BioCentury
ARTICLE | Company News

Abbott forecasts financials for pharma split

October 18, 2012 12:57 AM UTC

Abbott Laboratories (NYSE:ABT) expects its AbbVie pharmaceutical spinout to record 2013 sales of more than $18 billion. R&D spending is expected to be about $2.5 billion, or 14% of sales. AbbVie is slated to start operations on Jan. 1 with a cash balance of about $7 billion. Abbott announced plans for the split last year (see BioCentury, Oct. 24, 2011).

Abbott made the AbbVie projections during its 3Q12 results call. Third quarter revenues were $9.8 billion, flat compared to last year and below the Street's estimate of $9.9 billion. Non-GAAP EPS was $1.30, beating by $0.02 the Street's estimate and up from $1.18 in 3Q11. Third quarter SG&A spending fell 31% to $2.9 billion. On Wednesday, Abbott fell $3.09 to $69.04. ...