Abbott Laboratories Reports 15.8 Percent Sales Growth in Second Quarter

ABBOTT PARK, Ill., July 18 /PRNewswire-FirstCall/ -- Abbott today announced financial results for the second quarter ended June 30, 2007.

* Diluted earnings per share, excluding specified items, were $0.69, at the high end of Abbott’s previously announced guidance range of $0.67 to $0.69. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.63. * Worldwide sales increased 16 percent to $6.4 billion, including the impact of acquisitions and a favorable 2.7 percent effect of exchange rates. * U.S. pharmaceutical sales increased 27 percent, driven by strong double-digit growth in HUMIRA, Depakote(R), TriCor and Kaletra(R), and included $170 million of Niaspan(R) sales. HUMIRA sales increased 44 percent in the United States and 58 percent internationally. Abbott recently raised its global sales forecast for HUMIRA to more than $2.8 billion in 2007. * Worldwide medical products sales increased 20 percent, driven by double-digit growth in Abbott’s core laboratory diagnostics business, molecular diagnostics and the contribution from Abbott Vascular. Beginning this quarter, the core laboratory diagnostics business is now reported as Continuing Operations. * Worldwide nutritional products sales were led by double-digit growth in International Nutritionals, driven by continued strong performance in Latin America and Asia.

“Our performance this quarter was strong in both our U.S. pharmaceuticals business and in several of our medical products businesses,” said Miles D. White, chairman and chief executive officer, Abbott. “In addition, we strengthened our broad-based pipeline and advanced several key programs into later-stage development. We have five major regulatory filings that we expect to submit for approval this year. These represent significant opportunities for future growth.”

The following is a summary of second-quarter 2007 sales. Impact of Sales Summary - 2Q07 % Change Exchange on Quarter Ended 6/30/07 ($ millions) vs. 2Q06 % Change Total Sales $6,371 15.8 2.7 Total U.S. Sales $3,225 17.7 --- Total International Sales $3,146 13.9 5.3 Worldwide Pharmaceutical Sales $3,532 17.2 2.7 U.S. Pharmaceuticals $1,912 26.6 --- International Pharmaceuticals (AI) $1,620 7.8 5.4 Worldwide Nutritional Sales $1,097 4.6 (a) 1.4 U.S. Nutritionals (Ross) $580 (4.7)(a) --- International Nutritionals (ANI) $517 17.5 3.3 Worldwide Diagnostics Sales (b) $799 11.4 3.8 U.S. Diagnostics $205 3.8 --- International Diagnostics $594 14.2 5.3 Worldwide Vascular Sales $423 63.3 2.2 U.S. Vascular $223 30.6 --- International Vascular $200 126.1 6.4 Other Sales (c) $520 12.2 3.6 (a) Includes the impact of the completion of the U.S. co-promotion of Synagis in 2006. (b) Includes sales from the core laboratory diagnostics, point of care and molecular diagnostics businesses. See Q&A Answer 12 for historical sales of worldwide diagnostics. (c) Includes sales from diabetes, bulk pharmaceuticals, spine and animal health businesses. Note: See “Consolidated Statement of Earnings” for more information. The following is a summary of first-half 2007 sales. Impact of Sales Summary - 1H07 % Change Exchange on First-Half Ended 6/30/07 ($ millions) vs. 1H06 % Change Total Sales $12,316 15.3 2.7 Total U.S. Sales $6,158 13.8 --- Total International Sales $6,158 16.8 5.4 Worldwide Pharmaceutical Sales $6,904 16.9 2.7 U.S. Pharmaceuticals $3,604 21.8 --- International Pharmaceuticals (AI) $3,300 11.9 5.5 Worldwide Nutritional Sales $2,099 (4.2)(a) 1.2 U.S. Nutritionals (Ross) $1,146 (16.1)(a) --- International Nutritionals (ANI) $953 15.6 3.1 Worldwide Diagnostics Sales (b) $1,509 10.8 3.9 U.S. Diagnostics $406 4.7 --- International Diagnostics $1,103 13.2 5.4 Worldwide Vascular Sales $843 146.6 2.3 U.S. Vascular $466 108.7 --- International Vascular $377 218.2 6.7 Other Sales (c) $961 8.8 4.0 (a) Includes the impact of the completion of the U.S. co-promotion of Synagis in 2006. (b) Includes sales from the core laboratory diagnostics, point of care and molecular diagnostics businesses. See Q&A Answer 12 for historical sales of worldwide diagnostics. (c) Includes sales from diabetes, bulk pharmaceuticals, spine and animal health businesses. Note: See “Consolidated Statement of Earnings” for more information. The following is a summary of Abbott’s second-quarter 2007 sales for selected products. Quarter Ended 6/30/07 Percent Percent Percent (dollars in millions) Change Rest Change Change U.S. vs. of vs. Global vs. Sales 2Q06 World 2Q06 Sales 2Q06 Pharmaceutical Products HUMIRA $406 43.7 $329 58.0 (a) $735 49.8 Depakote $382 27.9 $22 11.5 $404 26.9 Kaletra $132 11.7 $183 24.7 (b) $315 18.9 TriCor $302 20.6 --- --- $302 20.6 Ultane/Sevorane $53 (18.5) $144 0.9 (c) $197 (5.1) Biaxin (clarithromycin) $4 (85.3) $166 0.4 (d) $170 (12.4) Niaspan $170 n/a --- --- $170 n/a Synthroid $103 (8.2) $18 12.7 $121 (5.6) Nutritional Products Pediatric Nutritionals $291 5.2 $283 20.1 $574 12.0 Adult Nutritionals $284 (3.6) $234 14.5 (e) $518 3.8 Medical Products Abbott Diabetes Care $142 1.6 $166 10.7 (f) $308 6.3 Coronary Stents $75 178.9 $91 215.2 $166 197.7 Other Coronary $78 2.0 $77 99.7 $155 34.5 Endovascular $69 4.0 $33 51.8 $102 15.8 (a) Without the positive impact of exchange of 12.0 percent, HUMIRA sales increased 46.0 percent internationally. (b) Without the positive impact of exchange of 7.5 percent, Kaletra sales increased 17.2 percent internationally. (c) Without the positive impact of exchange of 4.9 percent, Sevorane sales decreased 4.0 percent internationally. (d) Without the positive impact of exchange of 3.4 percent, clarithromycin sales decreased 3.0 percent internationally. (e) Without the positive impact of exchange of 3.9 percent, Adult Nutritionals sales increased 10.6 percent internationally. (f) Without the positive impact of exchange of 7.1 percent, Abbott Diabetes Care sales increased 3.6 percent internationally.

n/a = Percent change is not applicable due to the acquisition of Niaspan in the fourth-quarter 2006.

The following is a summary of Abbott’s first-half 2007 sales for selected products. First-Half Ended 6/30/07 Percent Percent Percent (dollars in millions) Change Rest Change Change U.S. vs. of vs. Global vs. Sales 1H06 World 1H06 Sales 1H06 Pharmaceutical Products HUMIRA $695 38.8 $611 59.9 (a) $1,306 47.9 Depakote $687 30.3 $43 16.5 $730 29.4 Kaletra $249 4.6 $366 19.4 (b) $615 12.9 TriCor $526 15.3 --- --- $526 15.3 Biaxin (clarithromycin) $12 (85.2) $382 5.4 (c) $394 (11.0) Ultane/Sevorane $101 (31.2) $270 0.8 (d) $371 (10.6) Niaspan $312 n/a --- --- $312 n/a Synthroid $215 (3.9) $35 13.6 $250 (1.8) Nutritional Products Pediatric Nutritionals $582 6.1 $516 18.6 $1,098 11.6 Adult Nutritionals $545 (0.8) $437 12.3 (e) $982 4.7 Medical Products Abbott Diabetes Care $273 (2.1) $320 12.5 (f) $593 5.2 Coronary Stents $160 n/m $166 n/m $326 n/m Other Coronary $168 88.9 $149 n/m $317 n/m Endovascular $138 31.0 $62 72.8 $200 41.7 (a) Without the positive impact of exchange of 12.4 percent, HUMIRA sales increased 47.5 percent internationally. (b) Without the positive impact of exchange of 7.1 percent, Kaletra sales increased 12.3 percent internationally. (c) Without the positive impact of exchange of 4.1 percent, clarithromycin sales increased 1.3 percent internationally. (d) Without the positive impact of exchange of 4.8 percent, Sevorane sales decreased 4.0 percent internationally. (e) Without the positive impact of exchange of 3.8 percent, Adult Nutritionals sales increased 8.5 percent internationally. (f) Without the positive impact of exchange of 7.3 percent, Abbott Diabetes Care sales increased 5.2 percent internationally.

n/a = Percent change is not applicable due to the acquisition of Niaspan in the fourth-quarter 2006.

n/m = Percent change is not meaningful. Business Highlights * Abbott and Genentech Collaboration in Oncology -- In June, Abbott and Genentech announced a collaboration for the global research, development and commercialization of two of Abbott’s investigational oncology compounds. The companies will work together on all aspects of further development and commercialization of ABT-263 and ABT-869, which were discovered by Abbott scientists. These compounds are targeted therapies that represent promising, unique scientific approaches to treating cancer. * HUMIRA(R) Crohn’s Disease Approval and Launch -- Abbott received U.S. Food and Drug Administration (FDA) approval for HUMIRA in Crohn’s disease in February and the launch is off to a strong start. In the second quarter, Abbott received European approval for HUMIRA to treat Crohn’s disease. Crohn’s disease, the fourth disease state indication for HUMIRA, is a serious, chronic, inflammatory disease of the gastrointestinal tract. * New Niaspan(R) Tablet Launch -- In May, Abbott launched a new film- coated Niaspan extended-release prescription tablet. Niaspan is the most widely prescribed therapy for raising HDL or “good” cholesterol and is the most effective drug to raise HDL with proven outcomes of 25 to 35 percent on average. * New Drug Application for Combination Niaspan/Simvastatin (Simcor) Tablet -- In April, Abbott submitted its New Drug Application to the FDA for a fixed-dose combination of Niaspan (extended-release niacin) and simvastatin. Niaspan and simvastatin are two widely prescribed medications for cholesterol management. This combination is being submitted for FDA approval to address LDL, HDL and triglycerides in a single pill, which may lead to improved patient convenience and outcomes. * XIENCE(TM) V Submission for U.S. Approval -- In June, Abbott completed its Pre-Market Approval (PMA) application with the FDA for the XIENCE V drug-eluting stent. Abbott’s PMA submission includes safety and efficacy data from the XIENCE V SPIRIT family of clinical trials, which met their primary endpoints and also demonstrated superiority of XIENCE V over Taxus. The U.S. launch of XIENCE V is expected in the first half of 2008. * U.S. Launch of m2000(TM) Molecular Diagnostics Instrument -- In May, Abbott announced the FDA approval and launch of the RealTime HIV-1 viral load test for use on the m2000 molecular diagnostics instrument system. The m2000 is a less labor intensive, automated system that features real-time polymerase chain reaction (PCR) technology. Real-time PCR is designed to efficiently detect and measure life-threatening viruses and bacteria in less than five hours. * ABBOTT PRISM(R) Completes Hepatitis Panel -- In July, Abbott received FDA approval for its hepatitis C (HCV) test for use on the Abbott PRISM diagnostics system. The approval of the HCV test completes the PRISM hepatitis panel, which also includes three additional hepatitis B tests. Additional retrovirus screening tests for use on Abbott PRISM are currently under FDA review.

Abbott narrows full-year and confirms third-quarter earnings-per-share guidance for 2007

Abbott is narrowing its earnings-per-share guidance range, excluding specified items, for the full-year 2007 to $2.80 to $2.84. Abbott is also confirming guidance issued in January 2007 for the third quarter of $0.64 to $0.66 per share, excluding specified items. This guidance reflects the retention of Abbott’s core laboratory diagnostics business, which has now been reclassified from Discontinued Operations to Continuing Operations.

Abbott forecasts specified items for the full-year 2007 of $0.36 per share, primarily associated with acquisition integration, cost reduction initiatives, a write-down of Omnicef inventory, and adjustments related to Abbott’s ownership of Boston Scientific stock. Including these specified items, projected earnings per share under GAAP would be $2.44 to $2.48 for the full-year 2007.

Abbott forecasts specified items for the third-quarter 2007 of approximately $0.13 per share, primarily associated with acquisition integration, cost reduction initiatives, and restoration of the depreciation and amortization expense from the core laboratory diagnostics business for the first two quarters of 2007. (See Q&A Answer 7 for more discussion.) Including these specified items, projected earnings per share under GAAP would be $0.51 to $0.53 for the third-quarter 2007.

Abbott declares quarterly dividend

On June 14, 2007, the board of directors of Abbott declared the company’s quarterly common dividend of 32.5 cents per share. The cash dividend is payable Aug. 15, 2007, to shareholders of record at the close of business on July 13, 2007. This marks the 334th consecutive dividend paid by Abbott since 1924.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs 65,000 people and markets its products in more than 130 countries.

Abbott’s news releases and other information are available on the company’s Web site at http://www.abbott.com. Abbott will webcast its live second-quarter earnings conference call through its Investor Relations Web site at http://www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.

- 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 the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, “Risk Factors,” to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2006, and are incorporated by reference. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.

Abbott Laboratories and Subsidiaries Consolidated Statement of Earnings Second Quarter Ended June 30, 2007 and 2006 (unaudited) Percent 2007 2006 Change Net Sales $6,370,620,000 $5,501,124,000 15.8 Cost of products sold 2,804,326,000 2,388,613,000 17.4 Research and development 583,474,000 556,337,000 4.9 Acquired in-process and collaborations research and development --- 493,000,000 n/m Selling, general and administrative 1,796,456,000 1,520,397,000 18.2 Total Operating Cost and Expenses 5,184,256,000 4,958,347,000 4.6 Operating earnings 1,186,364,000 542,777,000 118.6 Net interest expense 124,816,000 81,683,000 52.8 Net foreign exchange (gain) loss 6,248,000 8,017,000 (22.1) (Income) from TAP Pharmaceutical Products Inc. joint venture (115,726,000) (134,503,000) (14.0) Other (income) expense, net (81,612,000) (69,556,000) 17.3 1) Earnings before taxes 1,252,638,000 657,136,000 90.6 Taxes on earnings 263,894,000 44,892,000 n/m Net Earnings $988,744,000 $612,244,000 61.5 Net Earnings Excluding Specified Items, as described below $1,076,035,000 $946,747,000 13.7 2) Diluted Earnings Per Common Share $0.63 $0.40 57.5 Diluted Earnings Per Common Share, Excluding Specified Items, as described below $0.69 $0.62 11.3 2) Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards 1,560,667,000 1,531,637,000 1) Other (income) expense, net in 2007 and net in 2006 is primarily associated with adjustments related to Abbott’s ownership of Boston Scientific (BSX) stock. 2007 also includes realized gains on the sales of the BSX stock. These items have been reflected as specified items in both periods as discussed in Q&A Answer 7. 2) 2007 Net Earnings Excluding Specified Items excludes after-tax charges of $56 million, or $0.04 per share, for acquisition integration, $41 million, or $0.03 per share, for a write-down of Omnicef inventory, $14 million, or $0.01 per share, for transaction and separation costs relating to the terminated sale of the core laboratory diagnostics business, and $80 million, or $0.05 per share, for cost reductions and other. 2007 also excludes after-tax gains of ($55 million), or ($0.04) per share, relating to adjustments in Abbott’s ownership of BSX stock and realized gains on the sales of the BSX stock, and ($49 million), or ($0.03) per share, relating to suspended depreciation and amortization expense on the long-term assets of the core laboratory diagnostics business. See Q&A Answer 7 for a discussion of specified items. 2006 Net Earnings Excluding Specified Items excludes after-tax charges of $306 million, or $0.20 per share, for acquired in-process and collaborations research and development and $82 million, or $0.06 per share, for cost reduction/integration activities and other, primarily related to the Guidant acquisition and an after-tax gain of ($54 million), or ($0.04) per share, for a fair value adjustment for the gain-sharing aspect of the BSX stock purchase.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

n/m = Percent change is not meaningful. Abbott Laboratories and Subsidiaries Consolidated Statement of Earnings Six Months Ended June 30, 2007 and 2006 (unaudited) Percent 2007 2006 Change Net Sales $12,316,181,000 $10,684,583,000 15.3 Cost of products sold 5,396,337,000 4,558,317,000 18.4 Research and development 1,202,530,000 1,041,479,000 15.5 Acquired in-process and collaborations research and development --- 493,000,000 n/m Selling, general and administrative 3,583,325,000 2,984,812,000 20.1 Total Operating Cost and Expenses 10,182,192,000 9,077,608,000 12.2 Operating earnings 2,133,989,000 1,606,975,000 32.8 Net interest expense 249,021,000 116,202,000 114.3 Net foreign exchange (gain) loss 11,099,000 7,407,000 49.8 (Income) from TAP Pharmaceutical Products Inc. joint venture (262,358,000) (235,814,000) 11.3 Other (income) expense, net 42,924,000 (72,973,000) n/m 1) Earnings before taxes 2,093,303,000 1,792,153,000 16.8 Taxes on earnings 407,022,000 315,026,000 29.2 Net Earnings $1,686,281,000 $1,477,127,000 14.2 Net Earnings Excluding Specified Items, as described below $1,930,142,000 $1,829,022,000 5.5 2) Diluted Earnings Per Common Share $1.08 $0.96 12.5 2) Diluted Earnings Per Common Share, Excluding Specified Items, as described below $1.24 $1.19 4.2 Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards 1,559,774,000 1,535,122,000 1) Other (income) expense, net in 2007 and net in 2006 is primarily associated with adjustments related to Abbott’s ownership of Boston Scientific (BSX) stock. 2007 also includes realized gains on the sales of the BSX stock. These items have been reflected as specified items in both periods. 2) 2007 Net Earnings Excluding Specified Items excludes after-tax charges of $112 million, or $0.07 per share, for acquisition integration, $136 million, or $0.09 per share, for cost reductions and other, $41 million, or $0.03 per share, for a write-down of Omnicef inventory, $20 million, or $0.01 per share, for fair value adjustments to BSX stock, net of gains on the sales of the stock, and $14 million, or $0.01 per share, for transaction and separation costs relating to the terminated sale of the core laboratory diagnostics business. 2007 also excludes an after-tax benefit of ($79 million), or ($0.05) per share, relating to suspended depreciation and amortization expense on the long-term assets of the core laboratory diagnostics business. 2006 Net Earnings Excluding Specified Items excludes after-tax charges of $306 million, or $0.20 per share, for acquired in-process and collaborations research and development and $100 million, or $0.07 per share, for cost reduction/integration activities and other, primarily related to the Guidant acquisition and an after-tax gain of ($54 million), or ($0.04) per share, for a fair value adjustment for the gain-sharing aspect of the BSX stock purchase.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

n/m = Percent change is not meaningful. Questions & Answers Q1) What drove the 17 percent worldwide pharmaceutical sales growth? A1) U.S. pharmaceutical sales growth of 27 percent was led by HUMIRA, which increased 44 percent in the United States. Prescription trends are strong as HUMIRA continued to gain market share in the rheumatology, dermatology and gastroenterology markets. In the quarter, Abbott received European approval for HUMIRA in Crohn’s disease and initiated the U.S. Crohn’s launch, which is off to a strong start. Recently, Abbott raised its 2007 global sales guidance for HUMIRA to more than $2.8 billion. Abbott’s lipid franchise also had a strong quarter with TriCor sales up 21 percent and Niaspan sales of $170 million. Niaspan is now expected to achieve approximately $650 million in sales this year. Sales of Abbott’s international pharmaceuticals increased 8 percent during the quarter, including a 6 percent favorable impact from exchange. International growth was favorably impacted by the continued strength of HUMIRA, with sales up 58 percent and double- digit growth of Kaletra, based on the continued strength of the international launch of Kaletra tablets. Q2) What drove the 20 percent increase in worldwide medical products sales and strong international nutritional products sales? A2) Medical products sales growth of 20 percent was led by Abbott Vascular, which achieved sales of $423 million, up significantly from the prior year. Strong performance in Abbott Vascular was driven by international sales of the XIENCE V drug-eluting stent and continued growth in bare metal stents. Abbott Molecular also contributed to the strong performance in the quarter. The core laboratory diagnostics business had strong performance in the quarter. Sales of immunochemistry and hematology products increased more than 10 percent (including a 4 percent favorable impact from exchange) and point of care sales grew more than 25 percent. During the quarter, Abbott signed agreements with two major group purchasing organizations to supply a broad line of immunochemistry and hematology products, which represent a significant sales opportunity over the next several years. Nutritional products sales growth was led by continued double-digit sales growth in International Nutritionals. Partially offsetting this growth was an expected decline in U.S. nutritional sales, consistent with previous forecasts and reflecting the completion of the co-promotion of Synagis in the U.S. during 2006. Q3) How are the results of the core laboratory diagnostics business being reported? A3) Financial results from the core laboratory diagnostics business have been reclassified to Continuing Operations. The comparable prior- year quarter also reflects this reporting. As a result, the line items of the Consolidated Statement of Earnings are on a comparable basis for 2006 and 2007. Q4) What drove the increase in R&D and SG&A this quarter? A4) R&D investment increased 5 percent, or 8 percent excluding specified items, reflecting continuing investment in our pharmaceutical and medical products pipelines, including HUMIRA, ABT-335, ABT-874, controlled-release Vicodin and XIENCE V. SG&A expense increased 18 percent, including the impact of the Guidant and Kos acquisitions and specified items. Excluding the impact of acquisitions and specified items, SG&A expense increased approximately 10 percent, driven by new and ongoing promotional initiatives, including new indications for HUMIRA and the continuing international launch of XIENCE V. Q5) How does the second-quarter gross margin profile compare to the prior year? A5) The gross margin ratio before and after specified items is shown below (dollars in millions): 2Q07 2Q06 Cost of Gross Cost of Gross Products Gross Margin Products Gross Margin Sold Margin % Sold Margin % As reported $2,804 $3,566 56.0% $2,389 $3,112 56.6% Adjusted for specified items: Omnicef inventory write-down ($51) $51 0.8% - - - Suspension of depreciation and amortization expense* $51 ($51) (0.8%) - - - Cost reduction initiatives and other ($101) $101 1.6% ($39) $39 0.7% Acquisition integration ($25) $25 0.4% ($33) $33 0.6% As adjusted $2,678 $3,692 58.0% $2,317 $3,184 57.9% * See Q&A Answer 7 for explanation. The second-quarter 2007 adjusted gross margin ratio increased 10 basis points to 58.0 percent, favorably impacted by improved product mix and partially offset by the reduction in the contribution from Synagis in the United States, as well as generic competition on Omnicef and Biaxin XL sales. As a reminder, U.S. co-promotion for Synagis ended in 2006. Q6) Why did Net Interest Expense increase from the prior year? A6) Net Interest

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