Replies to post #183092 on Biotech Values

[DewDiligence]

ABT posts solid 3Q14 results—57%* of sales from EM:

http://finance.yahoo.com/news/abbott-reports-third-quarter-2014-113100539.html

2014 non-GAAP EPS guidance is now $2.25-2.27 (vs the prior range of $2.19-2.29), growth of 12-13% vs 2013.

For ABT’s continuing operations, 57% of sales come from emerging markets, which is one of the highest EM footprints of any S&P 500 company.

*The branded-generics business being sold in the MYL deal (#msg-107440341) is now accounted for as a discontinued operation (although it is still included in ABT’s 2014 EPS guidance because the deal will not close until 2015).

[DewDiligence]

Why would anyone want to own MYL in the next year or so (unless you think they will get FDA approval for generic Copaxone)?

After the ‘spinversion’ (#msg-107440341), ABT will own 22% of MYL and plans to divest its MYL shares fairly quickly, which will put a lot of pressure on MYL’s share price.

[DewDiligence]

EU approves MYL’s ‘spinversion’ into ABT’s Europe-based branded-generics business:

http://finance.yahoo.com/news/eu-approves-mylan-purchase-abbot-163000037.html

This was the main hurdle to consummating the deal.