Abbott Laboratories

Last edited by apocalypticbeef on July 14, 2008 - 6:32pm

Company Snapshot:

Abbott is a health care products manufacturer whose products extend from nutritional products and laboratory diagnostics to medical devices and pharmaceuticals. The company conducts business in at least 130 countries around the world.

Ownership status:

Publicly traded

Number of employees worldwide:

65,000

Chief executive officer:

Miles D. White

2008 Global Fortune 500 rank:

312

Website:

http://www.abbott.com

Corporate accountability

Accountability overview:

The company's first major crisis occurred in 1971, when the FDA forced the company to recall 3.4 million bottles of IV solution because they were improperly closed. According to the government, the contamination caused 350 cases of blood poisoning and 9 deaths. The Justice Department indicted Abbott and five of the company's executives on 60 counts, but as a result of a weak follow-through, the case was later dropped. Abbott ended up pleading no contest to one count of conspiracy and paying a fine of $1,000 for the misdemeanor.

For years Abbott tried to get the FDA to rescind its 1969 ban on cyclamates (suspected cancer agents) claiming that their research indicated they were safe. On the other hand, observers say that the company was more responsive than other companies to protests against the promotion of infant formulas in Third World countries, changing labels to stress the importance of breast feeding and stating clearly that an infant can become ill if the formula is improperly diluted or prepared with impure water.

History

Abbott Laboratories was founded by Chicago physician Wallace Calvin Abbott in 1888. Dr. Abbott was a convert to a new form of medication: alkaloid pills. Dissatisfied with the quality of alkaloid pills on the market, he began making them in his kitchen. Three years later, he began to advertise them to his fellow doctors. Abbott was a gifted salesman. In 1900 he set up the Abbott Alkaloidal Company, starting out with 300 products. By 1905 sales had reached $200,000. With the AMA refusing to let him advertise in their journal, he printed his own 48-page pamphlet and mailed it to every doctor in the nation.

WW I expanded the U.S. pharmaceutical firms' market as important drugs previously supplied by German companies became unavailable. Over the next three decades, the company's laboratories in North Chicago saw the introduction of Nembutal (a sedative), sodium pentothal ("truth serum"), vitamins, Tridone (epilepsy treatment), Diasone (oral drug for leprosy), and various tranquilizers.

In 1985, the company developed the first HIV blood screening test. The company's drug portfolio includes Humira, a drug for rheumatoid arthritis and Crohn's disease, Norvir, a treatment for HIV, Depakote, an anticonvulsant drug, and Synthroid, a synthetic thyroid hormone. Abbott also has a broad range of diagnostics and immunoassay products as Abbott Point-of-Care manufactures diagnostic products for blood analysis to provide health care professionals critical diagnostics information accurately and immediately at the point of patient care. In addition to its offerings in the blood gas and chemistries segment, Abbott also provides point-of-care cardiac assays to the emergency room.

Financial information

Stock ticker symbol:

ABT

Total revenue:

$25.914 billion

Fiscal year:

2007

Net Income:

$3.606 billion

Fiscal year:

2007

Major lines of business/segments:

The company's product lines include pharmaceuticals, infant formulas, diagnostic instruments and tests, medical and surgical devices, and veterinary products.

Additional descriptive data

Link to complete list of brands:

http://www.abbott.com/global/url/content/en_US/20.10:10/product/Products_A-Z_Lis...