Abbott CEO: No Interest In Large, 'Mega-Deal' Mergers
June 10 2009 - 12:11PM
Dow Jones News
Abbott Laboratories (ABT) isn't interested in large-scale
mergers, but instead will pursue more modest-sized acquisitions,
the health-care products company's chief said Wednesday.
Chief Executive Miles White told a Goldman Sachs investor
conference in New York the company isn't interested in a merger of
equals or a "large, mega-deal type thing."
But look for the Abbott Park, Ill., company to do deals to build
up the non-pharmaceutical side of its business, White said. Abbott
also makes medical devices, nutritional products, diagnostics and
other non-drug products.
Still, White said Wednesday he wouldn't rule out making a drug
acquisition, if the right opportunity came up. The Wall Street
Journal previously reported that Abbott expressed preliminary
interest in a deal with Wyeth (WYE) late last year but chose not to
pursue it; Wyeth subsequently agreed to be acquired by Pfizer Inc.
(PFE). White hasn't publicly confirmed that but said in April
Abbott didn't "compete" for Wyeth.
White indicated an interest in building up Abbott's drug
business in emerging markets, possibly including low-cost,
unpatented drugs, or "branded generics."
"We're very interested in expanding there as well," he said.
Separately, White and his lieutenants played down the
significance of a large U.S. government study that includes its
cholesterol drug TriCor, which is scheduled to end this month. Some
analysts have suggested that the study results could raise
questions about TriCor's ability to prevent heart attacks and
related disease. Results could be released later this year.
White said the design of the government study, titled "Accord,"
would make it difficult to draw definitive conclusions about
TriCor. But he acknowledged the risk that the results could be
subject to "misperceptions." The study also would have implications
for a follow-up drug, Trilipix, as well as a single-dose
combination of Trilipix with AstraZeneca PLC's (AZN) Crestor
cholesterol drug.
White also reiterated he was confident in the long-term sales
growth prospects for Abbott's blockbuster drug Humira, which treats
rheumatoid arthritis and other conditions. Humira sales growth took
a hit in the first quarter, which has hurt Abbott's share price,
but White said Wednesday Humira is "growing at a very healthy
rate."
Abbott is now testing a once-monthly dosing regimen for Humira,
which could help its competitive position against newer, rival
drugs including Johnson & Johnson's (JNJ) Simponi, which is
given monthly. Humira is currently taken every other week.
White also said that he was confident that Congress will
ultimately enact a health-care reform package that is "constructive
and balanced," but that the process of arriving at a final bill
will be a "rocky ride."
Shares of Abbott traded recently at $44.30, down 5 cents.
-By Peter Loftus, Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com