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 much quicker than top-line growth.
Abbott's investments in building out its emerging-markets infrastructure should give the firm a head-start in penetrating those geographies. 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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