Introduction
This analysis examines the historical and forecast performance for Abbott in the ethical pharmaceutical sector. The profile encompasses global company strategy, portfolio and pipeline analysis and assessment of financial performance, with 1-6 year sales forecasts for key drugs. An interactive forecasting and analysis tool provides continually updated quantitative and qualitative information.

Reasons to Purchase
Benchmark Abbott's performance against key rivals in the ethical pharmaceutical sector
See how the return of the rights to Boehringer Ingelheim's products, Mobic Micardis and Flomax, will affect the company's sales outlook
Evaluate the consequences of Abbott's recent acquisition of the cardiovascular specialist Kos Pharmaceuticals

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 4
Key findings 4
Historical and forecast ethical sales performance 5
Therapeutic strategy 6
Launch and expiry outlook 9
Externalization, geographic and molecule type strategies 11
Externalization strategy 12
Geographic strategy 13
Molecule type strategy 13
SWOT analysis 14
Strengths 14
Weaknesses 16
Opportunities 17
Threats 18
CHAPTER 2 CORPORATE HISTORY 30
Key findings 30
Background 31
Key corporate developments 31
M&A history 34
Knoll Pharmaceuticals 35
Kos Pharmaceuticals 35
M&A strategy 36
Current corporate structure 37
Pharmaceutical products 38
International 38
Diagnostic products 38
Ross Products 38
Current management team 39
CHAPTER 3 HISTORICAL PERFORMANCE 40
Key findings 40
Introduction 41
Revenue and growth rate analysis, 2002–05 41
Revenue and growth rate vs. peer set 42
Product analysis, 2002–05 44
Growth drivers 44
Growth resistors 47
Operating revenue and cost analysis, 2002–05 48
Operating revenue/cost analysis 51
CHAPTER 4 FORECAST PERFORMANCE 54
Key findings 54
Introduction 55
Revenue and growth rate, 2005–11 55
Product analysis, 2005–11 57
Growth drivers 63
Growth resistors 65
Therapy area analysis, 2005–11 70
Growth drivers 74
Growth resistors 74
Other 76
Therapy area focus 77
Launches and expiries analysis, 2005–11 81
Launch portfolio 82
Core portfolio 85
Expiry portfolio 88
Launch/core/expiry configuration 91
Externalization analysis, 2005–11 94
Geographic analysis, 2005–11 100
Molecule type analysis, 2005–11 103
CHAPTER 5 KEY PRODUCTS AND COMPETITORS 108
Key findings 108
Overview 109
AIID 110
Humira 110
ABT-874 117
CNS 121
Depakote 121
Sevorane 126
Dilaudid 130
Vicodin CR 134
Infectious disease 137
Kaletra 137
Biaxin 143
Numax 148
Omnicef 154
Gastrointestinal 159
Prevacid 159
Diabetes and endocrinology 165
Zemplar 165
Cardiovascular 170
Cardiovascular 170
TriCor 170
Oncology 176
Oncology 176
Lupron 176
R&D pipeline 181
R&D pipeline 181
CHAPTER 6 APPENDIX 183
IMS vs. company-reported data reconciliation 183
References 185
Abbreviations 186

TABLE OF TABLES
Table 1: Abbott Corporate Executive Committee 39
Table 2: Peer set overview 42
Table 3: Operating revenue/cost analysis ($m), 2002–05 48
Table 4: Operating cost ratio analysis (% of total revenues), 2002–05 51
Table 5: Product portfolio overview, sales ($m), 2005–11 57
Table 6: Therapy area overview, sales ($m), 2005–11 70
Table 7: Launch portfolio overview, sales ($m), 2005–11 82
Table 8: Core portfolio overview, sales ($m), 2005–11 85
Table 9: Expiry portfolio overview, sales ($m), 2005–11 88
Table 10: Externally developed portfolio, 2005–11 ($m) 94
Table 11: Molecule type overview, sales ($m), 2005–11 103
Table 12: Key products overview 109
Table 13: Humira: overview 110
Table 14: Humira: sales forecast ($m), 2005–11 111
Table 15: Humira: newsflow 111
Table 16: ABT-874: overview 117
Table 17: ABT-874: sales forecast ($m), 2005–11 118
Table 18: ABT-874: newsflow 118
Table 19: Depakote: overview 121
Table 20: Depakote: sales forecast ($m), 2005–11 122
Table 21: Depakote: newsflow 122
Table 22: Sevorane: overview 126
Table 23: Sevorane: sales forecast ($m), 2005–11 127
Table 24: Sevorane: newsflow 127
Table 25: Dilaudid: overview 130
Table 26: Dilaudid: sales forecast ($m), 2005–11 131
Table 27: Dilaudid: newsflow 131
Table 28: Vicodin CR: overview 134
Table 29: Vicodin CR: sales forecast ($m), 2005–11 135
Table 30: Vicodin CR: newsflow 135
Table 31: Kaletra: overview 137
Table 32: Kaletra: sales forecast ($m), 2005–11 138
Table 33: Kaletra: newsflow 138
Table 34: Biaxin: overview 143
Table 35: Biaxin: sales forecast ($m), 2005–11 144
Table 36: Biaxin: newsflow 144
Table 37: Numax: overview 148
Table 38: Numax: sales forecast ($m), 2005–11 149
Table 39: Numax: newsflow 150
Table 40: Omnicef: overview 154
Table 41: Omnicef: sales forecast ($m), 2005–11 155
Table 42: Omnicef: newsflow 155
Table 43: Prevacid: overview 159
Table 44: Prevacid: sales forecast ($m), 2005–11 160
Table 45: Prevacid: newsflow 161
Table 46: Zemplar: overview 165
Table 47: Zemplar: sales forecast ($m), 2005–11 166
Table 48: Zemplar: newsflow 167
Table 49: TriCor: overview 170
Table 50: TriCor: sales forecast ($m), 2005–11 171
Table 51: TriCor: newsflow 172
Table 52: Lupron: overview 176
Table 53: Lupron: sales forecast ($m), 2005–11 177
Table 54: Lupron: newsflow 178
Table 55: Abbott’s R&D pipeline (Phase I–registration) 181
Table 56: Abbott’s indication broadening pipeline (Phase I–registration) 182


TABLE OF FIGURES
Figure 1: Historical and forecast ethical sales performance (% CAGR), Abbott and Big Pharma peer set 5
Figure 2: Therapeutic focus vs. Big Pharma peer set (%), 2005 7
Figure 3: Launch, core and expiry, absolute sales growth, 2005–11 (sales as % of 2005 sales), Abbott 9
Figure 4: Launch, core and expiry, absolute sales growth, 2005–11 (sales as % of 2005 sales), peer set 10
Figure 5: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2005 11
Figure 6: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2011 12
Figure 7: SWOT analysis of Abbott 14
Figure 8: M&A/divestment history 34
Figure 9: Current corporate structure 37
Figure 10: Revenue & growth rate (ethical sales) ($m), 2002–05 41
Figure 11: Ethical revenue ($m) and growth rate (%) vs. peer set, 2002–05 43
Figure 12: Growth drivers/resistor products of historical revenue performance ($m), 2002–05 44
Figure 13: Operating revenue/cost analysis ($m), 2002–05 50
Figure 14: Operating cost ratio analysis (% of total revenues), 2002–05 52
Figure 15: Operating cost ratio vs. peer set, 2002–05 53
Figure 16: Ethical revenue ($m) and growth rate (%), 2005–11 55
Figure 17: Top five products by sales ($m), 2005 59
Figure 18: Top five products by sales ($m), 2011 61
Figure 19: Growth drivers and resistors by product, 2005–11 63
Figure 20: Key strategic products, sales ($m), 2005–11 69
Figure 21: Ethical sales by therapy area ($m), 2005–11 71
Figure 22: Growth drivers and resistors by therapy area (%), 2005–11 73
Figure 23: Ethical sales by therapy area (%), 2005–11 77
Figure 24: Therapy area focus compared with peer set (% total ethical sales), 2005 78
Figure 25: Therapy area focus compared with peer set (% total ethical sales), 2011 80
Figure 26: Launch schedule, sales ($m), 2005–11 84
Figure 27: Core products sales growth ($m), 2005–11 87
Figure 28: Expiry schedule, sales ($m), 2005–11 90
Figure 29: Launch, core and expiry, sales ($m), 2005–11 91
Figure 30: Launch, core and expiry, absolute sales growth, 2005–11 (sales as % of 2005 sales), Abbott 92
Figure 31: Launch, core and expiry, absolute sales growth, 2005–11 (sales as % of 2005 sales), peer set 93
Figure 32: Externalization dependency, sales ($m), 2005–11 96
Figure 33: Growth drivers and resistors, externally vs. internally discovered products, sales ($m), 2005–11 97
Figure 34: Externalization dependency vs. peer set, % total sales, 2005 98
Figure 35: Externalization dependency vs. peer set, % total sales, 2011 99
Figure 36: Geographical sales breakdown ($m), 2005–11 100
Figure 37: Growth drivers and resistors by geography, sales ($m), 2005–11 101
Figure 38: US dependency vs. peer set, % total sales, 2005 102
Figure 39: US dependency vs. peer set, % total sales, 2011 103
Figure 40: Growth drivers and resistors by molecule type, sales ($m), 2005–11 104
Figure 41: Molecule type sales breakdown ($m), 2005–11 105
Figure 42: Biologics dependency vs. peer set, % total sales, 2005 106
Figure 43: Biologics dependency vs. peer set, % total sales, 2011 107
Figure 44: IMS vs. company-reported ethical sales discrepancy ($m), 2005 184
Figure 45: IMS vs. company-reported ethical sales forecast growth rates (%), 2005–11 185