7. Abbott Laboratories
$9.3 Billion ($35.2B total)
KEY EXECUTIVES:
Miles D. White, Chairman & CEO
Thomas C. Freyman, Exec. VP of Finance &Chief Financial Officer
John M. Capek, Ph.D., Exec. VP, Medical Devices
Edward L. Michael, Exec. VP, Diagnostic Products
Robert B. Hance, Sr. VP, Vascular
Heather L. Mason, Sr. VP, Diabetes Care
James V. Mazzo, Sr. VP, Medical Optics
Brian J. Blaser, Sr. VP, Diagnostics
NO. OF EMPLOYEES: 90,000 (total)
GLOBAL HEADQUARTERS: Abbott Park, Ill.
“Despite a very challenging environment, 2010 was another productive year for Abbott, resulting in strong financial performance,” said Miles D. White, chairman and CEO of Abbott Laboratories.
Though end-of-year press releases and annual reports often are opportunities for lofty statements or a touch of bottom-line hyperbole, White seems to be right on the money with his quote above.
The medical device-related businesses of the Abbott Park, Ill.-based life-sciences giant showed robust growth for fiscal 2010 (ended Dec. 31). Overall, the company’s core device product categories—diabetes care, medical optics, vascular and diagnostics all grew—some by significant double digits, which is really saying something these days.
Diabetes care sales increased 2.7 percent compared with fiscal 2009 to $1.28 billion. Diagnostics grew 6 percent to $3.79 billion. The company’s portfolio of vascular products grew 18.5 percent across the board (notably, 40 percent internationally) to reach $3.19 billion in sales. One of the newest additions to Abbott’s device pipeline—medical optics (following the 2009 buyout of Advanced Medical Optics for almost $3 billion)—grew sales 19.5 percent compared with last year, reaching $1.06 billion in revenue.
Total company sales rose 14 percent to $35.2 billion. Overall net earnings dropped compared with 2009 from $5.74 billion to $4.62 billion, a 19.5 percent decline. Adjusted net earnings, not included one-time charges due to acquisitions, legal issue and taxes grew 12 percent to $6.5 billion.
A robust product pipeline helped to fuel revenue expansion for the year. In 2010, the company received CE Mark in the European Union for what it claims is the world's first drug-eluting bioresorbable vascular scaffold—marketed under the trade name “Absorb,” the device restores blood flow by opening a clogged vessel and providing support to the vessel until it dissolves, leaving patients with a treated vessel free of a permanent metallic implant. The company also received approval—and expanded indication—in Europe for its Xience Prime drug-eluting coronary stent system. The device is now cleared for the treatment of critical limb ischemia (CLI) or severe pain of the lower leg. CLI is the most advanced form of peripheral artery disease that can ultimately lead to limb amputation.
In the area of diabetes care, Abbott received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its new FreeStyle blood glucose test strips. The new FreeStyle test strips minimize interference during blood glucose testing and are designed to offer a better testing experience, according to the company.
Early in the fiscal year, the company also garnered FDA approval for the Tecnis Multifocal 1-Piece intraocular lens (IOL) for cataract patients with and without presbyopia. Intraocular lenses are implanted in a patient's eye after the removal of the natural lens that has become clouded by a cataract. Conventional monofocal IOLs are designed to focus primarily at one distance and do not correct presbyopia, an age-related change in vision that occurs when the eye's natural lens can no longer adjust its focal length to allow clear vision at different distances.
The new lens has received presbyopia-correcting IOL status by the Centers for Medicare and Medicaid Services (CMS), providing Medicare beneficiaries with the option to receive the device for an additional fee as part of cataract surgery.
“With this approval, Medicare cataract patients have a new opportunity to enjoy near, intermediate and distance vision without needing glasses, with nearly 9 out of 10 patients reporting that they never wear glasses following surgery," said Jim Mazzo, senior vice president, Abbott Medical Optics.
The Tecnis Multifocal 1-Piece IOL is a pupil-independent, full diffractive presbyopia-correcting lens designed for optimal image quality at all distances under any lighting condition. According to Abbott, the design of the lens provides improved near vision and reading speed compared to other presbyopia-correcting IOLs.
White said Abbott is prepared to continue its focus on new product development. In fact, Abbott spent a billion more dollars in 2010 (for a total of approximately 3.7 billion) than it did in 2009 on research and development activities company-wide.
“Our medical products pipeline is also full of high-quality opportunities,” he said. “In diagnostics, we have a number of new assays and next-generation systems launching over the next several years, in addition to multiple collaborations under way to develop companion tests that may be used to select patients for various cancer therapies. From our vision care pipeline, we expect 20 new products and technology advancements over the next five years.