Life Science News

  • Sales growth of 10.1 percent; organic sales growth of 14.3 percent
  • GAAP diluted EPS growth of 72.7 percent; adjusted diluted EPS growth of 22.2 percent
  • Global COVID-19 testing-related sales of $2.3 billion in the second quarter
  • Continues to strengthen portfolio with new product approvals

Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2022 .

  • Second-quarter sales of $11.3 billion increased 10.1 percent on a reported basis and 14.3 percent on an organic basis, which excludes the impact of foreign exchange.
  • GAAP diluted EPS 1 was $1.14 in the second quarter. Excluding specified items, adjusted diluted EPS was $1.43 , which reflects growth of 22.2 percent compared to the prior year.
  • Global COVID-19 testing-related sales were $2.3 billion in the second quarter.
  • Abbott is raising its full-year 2022 EPS guidance. Abbott projects full-year diluted EPS on a GAAP basis of at least $3.50 and projected adjusted diluted EPS of at least $4.90 .
  • 2022 guidance includes projected COVID-19 testing-related sales of $6.1 billion , which includes sales of $5.6 billion through June 2022 and projected sales of $500 million over the next few months.
  • In April, Abbott announced U.S. Food and Drug Administration (FDA) approval of its Aveir™ single-chamber (VR) leadless pacemaker for the treatment of patients with slow heart rhythms. Aveir VR is the world's only leadless pacemaker with a unique mapping capability to assess correct positioning prior to placement and was specifically designed to be expandable and retrievable when therapy needs evolve or the device needs to be replaced.
  • In May, Abbott announced U.S. FDA clearance of its FreeStyle Libre ® 3 system, which automatically delivers up-to-the-minute glucose readings and unsurpassed 14-day accuracy 2 in the world's smallest and thinnest 3 wearable sensor.
  • In June, Abbott announced breakthrough device designation from the U.S. FDA for its first-of-its-kind glucose-ketone biowearable sensor development program, which will enable people with diabetes to continuously monitor glucose and ketones in one sensor, helping those at risk for developing a life-threatening complication called diabetic ketoacidosis.

"We achieved another quarter of strong growth and are raising our full-year EPS guidance," said Robert B. Ford , chairman and chief executive officer, Abbott. "Our new product pipeline has remained highly productive, and our diversified business has continued to be resilient in a challenging macro environment."

SECOND-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.

Following are sales by business segment and commentary for the second quarter 2022:

Total Company
($ in millions)










% Change vs. 2Q21



Sales 2Q22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total *


4,892


6,365


11,257


36.6


(4.2)


10.1


36.6


2.3


14.3

Nutrition


761


1,192


1,953


(12.9)


(3.5)


(7.4)


(12.9)


1.5


(4.5)

Diagnostics


2,469


1,853


4,322


113.8


(11.4)


33.1


113.8


(5.6)


36.9

Established Pharmaceuticals


--


1,223


1,223


n/a


3.7


3.7


n/a


9.2


9.2

Medical Devices


1,660


2,097


3,757


7.9


(1.5)


2.5


7.9


7.1


7.5


* Total Q2 2022 Abbott sales include Other Sales of approximately $2 million.









% Change vs. 1H21



Sales 1H22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total *


9,829


13,323


23,152


32.5


0.5


12.0


32.5


6.7


15.9

Nutrition


1,438


2,409


3,847


(15.9)


(1.1)


(7.2)


(15.9)


3.6


(4.4)

Diagnostics


5,210


4,398


9,608


86.4


(1.5)


32.3


86.4


4.3


35.9

Established Pharmaceuticals


--


2,370


2,370


n/a


5.3


5.3


n/a


11.2


11.2

Medical Devices


3,176


4,146


7,322


9.9


1.2


4.8


9.9


9.0


9.4


* Total 1H 2022 Abbott sales include Other Sales of approximately $5 million.


n/a = Not Applicable.


Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

Second-quarter 2022 worldwide sales of $11.3 billion increased 10.1 percent on a reported basis and 14.3 percent on an organic basis.

Worldwide sales, excluding COVID-19 testing-related sales, decreased 0.3 percent on a reported basis and increased 4.1 percent on an organic basis in the quarter. 4 Worldwide sales were negatively impacted by a voluntary recall and manufacturing shutdown initiated in February of certain infant formula products manufactured at one of Abbott's U.S. plants. Excluding COVID-19 testing-related sales and the U.S. sales associated with the recalled products in the current and prior years, total worldwide sales increased 1.6 percent on a reported basis and 6.2 percent on an organic basis in the second quarter. 5

Nutrition
($ in millions)










% Change vs. 2Q21



Sales 2Q22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


761


1,192


1,953


(12.9)


(3.5)


(7.4)


(12.9)


1.5


(4.5)

Pediatric


413


512


925


(21.6)


(9.5)


(15.3)


(21.6)


(5.8)


(13.4)

Adult


348


680


1,028


0.5


1.6


1.2


0.5


7.6


5.2









% Change vs. 1H21



Sales 1H22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


1,438


2,409


3,847


(15.9)


(1.1)


(7.2)


(15.9)


3.6


(4.4)

Pediatric


751


1,021


1,772


(27.5)


(9.1)


(17.9)


(27.5)


(5.6)


(16.1)

Adult


687


1,388


2,075


2.1


5.8


4.6


2.1


11.5


8.3

Worldwide Nutrition sales decreased 7.4 percent on a reported basis and 4.5 percent on an organic basis in the second quarter. Total worldwide Nutrition and Pediatric Nutrition sales were negatively impacted by a voluntary recall and manufacturing shutdown initiated in February of certain infant formula products manufactured at one of Abbott's U.S. plants. On July 1 , Abbott restarted partial production at the facility. Excluding the U.S. sales associated with these products in the current and prior years, total worldwide Nutrition sales increased 0.5 percent on a reported basis and 3.8 percent on an organic basis in the second quarter. 6

In Adult Nutrition, Ensure ® , Abbott's market-leading complete and balanced nutrition brand, and Glucerna ® , Abbott's market-leading diabetes nutrition brand, led to global sales growth of 1.2 percent on a reported basis and 5.2 percent on an organic basis.

Diagnostics
($ in millions)










% Change vs. 2Q21



Sales 2Q22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


2,469


1,853


4,322


113.8


(11.4)


33.1


113.8


(5.6)


36.9

Core Laboratory


287


934


1,221


1.3


(8.6)


(6.5)


1.3


(2.0)


(1.3)

Molecular


71


141


212


(23.7)


(28.4)


(26.9)


(23.7)


(24.4)


(24.2)

Point of Care


101


38


139


3.2


(3.7)


1.2


3.2


0.3


2.4

Rapid Diagnostics


2,010


740


2,750


195.4


(11.2)


81.7


195.4


(5.8)


84.6









% Change vs. 1H21



Sales 1H22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


5,210


4,398


9,608


86.4


(1.5)


32.3


86.4


4.3


35.9

Core Laboratory


555


1,850


2,405


0.1


(4.3)


(3.4)


0.1


1.7


1.3

Molecular


243


389


632


(9.4)


(16.9)


(14.2)


(9.4)


(12.4)


(11.3)

Point of Care


192


75


267


1.2


(1.7)


0.4


1.2


2.0


1.4

Rapid Diagnostics


4,220


2,084


6,304


136.6


4.9


67.2


136.6


10.9


70.4

Worldwide Diagnostics sales increased 33.1 percent on a reported basis and 36.9 percent on an organic basis in the second quarter. Global COVID-19 testing-related sales were $2.3 billion in the quarter, led by sales of testing products in Rapid Diagnostics.

Sales in Core Laboratory and Molecular Diagnostics were impacted by year-over-year declines in COVID-19 testing-related sales in these businesses. Excluding COVID-19 testing-related sales, Core Laboratory Diagnostics sales decreased 3.1 percent on a reported basis and increased 2.3 percent on an organic basis and Molecular Diagnostics sales increased 17.9 percent on a reported basis and 22.3 percent on an organic basis in the second quarter. 7

Established Pharmaceuticals
($ in millions)










% Change vs. 2Q21



Sales 2Q22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


--


1,223


1,223


n/a


3.7


3.7


n/a


9.2


9.2

Key Emerging Markets


--


931


931


n/a


1.8


1.8


n/a


7.1


7.1

Other


--


292


292


n/a


10.3


10.3


n/a


16.7


16.7









% Change vs. 1H21



Sales 1H22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


--


2,370


2,370


n/a


5.3


5.3


n/a


11.2


11.2

Key Emerging Markets


--


1,833


1,833


n/a


5.6


5.6


n/a


11.8


11.8

Other


--


537


537


n/a


4.5


4.5


n/a


9.2


9.2

Established Pharmaceuticals sales increased 3.7 percent on a reported basis and 9.2 percent on an organic basis in the second quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 1.8 percent on a reported basis and 7.1 percent on an organic basis, led by double-digit growth on a reported and organic basis in several geographies and therapeutic areas, including cardiometabolic, respiratory and central nervous system/pain management.

Other sales increased 10.3 percent on a reported basis and 16.7 percent on an organic basis in the quarter.

Medical Devices
($ in millions)










% Change vs. 2Q21



Sales 2Q22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


1,660


2,097


3,757


7.9


(1.5)


2.5


7.9


7.1


7.5

Rhythm Management


264


284


548


(2.3)


(4.4)


(3.4)


(2.3)


3.7


0.9

Electrophysiology


226


260


486


8.6


(6.8)


(0.2)


8.6


2.2


5.0

Heart Failure


179


62


241


6.5


4.2


5.9


6.5


13.6


8.3

Vascular


228


425


653


(6.7)


(5.8)


(6.1)


(6.7)


1.2


(1.6)

Structural Heart


207


233


440


8.1


0.9


4.2


8.1


11.4


9.9

Neuromodulation


157


40


197


(5.2)


(8.7)


(6.0)


(5.2)


0.2


(4.1)

Diabetes Care


399


793


1,192


37.8


3.4


12.8


37.8


12.4


19.4









% Change vs. 1H21



Sales 1H22


Reported


Organic



U.S.


Int'l


Total


U.S.


Int'l


Total


U.S.


Int'l


Total

Total


3,176


4,146


7,322


9.9


1.2


4.8


9.9


9.0


9.4

Rhythm Management


512


560


1,072


0.3


(2.7)


(1.3)


0.3


4.4


2.5

Electrophysiology


442


529


971


14.0


(0.1)


5.8


14.0


8.0


10.5

Heart Failure


346


116


462


10.6


7.3


9.7


10.6


15.9


11.9

Vascular


437


835


1,272


(6.0)


(3.7)


(4.5)


(6.0)


2.6


(0.4)

Structural Heart


397


454


851


10.4


3.4


6.5


10.4


12.8


11.7

Neuromodulation


300


76


376


(3.4)


(9.1)


(4.6)


(3.4)


(0.9)


(2.9)

Diabetes Care


742


1,576


2,318


36.8


5.5


13.8


36.8


13.7


19.8

Worldwide Medical Devices sales increased 2.5 percent on a reported basis and 7.5 percent on an organic basis in the second quarter. Sales growth was negatively impacted by reduced cardiovascular and neuromodulation procedure volumes as a result of recent surges of COVID-19 in several geographies, healthcare staffing challenges and lockdowns in China that were implemented to control the spread of the virus.

In Diabetes Care, FreeStyle Libre sales were approximately $1.1 billion in the quarter, which represents sales growth of 18.7 percent on a reported basis and 25.6 percent on an organic basis.

ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott is raising its projected full-year 2022 diluted earnings per share under GAAP to at least $3.50 . Abbott forecasts specified items for the full-year 2022 of $1.40 per share primarily related to intangible amortization, costs related to a voluntary recall, expenses associated with acquisitions, restructurings and cost reduction initiatives and other net expenses. Excluding specified items, Abbott is raising its projected adjusted diluted earnings per share to at least $4.90 for the full-year 2022.

ABBOTT DECLARES 394 TH CONSECUTIVE QUARTERLY DIVIDEND
On June 10, 2022 , the board of directors of Abbott declared the company's quarterly dividend of $0.47 per share. Abbott's cash dividend is payable Aug. 15, 2022 , to shareholders of record at the close of business on July 15, 2022 .

Abbott has increased its dividend payout for 50 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 113,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com , on LinkedIn at www.linkedin.com/company/abbott-/ , on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews .

Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.

Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2021 , and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

1

All reported amounts relate to continuing operations only as there are no discontinued operations in the periods presented.

2

Data on file, Abbott Diabetes Care. Comparison based on publicly available information.

3

Among patient-applied sensors. Data on file, Abbott Diabetes Care.

4

In the second quarter of 2022, COVID-19 testing-related sales were $2.324 billion. In the second quarter of 2021, total worldwide sales were $10.223 billion, which included COVID-19 testing-related sales of $1.267 billion.

5

In the second quarter of 2022, U.S. sales of certain infant formula products were $116 million. In the second quarter of 2021, U.S. sales of certain infant formula products were $280 million.

6

In the second quarter of 2021, worldwide Nutrition sales were $2.108 billion, which included $280 million of U.S. sales of certain infant formula products.

7

In the second quarter of 2022, Core Laboratory and Molecular Diagnostics COVID-19 testing-related sales were $12 million and $75 million, respectively. In the second quarter of 2021, worldwide Core Laboratory and Molecular Diagnostics sales were $1.306 billion and $290 million, respectively. Core Laboratory and Molecular Diagnostics COVID-19 testing-related sales in the second quarter of 2021 were $58 million and $173 million, respectively.

Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Second Quarter Ended June 30, 2022 and 2021
(in millions, except per share data)
(unaudited)





2Q22


2Q21


% Change


Net Sales


$11,257


$10,223


10.1










Cost of products sold, excluding amortization expense


4,933


4,947


(0.3)

1)

Amortization of intangible assets


507


504


0.7


Research and development


684


654


4.8


Selling, general, and administrative


2,757


2,726


1.1


Total Operating Cost and Expenses


8,881


8,831


0.6










Operating Earnings


2,376


1,392


70.6










Interest expense, net


106


123


(14.1)


Other (income) expense, net


(82)


(79)


3.6


Earnings before taxes


2,352


1,348


74.4


Taxes on earnings


334


159


109.2










Net Earnings


$2,018


$1,189


69.7










Net Earnings Excluding Specified Items, as described below


$2,542


$2,115


20.2

2)









Diluted Earnings per Common Share


$1.14


$0.66


72.7










Diluted Earnings per Common Share,








excluding Specified Items, as described below


$1.43


$1.17


22.2

2)









Average Number of Common Shares Outstanding








Plus Dilutive Common Stock Options


1,765


1,793




















NOTES:


See tables titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

See footnotes on the following below.



1)

2021 Cost of products sold, excluding amortization expense includes approximately $500 million of charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.



2)

2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $524 million, or $0.29 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.




2021 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $926 million, or $0.51 per share, for intangible amortization and other net expenses primarily associated with restructuring actions, certain litigation and acquisitions.

Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
First Half Ended June 30, 2022 and 2021
(in millions, except per share data)
(unaudited)





1H22


1H21


% Change










Net Sales


$23,152


$20,679


12.0


























Cost of products sold, excluding amortization expense


9,920


9,348


6.1

1)









Amortization of intangible assets


1,019


1,013


0.6










Research and development


1,381


1,308


5.6










Selling, general, and administrative


5,544


5,509


0.6










Total Operating Cost and Expenses


17,864


17,178


4.0


























Operating Earnings


5,288


3,501


51.0


























Interest expense, net


223


247


(9.9)










Net foreign exchange (gain) loss


(3)


3


n/m










Other (income) expense, net


(160)


(140)


14.5










Earnings before taxes


5,228


3,391


54.2










Taxes on earnings


763


409


86.5

2)

























Net Earnings


$4,465


$2,982


49.7


























Net Earnings Excluding Specified Items, as described below


$5,619


$4,483


25.3

3)

























Diluted Earnings per Common Share


$2.51


$1.66


51.2


























Diluted Earnings per Common Share,
















excluding Specified Items, as described below


$3.16


$2.49


26.9

3)

























Average Number of Common Shares Outstanding
















Plus Dilutive Common Stock Options


1,770


1,792












NOTES:


See tables titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following below.



1)

2021 Cost of products sold, excluding amortization expense includes approximately $500 million of charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.



2)

2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.




2021 Taxes on Earnings includes the recognition of approximately $90 million in excess tax benefits associated with share-based compensation.



3)

2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.154 billion, or $0.65 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.




2021 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.501 billion, or $0.83 per share, for intangible amortization and other net expenses primarily associated with restructuring actions, certain litigation and acquisitions.

Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
Second Quarter Ended June 30, 2022 and 2021
(in millions, except per share data)
(unaudited)





2Q22



As
Reported
(GAAP)


Specified
Items


As
Adjusted


% to
Sales










Intangible Amortization


$           507


$     (507)


$         --



Gross Margin


5,817


563


6,380


56.7 %

R&D


684


(32)


652


5.8 %

SG&A


2,757


(14)


2,743


24.4 %

Other (income) expense, net


(82)


(12)


(94)



Earnings before taxes


2,352


621


2,973



Taxes on Earnings


334


97


431



Net Earnings


2,018


524


2,542



Diluted Earnings per Share


$1.14


$0.29


$1.43




Specified items reflect intangible amortization expense of $507 million and other net expenses of $114 million that includes costs associated with a product recall, acquisitions, and other net expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.



2Q21



As
Reported
(GAAP)


Specified
Items


As
Adjusted


% to
Sales










Intangible Amortization


$            504


$     (504)


$          --



Gross Margin


4,772


1,048


5,820


56.9 %

R&D


654


(18)


636


6.2 %

SG&A


2,726


(90)


2,636


25.8 %

Other (income) expense, net


(79)


35


(44)



Earnings before taxes


1,348


1,121


2,469



Taxes on Earnings


159


195


354



Net Earnings


1,189


926


2,115



Diluted Earnings per Share


$0.66


$0.51


$1.17




Specified items reflect intangible amortization expense of $504 million and other net expenses of $617 million, primarily associated with restructuring actions, certain litigation, acquisitions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.

Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
First Half Ended June 30, 2022 and 2021
(in millions, except per share data)
(unaudited)





1H22



As
Reported
(GAAP)


Specified
Items


As
Adjusted


% to
Sales










Intangible Amortization


$         1,019


$  (1,019)


$         --



Gross Margin


12,213


1,199


13,412


57.9 %

R&D


1,381


(65)


1,316


5.7 %

SG&A


5,544


(53)


5,491


23.7 %

Other (income) expense, net


(160)


(27)


(187)



Earnings before taxes


5,228


1,344


6,572



Taxes on Earnings


763


190


953



Net Earnings


4,465


1,154


5,619



Diluted Earnings per Share


$2.51


$0.65


$3.16












Specified items reflect intangible amortization expense of $1.019 billion and other net expenses of $325 million that includes costs associated with a product recall, acquisitions, and other net expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.



1H21



As
Reported
(GAAP)


Specified
Items


As
Adjusted


% to
Sales










Intangible Amortization


$         1,013


$   (1,013)


$          --



Gross Margin


10,318


1,597


11,915


57.6 %

R&D


1,308


(46)


1,262


6.1 %

SG&A


5,509


(244)


5,265


25.5 %

Other (income) expense, net


(140)


23


(117)



Earnings before taxes


3,391


1,864


5,255



Taxes on Earnings


409


363


772



Net Earnings


2,982


1,501


4,483



Diluted Earnings per Share


$1.66


$0.83


$2.49




Specified items reflect intangible amortization expense of $1.013 billion and other net expenses of $851 million, primarily associated with restructuring actions, certain litigation, acquisitions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.

A reconciliation of the second-quarter tax rates for 2022 and 2021 is shown below:





2Q22

($ in millions)


Pre-Tax
Income


Taxes on
Earnings


Tax
Rate

As reported (GAAP)


$2,352


$        334


14.2 %

Specified items


621


97



Excluding specified items


$2,973


$431


14.5 %












2Q21

($ in millions)


Pre-Tax
Income


Taxes on
Earnings


Tax
Rate

As reported (GAAP)


$1,348


$159


11.9 %

Specified items


1,121


195



Excluding specified items


$2,469


$354


14.4 %

A reconciliation of the year-to-date tax rates for 2022 and 2021 is shown below:





1H22


($ in millions)


Pre-Tax
Income


Taxes on
Earnings


Tax
Rate


As reported (GAAP)


$5,228


$        763


14.6 %

1)

Specified items


1,344


190




Excluding specified items


$6,572


$953


14.5 %














1H21


($ in millions)


Pre-Tax
Income


Taxes on
Earnings


Tax
Rate


As reported (GAAP)


$3,391


$409


12.1 %

2)

Specified items


1,864


363




Excluding specified items


$5,255


$772


14.7 %











1)

2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.



2)

2021 Taxes on Earnings includes the recognition of approximately $90 million in excess tax benefits associated with share-based compensation.

Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2022
(in millions, except per share data)
(unaudited)




Acquisition or
Divestiture-
related (a)


Restructuring
and Cost
Reduction
Initiatives (b)


Intangible
Amortization


Other (c)


Total
Specifieds

Gross Margin

$              20


$              (6)


$          507


$       42


$       563

R&D

(5)


--


--


(27)


(32)

SG&A

(7)


--


--


(7)


(14)

Other (income) expense, net

(4)


--


--


(8)


(12)

Earnings before taxes

$              36


$              (6)


$          507


$       84


621

Taxes on Earnings (d)









97

Net Earnings









$       524

Diluted Earnings per Share









$      0.29


The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.

c)

Other includes costs related to a voluntary recall within the Nutrition segment and incremental costs to comply with the European Union's Medical Device (MDR) and In Vitro Diagnostics Medical Device (IVDR) Regulations for previously approved products.

d)

Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.

Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2021
(in millions, except per share data)
(unaudited)





Acquisition or
Divestiture-
related (a)


Restructuring
and Cost
Reduction
Initiatives (b)


Intangible
Amortization


Other (c)


Total
Specifieds

Gross Margin


$              21


$            510


$          504


$       13


$    1,048

R&D


(3)


1


--


(16)


(18)

SG&A


(18)


2


--


(74)


(90)

Other (income) expense, net


(3)


--


--


38


35

Earnings before taxes


$              45


$            507


$          504


$       65


1,121

Taxes on Earnings (d)










195

Net Earnings










$       926

Diluted Earnings per Share










$      0.51


The table above provides additional details regarding the specified items on tables titled "Non-GAAP Reconciliation of Financial Information."


a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites. The Gross Margin amount includes charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.

c)

Other includes costs related to certain litigation and the impairment of an intangible asset, as well as a gain on the disposition of an equity method investment.

d)

Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.

Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2022
(in millions, except per share data)
(unaudited)





Acquisition
or Divestiture-
related (a)


Restructuring
and Cost
Reduction
Initiatives (b)


Intangible
Amortization


Other (c)


Total
Specifieds

Gross Margin


$              41


$             (12)


$        1,019


$      151


$    1,199

R&D


(7)


(1)


--


(57)


(65)

SG&A


(18)


--


--


(35)


(53)

Other (income) expense, net


(11)


--


--


(16)


(27)

Earnings before taxes


$              77


$             (11)


$        1,019


$      259


1,344

Taxes on Earnings (d)










190

Net Earnings










$    1,154

Diluted Earnings per Share










$      0.65












The table above provides additional details regarding the specified items on tables titled "Non-GAAP Reconciliation of Financial Information."


a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.

c)

Other includes charges related to a voluntary recall within the Nutrition segment and incremental costs to comply with the European Union's Medical Device (MDR) and In Vitro Diagnostics Medical Device (IVDR) Regulations for previously approved products.

d)

Reflects the net tax benefit associated with the specified items, excess tax benefits associated with share-based compensation and net tax expense as a result of the resolution of various tax positions related to prior years.

Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2021
(in millions, except per share data)
(unaudited)





Acquisition or
Divestiture-
related (a)


Restructuring
and Cost
Reduction
Initiatives (b)


Intangible
Amortization


Other (c)


Total
Specifieds

Gross Margin


$              40


$            529


$        1,013


$       15


$    1,597

R&D


(5)


1


--


(42)


(46)

SG&A


(31)


1


--


(214)


(244)

Other (income) expense, net


(3)


1


--


25


23

Earnings before taxes


$              79


$            526


$        1,013


$      246


1,864

Taxes on Earnings (d)










363

Net Earnings










$    1,501

Diluted Earnings per Share










$      0.83


The table above provides additional details regarding the specified items on tables titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites. The Gross Margin amount includes charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.

c)

Other primarily relates to the costs related to certain litigation, the acquisition of a research and development asset, the impairments of an equity investment and an intangible asset, and the gain on the disposition of an equity method investment.

d)

Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.

Cision View original content: https://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2022-results-and-raises-full-year-eps-guidance-301590017.html

SOURCE Abbott

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richard murray md

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Dr. Murray has over 25 years of industry experience. He worked at Merck & Co. for many years in positions of increasing responsibility, in a variety of business, medical and scientific areas. His most recent position was Vice President and Deputy Chief Patient Officer. Dr. Murray was also a Fellow at the Advanced Leadership Initiative at Harvard University. He has managed all areas of medical affairs, including outcomes research, medical information, professional and academic affairs, field-based medical physicians, and investigator-initiated trials globally. Prior to his industry career, he was a practicing physician in cardiovascular-pulmonary medicine and an asthma researcher at the Hospital of the University of Pennsylvania. Dr. Murray has an M.D. from Howard University and an M.A. in Chemistry and A.B. in Psychology from Clark University. Dr. Murray currently is Board Chair of the Asthma and Allergy Foundation of America.

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Avisa Diagnostics Begins Trading on the Canadian Securities Exchange

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  • Pivotal Trials Planned in Post-COVID-19 Long Haulers and Ventilator-Associated Pneumonia

Avisa Diagnostics Inc. (Avisa) is pleased to announce that the Company has begun trading on the Canadian Securites Exchange (CSE:AVBT) through the previously announced merger completion with Fogchain Corp. Avisa has developed the Avisa BreathTest™ (ABT), an ultra-rapid, point-of-care biomarker breath test for the detection and monitoring of bacterial load in Post-COVID-19 "long haulers," who can develop acute respiratory disease, and ventilator-associated pneumonia (VAP), an indication with high morbidity and mortality.

The public listing enables Avisa to draw down over the period of three years CAD 52 million (~USD 41 million) from a share subscription and drawdown agreement put in place in 2020 with GEM GLOBAL YIELD LLC SCS (GEM), a $3.4 billion alternative investment group with offices in Paris, New York, and Los Angeles.

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As quoted in the press release:

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Maintaining a healthy body weight and having proper nutrition are critical to living well with diabetes. 3 Yet, for many people living with diabetes, determining what to eat and following a meal plan is the most challenging part of diabetes management. 4 Through this partnership, participants can receive glucose insights from Abbott's FreeStyle Libre sensor-based technology that show the impact of food choices, alongside the empirically validated 5 WeightWatchers' diabetes-tailored nutritional guidance to help them achieve their healthier living goals.

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Notice of Knight Therapeutics' Second Quarter 2022 Results Conference Call

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Date : Thursday, August 11, 2022

Time : 8:30 a.m. ET

Telephone : Toll Free: 1-855-669-9657 or International 1-412-317-0790

Webcast : www.gud- knight .com or Webcast
This is a listen-only audio webcast. Media Player is required to listen to the broadcast.

Replay : An archived replay will be available for 30 days at www.gud-knight.com .


________________________________________
About Knight Therapeutics Inc.

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About Knight Therapeutics Inc.

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