Abbott Laboratories is an American health care company with
headquarters in Lake Bluff, Illinois, United States. The company was
founded by Chicago physician Wallace Calvin Abbott in 1888 to
formulate known drugs; it eventually grew to also sell research-based
drugs, medical devices, diagnostics, and nutritional products. It
split off the research-based pharmaceuticals into
Abbvie in 2013. In
2015, revenues were $20.4 billion.
Abbott has a broad range of branded generic pharmaceuticals, medical
devices, diagnostics, and nutrition products. The company's in-vitro
diagnostics business performs immunoassays and blood screening. Its
medical tests and diagnostic instrument systems are used worldwide by
hospitals, laboratories, blood banks, and physician offices to
diagnose and monitor diseases such as HIV, hepatitis, cancer, heart
failure and metabolic disorders, as well as assess other indicators of
health. In 1985, the company developed the first HIV blood-screening
Abbott Point-of-Care manufactures diagnostic products for blood
analysis to provide health care professionals diagnostics information
at the point of patient care. Abbott also provides point-of-care
cardiac assays to the emergency room.
1.1 Acquisition history
3 Management structure
4 Management practices
8 See also
9 Notes and references
10 External links
Dr. Wallace C. Abbott
In 1888 at the age of 30, Wallace Abbott (1857–1921), an 1885
graduate of the University of Michigan, founded the Abbott Alkaloidal
Company. At the time, he was a practicing physician and owned a drug
store. His innovation was the use of the active part of a medicinal
plant, generally an alkaloid (e.g., morphine, quinine, strychnine and
codeine), which he formed into tiny "dosimetric granules". This
approach was successful since it produced more consistent and
effective dosages for patients.
Abbott's first international affiliate was in London in 1907, and the
company later added an affiliate in Montreal, Canada (Fact 21). Abbott
started operations in
Pakistan as a marketing affiliate in 1948; the
company has steadily expanded to comprise a work force of over 1500
employees. Currently two manufacturing facilities located at Landhi
and Korangi in
Karachi continue to produce pharmaceutical products.
Expansion continued in 1962 when Abbott entered into a joint venture
with Dainippon Pharmaceutical Co., Ltd., of Osaka, Japan, to
manufacture radio-pharmaceuticals. In 1964, it merged with Ross
Laboratories, making Ross a wholly owned subsidiary of Abbott, and
Richard Ross gained a seat on Abbott's board of directors until his
retirement in 1983. In 1965, Abbott's expansion in Europe continued
with offices in Italy and France.
Abbott Laboratories has been present
India for over 100 years through its subsidiary Abbott India
Limited and it is currently India's largest healthcare products
According to Harvard professor
Lester Grinspoon and Peter Hedblom, "In
Abbott Laboratories sold the equivalent of two million doses of
methamphetamine in powder form to a Long Island criminal dealer".
In 2001, the company acquired Knoll, the pharmaceutical division of
BASF. In 2002, it divested the
Selsun Blue brand to Chattem. Later in
2002, the company sold
Clear Eyes and
Murine to Prestige
Brands. In 2004, it spun off its hospital products
division into a new 14,000 employee company named Hospira, and
acquired TheraSense, a diabetes-care company, which it merged with its
MediSense division to become Abbott
Diabetes Care. In 2006, Abbott
Boston Scientific in its purchase of
Guidant Corporation. As
part of the agreement, Abbott purchased the vascular device division
of Guidant. In 2007, Ross was renamed Abbott Nutrition.
In 2007, Abbott acquired Kos Pharmaceuticals for $3.7 billion in
cash. At the time of acquisition, Kos marketed
Niaspan, which raises levels of “good,” or HDL, cholesterol and
Niaspan combination drug for patients with multiple lipid
In January 2007, the company agreed to sell its in vitro diagnostics
and Point-of-Care diagnostics divisions to
General Electric for more
than $8 billion. These units were slated to be integrated into the GE
Healthcare business unit. The transaction was approved by the boards
of directors of Abbott and GE and was targeted to close in the first
half of 2007. However, on July 11, 2007, Abbott announced that it had
terminated its agreement with GE because the parties could not agree
on the terms of the deal.
On September 8, 2007, the company completed the sale of the UK
manufacturing plant at
Queenborough to Aesica Pharmaceuticals, a
private equity-owned UK manufacturer. No announcements have been made
restricting the movement of staff to Abbott unlike other sell outs. On
February 26, 2009, the company completed its acquisition of Advanced
Medical Optics based in Santa Ana, California. In 2009, Abbott opened
a satellite research and development facility at Research Park,
Illinois at Urbana-Champaign.
In February 2010, Abbott completed its $6.2 billion (EUR 4.5 billion)
acquisition of the pharmaceuticals unit of Solvay S.A.. This
provided Abbott with a large and complementary portfolio of
pharmaceutical products and also expanding its presence in key
On March 22, 2010, the company completed its acquisition of a
Hollywood, Florida-based LIMS company STARLIMS. Under the terms of the
Abbott Laboratories acquired the company for $14 per share in an
all-cash transaction valued at $123 million. On May 21, 2010,
Abbott Laboratories said it would buy Piramal Healthcare Ltd.'s
Healthcare Solutions unit for $2.2 billion to become the biggest
drug company in India.
In October 2011, the company announced that it planned to separate
into two companies, one research-based pharmaceuticals and the other
in medical devices, generic drugs sold internationally, and consumer
products, with device company retaining the Abbott name. The
company announced that the other company would be named
March 2012. In preparation for the reorganization, Abbott made
severe budget cuts and took a $478 million charge in Q3-2012 to pay
for the restructuring. The separation was effective as of January
AbbVie was officially listed in the New York Stock Exchange
on January 2, 2013.
On May 16, 2014, it was announced that Abbott would acquire the
holding company Kalo Pharma Internacional S.L. for $2.9 billion in
order to secure the 73% it held of Chilean pharmaceutical company, CFR
Pharmaceuticals, which the company said would more than double its
branded generic drug portfolio.
In June 2014, the company entered into a definitive agreement to take
over Russian pharmaceutical manufacturer Veropharm (Voronezh) in a
deal worth $631 million. Abbott, which already employs 1,400
people in Russia, said it planned to set up a manufacturing presence
in the country when the deal closed.
In February 2016, the company announced it would acquire
$5.8 billion. In late April, of the same year, Abbott
announced it would acquire
St. Jude Medical
St. Jude Medical for $25 billion (each
share receiving $46.75 in cash & 0.8708 shares of Abbott common
stock, equating to an approximate value of $85).
In October 3, 2017, the company closed the
Alere acquisition making
the surviving entity the market leader player in the $7 billion
point-of-care diagnostic space within the broader $50 billion in-vitro
diagnostics market with this takeover. With the acquisition of
Alere,the company also obtain the subsidiary Arriva Medical, which is
the largest mail-order diabetic supplier. Arriva Medical announced
business closure after Abbott acquisition effective December 31,
The following is an illustration of the company's major mergers and
acquisitions and historical predecessors (this is not a comprehensive
Illustration of the company's mergers, acquisitions, spin-offs and
Abbott Alkaloidal Company
(Sold to Prestige Brands2002)
Prestige Brands 2002)
(Vascular device div, Acq 2006)
(Spun off 2004)
Advanced Medical Optics
Lab Data Management Ltd
(Spun off 2013)
Kalo Pharma Internacional S.L.
Alere (Acq 2016)
St. Jude Medical (Acq 2016)
St. Jude Medical
Heart Valve Company
(Acq remaining 50% from joint venture with Hancock Jaffe Laboratories'
(Angio-Seal div, Acq 1999)
Advanced Neuromodulation Systems
Apica Cardiovascular Limited
Levitronix Medical div.
(Heart pump technology div, Acq 2014)
Abbott's core businesses focus on pharmaceuticals, medical devices and
nutritional products, which have been supplemented through
acquisitions. As of 2018[update], the firm's divisions are:
Diabetes Care (ADC): Glucose monitoring devices
Abbott Diagnostics Division (ADD): Hematology, immunodiagnostic,
oncology and clinical chemistry
Abbott Molecular Diagnostics (AMD)
Abbott Nutrition International (ANI): baby nutrition (e.g.,
Similac, Isomil, and Gain), adult health products (e.g.,
ZonePerfect) and special dietary needs (e.g.,
Glucerna and Juven)
Abbott Point of Care (APOC): Includes the i-Stat analyzer for
Abbott Vascular Division (AVD)
Established Pharmaceuticals Division (EPD): Branded generic drugs
sold exclusively in developing markets.
Miles D. White is Chairman and (CEO). He joined Abbott in 1984,
serving in management positions including senior vice president of
diagnostic operations and executive vice president. He was elected to
the Board of Directors in April 1998, to Chief Executive Officer in
1998, and to Chairman of the Board in April 1999.
Along with being ranked 134th on the 2015
Fortune 500 list of largest
U.S.-based corporation, Abbott was named one of the
2014 Top 20 Employers by the journal Science and listed as a Top 10
company for women by Working Mother magazine and the National
Association for Female Executives. The company has
also been named one of the World's Most Admired Companies by Fortune
magazine every year since 1984 – ranking No. 1 in medical equipment
in 2014 and 2015. Abbott has also been recognized for
11 consecutive years for sustainability leadership through its
inclusion on the Dow Jones Sustainability Index (DJSI).[citation
needed] The Top Employers Institute designated Abbott as a great place
to work in Europe and China in 2014. DiversityInc
magazine has recognized Abbott repeatedly as a Top 50 company for
diversity; and, additionally, the Dave Thomas Foundation ranked the
company as a best company thanks to its generous adoption
As of 2017
Abbott Laboratories shares are mainly held by institutional
investors (The Vanguard Group, BlackRock,
State Street Corporation
State Street Corporation and
In March 2003, British company Cambridge Antibody Technology (CAT)
stated its wish to "initiate discussions regarding the applicability
of the royalty offset provisions for Humira" (Adalimumab) with Abbott
Laboratories in the High Court of London. In December 2004, the
judgment ruled for CAT.
Abbott was required to pay CAT US$255 million, some of which was to be
passed to its partners in development. Of this sum, the Medical
Research Council (United Kingdom) (MRC) received US$191M, and in
addition, Abbott was asked to pay the MRC a further US$7.5M over five
years from 2006, providing that Humira remains on the market.[citation
On October 2, 2012, the company was charged with a $500 million fine
and $198.5 million forfeiture for illegal marketing, and in a plea
agreement was assessed the second-largest criminal fine in U.S.
history for a drug company. U.S. District Court Judge Samuel G Wilson
of the Western District of Virginia imposed it given Abbott's guilty
plea related to its unlawful promotion of
Depakote for uses not
approved by the FDA. Abbott had advertised
Depakote to be used to
control behavioral disturbances for patients with dementia and
schizophrenia, without FDA approval. In addition, Abbott marketed
Depakote for other psychiatric conditions in adults, including
depression, anxiety, obsessive-compulsive disorder, post-traumatic
stress disorder, alcohol and drug withdrawal and psychiatric
conditions in children, including conduct disorders, attention deficit
disorder and autism. The court also ordered Abbott to a five-year term
of probation and court supervision. Shareholders then brought
derivative suits against the company directors for breach of fiduciary
duty The parties reached a negotiated settlement in which Abbott
agreed to beef up its internal controls and paid the plaintiffs'
Since 2015 Abbott is the title sponsor of the World Marathon
List of biotechnology companies
List of pharmaceutical companies
Notes and references
^ "US SEC: Form 10-K Abbott Laboratories". U.S. Securities and
Exchange Commission. Retrieved February 16, 2018.
Abbott Laboratories Company History". Funding Universe. Retrieved
April 17, 2013.
^ "About Us".
^ "It's essential to be part of the extraordinary future
building: Miles D. White". intoday.in.
^ Grinspoon, Lester; Hedblom, Peter (1975). The Speed Culture:
Amphetamine Use and Abuse in America. Cambridge, Massachusetts:
Harvard University Press. p. 23. ISBN 9780674831926.
^ Layne, Rachel; Lopatto, Elizabeth (July 11, 2007). "GE, Abbott End
$8.13 Billion Diagnostic Sale Deal (Update2)". Bloomberg News.
^ Abbott Press Release (February 16, 2010). "Abbott Completes
Acquisition of Solvay Pharmaceuticals". Archived from the original on
12 March 2012. Retrieved March 22, 2012.
Abbott Laboratories Feb 2010 Current Report, Form 8-K, Filing Date
Feb 16, 2010" (PDF). secdatabase.com. Retrieved Dec 27, 2012.
^ Abbott Press Release (March 22, 2010). "Abbott Completes Acquisition
STARLIMS Technologies". Archived from the original on 16 October
2012. Retrieved March 22, 2012.
^ Abbott 2011 annual report, p43
^ Abbott Press Release (May 21, 2010). "Abbott to Become No. 1
Pharmaceutical Company in
India with Acquisition of Piramal's
Healthcare Solutions Business". Archived from the original on 24 March
2012. Retrieved March 22, 2012.
^ "Abbott Labs to Split Into 2 Companies". New York Times Dealbook.
October 19, 2011.
^ Rockoff, Jonathan D. (20 October 2011). "Abbott to Split Into Two
Companies". Wall Street Journal.
^ Schorsch, Kristen (March 21, 2012). "Abbott picks name for spinoff
pharmaceutical company". Crain's Chicago Business.
^ a b Frost, Peter (October 17, 2012), "Abbott lays off 550", Chicago
Tribune, retrieved November 16, 2012
^ Armstrong, Drew (2 January 2013). "
AbbVie Rises on First Day of
Trading After Abbott Spinoff". Bloomberg News.
^ a b c d e f g h i j SA Transcripts (20 July 2016). "Abbott
Miles D. White on Q2 2016 Results - Earnings Call
Transcript". Seeking Alpha. Retrieved 2016-07-22.
^ Bloomberg Release (May 16, 2014). "Abbott to acquire CFR
Pharmaceuticals". Retrieved May 16, 2014.
^ Staff (15 June 2014). "Abbott Grows Branded Generics with $3.3B CFR
Acquisition". News Industry Watch. Genetic Engineering &
Biotechnology News (Paper). 34 (12). p. 8.
Abbott Laboratories (ABT) Key Developments — Reuters.com".
^ "Abbott to Acquire
Alere for $5.8B". GEN.
^ Michelle Cortez (1 February 2016). "Abbott's $5.8 Billion Deal for
Alere Is Device Sector's Latest". Bloomberg.com.
^ Michelle Cortez (28 April 2016). "Abbott to Buy
St. Jude Medical
St. Jude Medical in
Deal Valued at About $25 Billion". Bloomberg.com.
^ "Abbott-St. Jude Combination: Why It Makes Sense". Bloomberg.com. 28
^ "Abbott to Gain from Alere's Takeover Due for Oct 3 Closure".
^ "Embattled Arriva Medical closes". GEN.
^ "Abbott to Enter Laser Cataract Surgery Market through Acquisition
of OptiMedica". mediaroom.com.
^ "Abbott to Acquire Veropharm". mediaroom.com.
^ "Abbott Completes Acquisition of Topera, Inc". mediaroom.com.
^ Abbott Laboratories
^ "Cambridge Antibody Wins Lawsuit Against Abbott Labs (Update5) -
^ Abbott Labs to Pay $1.5 Billion to Resolve Criminal & Civil
Investigations of Off-label Promotion of Depakote, Press Release,
United States Department of Justice Office of Public Affairs, May 7,
2012. Accessed Aug. 17 2014.
^ U.S. ex rel. McCoyd v. Abbott Laboratories, 1:07-cv-00081 (W.D.
Va.); U.S. ex rel. Mulcahy v. Abbott Laboratories, 1:08-cv-0054 (W.D.
Va.); U.S. ex rel. Dietzler v. Abbott Laboratories, 1:09-cv-00051
(W.D. Va.); U.S. ex rel. Spetter v. Abbott Laboratories, 1:10-cv-00006
^ "Abbott, Shareholders Agree To Settle
Depakote Marketing Suit -
^ "ABBOTT CELEBRATES THE POWER OF HEALTH AND ACHIEVEMENT AS FIRST-EVER
TITLE SPONSOR OF WORLD MARATHON MAJORS". World Marathon Majors.
Retrieved 10 November 2015.
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