Abbott Q1 earnings beats forecasts

Abbott Laboratories has reported earnings that beat analysts’ estimates and raised its 2012 forecast as sales jumped more than expected for its top product.

First-quarter revenue climbed 4.6% to $9.46bn (€7.2bn) in the quarter, the US company said. Humira, an auto-immune drug, gained 17% to $1.93bn, beating the $1.85bn average of four analyst estimates compiled by Bloomberg.

Chief executive Miles White said in October that he would split Abbott in two, with one company focused on new drugs and the other on medical devices, generic medicines and nutritional drinks. Abbot has said the breakup would be completed by the end of this year.

“We remain focused on the process of separating Abbott into two leading health care companies, which remains on track to be completed by the end of the year,” he said yesterday.

Net income rose to $1.24bn, or 78 cents a share, from $864m, or 55 cents, a year earlier, when the company took charges for acquisitions and an accounting change. The company increased its 2012 earnings forecast to $5 and $5.10 a share from a January projection of $4.95 to $5.05 a share.

The pharmaceutical side of Abbott faces emerging competition for Humira, the drug that is the company’s top seller.

It also has experimental therapies for the treatment of hepatitis C, and is in a race with rival pharmaceutical firms, including Bristol-Myers Squibb and Gilead Sciences, to develop new methods of treatment for the virus.

Abbott employs almost 4,000 people in Ireland, and has been operating here since 1946.

Bloomberg