Humira sales lift Abbott 4Q profit 28 percent

Sales of Abbott Laboratories' blockbuster drug Humira combined with double-digit growth of medical devices and nutritionals to push profit up 28 percent in the fourth quarter, even as its competitor Johnson & Johnson showed signs of vulnerability.

Abbott's results demonstrated the advantage of its diversified business, which ranges from high-end biotech drugs and medical devices to laboratory tests and baby formulas.

The North Chicago-based drug and medical-products maker said Wednesday it earned $1.54 billion, or 98 cents per share, in the last period of 2008, up from $1.2 billion, or 77 cents per share, a year earlier. Excluding one-time items, Abbott said it earned $1.06 per share -- in line with estimates by Wall Street analysts.

Revenue grew 10 percent to $7.95 billion for the period.

The company's performance pleased analysts, many of whom expressed disappointment a day earlier when rival Johnson & Johnson gave a conservative forecast for 2009. Both companies market a wide range of drugs, devices and diagnostics.

Where J&J predicted weaker results based on the recession, unfavorable currency rates and generic drug competition, Abbott said a range of recent product approvals will drive revenue in 2009.

"The strategic actions we've taken and our ongoing business momentum position Abbott to deliver continued double-digit growth in 2009," Chief Executive Miles White said.

For 2009, the company backed its profit forecast of $3.65 to $3.70 per share. Analysts expect $3.66 per share, on average.

In 2008, Abbott earned $3.32 per share on $29.53 billion in revenue.

Going into the new year, Abbott expects to expand its cholesterol business with the recently approved Trilipix, which raises "good" HDL cholesterol while reducing triglycerides and "bad" LDL cholesterol. Abbott is working with British drugmaker AstraZeneca PLC to develop a drug that combines TriLipix with AstraZeneca's blockbuster cholesterol drug Crestor, a statin.

The company also plans to launch a new version of its drug-coated Xience V stent in Europe before the end of the year. The new stent is designed to provide easier implantation for physicians.

Sales of Humira, Abbott's best-selling product, rose 42 percent to $1.35 billion in the fourth quarter of 2008 and $4.5 billion for the full-year.

The injectable drug has grown into a sales juggernaut as Abbott has received approval to market it for half a dozen indications, including rheumatoid arthritis, psoriasis, Crohn's disease and other immune-system disorders.

For the quarter, pharmaceutical revenue grew 10 percent to $4.61 billion. Abbott's nutritional sales rose 11 percent to $1.32 billion as pediatric products improved.

Abbott continued to demonstrate the strength of its diversified business model, reporting increased sales across its stent and nutritional segments. Unlike many of its peers in the pharmaceutical business, Abbott has not become overly reliant on a few blockbuster drugs, which are vulnerable to patent expirations.

"When we look at Abbott we see them in a unique position of limited patent exposures, a diverse business model and recently approved products that will drive sales in coming years," Edward Jones analyst Linda Bannister said in an interview. "That's going to let the company navigate this very challenging business environment."

Revenue from the company's heart stents more than doubled to $410 million as sales of the drug-coated Xience V stent continued to grow. Abbott launched Xience V in July 2008, and said there is "steady improvement" in the U.S. market for drug-coated stents.

Stents are tiny metal-mesh scaffolds that prop open heart arteries after they have been cleared of fatty plaque. The drug coatings prevent the arteries from reclogging.

In total, vascular product revenue jumped 59 percent to $663 million. Diagnostic product sales rose 4 percent to $896 million.

The company also sold its spinal products business to Zimmer Holdings Inc. for $146.5 million during the quarter.

Abbott shares rose $2.25, or 4.5 percent, to $51.46 in midday trading.

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