
"Pipelines are relatively full through 2020 and we're just starting to look around the corner at what might be after that," Wuensch said.
In a healthy person, the pancreas makes a hormone called insulin. This helps maintain the balance of a blood sugar called glucose and salt in the body. In diabetic patients, the pancreas doesn't function properly.
There are two types of diabetes. Type 1 diabetes, which inflicts Ambar Chacoma, is genetic. Patients are often diagnosed as children. Their bodies don't produce insulin. Type 2 is a degenerative condition and patients don't always need insulin. Sometimes they may take oral medicines.
Type 2 Patients May Need Insulin
But diabetes can progress to the point that even type 2 patients need insulin.
Medical devices aim to prevent glucose from rising or falling to dangerous levels. Too high, and a patient can develop cardiovascular disease, kidney failure, nerve degeneration or go blind. Too low, and a patient can fall into a coma or die.
For years, insulin-dependent patients have used glucose meters. To use these devices, they must prick their fingers and collect a drop of blood on a test strip. From there, the diabetic patient calculates how much insulin they need to inject via syringe.
But that can be taxing, especially for parents of young children, Carlos Chacoma says.
"We're not nurses," he said. "My wife and I didn't know anything about needles. We learned in one day how to use the needle and to do it in a way that doesn't scare our daughter."
The family also had to learn the mathematics behind glucose monitoring. "We were overworked," he said.
A Massive Opportunity in Diabetes Treatment
Diabetes treatment is a massive market. In 2017, the cost of diagnosed diabetes treatment jumped to $327 billion in the U.S., surging from $245 billion in 2012. Estimates vary globally, but some put the cost of treating diabetes at well over $2 trillion by 2030.
Medical device companies are hoping for a sizable piece of that market. In the winter quarter, five publicly traded companies with medical devices for diabetics reported $1.72 billion in revenue. That puts the group on a run-rate of $6.88 billion for the year.
Three of those companies are pure players in the diabetes treatment space. For 2019, Tandem, Dexcom (DXCM) and Insulet (PODD) collectively expect $2.09 billion to $2.18 billion in sales. That would be a rise of about 20% year over year.
Medtronic and Abbott are among the biggest medical device companies. Neither offer guidance for their diabetes segments. In their quarters ended in January and March, respectively, the duo put up a respective $610 million and $566 million in sales of medical devices for diabetes treatment.
And there's room to grow. Research firm Grand View expects the market for medical devices in diabetes treatments to be worth $35.5 billion by 2024. This comes as the number of diabetes cases across the world swells. Globally, more than 400 million people are diabetics.
Medical Device Companies Change The Dynamic
Medtronic, Abbott and Dexcom are gaining traction with their continuous glucose monitors, or CGMs. These body-worn medical devices track glucose levels in real time. Medtronic, Tandem and Insulet all have insulin pumps, body-worn medical devices that steadily deliver insulin.
Insulin pumps have been around for decades, but modern versions are sleeker and more discreet. They can also be paired with a CGM, allowing the pump to automatically stop glucose from dropping too low.
The new FDA iPump designation — officially dubbed Alternate Controller Enabled infusion pumps — allows patients to pick their own combination of insulin pump, CGM and control algorithm. Medtronic offers its own system, while other medical device companies are pairing up.
Automating the insulin delivery is key for the parents of type 1 diabetics, Lake Street Capital Markets analyst Brooks O'Neil said in an interview. A diabetic coma is a "big-time risk" when you're asleep — and unmonitored. That's why the Chacoma family checked on Ambar every two hours.
"The innovation of having a pump connected to a continuous monitor that will automatically shut off if the pump and the algorithm are reading that the (patient's glucose level) is going too low, that's a huge, huge innovation," O'Neil said. "It's a revolution."
Medical Devices Still 'Vastly Under-Penetrated'
BMO analyst Wuensch estimates there are 1.6 million type 1 patients in the U.S. and 1.7 million type 2 patients who are insulin-dependent. The pump market is worth $2.3 billion globally and "that's vastly under-penetrated," she said.
Just 30% of type 1 diabetics use an insulin pump and 20% use a CGM, she says. But interest is rising as companies make sleeker systems that are easier to use. Ambar Chacoma uses what Medtronic calls its MiniMed 670G system, which integrates a CGM with an insulin pump.
It's made a dramatic difference for his daughter, Chacoma says. During that year of "shots and needles," Ambar frequently missed class or lunchtime. Every two hours, the 12-year-old needed a finger prick and, sometimes, an insulin injection. Now, Ambar is taking part in managing her disease.
The 12-year-old is still ballet dancing, and she's beginning to understand the signs portending high and low glucose. Strenuous activity often impacts those levels, and Ambar knows to drink some juice if her blood sugar falls too low, Chacoma says. The family often checks with her to ask, "How's the number?"
Ambar has experienced several alarming highs and lows in glucose. So the learning process is ongoing.
"It's not like a headache that you take an aspirin and a few hours later you'll be OK," he said. "You need to learn to manage this your whole life."
New Medical Devices To Launch In 2019-21
Several new medical devices will launch in 2019-21, analysts say.
Insulet will soon fully launch its OmniPod Dash, a disposable, tubeless insulin pump. In the second half of 2019, Tandem is expected to seek approval for its next-generation T:slim X2 pump, which aims to control low and high glucose levels.
The latter puts Tandem closest to an artificial pancreas, Lake Street's O'Neil says. It can be integrated with Dexcom's CGM, which doesn't require calibrating finger sticks. In 2020, Tandem is expected to launch a smaller pump called T:sport.
In 2020, the market could see new closed-loop systems, sometimes called artificial pancreases. Analysts expect Insulet to launch its OmniPod Horizon. Medtronic is also working on a closed-loop system. Further, Dexcom could launch its next-generation CGM in late 2020 or early 2021, analysts say.
BMO analyst Wuensch sees "a slew of new, sleeker and more automated pumps entering the market in 2019 and 2020, and the adoption of closed-loop systems that pair pump and CGM technologies in the quest for an artificial pancreas."
Wuensch also sees greater physician buy-in. In a February survey of physicians, 57% said they would prescribe an insulin pump to a type 1 diabetic, and 11% said they would prescribe the medical device to a type 2 patient.
Devices Gain Acceptance Among Insurers
Meanwhile, medical devices for diabetes treatment are gaining favor with insurers. More than 1.3 million people in 46 countries use Abbott's CGM, a device called Freestyle Libre, says Joel Goldsmith, senior director of digital platforms for Abbott's diabetes business.
Abbott has achieved that over a four-year period on the market. The medical device has full or partial insurance reimbursement in 33 countries, Goldsmith said in an interview. Depending on the insurer, U.S. patients pay nothing or up to $75 per month for Freestyle Libre.
Lake Street's O'Neil is particularly bullish on Tandem stock, which he says he owns.
Tandem stock has scored a huge recovery in a little over a year. However, Tandem stock was wrecked alongside the entire health care sector Wednesday as Wall Street grappled with a "Medicare for All" proposal from presidential candidate Bernie Sanders.
Shares of Tandem peaked at 74.81 in March after hitting a low of 2.14 in February 2018. At the time, it was suffering in the aftermath of the FDA's approval of Medtronic's MiniMed 670G insulin pump.
The MiniMed 670G automatically shuts off insulin delivery when glucose levels fall too low. Tandem toppled as the medical device "threw the market while everyone tried to figure out if this was the Holy Grail or not," O'Neil said.
Heyday For Medtechs
Shares of other medical device companies in diabetes treatment have experienced a recent heyday. Insulet stock hit a 28% year-to-date gain in March. At the same time, shares of Abbott had climbed nearly 11%.
But all five stocks are now well off their highs on Sanders' proposal for a single-payer health care system. The entire medical sector was hit Wednesday as Medicare and Medicaid Services Administrator Seema Verma called the proposal the "biggest threat to the American health care system."
Analysts say visibility is increasing for the diabetes treatment realm. Amazon (AMZN) is now selling blood glucose monitors under a partnership with medical group Arcadia. But most observers doubt the tech giant can make waves in the diabetes treatment market.
These products are from the old guard of devices requiring a finger prick and test strip, Abbott's Goldsmith says. Some of the biggest players in that market — Johnson & Johnson (JNJ) and Bayer (BAYRY) — have sold off their strip and meter businesses.
"This isn't surprising to me that they picked a commodity business like strip-based glucose monitoring where there's intense pricing pressure," Goldsmith said of Amazon. "There's not a whole lot of room for innovation in strips and meters."
Medical device companies are unleashing new diabetes treatment products that promise improved quality of life for patients and a potential stake for the companies in a huge and growing market.
Abbott Laboratories (ABT), Medtronic (MDT) and Tandem Diabetes (TNDM) are among those jockeying for a piece of the diabetes treatment market, which could be worth well north of $2 trillion by 2030.
The medical devices are a boon for insulin-dependent diabetics — a group BMO Capital Markets analyst Joanne Wuensch estimates at 3.3 million people in the U.S.
"We're at a unique period of time where the FDA, companies and technology are all moving in the same direction," Wuensch said.
Coping With Diabetes
One patient to benefit is Ambar Chacoma, a 12-year-old resident in Glendale, Calif. Ambar was diagnosed with type 1 diabetes at age 9.
Managing Ambar's diabetes was "a nightmare," her father, Carlos Chacoma, told Investor's Business Daily. Every two hours, Chacoma or his wife checked Ambar's blood sugar levels — day and night. The duo took turns checking on Ambar at "1 a.m., 3 a.m., 5 a.m. and 7 a.m."
"It was shots and needles for a year," he said. After that, Ambar began using a Medtronic device which measures her blood sugar and delivers insulin automatically. It was a "life-changer."
"Before, with the shots, every time she went out, always my wife or I had to go with her," he said. "We weren't going to take the risk of letting someone take our daughter without knowing about the disease. Now, she goes on field trips. She's going to New York next year by herself with the school."
How Diabetes Treatment Is Changing
Modern insulin pumps and continuous glucose monitors are changing diabetes treatment, Wuensch says. The Food and Drug Administration recently began allowing companies to pair their medical devices for diabetes, combining pumps and monitors.
New medical devices are coming down the pike, she said in an interview.
"Pipelines are relatively full through 2020 and we're just starting to look around the corner at what might be after that," Wuensch said.
In a healthy person, the pancreas makes a hormone called insulin. This helps maintain the balance of a blood sugar called glucose and salt in the body. In diabetic patients, the pancreas doesn't function properly.
There are two types of diabetes. Type 1 diabetes, which inflicts Ambar Chacoma, is genetic. Patients are often diagnosed as children. Their bodies don't produce insulin. Type 2 is a degenerative condition and patients don't always need insulin. Sometimes they may take oral medicines.
Type 2 Patients May Need Insulin
But diabetes can progress to the point that even type 2 patients need insulin.
Medical devices aim to prevent glucose from rising or falling to dangerous levels. Too high, and a patient can develop cardiovascular disease, kidney failure, nerve degeneration or go blind. Too low, and a patient can fall into a coma or die.
For years, insulin-dependent patients have used glucose meters. To use these devices, they must prick their fingers and collect a drop of blood on a test strip. From there, the diabetic patient calculates how much insulin they need to inject via syringe.
But that can be taxing, especially for parents of young children, Carlos Chacoma says.
"We're not nurses," he said. "My wife and I didn't know anything about needles. We learned in one day how to use the needle and to do it in a way that doesn't scare our daughter."
The family also had to learn the mathematics behind glucose monitoring. "We were overworked," he said.
A Massive Opportunity in Diabetes Treatment
Diabetes treatment is a massive market. In 2017, the cost of diagnosed diabetes treatment jumped to $327 billion in the U.S., surging from $245 billion in 2012. Estimates vary globally, but some put the cost of treating diabetes at well over $2 trillion by 2030.
Medical device companies are hoping for a sizable piece of that market. In the winter quarter, five publicly traded companies with medical devices for diabetics reported $1.72 billion in revenue. That puts the group on a run-rate of $6.88 billion for the year.
Three of those companies are pure players in the diabetes treatment space. For 2019, Tandem, Dexcom (DXCM) and Insulet (PODD) collectively expect $2.09 billion to $2.18 billion in sales. That would be a rise of about 20% year over year.
Medtronic and Abbott are among the biggest medical device companies. Neither offer guidance for their diabetes segments. In their quarters ended in January and March, respectively, the duo put up a respective $610 million and $566 million in sales of medical devices for diabetes treatment.
And there's room to grow. Research firm Grand View expects the market for medical devices in diabetes treatments to be worth $35.5 billion by 2024. This comes as the number of diabetes cases across the world swells. Globally, more than 400 million people are diabetics.
Medical Device Companies Change The Dynamic
Medtronic, Abbott and Dexcom are gaining traction with their continuous glucose monitors, or CGMs. These body-worn medical devices track glucose levels in real time. Medtronic, Tandem and Insulet all have insulin pumps, body-worn medical devices that steadily deliver insulin.
Insulin pumps have been around for decades, but modern versions are sleeker and more discreet. They can also be paired with a CGM, allowing the pump to automatically stop glucose from dropping too low.
The new FDA iPump designation — officially dubbed Alternate Controller Enabled infusion pumps — allows patients to pick their own combination of insulin pump, CGM and control algorithm. Medtronic offers its own system, while other medical device companies are pairing up.
Automating the insulin delivery is key for the parents of type 1 diabetics, Lake Street Capital Markets analyst Brooks O'Neil said in an interview. A diabetic coma is a "big-time risk" when you're asleep — and unmonitored. That's why the Chacoma family checked on Ambar every two hours.
"The innovation of having a pump connected to a continuous monitor that will automatically shut off if the pump and the algorithm are reading that the (patient's glucose level) is going too low, that's a huge, huge innovation," O'Neil said. "It's a revolution."
Medical Devices Still 'Vastly Under-Penetrated'
BMO analyst Wuensch estimates there are 1.6 million type 1 patients in the U.S. and 1.7 million type 2 patients who are insulin-dependent. The pump market is worth $2.3 billion globally and "that's vastly under-penetrated," she said.
Just 30% of type 1 diabetics use an insulin pump and 20% use a CGM, she says. But interest is rising as companies make sleeker systems that are easier to use. Ambar Chacoma uses what Medtronic calls its MiniMed 670G system, which integrates a CGM with an insulin pump.
It's made a dramatic difference for his daughter, Chacoma says. During that year of "shots and needles," Ambar frequently missed class or lunchtime. Every two hours, the 12-year-old needed a finger prick and, sometimes, an insulin injection. Now, Ambar is taking part in managing her disease.
The 12-year-old is still ballet dancing, and she's beginning to understand the signs portending high and low glucose. Strenuous activity often impacts those levels, and Ambar knows to drink some juice if her blood sugar falls too low, Chacoma says. The family often checks with her to ask, "How's the number?"
Ambar has experienced several alarming highs and lows in glucose. So the learning process is ongoing.
"It's not like a headache that you take an aspirin and a few hours later you'll be OK," he said. "You need to learn to manage this your whole life."
New Medical Devices To Launch In 2019-21
Several new medical devices will launch in 2019-21, analysts say.
Insulet will soon fully launch its OmniPod Dash, a disposable, tubeless insulin pump. In the second half of 2019, Tandem is expected to seek approval for its next-generation T:slim X2 pump, which aims to control low and high glucose levels.
The latter puts Tandem closest to an artificial pancreas, Lake Street's O'Neil says. It can be integrated with Dexcom's CGM, which doesn't require calibrating finger sticks. In 2020, Tandem is expected to launch a smaller pump called T:sport.
In 2020, the market could see new closed-loop systems, sometimes called artificial pancreases. Analysts expect Insulet to launch its OmniPod Horizon. Medtronic is also working on a closed-loop system. Further, Dexcom could launch its next-generation CGM in late 2020 or early 2021, analysts say.
BMO analyst Wuensch sees "a slew of new, sleeker and more automated pumps entering the market in 2019 and 2020, and the adoption of closed-loop systems that pair pump and CGM technologies in the quest for an artificial pancreas."
Wuensch also sees greater physician buy-in. In a February survey of physicians, 57% said they would prescribe an insulin pump to a type 1 diabetic, and 11% said they would prescribe the medical device to a type 2 patient.
Devices Gain Acceptance Among Insurers
Meanwhile, medical devices for diabetes treatment are gaining favor with insurers. More than 1.3 million people in 46 countries use Abbott's CGM, a device called Freestyle Libre, says Joel Goldsmith, senior director of digital platforms for Abbott's diabetes business.
Abbott has achieved that over a four-year period on the market. The medical device has full or partial insurance reimbursement in 33 countries, Goldsmith said in an interview. Depending on the insurer, U.S. patients pay nothing or up to $75 per month for Freestyle Libre.
Lake Street's O'Neil is particularly bullish on Tandem stock, which he says he owns.
Tandem stock has scored a huge recovery in a little over a year. However, Tandem stock was wrecked alongside the entire health care sector Wednesday as Wall Street grappled with a "Medicare for All" proposal from presidential candidate Bernie Sanders.
Shares of Tandem peaked at 74.81 in March after hitting a low of 2.14 in February 2018. At the time, it was suffering in the aftermath of the FDA's approval of Medtronic's MiniMed 670G insulin pump.
The MiniMed 670G automatically shuts off insulin delivery when glucose levels fall too low. Tandem toppled as the medical device "threw the market while everyone tried to figure out if this was the Holy Grail or not," O'Neil said.
Heyday For Medtechs
Shares of other medical device companies in diabetes treatment have experienced a recent heyday. Insulet stock hit a 28% year-to-date gain in March. At the same time, shares of Abbott had climbed nearly 11%.
But all five stocks are now well off their highs on Sanders' proposal for a single-payer health care system. The entire medical sector was hit Wednesday as Medicare and Medicaid Services Administrator Seema Verma called the proposal the "biggest threat to the American health care system."
Analysts say visibility is increasing for the diabetes treatment realm. Amazon (AMZN) is now selling blood glucose monitors under a partnership with medical group Arcadia. But most observers doubt the tech giant can make waves in the diabetes treatment market.
These products are from the old guard of devices requiring a finger prick and test strip, Abbott's Goldsmith says. Some of the biggest players in that market — Johnson & Johnson (JNJ) and Bayer (BAYRY) — have sold off their strip and meter businesses.
"This isn't surprising to me that they picked a commodity business like strip-based glucose monitoring where there's intense pricing pressure," Goldsmith said of Amazon. "There's not a whole lot of room for innovation in strips and meters."
Wednesday, July 18, 2018
=Abbott Labs (ABT) reported earnings on Wed 18 July 18 (b/o)
Abbott Labs beats by $0.02, reports revs in-line; guides Q3 EPS in-line; raises FY18 EPS guidance
- Reports Q2 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.71; revenues rose 17.0% year/year to $7.77 bln vs the $7.71 bln Capital IQ Consensus. On an organic basis, worldwide sales increased 8.0 percent.
- "All four of our businesses exceeded expectations and contributed to strong growth overall," said Miles D. White, chairman and chief executive officer, Abbott. "We forecast continued strong performance and are raising our full-year outlook despite recent currency shifts."
- Co issues in-line guidance for Q3, sees EPS of $0.73-0.75, excluding non-recurring items, vs. $0.74 Capital IQ Consensus Estimate.
- Co raises guidance for FY18, sees EPS of $2.85-2.91 (Prior $2.80-2.90), excluding non-recurring items, vs. $2.86 Capital IQ Consensus Estimate.
Sunday, July 15, 2018
Earnings this week : July 16 - 20, 18 (wk 29)
Monday (July 16)
Tuesday (July 17)
- Morning: UNH, JNJ, GS, PGR, OMC, SCHW, CMA, PLD, FHN, NSM, NEOG
- Afternoon: UAL, CSX, FNF, IBKR, WTFC, HWC, MLNX, PNFP, FULT, MRTN, HOPE, RNST, ADTN, LTXB
Wednesday (July 18)
- Morning: ERIC, NVS, MS, ABT, USB, TXT, GWW, ASML, NTRS, MTB, OACW, MTG, WAFD
- Afternoon: IBM, AXP, AA, KMI, CCK, EBAY, URI, CP, CCI, UFPI, PLXS, PTC, UMPQ, LHO, TCBI, SLG, BXS, RECN, CATY, NDLS, BMI, CNS, CVBF, EGBN, TBK, DWCH
Thursday (July 19)
- Morning: ABB, ADS, BBT, BX, BK, GTLS, DHR, DPZ, DOV, EWBC, FITB, GATX, GPC, HOMB, IIIN, KEY, NUE, PM, POOL, PPG, RCI, RPM, SASR, SAP, SCHL, SBNY, SNA, SON, TSM, TTS, TRV, UNP, WBC, WBS, WNS
- Afternoon: MSFT, COF, CE, CTAS, SKX, SWKS, ISRG, ETFC, SEIC, PBCT, ASB, NWE, WAL, MBFI, FFBC, BDN, FFIN, EXPO, EGP, LLNW
Friday (July 20)
Monday, April 17, 2017
=Alere (ALR) to be acquired by Abbott (ABT) for $5.3 billion or $51 per share
(Reuters) - Diversified healthcare company Abbott Laboratories (ABT) on Friday agreed to buy Alere Inc (ALR) at a lower price than it had previously offered, after raising concerns about the accuracy of various representations, warranties and covenants made by Alere in the earlier agreement.
Abbott's revised offer values Alere's equity around $5.3 billion, down from the about $5.8 billion announced in February last year, the companies said in a statement, ending a prolonged legal battle over Abbott's plan to acquire the diagnostic-testing company.
Abbott will now pay $51 per share for Alere, compared with its earlier offer of $56. The new price was a much better outcome than what Alere's shareholders had priced in, given that Alere's shares closed at $42.31 on Thursday on the New York Stock Exchange.
While the new deal values Alere at 26.84 times forward earnings, Alere's peers are on average valued at 37.9 times, according to Thomson Reuters data.
The new $51 per share deal price is in the middle of the initial $49 to $53 per share range that Abbott had indicated it would be willing to pay for Alere when it first discussed an acquisition in December 2015, according to Alere's proxy statement to its shareholders.
Abbott at the time had not carried out due diligence on Alere, and subsequent negotiations led to a deal being agreed early last year.
However, the deal ran into trouble within months of being announced, as Alere received a grand jury subpoena from the U.S. Department of Justice in March last year seeking documents relating to the company's sales practices, and delayed filing its annual report.
Both the companies ended up suing each other last year, with Alere forcing Abbott to move ahead with the deal, and Abbott wanting to back out of the deal citing a "substantial loss" in the value of the diagnostics company.
Friday, April 29, 2016
St. Jude Medical (STJ) acquired by Abbott Laboratories (ABT)
Thursday, January 28, 2016
=Abbott Labs (ABT) reported 4Q earnings on Thur 28 Jan 2016 (before open)
** charts before earnings **
** charts after earnings **
** charts after earnings **
Abbott Labs beats by $0.01, misses on revs; guides Q1 EPS below consensus; guides FY16 EPS below consensus :
- 7Reports Q4 (Dec) earnings of $0.62 per share, $0.01 better than the Capital IQ Consensus of $0.61; revenues fell 3.1% year/year to $5.19 bln vs the $5.25 bln Capital IQ Consensus.
- Co issues downside guidance for Q1, sees EPS of $0.38-0.40 vs. $0.48 Capital IQ Consensus Estimate.
- Co issues downside guidance for FY16, sees EPS of 2.10-2.20 vs. $2.30 Capital IQ Consensus Estimate.
- Abbott's 2016 forecast assumes a significantly lower contribution from Venezuelan operations as a result of challenging market conditions in that country. Excluding the impact of foreign exchange and Venezuela, the midpoint of Abbott's 2016 adjusted EPS guidance range would reflect strong double-digit growth.
Tuesday, July 21, 2015
Thoratec (THOR)
Thoratec Corporation is a United States-based company that develops, manufactures, and markets proprietary medical devices used for mechanical circulatory support for the treatment of heart-failure patients worldwide.
- Parent organization: Abbott Laboratories
- thoratec.com
Wednesday, January 2, 2013
AbbVie (ABBV) began trading on the NYSE on Thur 2 Jan 2013
AbbVie (ABBV) is a spin-off of Abbott Laboratories. The separation was effective January 1, 2013, and AbbVie was officially listed on the New York Stock Exchange (ABBV) on January 2, 2013.
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