Abbott Laboratories Com Stk NPV (NYSE:ABT)

CAPS Rating: 5 out of 5

Principal business is the discovery, development, manufacture and sale of a broad and diversified line of health care products. Company has four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.


Player Avatar XMFChaodan (74.75) Submitted: 1/13/2013 3:12:06 PM : Outperform Start Price: $32.81 ABT Score: -0.99

Facing a spin off of AbbVie Laboratories which consists of the segment with the giant patent expiring in 2015. The rest of the ABT business will consist of supplements and such. Even though there is a competitive market out there, ABT has a good standing. The value of ABT is expected to go up after the spin off because AbbVie is a shareholder worry.

Member Avatar XMFChaodan (74.75) Submitted: 1/30/2013 2:34:04 PM
Recs: 0

over 50 billion market cap, large cap. Abbott Laboratories has 5 segments: proprietary pharmaceuticals, established pharmaceuticals, diagnostics products, nutritional products, and vascular products. In October of 2011, Abbott announced that it was planning to separate into two publicly traded companies: Abbott: carrying the existing established pharmaceuticals, diagnostics, and nutritional business, and AbbVie: will be the research-based pharmaceutical company that will carry the portfolio of proprietary pharmaceuticals. The spinoff occurred January 2nd of 2013. This is good news: the company was composed of two primary segments that were very different in nature. The Medical Products segment is more consumer-oriented; while the Pharmaceuticals segment is dominated by a few large government players and is strongly research-based, hence needing greater investment and a longer time-span in order to be profitable. The separation of these two segments will indeed unlock value. I think that both are going to be good investments. But it depends on what you’re looking for in your portfolio. AbbVie is likely to experience a greater increase in value due to its potential to discover more drugs and acquire more patents. However, there are also greater risks, including the fact that its main money-maker, Humira, is going to expire in 2016. Abbott is a good investment because it holds of portfolio of highly recognizable brands, like Similac, Ensure, Glucerna, and is no longer attached to all the risks associated with pharmaceutical research and patent expirations. According to DCF, it is currently priced at its fair value of around $33. But it seems fair to buy in a good company at its fair value than a bad company at a discount.

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