ABBOTT PARK, Ill., April 25 /PRNewswire-FirstCall/ -- Abbott's broad
portfolio of businesses and expanding global operations generated outstanding
2007 results, and its new product pipeline provides a foundation for continued
growth as demonstrated by the company's strong first-quarter performance,
Chairman and Chief Executive Officer Miles D. White told shareholders today at
the company's annual meeting.
"2007 was an outstanding year for Abbott across all of our major
businesses and our strong momentum has carried into 2008," said Mr. White.
"We delivered another year of strong sales and profitability. We expanded our
business in important emerging economies such as China, India, Russia and
Latin America. And we were highly productive in building our pipeline,
providing the basis for a steady new product stream and continued future
success."
Business Mix Drives Results
Significant contributions from each of the company's major businesses
-- diabetes care, diagnostics, nutritionals, pharmaceuticals and vascular
-- drove a 15 percent increase in 2007 sales. Abbott's stock also
outperformed the S&P 500 Index and the majority of its peers, delivering a
total return to shareholders of 18 percent in 2007 (stock price growth plus
dividends). This marked the second straight year Abbott outpaced the S&P 500
and most of its peers; in 2006, its stock had a total return of 27 percent.
"The diversity and balance of our business base is our core strength and
Abbott's greatest differentiator," said Mr. White. "Our continued strong
growth through the challenges that face medical technology innovators speaks
to our ability to adapt, execute and optimize the many prospects that our mix
of businesses provides."
International Growth
While the United States remains Abbott's single largest market, the
company's growing international business has been central to its performance.
For the first time in Abbott's 120-year history, the company's mix of total
revenues in 2007 favored its international business.
In 2007, Abbott's diabetes care sales increased 18 percent
internationally; international nutritionals grew 18 percent; the international
pharmaceutical business delivered sales growth of nearly 17 percent; and
diagnostics enjoyed strong growth in Europe, Latin America and Japan.
New Products
A major component of Abbott's success is the innovation of new products to
serve patients. Abbott plans a record number of new product introductions in
2008:
-- Already in 2008, the company has introduced two new indications for
HUMIRA(R) (adalimumab) -- moderate to severe plaque psoriasis and
moderate to severely active polyarticular juvenile idiopathic
arthritis, both of which received U.S. Food and Drug Administration
(FDA) approval in the first quarter. Abbott also received approval
from the Japanese Ministry of Health, Labour and Welfare for HUMIRA for
the treatment of rheumatoid arthritis in patients with inadequate
response to conventional therapy.
-- SIMCOR(R), a fixed-dose combination of Niaspan(R) (Abbott's proprietary
niacin extended-release) and simvastatin that targets both "good" and
"bad" cholesterol in a single pill, was also approved by the FDA in the
first quarter.
-- Abbott broadened its line of glucose meters with the launch of the
FreeStyle Freedom(R) Lite and received U.S. approval for its FreeStyle
Navigator(R) Continuous Glucose Monitoring System.
-- Abbott introduced the ARCHITECT i1000SR immunochemistry analyzer in the
United States. Designed to help improve productivity in small-volume
labs, the instrument addresses common laboratory workflow challenges
through innovative sample processing and reagent management.
-- Abbott expects to launch its XIENCE(TM) V drug-eluting stent in the
United States in the second quarter. XIENCE V was launched in Europe
and other international markets beginning in late 2006.
-- A controlled-release form of Abbott's pain reliever Vicodin was
submitted for U.S. regulatory approval in the fourth quarter of 2007.
-- TriLipix(TM), a next-generation fenofibrate for lipid management, was
submitted for U.S. regulatory approval in the fourth quarter of 2007.
Mr. White said the company is also conducting highly innovative research
and development work across its range of medical products, nutritional and
pharmaceutical businesses.
Shareholder Proposals
During the meeting, shareholders rejected proposals calling for a
non-binding vote on executive compensation and access to medicines. In
addition, the shareholders ratified the selection of Deloitte & Touche LLP as
auditors of the corporation for 2008.
Abbott's 13 incumbent directors were elected to the board of directors
during the annual meeting. They are listed below:
-- Roxanne S. Austin, president, Austin Investment Advisors.
-- William M. Daley, head of the office of corporate social responsibility
and chairman of the midwest, JPMorgan Chase & Co.
-- W. James Farrell, retired chairman and chief executive officer,
Illinois Tool Works Inc.
-- H. Laurance Fuller, retired co-chairman of the board, BP Amoco, p.l.c.
-- William A. Osborn, chairman and former chief executive officer,
Northern Trust Corporation and The Northern Trust Company.
-- The Rt. Hon. Lord Owen CH, chairman of Europe Steel, p.l.c.
-- Boone Powell Jr., retired chairman, Baylor Health Care System.
-- W. Ann Reynolds, Ph.D., former president, The University of Alabama at
Birmingham.
-- Roy S. Roberts, managing director, Reliant Equity Investors.
-- Samuel C. Scott III, chairman, president and chief executive officer,
Corn Products International, Inc.
-- William D. Smithburg, retired chairman, president and chief executive
officer, The Quaker Oats Company.
-- Glenn F. Tilton, chairman, president and chief executive officer, UAL
Corporation and United Air Lines, Inc., a wholly owned subsidiary of
UAL Corporation.
-- Miles D. White, chairman of the board and chief executive officer,
Abbott.
About Abbott
Abbott (NYSE: ABT) is a global, broad-based health care company devoted to
the discovery, development, manufacture and marketing of pharmaceuticals and
medical products, including nutritionals, devices and diagnostics. The
company employs more than 68,000 people and markets its products in more than
130 countries.
Abbott's news releases and other information are available on the
company's Web site at http://www.abbott.com.
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