Focusing on innovation, Abbott has grown healthily in 2013

January 24, 2014 | 17:00
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Abbott - the global healthcare company has announced its positive financial results in the fourth quarter and total 2013.

According to its release, the company has continued to grow double-digit despite global economic challenges over the year.

Abbott launched BoneSure - clinical proven and readily endorsed product by Healthcare professionals

Continue to grow double digit in such a challenging year 2013

Abbott, one of the largest diversified global health care companies, is expecting a greater growth for this year, after achieving a positive business performance last year, with a strong focus on innovation.

According to Abbott’s release on financial results for 2013's fourth quarter, last year, the company’s sales totaled $21.9 billion, with ongoing diluted EPS being $0.58 in the fourth quarter and $2.01 for the full year, “reflecting double-digit growth.”   

Specifically, worldwide sales in the fourth quarter of 2013 were $5.7 billion, increased 3.3 percent on an operational basis, driven by Diagnostics and Medical Devices. Another highlight would go for Abbott Nutrition’s achievement when its sales increased 1.1 percent on an operational basis. Sales growth in nutrition was led by strong growth of Ensure and continued expansion of the adult nutrition market where Abbott is the global leader. To further accelerate the strong development, Abbott Nutrition is well-positioned to deliver on key strategic priorities in 2014, includes launching several new products globally in both adult and pediatric nutrition further expansion of global capacity with three new manufacturing facilities scheduled to come on line in China, India and the United States in 2014.  

In addition to Nutrition growth of 5.4 percent, sales of Diagnosis and Medical devices are positive in the 2013 sales report. In particular, worldwide Diagnostics sales increased 8.3 percent in full-year 2013 on an operational basis to reach $4.5 billion. This business continues to invest in development of several next-generation diagnostic platforms across all of its business units that are designed to positively impact patient care, improve service to customers, enhance laboratory productivity and reduce costs. Moreover, Established Pharmaceuticals sales increased 0.7 percent in 2013 on an operational basis with 6.3 percent growth in key emerging markets.

"In 2013, despite some challenges, we achieved our expectations for earnings growth, including more than 100 basis points of operating margin expansion," said Abbott chairman and chief executive officer Miles D. White. "In 2014, we are targeting another year of double-digit ongoing earnings-per-share (EPS) growth."

The impressive financial performance has been achieved through Abbott’s continuous investment into R&D and its strong focus on innovation.

Innovation will continue to be a key driver of business growth

In 2013, Abbott delivered on a number of new product launches. Highlights include nearly 70 new product launches in Nutrition; XIENCE Xpedition™ drug-eluting stent in the United States and Japan; MitraClip®, Abbott's first-in-class device for the treatment of mitral regurgitation... Abbott has attributed all of these successes to its focus on innovation.

Over the course of the last 12 months, Abbott had invested $1.5 billion in research and development (R&D) to bring new solutions that meet rapidly changing healthcare needs of people of all ages around the world. In Nutrition ,the company’s investment in R&D has resulted in a five-fold increase in the number of new products launched annually since 2008 and a ten-fold increase in both clinical trials and patent application. It is also expanding its global R&D footprint in Asia like Singapore, China and India to ensure its products can meet the local needs and preferences of consumers.

In Vietnam, last year, Abbott introduced nearly 10 new products, including BoneSure - a bone health nutritional supplement which designed specifically for Asia Women; Ensure Acti M2 which help in maintaining cognitive health, mental sharpness for aging people as average life expectancy in Vietnam has increased significantly. In term of pediatric nutrition, the newly launched product line Similac with Intelli-Pro is the latest innovation formulas designed to meet nutritional needs for infants and children’s development.

Also, Abbott Established Pharmaceuticals had continuously innovated and launched high-quality pharmaceutical products at competitive prices which are used to cure for different diseases, including vascular, infectious and mental diseases. Abbott will continue to invest into R&D efforts to span the nutritional needs of Vietnamese infants and adults, address key demographic shifts that position the company for strong future growth.

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