AbbVie and Abbott under StockCall Scrutiny: Major Drug Manufacturers Look to Emerging Economies

Mon Jan 28, 2013 8:02am EST

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AbbVie and Abbott under StockCall Scrutiny: Major Drug Manufacturers Look to Emerging
Economies

LONDON, January 28, 2013 /PRNewswire/ --

    Last year, the U.S. Supreme Court upheld President Obama's Affordable Care Act,
which is expected to have a significant impact on major drug manufacturers. In order to
minimize the impact of Affordable Care Act, drug manufacturers have implemented new
strategies. One such company is Abbott Laboratories (NYSE : ABT), which recently spun
off its proprietary drug business into AbbVie (NYSE : ABBV). StockCall has compiled
comprehensive technical analysis on these two drug companies, and these reports are
available for free at http://www.stockcall.com/report  

    Implications of Affordable Care Act  

    The Patient Protection and Affordable Care Act (PPACA), which was signed into a law
by President Obama in his first term, represent a major overhaul of the U.S. healthcare
system.  

    The Affordable Care Act is expected to have a significant impact on major drug
manufacturers in the U.S. While drug manufacturers can expect new business as a result
of PPACA, they are also likely to see increased costs. According to some estimates, the
act will cost drug manufacturers over $80 billion in the next 10 years. Although higher
drug sales due to expanded coverage will offset some of these costs, it will not be
sufficient. This has led major drug companies re-think their strategy.  

    Abbott looks to Emerging Economies  

    Abbott Laboratories is looking to minimize the impact of Affordable Care Act in the
U.S. by focusing on emerging markets. Earlier last week, the Illinois-based company
reported its fourth quarter financial results. Excluding one-time items, the company
reported a profit of $1.51 per share. Download the complete technical analysis on Abbott
at http://www.StockCall.com/ABT012813.pdf  

    In a conference call with analysts following the release of quarterly results,
Abbott CEO Miles D. White said that the global population is growing and living longer
and the company sees significant opportunities ahead. Mr. White believes that the
company's mix of diversified healthcare businesses and pipeline is favorably aligned
with key healthcare and emerging market trends and well positioned to deliver top-tier
growth this year.  

    The New Abbott  

    Earlier this year, Abbott completed the separation of its research-based
pharmaceutical business. The new independent biopharmaceutical company, AbbVie Inc.
[Free Report on ABBV [http://www.stockcall.com/ABBV012813.pdf ]] [(1)], began trading on
the New York Stock Exchange under the ticker symbol ABBV. Abbott had announced the spin
off back in October 2011 as the company's business evolved into two different investment
identities.  

    AbbVie will operate as a research-based specialty biopharmaceutical company. The
company already has a broad portfolio of medicines and a pipeline of breakthrough
therapies. The new Abbott, meanwhile, will focus on four businesses, which include
diagnostics, medical devices, nutritionals and branded generic pharmaceuticals. The
revenue from these businesses is well balanced in terms of geography, with about 40% of
the revenue generated from the fastest-growing economies of the world, including Brazil,
China, India and Russia. By 2015, Abbott expects these markets to account for 50% of its
sales.  

    Commenting on the spin-off, Mr. White earlier this month said that Abbott has taken
the most transformative action in its 125-year history. He added that the company has
had enduring success precisely because of reinventing itself for changing times and
creating new ways to serve millions of patients, customers, communities and shareholders
who depend on the company.  

    The new Abbott certainly is well-positioned to deliver growth.  

    Footer:  

        
        1) AbbVie Inc. Technical Analysis [
          http://www.StockCall.com/AbbVieInc012813.pdf ]


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