Abbott Laboratories (NYSE:ABT) has given updates regarding its $5.80 billion and $25 billion deals with Alere Inc (NYSE:ALR) and St. Jude Medical, Inc. (NYSE:STJ), respectively, during a conference call that followed its second quarter earnings report release.
The pharmaceutical giant’s acquisition of Alere was hampered due to the subpoena issued by the US Department of Justice (DOJ) questioning the diagnostic company’s sales practices. In line with this, Miles White, Abbott Laboratories CEO and Chairman, ensured that Alere is doing its best to overcome the recent challenges.
St. Jude Medical Deal
The company’s acquisition of St. Jude Medical was delayed earlier this month after the Federal Trade Commission (FTC) requested further details regarding the proposed deal. Once the companies have complied with the additional requirements, they can fulfill the deal 30 days thereafter.
Nonetheless, White guaranteed that the company will seal the deal with St. Jude Medical before 2016 ends.
2Q Financial Highlights
Adjusted earnings per share (EPS) for the period was seen at $0.55, outperforming analysts’ expectations of $0.53.
For the second quarter, Abbott Laboratories saw a 3.20% increase in net sales, coming in at $5.33 billion. This beat analysts’ projections of $5.24 billion. White noted that the results are pleasingly upbeat. The company noted that the surge in sales are highly driven by the strong sales of medical devices and generic medicines.
The $5.33 billion net sales can be broken down into the company’s four business segments: Diagnostics, Established Pharmaceuticals, Medical Devices, and Nutrition. Worldwide, Diagnostics brought in a total of $1.23 billion; Established Pharmaceuticals had a reported net sales of $980 million; Medical Devices had $1.37 billion; and Nutrition had a whopping $1.74 billion.
Meanwhile, the quarterly profit was down year-over-year to $615 million from $784 million last year. Operating costs and expenses, on the other hand, jumped 1.70% to $4.52 billion.