ABT’s split into two companies is a dumb move, IMO, and it shows that management is unduly influenced by pressure from investment bankers. When all is said and done, it will end up increasing costs and decreasing shareholder value. I’ll have more to say after today’s CC.
• Sales in emerging market are running at an annualized rate of $10B, comprising 25% of overall sales. About 60% of EM sales are branded generics, which are growing at a double-digit annual rate (excluding acquisitions).
• Humira 4Q11 annualized sales were $8.7B! (+16% YoY), making it the largest-selling drug in the world. For the 2011 full year, Humira sales grew 21%.
• ABT’s 2007-2011 five-year shareholder return (including reinvested dividends) was 35% vs -1% for the S&P 500 (including reinvested dividends). ABT’s 1-year return on the same basis was 22% vs 2% for the S&P 500.
• ABT has increased its dividend for 39 consecutive years!
• $3.4B remains on ABT’s buyback authorization for use during 2012.
• 2012 non-GAAP EPS guidance is $4.95-5.05, including an expected -2.5% YoY hit from currency. At the current share price, the stock is thus trading at 11x the 2012 non-GAAP EPS guidance.
• The name of the pharma company to be spun off has not yet been determined.
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