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Abbott Laboratories: Pipeline - Products - Performance - Potential
Espicom Business Intelligence Ltd, July 2008, Pages: 126


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Abbott researches, develops, manufactures and sells a broad and diversified line of healthcare products and services, comprising mainly prescription pharmaceuticals, nutritionals, hospital pharmaceuticals and diagnostics, in more than 130 countries. Previously, a major component of Abbott’s operations was its 30 year old 50:50 joint venture with Takeda, TAP Pharmceuticals, which marketed prescription pharmaceuticals in Japan. In May 2008 the companies ended this joint venture, with Abbott retaining the Lupron franchise and in line to receive payments from Takeda based on current and future TAP-derived products. Abbott’s principal areas of interest are immunology, inflammation, cardiovascular disorders and neuroscience.

In order to strengthen its new product pipeline and reverse the erosion of the company’s growth that has occurred in previous years and most significantly in 2006, Abbott’s senior management team continues to focus on three primary goals: building core franchises in important areas of medicine, leveraging the breadth and diversity of its healthcare businesses to provide solutions for patient and healthcare professionals, and strengthening its scientific capability. Abbott is committed to adding new product lines that are complementary to its existing businesses and will establish it in markets that offer new growth. Its acquisition of the pharmaceutical business of BASF, Perclose, the urology business of Kanoldt and various anaesthesia products from GlaxoSmithKline exemplifies this strategy.

To further strengthen the business and sustain success in the Pharmaceuticals segment, Abbott continues to raise investment in pharmaceutical R&D. The pharmaceutical business now has a competitive pipeline and a disciplined decision-making process that is focused on specific therapeutic areas. In addition, the Pharmaceutical Products Group is becoming a globally integrated organisation. Abbott has integrated functions that were previously separate, such as pharmaceutical research and development, and is continuing to integrate other functions such as manufacturing operations, into a single global structure with common goals and priorities.

Progress in accelerating growth in the Medical Products Group was marked by the introduction of a new reporting structure in 2004, and the acquisition of businesses in higher-growth markets. The new structure provides for independent operation of each of the group's businesses and is designed to drive higher growth by improving focus, productivity and market responsiveness.



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