abott history manager

8/19/2019 Abott History Manager

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Address:100 Abbott Park Road

Abbott Park, Illinois 60064-6400U.S.A.

Telephone: (847) 937-6100

Fax: (847) 937-9Website: !!!.abbott."o# Public Company Incorporated: 1900 as Abbott Alkaloidal $o#%an&Employees: 60,000Sales: '13.7 billion ( 000)Stock Exchanges: *! +ork $ i"a o Pa"i i" /oston $in"innati P ilad*l% ia ondon S!issTicker Symbol: A/

AIC: 3 41 P ar#a"*2ti"al Pr*%aration an2 a"t2rin 3 413 In-5itro ia nosti"S2bstan"* an2 a"t2rin 334 16 Anal&ti"al aborator& Instr2#*nt an2 a"t2rin 311 14 r&,$ond*ns*d, and a%orat*d air& Prod2"t an2 a"t2rin 41710 R*s*ar" and * *lo%#*ntin t * P &si"al, n in**rin , and i * S"i*n"*s

Company Perspecti!es:

Abbott s ision is to b* t * !orld s %r*#i*r *alt "ar* "o#%an&. Si#%l& %2t, !* !ant to b* t *b*st--t * b*st *#%lo&*r, t * b*st *alt "ar* s2%%li*r, t * b*st b2sin*ss %artn*r, t * b*stin *st#*nt and t * b*st n*i bor. : il* Abbott is broadl& di *rsi i*d, all o its t o2sands o%rod2"ts and %*o%l* ar* d*di"at*d to a "o##on #ission; to i#%ro * li *s b& %ro idin "ost-* *"ti * *alt "ar* %rod2"ts and s*r i"*s. <*& at*s;

"ey #ates:

$%%%: r. :alla"* $al in Abbott b* ins #an2 a"t2rin alkaloid %ills.$&'':

Abbott in"or%orat*s is ir# as Abbott Alkaloidal $o#%an&.$&$(:

$o#%an& " an *s its na#* to Abbott aboratori*s.$&)&:

Abbott o*s %2bli" !it a listin on t * $ i"a o Sto"k =" an *.$&*+:

$o#%an& introd2"*s t * an*st *ti" sodi2# %*ntot al.$&():

$o#%an& la2n" *s a n*! antibioti", r&t ro"in.$&+,:

Abbott a">2ir*s ? R i*t*ti" aboratori*s, #ak*r o Si#ila" bab& or#2la.$&+-:*! %r*sid*nt d!ard @. *dd*r b* ins a di *rsi i"ation into "ons2#*r %rod2"ts,

in"l2din S2"ar&l, a "&"la#at* s2 ar s2bstit2t*.$&-':

A bans t * sal* o "&"la#at*s.$&-$:

Abbott is or"*d to r*"all 3.4 #illion bottl*s o intra *no2s sol2tion.$&--:

$o#%an& or#s Boint *nt2r* !it ak*da $ *#i"al Ind2stri*s, td. o @a%an "all*dAP P ar#a"*2ti"als In".

$&%(: Abbott d* *lo%s t * irst dia nosti" t*st or AI S.

$&%-: Abbott s C&trin is a%%ro *d b& t * A or t * tr*at#*nt o &%*rt*nsion.$&&$:

http://www.abbott.com/

http://www.abbott.com/



$lorit ro#&"in, an antibioti", is introd2"*d.$&&+:

Abbott a">2ir*s *diS*ns*, In"., a #ak*r o blood-t*stin d* i"*s or diab*ti"s.$&&&:

Abbott a r**s to a">2ir* A DA $or%oration or '7.3 billion b2t t * d*al lat*r "olla%s*s Abbott a r**s to %a& a '100 #illion in* r*latin to >2alit& "ontrol %robl*#s at its

#*di"al t*st kit %lants s2t2r* #ak*r P*r"los*, In". is a">2ir*d.)''':A a%%ro *s t * AI S dr2 <al*tra Abbott a r**s to a">2ir* t * <noll

P ar#a"*2ti"al $o. 2nit o /AS AE or '6.9 billion in "as .

Company .istory:

Abbott aboratori*s is on* o t * old*st and #ost s2""*ss 2l % ar#a"*2ti"al "o#%ani*s in t *Unit*d Stat*s. : il* abo2t 30 %*r"*nt o ann2al r* *n2*s "o#* ro# t * sal* o% ar#a"*2ti"als--in"l2din Abbott s la s i% dr2 , t * antibioti" /ia=in--t * "o#%an& as a

i *r %ro il* in t * ar*a o n2tritionals, ! *r* its %rod2"ts in"l2d* l*adin in ant or#2la brandsSi#ila" and Iso#il and a l*adin ad2lt n2tritional brand, ns2r*. Abbott is also a to%

#an2 a"t2r*r o #*di"al dia nosti" *>2i%#*nt, !it an *#% asis on blood anal&F*rs and t *d*t*"tion and #onitorin o in *"tions and dis*as*s. * ir# s os%ital %rod2"ts 2nit %rod2"*s*l*"troni" and inB*"tabl* dr2 -d*li *r& s&st*#s, intra *no2s sol2tions and s2%%li*s, an*st *ti"s,and %rod2"ts 2s*d in "riti"al "ar* s*ttin s. Abbott s ann2al r*s*ar" and d* *lo%#*nt b2d *t*="**ds '1 billion, !it ar*as o *#% asis in"l2din AI SGanti irals, anti-in *"ti *s, diab*t*s,n*2ros"i*n"*, on"olo &, %*diatri" % ar#a"*2ti"als, 2rolo &, and as"2lar #*di"in*.

Early #ecades

Abbott aboratori*s as its ori in in t * lat* 19t "*nt2r& in a s#all % ar#a"*2ti"al o%*rationr2n ro# t * kit" *n o a $ i"a o % &si"ian na#*d :alla"* $al in Abbott. As did ot *r% &si"ians o t * ti#*, r. Abbott "o##onl& %r*s"rib*d #or% in*, >2inin*, str&" nin*, and"od*in*--all o ! i" !*r* li>2id alkaloid *=tra"ts-- or is %ati*nts. /*"a2s* t *& *=ist*d onl& ina li>2id or#, t *s* dr2 s !*r* %ron* to s%oila * o *r ti#*, #iti atin t *ir * *"ti *n*ss astr*at#*nts. In 1888, r. Abbott *ard t at a /*l ian s2r *on ad d* *lo%*d alkaloids in solid

or#. Alkaloid %ills soon b*"a#* a ailabl* in $ i"a o, b2t r. Abbott !as dissatis i*d !it t *ir>2alit&, and * d*"id*d to #an2 a"t2r* is o!n.

r. Abbott b* an to ad *rtis* is %rod2"ts to ot *r do"tors in 1891. So s2""*ss 2l !as isb2sin*ss t at * * *nt2all& sold s ar*s to ot *r do"tors and in"or%orat*d is o%*ration in 1900as t * Abbott Alkaloidal $o#%an&. /& 190 , ann2al sal*s ad ro!n to ' 00,000. *n &*arslat*r, t * "o#%an& " an *d its na#* to Abbott aboratori*s. 2rin :orld :ar I, Abbott s"o#%an& !as *ss*ntial to t * #*di"al "o##2nit&, as s* *ral i#%ortant dr2 s, #an2 a"t2r*d*="l2si *l& b& E*r#an "o#%ani*s, !*r* no lon *r a ailabl* in t * Unit*d Stat*s. Abbottd* *lo%*d %ro"ain*, a s2bstit2t* or t * E*r#an no o"ain*, and barbital, a r*%la"*#*nt or

*n*ral. A t*r t * !ar, Abbott "ontin2*d to "on"*ntrat* on t * r*s*ar" and d* *lo%#*nt o n*! dr2 s.In $&)$ , t * "o#%an& *stablis *d a laborator& in Ro"k& o2nt, ort $arolina, ! i"d* *lo%*d a n2#b*r o n*! dr2 s, in"l2din s*dati *s, tran>2iliF*rs, and ita#ins. *n a t*r#r/ Abbott0s death t at &*ar, t * "o#%an& "ontin2*d to in *st *a il& in n*! %rod2"td* *lo%#*nt and a r*ssi * #ark*tin "a#%ai ns. * "o#%an& !*nt %2bli" in 19 9 !it alistin on t * $ i"a o Sto"k =" an *. !o &*ars lat*r, Abbott *=%and*d o2tsid* t * Unit*dStat*s or t * irst ti#* !it t * *stablis #*nt o an a iliat* in ontr*al, $anada.

#eWitt Clough !as na#*d %r*sid*nt o t * "o#%an& in $&**1 *ndin a %*riod o so#*! atstal* "o##2nal l*ad*rs i%. A more dynamic character than any since #r/ Abbott1 $lo2 isb*st r*#*#b*r*d or t * ina2 2ration o t * "o#%an& #a aFin*, What's New? * %2bli"ation

ad s2" a %ositi * i#%a"t on !ork*r #oral* and %2bli" o%inion t at s* *ral o Abbott s"o#%*titors start*d si#ilar %2bli"ations. In 1936 Abbott b* an its lon -t*r# asso"iation !it



an*st *ti"s ! *n it introd2"*d sodi2# %*ntot al, ! i" ad b**n d* *lo%*d b& Abbotts"i*ntists rn*st 5ol!il*r and onal** ab*rn (! o in 1986 !*r* na#*d to t * U.S. In *ntorsCall o a#* or t is dis"o *r&).

2rin :orld :ar II, Abbott on"* a ain %la&*d an i#%ortant rol* in battl* i*ld and os%ital*alt "ar*. /& t is ti#*, A#*ri"an % ar#a"*2ti"al "o#%ani*s s2" as Abbott !*r* #2" l*ss

d*%*nd*nt on E*r#an& s "o#%ani*s, %arti"2larl& t * IE arb*n--a "on lo#*ration o t *!orld s #ost ad an"*d dr2 #an2 a"t2r*rs. A t*r t * !ar, #2" o t * IE arb*n s r*s*ar"!as t2rn*d o *r to A#*ri"an #an2 a"t2r*rs. Abbott, o!* *r, ad littl* to ain ro# t isin or#ation it !as alr*ad& a !ort & "o#%*titor on its o!n.

A2ter the departure o2 #eWitt Clough in $&,( , Abbott s i t*d its att*ntion to t * d* *lo%#*nto antibioti"s. * "o#%an& d* *lo%*d t * antibioti" *r&t ro#&"in, ! i" , introd2"*d 2nd*r t *brand na#*s Erythrocin and . .S. in $&()1 "onstit2t*d a si ni i"ant %ortion o Abbott s%r*s"ri%tion dr2 sal*s or s* *ral d*"ad*s--* *n a t*r t * *=%iration o its 17-&*ar %at*nt.Sal*s o t * dr2 in"r*as*d dra#ati"all& ! *n it !as o2nd to b* an * *"ti * tr*at#*nt or

* ionnair* s dis*as*.

Abbott st2#bl*d onto a l2"rati * n*! %rod2"t ! *n on* o its r*s*ar" *rs a""id*ntall&dis"o *r*d t at a " *#i"al !it ! i" * ad b**n !orkin ad a s!**t tast*. * " *#i"al, acyclamate , "o2ld b* 2s*d as an arti i"ial s!**t*n*r. Initiall&, ro# $&(' , it !as #ark*t*d todiab*ti"s, b2t in t * 1960s, as A#*ri"ans b*"a#* #or* *alt and di*t "ons"io2s, it !asin"r*asin l& 2s*d as a s2 ar s2bstit2t* in a !id* ari*t& o oods.

In $&+, Abbott "o#%l*t*d t * irst #aBor a">2isition in "o#%an& istor& ! *n it %2r" as*d$ol2#b2s, H io-bas*d ? R i*t*ti" aboratori*s. ? R !as t * #an2 a"t2r*r o Si#ila"bab& or#2la and o *r t * s2""**din d*"ad*s, as t * "o#%an& s Ross Prod2"ts i ision,2ormed the basis 2or Abbott0s market3leading in2ant and adult nutritionalsbusiness .

4ate $&+'s and Early $&-'s: #i!ersi2ication and Crises

/& t * #id-1960s, Abbott ad on* s* *ral &*ars !it o2t a #aBor br*akt ro2 in r*s*ar" , andnon* !as %roB*"t*d at an& ti#* in t * i##*diat* 2t2r*. *n, in $&+-1 Ed5ard 6/ 4edder !as na#*d %r*sid*nt o t * "o#%an&. C* ad o"at*d a r*d2"tion in Abbott s *#% asis on% ar#a"*2ti"als b& di *rsi &in into ot *r i*lds. In t * &*ars t at ollo!*d, Abbott introd2"*d anarra& o "ons2#*r %rod2"ts, in"l2din Pr*a# nondair& "r*a#*r, Elad Cands r2bb*r lo *s,

a2ltl*ss ol balls, and S2"ar&l, t * "&"la#at* s2 ar s2bstit2t*. In an * ort to *ns2r* t *s2""*ss o Abbott s "ons2#*r %rod2"t lin*, *dd*r %la"*d *l in /irnba2#, a i l&*=%*ri*n"*d and abl* #ana *r * ad ir*d a!a& ro# R* lon, in " ar * o t * di ision.

*dd*r s %oli"& o di *rsi i"ation laid t * ro2nd!ork or #or* l*=ibl* "or%orat* strat* i*s. olon *r *=%os*d *="l2si *l& !it in t * % ar#a"*2ti"als #ark*t, Abbott !as abl* to "ross-s2bsidiF* ailin o%*rations 2ntil t *& "o2ld b* r* abilitat*d.

*s%it* t is l*=ibilit&, Abbott soon r*aliF*d n*! obsta"l*s to its ro!t . * "o#%an& s os%ital%rod2"ts "o#%*t*d in a li#it*d, instit2tional #ark*t. *! dr2 s ad r*at*r %ro it #ar ins b2t!*r* s2bB*"t to o *rn#*nt a%%ro al %ro"*d2r*s t at k*%t "o#%ani*s !aitin or s* *ral &*arsb* or* t *& "o2ld #ark*t t *ir dis"o *ri*s. $ons2#*r %rod2"ts, on t * ot *r and, in ol *d#or* *=%*nsi * #ark*tin and *n*rat*d l*ss %ro it t an % ar#a"*2ti"als. Unabl* to in"r*as*%ro its !it o2t s2bstantial risk, Abbott s #ana *#*nt d*"id*d to #aintain t * strat* i*s t at!*r* in %la"*.

Cyclamate sales had gro5n so dramatically that by $&+& they accounted 2or one3third o2Abbott0s consumer product re!enues33or about 7(' million . * in"r*asin %o%2larit& o"&"la#at*s as an in r*di*nt in di*t oods, o!* *r, l*d t * ood and r2 Ad#inistration ( A)to "ond2"t an in *sti ation o %ossibl* sid* * *"ts ro# t *ir o *r2s*. * A s r*s*ar" !as!id*l& "riti"iF*d as ra #*ntar& and atall& la!*d, b2t it !as non*t *l*ss 2s*d as * id*n"*



t at "&"la#at*s !*r* "ar"ino *ni". * #ark*t "olla%s*d in A2 2st 1970 ! *n t * A bann*ddo#*sti" sal*s o "&"la#at*s. Abbott, ! i" o *rni t ad s2 *r*d t * loss o on* o its #ost%ro itabl* o%*rations, %rot*st*d t * ban, b2t !as 2nabl* to r* *rs* t * d*"ision. Alt o2 t *"o#%an& "ontin2*d to %*tition t * A, s2bs*>2*nt st2di*s "on ir#*d t at #*taboliFation o"&"la#at*s "an l*ad to " ro#oso#* br*aka * and bladd*r "an"*r.

*ss t an a &*ar a t*r "&"la#at*s !*r* bann*d, Abbott !as or"*d to r*"all 3.4 #illion bottl*s o intra *no2s sol2tion. * bottl*s !*r* s*al*d !it a arnis *d %a%*r "all*d Eilsonit*, ! i" , it!as dis"o *r*d, arbor*d ba"t*ria. * "onta#ination !as dis"o *r*d onl& ! *n *alt "ar*!ork*rs noti"*d and t *n in *sti at*d t * i in"id*n"* o in *"tion in %ati*nts ! o ad b**nad#inist*r*d Abbott s intra *no2s sol2tions. * $*nt*r or is*as* $ontrol link*d t *"onta#inat*d sol2tions to at l*ast 434 in *"tions and 49 d*at s. :it sal*s do!n ro# '17.9#illion to '3 #illion, Abbott s s ar* %ri"* b* an to all. Abbott #o *d >2i"kl& to r*%la"* itsEilsonit* s*als !it s&nt *ti" r2bb*r, b2t t * "o#%an& !as 2nabl* to r* ain its l*ad*rs i% o t *intra *no2s #ark*t. iti ation r*s2lt*d in t * "o#%an& * *nt2all& %l*adin no "ont*st to a" ar * o "ons%ira"& and %a&in a '1,000 in*.

4ate $&-'s Through $&%'s: Emphasi8ing 9 #1 utritionals1 #iagnostic E;uipment

The crises o2 the early $&-'s le2t the company0s upper echelon o2 management 5eakenedand !ulnerable to criticism/ Although Ed5ard 4edder 5as recogni8ed 2or the success o2his di!ersi2ication program <and largely excused 2or his inability to pre!ent either thecyclamate ban or the intra!enous solution crisis= , "onditions !*r* ob io2sl& ri%* or t *expression o2 talent by a ne5 manager/ 9obert Schoellhorn , a *t*ran o t *" *#i"al ind2str&, !as B2st s2" a #ana *r. Cis * orts as a i"*-%r*sid*nt in t * os%ital%rod2"ts di ision at Abbott r*s2lt*d in a r* *n2* in"r*as* o 139 %*r"*nt or t at di isionb*t!**n 1974 and 1979. C* "orr*"tl& %r*di"t*d t at t * n*=t #ost %ro itabl* tr*nd in *alt "ar*!o2ld b* to!ard "ost-* *"ti * anal&sis and tr*at#*nt. S" o*ll orn !as lat*r %ro#ot*d to%r*sid*nt and " i* o%*ratin o i"*r o t * "o#%an&. *anti#*, in $&-- Abbott *nt*r*d into a

>oint !enture 5ith Takeda Chemical Industries1 4td/ o2 6apan called TAP PharmaceuticalsInc/ 2or the code!elopment and comarketing o2 pharmaceuticals .

Abbott aboratori*s r* ist*r*d an ann2al sal*s ro!t rat* o 1 . %*r"*nt and an *arnin sro!t rat* o 16. %*r"*nt b& 1979. is *=%ansion !as attrib2t*d b& inan"ial anal&sts to t *

"o#%an& s in"r*as*d %rod2"ti it&, r*d2"*d "osts, *=%ansion into or*i n #ark*ts, and r*at*rin ol *#*nt in os%ital n2tritionals and dia nosti" t*stin *>2i%#*nt. * "o#%an& alsointrod2"*d t r** n*! dr2 s in 1979; *%ak*n*, an anti"on 2lsant ran=*n*, a #ild tran>2iliF*rand Abbokinas*, a tr*at#*nt or blood "lots in t * l2n s. All t r** %rod2"ts !*r* t * dir*"t r*s2lto t * "o#%an& s in"r*as*d in *st#*nt in r*s*ar" and d* *lo%#*nt in t * #id-1970s.

UtiliFin its kno!l*d * o intra *no2s sol2tion %rod2"tion, ita#in t *ra%&, and in ant or#2la, Abbott d* *lo%*d a "o#%r* *nsi * n2tritional t *ra%& %ro ra# to s%**d t * r*"o *r& o

os%ital %ati*nts and t *r*b& r*d2"* #*di"al "ar* "osts. In t * 1980s, as #an& as 6 %*r"*nt o all os%ital %ati*nts s2 *r*d ro# so#* or# o #aln2trition, so Abbott !as i l& s2""*ss 2l in#ark*tin t *ir %ro ra#. Anot *r ad anta * o ad2lt n2tritional %rod2"ts !as t at t *& ad a%la"* in t * ro!in o#* "ar* #ark*t.

Abbott ad si#ilar s2""*ss #ark*tin its lin*s o dia nosti" *>2i%#*nt. l*"troni" t*stind* i"*s d* *lo%*d b& Abbott %ro *d #or* a""2rat* t an #an2al %ro"*d2r*s. In ord*r tostr*n t *n t * t*" ni"al *nd o its dia nosti" *>2i%#*nt r*s*ar" , Abbott ir*d t!o to%*=*"2ti *s a!a& ro# *=as Instr2#*nts to *ad t * di ision.

Rob*rt S" o*ll orn, ! o ad an"*d to " air%*rson and " i* *=*"2ti * o i"*r in $&-&,"ontin2*d to *#% asiF* in *st#*nt in % ar#a"*2ti"al r*s*ar" and d* *lo%#*nt in t * 1980s.S* *n n*! dr2 s introd2"*d in 198 a""o2nt*d or 17 %*r"*nt o sal*s in 198 . or*i no%*rations also r*#ain*d *=tr*#*l& i#%ortant to Abbott, and t * "o#%an& ad #or* t an 7

or*i n s2bsidiari*s and #an2 a"t2rin a"iliti*s in #or* t an 30 "o2ntri*s. S" o*ll orn"ontin2*d to s2%%ort *dd*r s ori inal di *rsi i"ation %oli"&. * introd2"tion o 2rin* *&*-"ar*%rod2"ts and S*ls2n /l2* dandr2 s a#%oo s*r *d to *=%and t * do#*sti" "ons2#*r %rod2"t



lin* and %ro#is*d to %ro id* *arnin stabilit& in t * * *nt o a do!nt2rn in an& o t * "o#%an& sot *r #ark*ts.

Schoellhorn 5as also credited 5ith promoting Abbott0s emphasis on diagnostice;uipment1 especially blood analy8ers . *s* d* i"*s !*r* in"r*asin l& 2s*d to d*t*"t l* aland ill* al s2bstan"*s in t * bloodstr*a#. Abbott l*d t * tr*nd, d* *lo%in t * irst dia nosti"

t*sts or A">2ir*d I##2n* * i"i*n"& S&ndro#* (AI S), in 198 , and *%atitis. * "o#%an& s5ision blood anal&F*r it on a d*skto% and %*r or#*d 90 %*r"*nt o t&%i"al blood t*sts !it in

*i t #in2t*s. /& t * *nd o t * 1980s, sal*s o blood anal&sis d* i"*s r*%r*s*nt*d a billion-dollar b2sin*ss, and #*di"al dia nosti" %rod2"ts (at ' .3 billion %*r &*ar) "onstit2t*d n*arl& al o Abbott s ann2al sal*s. *an! il*, in t * % ar#a"*2ti"als ar*na, Abbott in 1987 r*"*i *d Aa%%ro al or a n*! dr2 "all*d C&trin or t * tr*at#*nt o &%*rt*nsion. C&trin !as a%%ro *d in1993 or t * tr*at#*nt o non"an"*ro2s *nlar *d %rostat*.

Schoellhorn 5as 5idely praised as the dri!ing 2orce behind Abbott0s phenomenal gro5thduring the $&%'s33sales nearly tripled1 pro2its doubled1 and the pharmaceutical companyrose to &'th 2rom $&-th on Fortune 0s list o2 the 5orld0s top ('' companies/ * l*ad*r saggressi!e management st&l*, o!* *r, o t*n l*d to "on li"t. H *r t * "o2rs* o t * 1980s,t r** %r*sid*nts-- 6ames 4/ ?incent <$&%$=@ "irk 9aab <$&%(=@ and 6ack W/ Schuler <$&%&=33;uit . In *"*#b*r 1989, Abbott s board o dir*"tors 2ns*at*d S" o*ll orn, ! o in t2rn s2*d t *"o#%an& or is Bob. Abbott a""2s*d S" o*ll orn o #isa%%ro%riation o "o#%an& ass*ts and

ra2d2l*nt "ond2"t, addin t at t * or#*r $ H *=*r"is*d sto"k o%tions !ort '9.3 #illion!it in da&s o is r*l*as*. S" o*ll orn !as s2""**d*d b& 5i"*-$ air#an 2an* . /2rn a#.

$&&'s and eyond: e5 #rug Introductions and Ac;uisitions

Unlik* #an& o its "o#%*titors (in"l2din *r"k, S#it <lin* /**" a#, and li ill&), Abbott didnot a">2ir* a drug distribution manager in t * *arl& 1990s. Inst*ad, t * "o#%an& %lo!*d

2nds into r*s*ar" and d* *lo%#*nt. R ? o2tla&s ros* ro# . %*r"*nt o sal*s in 198 to#or* t an 10 %*r"*nt o sal*s b& 1994--b& t * latt*r &*ar, R ? *=%*ndit2r*s n*ar*d '1 billion.

at &*ar #ark*d t * "o#%an& s 3rd "ons*"2ti * *arnin s li t and *l%*d Abbott s sto"k old

its al2* b*tt*r t an #ost "o#%*titors in t * 2n"*rtain *alt "ar* *n iron#*nt o t * *arl&1990s.

A#on k*& d* *lo%#*nts in t * *arl& 1990s !as t * introd2"tion in 1991 o "lorit ro#&"in, anantibioti" d* *lo%*d as a s2""*ssor to Abbott s *r&t ro#&"in. ark*t*d in t * Unit*d Stat*s2nd*r t * na#* /ia=in, "lorit ro#&"in !as 2s* 2l in t * tr*at#*nt o "o##on 2%%*r r*s%irator&ail#*nts s2" as t * l2 as !*ll as ot *r t&%*s o in *"tions. It >2i"kl& b*"a#* Abbott s la s i%% ar#a"*2ti"al--* *nt2all& a" i* in '1 billion in ann2al sal*s--r*#ainin so into t * *arl& 1st"*nt2r&.

*! %rod2"t introd2"tions "ontin2*d in t * #iddl* &*ars o t * d*"ad*. In 1994 Abbottintrod2"*d s* o l2ran*, an in alation an*st *ti" t at soon ain*d %o%2larit& b*"a2s* o its !id*ran * o 2s*s. * ollo!in &*ar, AP, t * Boint *nt2r* !it ak*da $ *#i"al, r*"*i *d Aa%%ro al or Pr* a"id, an 2l"*r tr*at#*nt (sal*s o Pr* a"id r*a" *d '1.3 billion b& 1998). In1996 A "l*aran"* !as rant*d or or ir, a %rot*as* in ibitor or t * tr*at#*nt o CI5 and

AI S.

#espite these 9 # successes1 Abbott0s earnings 5ere 2ailing to increase at the high3double3digit rate that they had in the $&%'s , and t * "o#%an& !as b* innin to a"* t * risko b*in obbl*d 2% b& a lar *r ri al in t * ra%idl& "onsolidatin *alt "ar* ind2str& o t *1990s. !as Shrugging o22 the conser!ati!e management o2 the early $&&'s1 Abbott mo!edaggressi!ely in the second hal2 o2 the decade to expand !ia ac;uisition and therebysta!e o22 being ac;uired itsel2/ In $&&+ Abbott bolstered its diagnostics di!ision throughthe 7%+- million purchase o2 BediSense1 Inc/1 a Waltham1 Bassachusetts3based maker o2blood3testing de!ices 2or diabetics/ This 5as the company0s 2irst ma>or deal since the

$&+, ac;uisition o2 B 9 #ietetic 4aboratories/ In $&&- Abbott spent about 7)'' million2or certain intra!enous product lines o2 Sano2i Pharmaceuticals1 Inc/1 the /S/ unit o2France0s Sano2i S/A/ Included in this deal Carpu>et1 an in>ectable drug3deli!ery system



based on preloaded1 single3dose syringes/ Also in $&&-1 Abbott su22ered a potentialsetback 5hen Takeda Chemical did not rene5 a ten3year contract that ga!e Abbott theright o2 2irst re2usal to distribute Takeda0s ne5 drugs in the nited States !ia the TAP!enture/ Takeda had decided to set up its o5n sales and marketing organi8ation in the

nited States/ y this time TAP 5as generating annual sales in excess o2 7) billion1primarily 2rom the marketing o2 Pre!acid and 4upron1 a prostate3cancer drug/

y $&&- Abbott had doubled its sales and earnings since urnham had taken o!er 2romthe ousted Schoellhorn/ In early $&&% urnham announced that he 5ould retire in $&&& .

At t * b* innin o t at &*ar, il*s . : it*, ! o ad b**n a s*nior i"*-%r*sid*nt in " ar * ot * dia nosti"s di ision, took o *r as $ H. at*r in 1999, : it* !as na#*d " air#an as !*ll.#uring the leadership transition period in $&&%1 Abbott ac;uired Burex TechnologiesCorporation1 a maker o2 diagnostics products1 2or 7)*, million/ #uring $&&&1 Abbott0sappetite 2or gro5th increased exponentially 5ith the announcement in 6une o2 a deal toac;uire A4DA Corporation 2or 7-/* billion in stock/ A4DA 5as a leading producer o2ad!anced drug3deli!ery systems and had a solid pipeline o2 ne5 pharmaceuticals underde!elopment . * *d*ral rad* $o##ission ( $), o!* *r, rais*d antitr2st "on"*rns abo2tt * #*r *r, and ! *n t * t!o sid*s !*r* 2nabl* to r*a" an a r**#*nt !it t * $, t *&"all*d o t * #*r *r in *"*#b*r. Anot *r %ossibl* a"tor in t * "olla%s* o t * d*al !as t *d*"lin* in Abbott s sto"k %ri"* ollo!in t * "o#%an& s a r**#*nt in o *#b*r to %2ll 1 t&%*so #*di"al-dia nosti" t*st kits o t * U.S. #ark*t and to %a& a '100 #illion "i il %*nalt& to t *U.S. o *rn#*nt. Sin"* 1993 t * A ad b**n iss2in !arnin s to Abbott r* ardin >2alit&"ontrol d* i"i*n"i*s at its t*st kit %lants, !it t * #ark*t !it dra!al and %a&#*nt o t * in*b*in t * o2t"o#* o t is %ro"*ss. * A also "it*d %oor #an2 a"t2rin "ontrols as t *r*ason or its altin t * sal*s o Abbott s "lot-dissol in a *nt Abbokinas* in *arl& 1999.

In t * #*anti#*, Abbott #ana *d to "o#%l*t* t!o s#all*r a">2isitions in 1999. It a">2ir*dP*r"los*, In"., a #ak*r o s2t2r*s 2s*d to "los* art*ri*s d2rin an io%last& %ro"*d2r*s, orabo2t '600 #illion in sto"k. Abbott also %aid ' 17 #illion in "as to Ela=o :*ll"o#* In". or i *an*st *sia %rod2"ts. In @an2ar& 000 Abbott sold its a ri"2lt2ral %rod2"ts b2sin*ss toS2#ito#o $ *#i"al $o., td. Abbott !as no! or t * irst ti#* in d*"ad*s a %2r* *alt "ar*

ir#. Abbott in A%ril o t at &*ar b* an #ark*tin /ia=in , a n*! on"*-dail& or#2lation o itsla s i% /ia=in antibioti". * A in S*%t*#b*r 000 rant*d *=%*dit*d a%%ro al to <al*tra, a

s*"ond- *n*ration AI S #*di"ation d* *lo%*d b& Abbott. <al*tra ad t * %ot*ntial to o *rtak*t * to% AI S dr2 , P iF*r In". s 5ira"*%t, b*"a2s* it ad *!*r sid* * *"ts. It also a%%*ar*d t at%ati*nts did not d* *lo% r*sistan"* to <al*tra o *r ti#*, as a%%*n*d !it #ost ot *r AI Sdr2 s, in"l2din 5ira"*%t. *n in *"*#b*r 000 Abbott la2n" *d anot *r att*#%t at a #aBora">2isition ! *n it r*a" *d an a r**#*nt to a">2ir* t * <noll P ar#a"*2ti"al $o. 2nit oE*r#an " *#i"al iant /AS AE or '6.9 billion in "as . Hn"* a ain, Abbott s ai# !as tobolst*r its %rod2"t %i%*lin*, and <noll ad at l*ast on* %ot*ntial blo"kb2st*r in a dr2 "all*d

7, an *=%*ri#*ntal r *2#atoid art ritis tr*at#*nt. <noll s *=istin %rod2"ts in"l2d*d*ridia, an ob*sit& dr2 !it ann2al sal*s o abo2t '400 #illion, and S&nt roid, a '1 0 #illion

t &roid dr2 . * a">2isition !o2ld also boost Abbott s % ar#a"*2ti"al R ? b2d *t to n*arl&'1 billion.

Principal Subsidiaries: Abbott $ *#i"als Plant, In". Abbott *r#*ntation Prod2"ts d* P2*rtoRi"o, In". Abbott C*alt Prod2"ts, In". Abbott Co#* In 2sion S*r i"*s o *! +ork, In". AbbottInt*rnational td. Abbott Int*rnational td. o P2*rto Ri"o Abbott aboratori*s In". Abbott

aboratori*s Int*rnational $o. Abbott aboratori*s Pa"i i" td. Abbott aboratori*s (P2*rtoRi"o) In"or%orat*d Abbott aboratori*s R*sid*ntial * *lo%#*nt 2nd, In". Abbott

aboratori*s S*r i"*s $or%. Abbott radin $o#%an&, In". Abbott Uni *rsal td. A$ *r *rS2b In". $ rans%ortation, In". $or%orat* Allian"*, In". I $ *" nolo i*s, In". 2r*=

ia nosti"s, In". ort S or* Pro%*rti*s, In". H=i#*tri= d* P2*rto Ri"o, In". P*r"los*, In".Solart*k Prod2"ts, In". Sor*nson R*s*ar" $o., In". S!an- &*rs, In"or%orat*d AP inan"*In". obal Prod2"ts In"or%orat*d Abbott aboratori*s Ar *ntina, S.A. Abbott A2stralasia Pt&.

i#it*d (A2stralia) *diS*ns* A2stralia Pt&. td. Abbott E*s*lls" a t #.b.C. (A2stria) AbbottCos%itals i#it*d (/a a#as) 2r*= ia nosti"s Int*rnational, In". (/arbados) Abbott, S.A.

(/*l i2#) Abbott aboratorios do /rasil tda. (/raFil) Abbott aboratori*s i#it*d ($anada)Int*rnational 2r*= *" nolo i*s $or%oration ($anada) Abbott aboratori*s d* $ il* i#itada($ il*) Abbott aboratori*s d* $olo#bia, S.A. Abbott aboratori*s s.r.o. ($F*" R*%2bli")



2r*= ia nosti"a, S%ol. s.r.o. ($F*" R*%2bli") Abbott aboratori*s AGS ( *n#ark) 2r*=ia nosti"s AGS ( *n#ark) Abbott aboratorios d*l "2ador, S.A. Abbott, S.A. d* $.5. ( l

Sal ador) Abbott H+ ( inland) Abbott ran"* S.A. Al"&on Anal&F*r S.A. *diS*ns* ran"*SAR 2r*= ia nosti"s ( ran"*) S.A. Abbott E.#.b.C. (E*r#an&) Abbott ia nosti"sE.#.b.C. (E*r#an&) 2r*= ia nosti"a E#bC (E*r#an&) Abbott aboratori*s (C*llas) S.A.(Er**"*) Abbott aboratorios, S.A. (E2at*#ala) Abbott aboratori*s i#it*d (Con <on )

Abbott aboratori*s (C2n ar&) td. Abbott aboratori*s (India) td. ( 1J) Abind C*alt "ar*Pri at* i#it*d (India) P. . Abbott Indon*sia (97J) Abbott aboratori*s, Ir*land, i#it*d Abbott Ir*land td. Abbott S.%.A. (Ital&) 2r*= ia nosti"i S.%.A. (Ital&) Abbott @a%an <.<.(@a%an) ainabot $o., td. (@a%an 73J) Abbott <or*a i#it*d Abbott iddl* ast S.A.R. .( *banon) Abbott aboratori*s ( ala&sia) Sdn. / d. Abbott aboratori*s d* *=i"o, S.A. d*$.5. Abbott aboratori*s ( oFa#bi>2*) i#itada dis"o /.5. ( *t *rlands) Abbott /.5.( *t *rlands) Abbott aboratori*s /.5. ( *t *rlands) Abbott inan"* /.5. ( *t *rlands)

Abbott Coldin s /.5. ( *t *rlands) *diS*ns* 2ro%* /.5. ( *t *rlands) *diS*ns**t *rlands, /.5. I $ Coldin s /.5. ( *t *rlands) I $ inan"* /.5. ( *t *rlands) 2r*=ia nosti"s /*n*l2= /.5. ( *t *rlands) Abbott aboratori*s ( .D.) i#it*d ( *! D*aland)

Abbott or * A S ( or!a&) Abbott aboratori*s (Pakistan) i#it*d (83.4 J) Abbottaboratori*s, $.A. (Pana#a) Abbott H *rs*as, S.A. (Pana#a) Abbott aboratorios S.A. (P*r2)

Abbott aboratori*s (P ili%%in*s) Abbott aboratori*s S%. F.o.o. (Poland) Abbott aboratorios,

i#itada (Port2 al) Abbott aboratori*s (Sin a%or*) Pri at* i#it*d Abbott aboratori*s So2t A ri"a (Pt&.) i#it*d Abbott aboratori*s, S.A. (S%ain) Abbott $i*nti i"a, S.A. (S%ain) AbbottS"andina ia A./. (S!*d*n) Abbott A.E. (S!itF*rland) Abbott aboratori*s S.A. (S!itF*rland)

Abbott inan"* $o#%an& S.A. (S!itF*rland) Abbott aboratori*s ai!an i#it*d Abbottaboratori*s i#it*d ( ailand) Abbott aborat2arlari It alat I ra"at 5* *"ar*t i#it*d Sirk*ti

( 2rk*&) Abbott In *st#*nts i#it*d (U.<.) Abbott aboratori*s i#it*d (U.<.) Abbott (U<)Coldin s i#it*d Abbott aboratori*s r2st** $o#%an& i#it*d (U.<.) I $ Coldin s (U<)

i#it*d *diS*ns* /ritain, td. (U.<.) *diS*ns* U< td. 2r*= /iot*" i#it*d (U.<.)S%*"ialist ia nosti"a i#it*d (U.<.) Abbott aboratori*s Ur2 2a& i#itada Abbott

aboratori*s, $.A. (5*n*F2*la) *di"a#*ntos ? R, S.A. (5*n*F2*la).

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