J.P. Morgan Health Care Conference

Transcription

1 J.P. Morgan Health Care Conference Thomas C. Freyman Executive VP, Finance and CFO Abbott GDS_70000_Title_v1 1

2 Forward-Looking Statement Comments will be made that are forward-looking statements for the purposes of the Private Securities Litigation Reform Act of Abbott cautions 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 Abbott s Annual Report on Securities and Exchange Commission Form 10-K for the year ended December 31, 2008, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments. 2 GDS_70000_Title_v1 2

3 Abbott Overview Diverse Business Portfolio Balanced portfolio Diversified sources of earnings growth Diagnostics Medical Devices Nutritional Products Pharmaceuticals Multiple core growth franchises Abbott Sales by Operating Segment Medical Devices Nutritional Products Diagnostics Pharmaceuticals 3 GDS_70000_Title_v1 3

4 Abbott Overview Geographic Diversity Market products in more than 130 countries Expanding reach in fastgrowing emerging markets 2009 Nine-Month Sales: $22 billion International United States 4 GDS_70000_Title_v1 4

5 Advancing Abbott Financial Strength Returning Cash to Shareholders 40% Superior Returns Abbott Strong operating cash flow Consistent stock repurchase program 37 consecutive years of dividend increases 30% 20% 32.1% S&P Health Index S&P Index Dow Jones Financial Flexibility Improving margins and returns Strong credit ratings 10% 0% 13.5% 2.1% 10.1% 5-Year Total Return Through 12/31/09 5 GDS_70000_Title_v1 5

6 Advancing Abbott Leadership Positions 2009 full-year ongoing EPS guidance reflects double-digit growth Unique among peers with multiple, diverse growth drivers Leadership positions in attractive, growth markets Cholesterol Immunology Nutrition Vascular Niaspan: #1 for raising HDL TriCor/Trilipix: best for reducing triglycerides Trilipix: first and only fibrate for combo use Certriad fixed dose combo represents significant opportunity HUMIRA growth continues to outpace market #1 share position in Western Europe #2 biologic overall in U.S. Low penetration rates result in continued growth outlook Fastest growing international nutritional company Double-digit international growth Leading performance nutrition brands Similac: #1 infant formula Ensure: #1 hospital product XIENCE V: #1 drug-eluting stent Leader in bare metal stents, carotid stents and guidewires Leading pipeline with next-generation technologies 10 coronary products over next five years 6 GDS_70000_Title_v1 6

7 Advancing Abbott Augmenting and Refining Our Diverse Portfolio Leadership position in structural heart repair, one of the fastest growing sectors in cardiology Advanced technology in molecular diagnostics Entered large and growing vision care market Added aiol technology to late-stage pipeline Expanding nutrition presence in India Novel compound for pain expands early-stage pipeline, leverages biologics platform PG-110: Nerve Growth Factor Antibody 7 GDS_70000_Title_v1 7

8 Advancing Abbott Acquisition of Solvay Pharmaceuticals Abbott Strategy Solvay Brings Diversify sources of pharmaceuticals growth Adds >$3B in annual product revenue 75% OUS revenue; 70% branded generics Expand presence in highgrowth emerging markets Infrastructure provides platform for expansion Significant presence in emerging markets Accelerate R&D spending to support long-term growth >$500MM in incremental R&D investment capacity Provides Abbott opportunity to accelerate nearand long-term pharmaceuticals growth Deliver sustained double-digit EPS growth ~$0.10 accretive to ongoing EPS in 2010 Ramping up to more than $0.20 accretion by 2012 Ongoing EPS accretion increases after GDS_70000_Title_v1 8

9 Growth Drivers Nutritional Products: Global Leadership Key Attributes of Nutritional Products Strong global market leadership High return on invested capital Consistent cash flow U.S. Nutritionals Infant nutritionals gaining share, strong lead over next competitor Share gains driven by launch of numerous new brands, new formulations and line extensions International Nutritionals Continued strong double-digit growth expected longer term Rapid growth in emerging markets Singapore facility; India expansion 9 GDS_70000_Title_v1 9

10 Growth Drivers Medical Products: Diagnostics and Diabetes Molecular Diagnostics Advancing companion diagnostics strategy IBIS acquisition provides innovative diagnostic technology Laboratory Diagnostics Global leadership position Continued focus on improving profitability and cash flow STARLIMS adds information management technology expertise Diabetes Care Innovative FreeStyle product line Growing retail prescription share through consumer outreach and education initiatives 10 GDS_70000_Title_v1 10

11 Growth Drivers Pharmaceuticals: HUMIRA HUMIRA Delivering continued strong growth Leadership position across indications Significant opportunity for further penetration 100% Global Biologics Penetration 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Rheumatology Gastroenterology Dermatology U.S. E.U. 11 GDS_70000_Title_v1 11

12 Growth Drivers Pharmaceuticals: Dyslipidemia Franchise Lipid Management Unique focus on adjunctive therapies Leadership across lipid categories Arbiter-6 HALTS data benefiting Niaspan Completed Simcor 40mg U.S. regulatory filing Adjunctive Therapies Fixed-Dose Combinations (FDC) Abbott Product Niaspan Trilipix Simcor Certriad Crestor/Trilipix FDC Product Attribute HDL-C Triglycerides Mixed dyslipidemia LDL-C HDL-C LDL-C Triglycerides FDA approval expected 1H10 12 GDS_70000_Title_v1 12

13 Growth Drivers Pharmaceuticals: Certriad Certriad: Trilipix/Crestor Fixed-Dose Combination 30 Certriad Phase III Clinical Data HDL-C TGs LDL-C Completed FDA submission for Certriad, fixed-dose combination of Trilipix and Crestor Pairs two best-in-class treatments Single-pill convenience Addresses multiple lipid issues simultaneously Supported by robust clinical data Mean Percentage Change From Baseline Trilipix Low-dose Statin Certriad GDS_70000_Title_v1 13

14 Future Growth Drivers Broad-Based Pipeline: Pharmaceuticals Oncology Advancing compounds into pivotal trials Potential across a range of different cancers Immunology Biologics and small molecule compounds Combination antibodies with DVD-Ig Infectious Disease Neuroscience and Pain Significant unmet need in HCV Three HCV compounds in man Protease and polymerase inhibitors Potential to have best-in-class HCV combo Ongoing studies in Alzheimer s disease, schizophrenia and pain management New opportunity in pain with novel biologic for pain 14 GDS_70000_Title_v1 14

15 Growth Drivers Abbott Vascular XIENCE V Leadership XIENCE V is #1 marketed DES in U.S. and Europe Clinical data sets new standard for safety/efficacy Abbott Vascular expected to deliver mid to high single-digit sales growth and double-digit margin growth Expansion Opportunities Additional near-term opportunities in new geographic markets and market segments Japan launch expected 1Q 10; $500MM market Canada 3Q 09 China 4Q 09 Mexico 1Q 10 Japan 1Q GDS_70000_Title_v1 15

16 Growth Drivers Abbott Vascular: XIENCE PRIME Launch Update XIENCE PRIME offers improved deliverability with impressive long-term clinical performance Achieving both conversion and growth of franchise in Europe XIENCE PRIME 38 mm XIENCE V 18 mm This is a quantum plus improvement in deliverability over the XIENCE V. Prof. Patrick Serruys 16 GDS_70000_Title_v1 16

17 Growth Drivers Abbott Vascular: Structural Heart Market MitraClip technology gives us leadership position in structural heart Provides minimally invasive option for mitral regurgitation repair versus open heart surgery Large, untapped market opportunity 4 incidence rate of aortic disease On-market in Europe, in development in the U.S submission 2011 expected approval EVEREST II data expected at ACC Aortic Other Mitral 20% treated via open-heart surgery 17 GDS_70000_Title_v1 17

18 Future Growth Drivers Broad-Based Pipeline: Vascular Delivering an estimated 10 new coronary technologies over next five years XIENCE Nano small vessel stent Available in Europe; in development in U.S. Next-generation XIENCE PRIME Sets new standard for deliverability Launched in EU; U.S. trials ongoing Thin Man DES: Innovative platform with breakthrough alloy Leading acute performance and deliverability; in development Next-generation balloon technology Improved design for best deliverability, pushability and trackability Bioabsorbable drug-eluting stent Impressive three-year data; ahead of competition 18 GDS_70000_Title_v1 18

19 Advancing Abbott Unique Well-Balanced Portfolio Diverse mix of businesses Market-leading products in high-growth, innovationdriven markets Positioned to maintain market leadership 19 GDS_70000_Title_v1 19

20 J.P. Morgan Health Care Conference Thomas C. Freyman Executive VP, Finance and CFO Abbott GDS_70000_Title_v1 20