Morningstar Rating

Stock Research and Analysis

by Debbie S. Wang

Bulls Say

Abbott's Xience stent remains a powerhouse in the drug-eluting stent market, thanks to its well-established record of safety and efficacy.
Aggressive cost-cutting plans should propel Abbott's bottom-line growth more quickly than top-line growth.
Abbott's sale of it established pharma business in developed markets to Mylan and its acquisition of CFR and Veropharm have put Abbott's branded generics business in a strong position to benefit from growing demand in emerging markets. Read more 

Bears Say

Clinical data on drug-eluting stents and alternative therapies have put a crimp in percutaneous coronary procedures, as medical therapy and coronary bypass have gained favor.
Abbott faces an uphill battle in the diagnostics arena where it must go head-to-head against market leader Roche, along with energetic upstarts like Qiagen and Hologic.
Considering the heterogeneity involved in mitral valve disease, we are skeptical MitraClip will move beyond niche use for certain inoperable patients. Read more 

Management

Overall, we rate Abbott's stewardship as Standard. While the company has made some impressive purchases over the past decade, including Knoll, which was purchased for $6.9 billion in 2001 and brought in Humira, several of the more recent acquisitions,  Read more 

Profile

Abbott manufactures and markets medical devices, blood glucose monitoring kits, nutritional health-care products, diagnostic products and equipment, and branded generic   Read more 

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