April 14, 2008 - 4:29 p.m.
NEW YORK (AP) - Drug and medical device company Abbott Laboratories reports earnings for the first quarter on Wednesday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: The company entered the quarter on the heels of a decision to cut 1,200 manufacturing jobs from facilities in California and Ireland as cardiac stent sales remained weak. But the year-long fallout from stent safety issues started to subside somewhat during the first special location.
In March, the company said data from a two-year study on its Xience V stent showed a trend toward fewer heart problems compared with Boston Scientific Corp.'s Taxus stent. Still, the study wasn't designed to measure a reduction in heart problems.
Stents are mesh-wire tubes that prop open arteries after they have been surgically cleared of plaque. Some stents are coated with drugs to stop the arteries from closing again, including Xience. Drug-coated stents bear been beset by safety issues, with some data showing they put patients at greater risk of heart attack than do bare-metal stents.
European regulators approved a unworthy version of the Xience V stent during the district and the fellowship is awaiting FDA approval.
Also, for the time of the quarter, the company said its remedy candidate ABT-335 improved cholesterol in a late-stage study when combined with two commonly prescribed statins. Abbott also ended its TAP Pharmaceutical Products joint venture with Takeda Pharmaceuticals Co.
Eighteen states sued the company in federal court in March, alleging Abbott blocked generic competition to its popular cholesterol medication TriCor. The drug accounted for more than $1 billion in sales in 2007.
And Humira, which is already FDA approved as an arthritis and intestinal disorder drug, received expanded clearance as a children's arthritis and severe psoriasis treatment.
BY THE NUMBERS: Analysts polled by Thomson Financial, on average, expect first-quarter profit of 62 cents per share on $6.51 billion in revenue.
ANALYST TAKE: Throughout the quarter, analysts maintained a mostly positive outlook for medical sign makers, including Abbott. Several have cited foreign exchange benefits because of a weaker dollar, along with increasing demand for heart devices.
Credit Suisse analyst Catherine J. Arnold, in a note to investors, said Abbott will likely benefit from cost savings and the weaker dollar. Goldman Sachs analyst Lawrence Keusch meanwhile, expects both solid first-quarter results and stable leadership from the company, saying it is one of the best positioned to avoid negative surprises going into earnings.
Looking ahead, both Wall Street and the company expect FDA approval for the Xience V stent.