Abbott Success Story

Abbott success story Company Profile is an initiative by ListMyStartUp to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

Abbott employs 70,000 people worldwide, and it has 150 facilities and 60 manufacturing sites. The company focuses on advancing medical science and the practice of healthcare, and it has demonstrated expertise in the therapeutic areas of diabetes, pain management, respiratory infections, HIV/AIDS, men and women’s health, and pediatrics. Its products are sold in 130 countries.

Abbott – Company Highlights

• Startup Name-Abbott Laboratories
• Headquarter-Abbott Park, Illinois, United States
• Industry-Health care, Medical devices, Pharmaceutical
• Founder-Dr. Wallace Calvin Abbott
• Founded-1888
• CEO-Robert Ford
• URL-www.abbott.com

Abbott – About and How it works?

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.

Its business operations are divided into four business divisions: Women’s Health & Gastrointestinal, Gastroenterology and Hepatic Care; Speciality Care; GenNext & Vaccines, and Consumer Care. Women’s Health & Gastrointestinal, Gastroenterology and Hepatic Care division has a mix of global and local brands present in the pregnancy, constipation and liver diseases segments. The Speciality Care division consists of a range of products in the treatment of central nervous system and metabolic disorders. The GenNext division focuses on several therapy areas, including pain management, vitamins and pregnancy.

Abbott – Logo and its meaning

The Abbott logo perfectly represents the strong character of the leading pharmaceutical corporation, showing the importance of innovations and development, along with the value of its clients and their wellbeing.

Abbott – Founder and History

Dr. Wallace Calvin Abbott is the founder of Abbott Laboratories.

Founder of Abbott Laboratories

Abbott had its initial public offering in 1929, at the onset of the Great Depression. Despite the unfortunate timing of the IPO, Abbott continued to expand over the following decades through entering new businesses such as vitamins and intravenous solutions.

The 2000s saw a series of significant acquisitions and expansions, including the opening of an R&D facility at the University of Illinois, Urbana-Champaign, in 2009. Abbott also acquired Kos Pharmaceuticals for USD3.7 Billion in cash in 2007, Knoll, BASF’s pharmaceutical division, in 2001, the pharmaceuticals unit of Solvay in a deal worth USD6.2 Billion in 2010, and CFR, a Chilean generic drugs manufacturer, in a deal worth USD2.9 Billion that would see Abbott doubling its generic drug portfolio.

Abbott – Mission

Abbott’s mission statement says, “At Abbott, we’re all about helping you live the best life you can through good health. We keep your heart healthy, nourish your body at every stage of life, help you see clearly, and bring you information and medicines to manage your health.”

This is done by advancing leading-edge science and technologies, valuing diversity, focusing on exceptional performance, earning the trust of consumers, and sustaining success.

Abbott – Business Model

Abbott has four main business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.

Established Pharmaceutical Products – These are branded generic pharmaceuticals, including gastroenterology products, women’s health products, cardiovascular and metabolic products, pain and central nervous system products, and respiratory drugs and vaccines. These products are manufactured around the globe and are sold generally outside the US. This segment takes up 18% of sales.

Vascular Products – There are a range of devices used for the heart and the vascular system in general, including various stents, vascular scaffolds, coronary balloons, coronary guide wires, mitral valve repair systems, and vessel closure devices. These are sold worldwide.

Abbott – Revenue and Growth

In 2000 the company’s sales and net earnings were $13.7 billion and $2.8 billion, respectively, with diluted earnings per share of $1.78. For the fiscal year ended December 31, 2001, sales rose 18 percent to $16.29 billion; net income fell 44 percent to $1.55 billion. The company’s hospital and pharmaceutical segments have been receiving higher unit sales, which is reflected as higher revenues. Approximately $1.33 billion of its 2001 revenues went into research and development. Abbott Laboratories revenue for the twelve months ending September 30, 2020 was $32.221B, a 2.76% increase year-over-year.

Year Annual Revenue Percentage change

2019 $31.904B +4.34%

2018 $30.578B +11.64%

2017 $27.39B +31.35%

Abbott – Funding and Investors

Abbott has raised a total of $6.8M in funding over 2 rounds. Their latest funding was raised on Mar 15, 2011 from a Debt Financing round.

Abbott – Competitors

The top 10 competitors in Abbott’s competitive set are Johnson & Johnson, Pfizer, Novartis, GSK, Merck, Medtronic, Philips, Bio-Rad, Quest Diagnostics, and Danaher.

Abbott – Challenges Faced

The crises of the early 1970s left the company’s upper echelon of management weakened and vulnerable to criticism. Although Edward Ledder was recognized for the success of his diversification program (and largely excused for his inability to prevent either the cyclamate ban or the intravenous solution crisis), conditions were obviously ripe for the expression of talent by a new manager. Robert Schoellhorn, a veteran of the chemical industry, was just such a manager. His efforts as a vice-president in the hospital products division at Abbott resulted in a revenue increase of 139 percent for that division between 1974 and 1979. He correctly predicted that the next most profitable trend in health care would be toward cost-effective analysis and treatment. Schoellhorn was later promoted to president and chief operating officer of the company.

Abbott has faced lawsuits over its drug Tricor, FreeStyle diabetes products and St. Jude defibrillators. The company was also named co-defendant alongside AbbVie in lawsuits over the popular pharmaceutical drugs Humira and Depakote.

Abbott – Future Plans

Abbott Labs is headed is to look at the products that it’s most excited about today: FreeStyle Libre, MitraClip, and the Alinity systems.

MitraClip enables the minimally invasive treatment of mitral regurgitation, which is caused by a leaky heart valve. It’s already the leading device used to treat that condition, but the FDA’s recent approval for its use in a new indication (patients with mitral regurgitation resulting from underlying heart failure) has expanded its market opportunity.

The Alinity systems include a lineup of laboratory diagnostic instruments. CEO Miles White said in Abbott’s Q1 conference call that the company is “winning almost two-thirds of the accounts where we’re head-to-head with an entrenched competitor.”