Replies to post #71417 on Biotech Values

[DewDiligence]

ABT Reports 4Q08 Results

[ABT has become what JNJ has always claimed to be: the leading diversified pharma and medical-device company on the planet. While JNJ’s pharma business is shrinking, ABT’s is soaring due to impressive growth by Humira ($5.2B annualized run rate in 4Q08, +42% year-over-year!) and the lipid franchise, which consists of TriCor, TriLipix, and Niaspan. Meanwhile, ABT’s Xience stent sold $1B worldwide during 2008, making it one of the best-selling medical devices of all time and rendering JNJ’s Cypher all but obsolete.

How has ABT been able to accomplish all this? Making great acquisitions helps (#msg-34774636). ABT shares rose 7% today.]

http://finance.yahoo.com/news/Abbott-Reports-DoubleDigit-prnews-14112486.html

›Wednesday January 21, 2009, 7:32 am EST

- Worldwide Sales Increased 10.1 Percent –

- Adjusted EPS Growth of 14.0 Percent (GAAP EPS up 27.3 Percent) –

- Delivers Double-Digit Sales Growth in Each Major Global Business in 2008 –

- Concludes Successful 2008 with Nine New Major Regulatory Approvals –

- Confirms Double-Digit Earnings-Per-Share Growth in 2009 -

ABBOTT PARK, Ill., Jan. 21 /PRNewswire-FirstCall/
-- Abbott (NYSE: ABT) today announced financial results for the fourth quarter ended Dec. 31, 2008.

-- Diluted earnings per share, excluding specified items, were $1.06,
reflecting 14.0 percent growth, in line with Abbott's previous
forecast. Diluted earnings per share under Generally Accepted
Accounting Principles (GAAP) were $0.98, up 27.3 percent.

-- Worldwide sales increased 10.1 percent to $8 billion, including an
unfavorable 2.5 percent effect of exchange rates. Full-year 2008
sales were nearly $30 billion.

-- Worldwide pharmaceutical sales increased nearly 10 percent driven by
double-digit growth in HUMIRA®, Niaspan®, and the
TriCor®/TRILIPIX(TM) franchise. Global HUMIRA sales in the quarter
exceeded $1.3 billion; full-year 2008 global HUMIRA sales were more
than $4.5 billion.

-- Worldwide medical products sales increased 15.6 percent; with 58.9
percent growth in global vascular sales driven by the continued
success of the XIENCE V(TM) drug-eluting stent (DES), which became
the market-leading DES in the U.S. during the fourth quarter. Last
week, Abbott announced the acquisition of Advanced Medical Optics
(AMO), strengthening and expanding Abbott's medical device business
with a global market leader in ophthalmology.

-- Global nutritional sales increased 11.0 percent, up more than 15
percent internationally and nearly 7 percent in the U.S.

-- Abbott is confirming previously issued earnings-per-share guidance
for the full-year 2009 of $3.65 to $3.70 under both Generally
Accepted Accounting Principles (GAAP) and on a non-GAAP basis. The
midpoint of this 2009 guidance range reflects double-digit growth
over 2008 earnings per share.

"2008 was another highly productive and successful year for Abbott," said Miles D. White, chairman and chief executive officer, Abbott. "We significantly outperformed our original growth expectations for the year and added to our diverse portfolio with a significant number of major new product launches. The strategic actions we've taken and our ongoing business momentum position Abbott to deliver continued double-digit growth in 2009."

The following is a summary of fourth-quarter 2008 sales.

Impact of
Sales Summary - 4Q08 % Change Exchange
Quarter Ended 12/31/08 ($ millions) vs. 4Q07 on % Change
Total Sales $7,950 10.1 (2.5)

Total U.S. Sales $4,035 12.4 ---

Total International Sales $3,915 7.8 (4.9)

Worldwide Pharmaceutical Sales $4,610 9.8 (2.6)

U.S. Pharmaceuticals $2,540 10.2 ---

International Pharmaceuticals $2,070 9.5 (5.9)

Worldwide Nutritional Sales $1,317 11.0 (1.4)

U.S. Nutritionals $656 6.6 ---

International Nutritionals $661 15.6 (2.9)

Worldwide Diagnostics Sales $896 4.4 (3.3)

U.S. Diagnostics $231 8.8 ---

International Diagnostics $665 2.9 (4.3)

Worldwide Vascular Sales $663 58.9 (2.8)

U.S. Vascular $396 102.3 ---

International Vascular $267 20.5 (5.2)

Other Sales $464 (17.4) (2.2)

The following is a summary of sales for the full-year 2008.

Impact of
Sales Summary - FY08 % Change Exchange
Twelve Months Ended 12/31/08 ($ millions) vs. FY07 on % Change
Total Sales $29,528 13.9 3.2

Total U.S. Sales $14,170 10.1 ---

Total International Sales $15,358 17.8 6.3

Worldwide Pharmaceutical Sales $16,708 14.2 3.2

U.S. Pharmaceuticals $8,497 8.9 ---

International Pharmaceuticals $8,211 20.3 6.9

Worldwide Nutritional Sales $4,924 12.2 1.9

U.S. Nutritionals $2,479 5.6 ---

International Nutritionals $2,445 19.8 4.0

Worldwide Diagnostics Sales $3,575 13.2 5.1

U.S. Diagnostics $899 9.6 ---

International Diagnostics $2,676 14.5 6.9

Worldwide Vascular Sales $2,241 34.7 3.5

U.S. Vascular $1,205 39.6 ---

International Vascular $1,036 29.4 7.2

Other Sales $2,080 0.3 2.6

The following is a summary of Abbott's fourth-quarter 2008 sales for
selected products.

Quarter Ended 12/31/08
Percent Percent Percent
(dollars in U.S. Change Rest of Change Global Change
millions) Sales vs. 4Q07 World vs. 4Q07 Sales vs. 4Q07
Pharmaceutical
Products
HUMIRA $751 42.4 $600 40.5 a $1,351 41.6
TriCor/TRILIPIX $455 16.0 --- --- $455 16.0
Kaletra $152 (0.7) $226 3.5 b $378 1.8
Depakote $244 (43.8) $24 (9.1) $268 (41.8)
Niaspan $221 23.8 --- --- $221 23.8
Lupron $147 n/m $66 (9.6)c $213 n/m
Ultane/Sevorane $58 15.7 $140 (6.8)d $198 (1.2)
Biaxin
(clarithromycin) $3 n/m $151 (17.8)e $154 (22.6)
Synthroid $120 (9.4) $22 7.4 $142 (7.1)

Nutritional Products
Pediatric
Nutritionals $333 2.5 $390 29.4 f $723 15.4
Adult Nutritionals $295 5.3 $270 0.2 g $565 2.8

Medical Products
Abbott Diabetes
Care $144 7.1 $193 (3.5)h $337 0.7
Coronary Stents $267 245.9 $143 35.5 i $410 124.5
Other Coronary $72 15.0 $83 3.1 j $155 8.3
Endovascular $57 1.3 $41 15.3 k $98 6.7

a Without the negative impact of exchange of 9.3 percent, HUMIRA sales
increased 49.8 percent internationally.
b Without the negative impact of exchange of 4.9 percent, Kaletra sales
increased 8.4 percent internationally.
c Without the negative impact of exchange of 7.5 percent, Lupron sales
decreased 2.1 percent internationally.
d Without the negative impact of exchange of 6.2 percent, Sevorane sales
decreased 0.6 percent internationally.
e Without the negative impact of exchange of 2.3 percent, clarithromycin
sales decreased 15.5 percent internationally.
f Without the negative impact of exchange of 1.3 percent, Pediatric
Nutritionals sales increased 30.7 percent internationally.
g Without the negative impact of exchange of 4.6 percent, Adult
Nutritionals sales increased 4.8 percent internationally.
h Without the negative impact of exchange of 5.9 percent, Abbott Diabetes
Care sales increased 2.4 percent internationally.
i Without the negative impact of exchange of 5.2 percent, Coronary Stents
sales increased 40.7 percent internationally.
j Without the negative impact of exchange of 4.5 percent, Other Coronary
sales increased 7.6 percent internationally.
k Without the negative impact of exchange of 6.7 percent, Endovascular
sales increased 22.0 percent internationally.

The following is a summary of Abbott's full-year 2008 sales for selected products.


Twelve Months Ended 12/31/08
Percent Percent Percent
(dollars in U.S. Change Rest of Change Global Change
millions) Sales vs. FY07 World vs. FY07 Sales vs. FY07
Pharmaceutical
Products
HUMIRA $2,255 36.6 $2,266 60.4 a $4,521 47.6
Kaletra $513 (4.7) $961 22.1 b $1,474 11.2
Depakote $1,262 (14.8) $102 7.4 $1,364 (13.4)
TriCor/TRILIPIX $1,341 10.1 --- --- $1,341 10.1
Ultane/Sevorane $193 (3.4) $594 6.2 c $787 3.7
Niaspan $786 19.4 --- --- $786 19.4
Biaxin
(clarithromycin) $14 n/m $637 (7.4)d $651 (10.1)
Lupron $377 n/m $274 6.5 e $651 n/m
Synthroid $435 (5.0) $89 19.2 $524 (1.6)

Nutritional Products
Pediatric
Nutritionals $1,268 2.8 $1,374 25.7 f $2,642 13.6
Adult
Nutritionals $1,162 7.8 $1,070 13.0 g $2,232 10.3

Medical Products
Abbott Diabetes
Care $559 1.1 $794 14.2 h $1,353 8.4
Coronary Stents $669 118.5 $530 44.8 i $1,199 78.4
Other Coronary $298 (0.5) $344 13.4 j $642 6.5
Endovascular $238 (7.6) $162 24.1 k $400 3.1

a Without the positive impact of exchange of 9.7 percent, HUMIRA sales
increased 50.7 percent internationally.
b Without the positive impact of exchange of 6.7 percent, Kaletra sales
increased 15.4 percent internationally.
c Without the positive impact of exchange of 5.0 percent, Sevorane sales
increased 1.2 percent internationally.
d Without the positive impact of exchange of 6.2 percent, clarithromycin
sales decreased 13.6 percent internationally.
e Without the positive impact of exchange of 6.1 percent, Lupron sales
increased 0.4 percent internationally.
f Without the positive impact of exchange of 3.6 percent, Pediatric
Nutritionals sales increased 22.1 percent internationally.
g Without the positive impact of exchange of 4.5 percent, Adult
Nutritionals sales increased 8.5 percent internationally.
h Without the positive impact of exchange of 7.1 percent, Abbott Diabetes
Care sales increased 7.1 percent internationally.
i Without the positive impact of exchange of 8.0 percent, Coronary Stents
sales increased 36.8 percent internationally.
j Without the positive impact of exchange of 6.4 percent, Other Coronary
sales increased 7.0 percent internationally.
k Without the positive impact of exchange of 7.0 percent, Endovascular
sales increased 17.1 percent internationally.

Business Highlights

-- Abbott to Acquire Advanced Medical Optics (AMO) - Abbott announced
an agreement to acquire AMO, an established global leader in the
large and growing eye care market. This acquisition strengthens and
expands Abbott's current medical device business, providing further
diversification for the long term. AMO participates in three
segments: cataract surgery, refractive surgery, or LASIK laser
vision correction, and eye care products, such as contact lens
solutions. AMO holds the number-one market position in LASIK, the
number-two position in cataract surgery and the number-three
position in eye care products. The ophthalmology market is supported
by strong demographic trends, including a large population of people
60 years of age and older, and increased demand for advanced vision
care procedures and products.

-- Abbott Receives FDA Approval for TRILIPIX(TM) - The U.S. FDA
approved Abbott's TRILIPIX (fenofibric acid), the first fibrate to
be approved for use in combination with a statin. The FDA approval
of TRILIPIX was based on the largest clinical trial program designed
to evaluate the efficacy and safety of a fibrate in combination with
various statins.

-- Abbott Begins U.S. Study of XIENCE V(TM) Designed for Small Vessels
- Abbott began SPIRIT Small Vessel, a clinical trial evaluating a
2.25 mm size of the XIENCE V Everolimus Eluting Coronary Stent
System. The 2.25 mm stent system, to be called Xience Nano(TM) in
the United States upon FDA approval, would offer physicians an
option for treating coronary artery disease in narrower vessels that
is based on the proven efficacy, safety and deliverability of XIENCE
V. Last year, the XIENCE V 2.25 mm stent system received CE Mark
approval and was launched in various countries in Europe, Asia and
Latin America.

-- HUMIRA® May Help Prevent Further Joint Damage For Up To Five Years
- Presented new HUMIRA data demonstrating half of patients with
moderate to severe early rheumatoid arthritis (RA) showed no
progression of joint damage at five years. These results were seen
in patients who initially received HUMIRA in combination with
methotrexate (MTX) for two years and continued on HUMIRA for an
additional three years in an open-label extension study. Five-year
results of the PREMIER study found that patients with early RA
achieved the best results with an initial combination of HUMIRA and
methotrexate.

-- HUMIRA Demonstrates Fistula Healing for Up to Three Years in Crohn's
Patients - Presented new HUMIRA data in the long-term treatment of
fistulas, with more than half of patients with moderate to severe
Crohn's disease experiencing fistula healing at three years. Data
also showed response to HUMIRA in difficult-to-treat patients -
those with fistulas who had failed to respond, lost response to, or
were intolerant of infliximab.

-- TCT Data Presentations - Presented results from a new meta-analysis
of XIENCE V drug-eluting stent clinical trials, SPIRIT II and SPIRIT
III, which showed XIENCE V outperformed Boston Scientific's TAXUS®
in key efficacy and safety endpoints out to two years. We also
presented new two-year data from our ABSORB trial, which
demonstrated that our bioabsorbable drug-eluting stent successfully
treated coronary artery disease and absorbed within two years.

-- Abbott Exercises Its Option to Acquire IBIS Biosciences - Abbott
completed the purchase of the remaining equity ownership in IBIS
Biosciences, Inc.

Abbott confirms double-digit earnings-per-share growth outlook for 2009

Abbott is confirming previously issued earnings-per-share guidance for the full-year 2009 of $3.65 to $3.70 under both Generally Accepted Accounting Principles (GAAP) and on a non-GAAP, or adjusted basis. The midpoint of this 2009 guidance range reflects double-digit growth over 2008 earnings per share.

Abbott declares quarterly dividend; double-digit increase over prior year

On Dec. 12, 2008, the board of directors of Abbott declared the company's quarterly common dividend of 36 cents per share, a 10.8 percent increase over the prior year. The cash dividend is payable Feb. 15, 2009, to shareholders of record at the close of business on Jan. 15, 2009. This marks the 340th consecutive dividend paid by Abbott since 1924.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs more than 68,000 people and markets its products in more than 130 countries.‹

[DewDiligence]

Abbott Is Picture of Health in Otherwise Sickly Drug Industry

[No new insights here, but this makes a good companion piece with #msg-34774636.]

http://online.barrons.com/article/SB123457619288886731.html

›February 14, 2009
By NEIL A. MARTIN

It looks as if Abbott Laboratories has discovered the secret of healthy living. While most of its rivals are flat on their backs, the pharmaceutical giant has been cranking out promising new products, dodging competition from makers of generic drugs and posting double-digit gains in profits.

The company's shares (ticker: ABT) managed to climb 32% over the past three years, while health-care stocks as a group fell 15%. And with Abbott 's main products poised for strong growth, the stock could do even better over the next few years.

The stock isn't cheap. At a recent 56, it's trading at 15.3 times expected earnings for this year, versus the sector's multiple of 12. But bulls argue convincingly that the premium is deserved because of the company's earnings power. Abbott has a broader product base than many drug companies, including a sizeable medical-devices business, and it has relatively little exposure to patent expirations, the bane of Big Pharma. Looming patent expirations on key drugs helped convince Pfizer (PFE) that it should strike a $68 billion deal for Wyeth (WYE).

The Illinois-based Abbott, with a market value of $87 billion, posted a 17% earnings jump last year, to $3.32 a share, on nearly $30 billion of sales. In contrast, the sector's earnings were flat.

Abbott's gains have been fueled in part by its fast-growing business in heart stents, which are used to prop open damaged arteries. Stent sales surged 78% last year, to $1.2 billion, and Abbott's Xience drug-coated stent, which hit the U.S. market last summer, has leapfrogged to a leading position in the U.S. market, mainly at the expense of competitor Johnson & Johnson (JNJ). Coming next: versions of Xience for Europe and Japan.

But Abbott's biggest growth engine is Humira, an injectable drug used to treat rheumatoid arthritis, Crohn's disease, psoriasis and other ailments. Humira sales jumped 48% last year, to $4.5 billion, or 15% of total revenue. Abbott also does a brisk business in cholesterol drugs such as Niaspin, and nutritional products like Similac baby formula.

Though it's clearly getting harder for drug companies to increase earnings -- think pricing pressures from possible health-care reform -- Abbott executives exude confidence. "We are committed to double-digit earnings growth over the next several years," says CEO Miles White, who has been at the helm for 10 years.

Two years ago, Barron's cast a skeptical eye on Abbott, concerned about the safety and effectiveness of the company's drug Tricor. One of Abbott's top sellers, Tricor helps patients lower triglycerides, a type of noncholesterol fat. Since our earlier story, laboratory studies have failed to support the concerns, and a company spokesman cites data showing the drug to be safe.

In fact, Abbott is working with British drug maker AstraZeneca (AZN) to develop a drug that combines TriLipix -- a next-generation fenofibrate, the generic name for Tricor -- with AstraZeneca's blockbuster cholesterol drug Crestor [#msg-35203689], a statin. Abbott plans to submit a new-drug application for this combination in the second half of this year.

That's just one of several important product-initiatives under way. Just a few weeks ago, Abbott moved to expand its niche in ophthalmology, announcing it would purchase vision-care company Advanced Medical Optics (EYE) for $2.8 billion in a deal that positions it to benefit from the growing need for cataract treatment as baby boomers age.

Meanwhile, Abbott is developing an asthma treatment called Flutiform and expects to file for approval this year. A drug called ABT-847 is being tested for treatment of psoriasis and Crohn's disease, and the company is exploring further applications for Humira.

"We continue to advance a number of compounds with breakthrough potential," says White. "We are focusing on discovering new treatments across a spectrum of therapeutic areas," including oncology, neuroscience and immunology.

As it proceeds, Abbott is facing far fewer problems than rivals in maintaining product exclusivity. The company has lost protection for only one of its major products, Depakote, used to treat bipolar disorders, which went off patent last year. And it faces no patent losses over the next few years. Humira remains on patent through December 2016.

Patents expired last year for J&J's Risperdal antipsychotic and Merck 's (MRK) Fosamax bone-building drug, leading to cheaper copycat versions. Pfizer loses the patent for its blockbuster Lipitor cholesterol drug in 2011, and Eli Lilly (LLY) that year will lose protection on its big antipsychotic drug Zyprexa. Swiss drug maker Novartis (NVS) loses patent protection for its top-selling blood-pressure drug Diovan in 2012.

For Abbott, the combination of strong products and solid patent protection adds up to potentially stellar profits. Morgan Stanley analyst David R. Lewis believes Abbott will beat consensus earnings estimates in 2010 and 2011 with per-share net of $4.23 and $4.72, respectively. When he adds up the value of Abbott's various businesses, he arrives at $102.4 billion, or about $66.44 a share, which is in line with his 12-month target price of $67.

Portfolio manager Rick Helm of the Cohen & Steers Dividend Value fund (DVFAX) likes the company's consistent dividend growth. Indeed, Abbott has raised its dividend for 36 years and shows no signs of slowing the increases. The dividend now stands at $1.44, for a yield of 2.6%. Pfizer, on the other had, recently ended a 41-year run of dividend boosts.

"We expect Abbott's dividend to grow nearly 10% this year and roughly 9% a year for the next few years," says Helm, whose $146 million fund focuses on companies with rising dividends. But he also sees ample room for stock appreciation: "We believe there's 40% upside in the stock based on the growth of the company's core businesses, lack of any significant generic competition in its key products and a pipeline that's not sexy but has a number of promising products."

Abbott, founded in 1888 by Chicago physician Wallace Abbott, has undergone a revolution in recent years, improving both its products and profitability through diversification and acquisitions. Once regarded as slow-moving, dull and problem-plagued, the company now participates in some of the largest and fastest growing markets in medical technology.

Credit for the change mostly goes to White, 53, a Stanford University MBA who joined the company in 1984. He has made a number of key acquisitions that have propelled revenue and earnings gains and brought major new products under the Abbott roof. Abbott got Humira through the 2001 acquisition of Knoll Pharmaceuticals, while the 2006 purchases of the vascular and endovascular businesses of the former Guidant Corp. brought Xience into the fold.

Abbott is less acquisition-minded these days, focusing more on internal research-and-development and organic growth than pursuing more acquisitions. "The good news is that we don't need to do any more M&A to deliver on our commitments," White says.

That doesn't mean that double-digit growth is in the bag. The key will be to keep Humira hot. After all, that mainstay product been growing an average of 30% annually in recent years, nearly triple the growth of the rest of Abbott.

There's some concern on Wall Street that the sales growth is unsustainable, that it will have to level off and then decline. It would certainly be hard to replicate Humira's recent growth with another product.

But even if Humira's sales growth does decline, it should still be robust. The drug is nowhere near saturating its current markets: Its penetration of rheumatoid-arthritis treatments alone could climb from 25% now to 33% in 2016, says Morgan Stanley's Lewis, with more patients switching from products like J&J's Remicade. And Abbott is exploring new applications such as treating ulcerative colitis -- potentially a $500 million market. Use of the drug for that ailment is in Phase III clinical trials, as is its use for pediatric Crohn's.

In all, Lewis sees Humira sales increasing by an average of 23% a year through 2011. Though not even half of last year's blistering pace, it should be enough to keep Abbott's profits, and stock price, moving ever higher. In these times of global economic turmoil, settling for 23% growth doesn't sound too bad at all.‹

[DewDiligence]

ABT to Acquire FACT for $27/sh in Cash

[ABT has the best track record of value-added acquisitions in the entire pharma industry, so there’s every reason to think that this deal will work out. (Please see #msg-34774636 for background.) The buyout price is a 64% premium to FACT’s 4pm closing price *today*, so evidently the news of this deal was not leaked.

FACT’s main asset is daclizumab, which is being tested in MS in partnership with BIIB, the company that tried and failed to acquire FACT a few months ago.]

http://finance.yahoo.com/news/Abbott-Enhances-prnews-347453553.html?x=0&.v=1

›Tuesday March 9, 2010, 4:52 pm

ABBOTT PARK, Ill. and REDWOOD CITY, Calif., March 9 /PRNewswire-FirstCall/ -- Abbott (NYSE:ABT) and Facet Biotech Corporation (Nasdaq:FACT) announced today a definitive agreement for Abbott to acquire Facet, enhancing Abbott's early- and mid-stage pharmaceutical pipeline. Abbott will acquire Facet for $27 per share in cash for a net transaction value of approximately $450 million, which includes a purchase price of approximately $722 million less Facet's projected cash and marketable securities at closing of approximately $272 million.

The acquisition brings access to biologics in two key therapeutic areas, immunology and oncology. The compounds include daclizumab – a Phase II investigational biologic intended to treat multiple sclerosis (MS) that is expected to move into Phase III development in the second quarter 2010 – and oncology compounds in early- to mid-stage development. Daclizumab is being developed in collaboration with Biogen Idec and certain oncology compounds are being developed in collaboration with other parties.

"This acquisition will further strengthen Abbott's biologics capabilities and pharmaceutical pipeline," said John Leonard, M.D., senior vice president, global pharmaceutical research and development, Abbott. "Daclizumab is a promising treatment for multiple sclerosis, a disease that has a significant unmet medical need, and has the potential to become an important treatment option for patients. We continue to explore multiple mechanisms to treat autoimmune diseases and cancer with both biologic and small molecule approaches."

"We believe this transaction provides full and fair value for our stockholders and validates the potential of Facet's clinical and technology assets, all of which has resulted from the effort and dedication of our employees," said Faheem Hasnain, president and chief executive officer, Facet Biotech. "Abbott's depth of expertise in immunology and oncology makes it an excellent organization to maximize the full potential of these promising clinical programs and technologies."

Multiple sclerosis is an inflammatory disease of the central nervous system affecting more than 1 million people worldwide, and is characterized by lesions in the brain and spinal cord. Daclizumab is a humanized antibody that binds to the high affinity IL-2 receptor and selectively inhibits this receptor on activated T cells. Studies to date have shown that daclizumab may reduce the inflammatory lesions associated with MS and has the potential to offer enhanced efficacy over many existing MS therapies along with a favorable safety profile.

Facet's oncology collaborations include early- and mid-stage compounds that are being studied to treat different types of cancer, including multiple myeloma and chronic lymphocytic leukemia.

These novel compounds in development complement Abbott's leading-edge research in oncology, which includes three compounds in mid- to late-stage trials: ABT-263, a Bcl-2 family protein antagonist; ABT-888, a PARP inhibitor; and ABT-869, a multi-targeted kinase inhibitor.

Abbott is also advancing treatments for conditions such as Alzheimer's disease, schizophrenia, hepatitis C and pain.

Under the terms of the agreement, Abbott will promptly commence a tender offer to purchase all outstanding shares of Facet Biotech at $27 per share. The closing of the tender offer is conditioned on the tender of a majority of the outstanding shares of Facet's common stock on a fully diluted basis and the satisfaction of regulatory and other customary conditions. The transaction has been approved on behalf of the boards of directors of Facet and Abbott. Approval of the transaction by Abbott's shareholders is not required.

The transaction is expected to close in the second quarter of 2010. Abbott would expect to incur one-time specified charges following the closing of the acquisition, which will be defined at a later date. This transaction does not impact Abbott's previously issued ongoing earnings-per-share guidance for 2010.

Centerview Partners served as financial advisor to Facet Biotech and rendered a fairness opinion to Facet Biotech's board of directors in connection with the transaction.

About Facet Biotech

Facet Biotech is a biotechnology company dedicated to advancing its pipeline of five clinical-stage products focused in multiple sclerosis and oncology, leveraging its research and development capabilities to identify and develop new oncology drugs and applying its proprietary next-generation protein engineering technologies to potentially improve the clinical performance of protein therapeutics. Facet Biotech has development collaborations with Biogen Idec, Bristol-Myers Squibb Company and Trubion Pharmaceuticals. For additional information about the company, please visit www.facetbiotech.com.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs approximately 83,000 people and markets its products in more than 130 countries.‹