Abbot’s global sales rise 17.4%

ABBOTT Laboratories reported stronger than expected quarterly sales, helped by growth of its Humira arthritis drug and sales of low-cost generics in emerging markets.

This news follows Johnson & Johnson reporting strong first-quarter results that slightly exceeded expectations.

Abbott earned $864 million (€595m), or 55 cents per share, in the first quarter, compared with $1 billion, or 64 cents per share, a year earlier.

Global revenue rose 17.4% to $9.04bn, in part because of Abbott’s recent purchase of the generics business of India’s Piramal Healthcare. Wall Street was expecting $8.83bn.

Revenue got a 1.3% boost from the weaker dollar, which raises the value of sales in overseas markets.

Wells Fargo analyst Larry Biegelsen said the weaker dollar was largely responsible for the surprisingly strong sales — a factor that has also bolstered first-quarter results for Eli Lilly and Johnson & Johnson.

Sales of Humira, the company’s biggest product, rose 18% to $1.65bn, a bit higher than most analysts expected.

Combined sales of TriCor and a similar newer treatment for triglycerides called Trilipix rose 28% to $372m. Sales of Niaspan, used to raise “good” HDL cholesterol, rose almost 11% to $226m.

“The TriCor franchise and Humira in particular outperformed relative to expectations,” Mr Biegelsen said.

Abbott shares have been held down in the past year by concerns that it may depend too much on Humira, which generates about half of its operating profit.

For future growth, Abbott is counting heavily on sales in emerging markets, including India, as well as a new crop of drugs and medical devices now in testing.

Abbott, which earlier this year announced plans to cut 1,900 jobs, or 2% of its global workforce, has significant operations in Ireland.