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About Alere San Diego, Inc.

With activities ranging from filling baby bottles to making generic medications and cardiovascular devices, Abbott Laboratories is a diverse health care products manufacturer. Its cardiovascular and neuromodulation segment makes products for cardiac rhythm management, electrophysiology, and other areas of cardiovascular care. Abbott's diagnostics division makes laboratory testing systems and point-of-care tests. The nutritional products division makes such well-known brands as Similac infant formula and Ensure supplements. Abbott also sells branded generic medicines (including gastroenterology and women's health products) in emerging markets and makes the FreeStyle diabetes care line.

Operations

Abbott operates in four reportable segments: Medical Devices, Nutritional Products, Diagnostic Products, and Established Pharmaceutical Products.

A global leader in cardiovascular product sales, Medical Devices segment is Abbott's largest, bringing in about 40% of total sales. It researches and manufactures devices in the areas of cardiac rhythm management, heart failure, electrophysiology, vascular disease, and structural repair, as well as neuromodulation devices to treat movement and chronic pain disorders. Products include Assurity and Endurity pacemakers, MitraClip valve repair systems, XIENCE drug-eluting stents, and TactiCath and FlexAbility ablation catheters.

The Diagnostics segment (about 25% of total sales) makes laboratory systems that screen and diagnose for cancer, cardiovascular disease, fertility, and infectious diseases, among others. It also makes rapid diagnostics systems for infectious diseases and other conditions; point-of-care testing systems; molecular diagnostics for genetic (DNA and RNA) and genomic testing; and laboratory informatics and automation tools.

The Nutritional Products segment (25% of revenue) sells pediatric and adult formulations around the world. Brands include Similac, Ensure, Isomil, Glucerna, PediaSure, and Zone Perfect. The segment also provides nutritional products used for enteral feeding in health care facilities.

Abbott's Established Pharmaceutical Products (some 15% of sales) are branded generics marketed in emerging markets. These include gastroenterology drugs (such as Creon, Duspatel, and Heptral), women's health products (Duphaston and Femoston), cardiovascular and metabolic offerings (Lipanthyl, Teveten, and Synthroid, among others), pain and central nervous system medications (Serc, Brufen, and Sevedol), and respiratory drugs and vaccines (Influvac, Biaxin, Klacid, and Klacirid).

Geographic Reach

Abbott Park, Illinois-based Abbott has more than 90 manufacturing plants, as well as R&D facilities, in countries around the globe including Brazil, Canada, China, Colombia, Germany, India, Ireland, the Netherlands, Pakistan, Russia, Spain, Singapore, the UK, and the US.

The company's products are sold in more than 160 countries, allowing the company to reduce dependence on any specific market. Abbott earns about 35% of its revenues in the US. Other major markets include China, Germany, India, Japan, Switzerland, and the Netherlands, each accounting for around 5% of sales.

Sales and Marketing

Abbott conducts distribution operations both from its own distribution centers and through third-party partners. Established pharmaceutical and nutritional customers include health care organizations, wholesalers, pharmacies, retailers, government agencies, consumers, and third-party distribution entities. Diagnostic and cardiovascular and neuromodulation products are sold to blood banks, hospitals, surgery centers, physicians, medical labs, plasma protein therapeutic companies, government agencies, alternative testing sites, and commercial laboratories.

Financial Performance

Abbott's revenue has been rising for the last five years. It has an overall growth of 56% between 2015 and 2019. Net income declined until 2017 but redeemed itself in 2018 and 2019.

Revenue increased 4% from $30.6 billion in 2018 to $31.9 billion in 2019. This was due to the increase in sales in all of the company's segments.

The company's net earnings totaled $3.7 billion in 2019 compared to $2.4 billion in 2018.

Cash at the end of 2019 was $3.9 billion. Operating activities generated $6.1 billion while investing and financing activities used $1.8 billion and $4.3 billion, respectively.

Strategy

Over the last several years, Abbott proactively shaped the company with the strategic intent to deliver sustainable growth in all of its businesses. Significant steps over the last three years included:

In January 2017, Abbott acquired St. Jude Medical, Inc. (St. Jude Medical), a global medical device manufacturer, for approximately $23.6 billion. As part of the acquisition, Abbott also assumed, repaid or refinanced approximately $5.9 billion of St. Jude Medical's debt. The acquisition provided expanded opportunities for future growth and is an important part of the company's effort to develop a strong, diverse portfolio.

In October 2017, Abbott acquired Alere Inc. (Alere), a diagnostic device and service provider, for approximately $4.5 billion. As part of the acquisition, Abbott also tendered for Alere's preferred shares for a total value of approximately $0.7 billion and assumed and subsequently repaid approximately $3.0 billion of Alere's debt. The acquisition established Abbott as a leader in point of care testing, expanded Abbott's global diagnostics presence and provided access to new products, channels and geographies.

In February 2017, Abbott completed the sale of Abbott Medical Optics (AMO), its vision care business, to Johnson & Johnson for $4.325 billion in cash and recognized an after-tax gain of $728 million.

Company Background

Dr. Wallace Abbott started making his dosimetric granule (a pill that supplied uniform quantities of drugs) at his home outside Chicago in 1888. The company was incorporated as Abbott Alkaloidal Company in 1894 and changed its name to Abbott Laboratories in 1915.

During WWI, Abbott scientists synthesized anesthetics previously available only from Germany. Abbott expanded its research capacity, products, and sales force and went public in 1929. International operations began in the mid-1930s with branches in Argentina, Brazil, Cuba, Mexico, and the UK. Abbott contributed to the WWII effort by ratcheting up US production of penicillin. It later developed antibiotic erythromycin. Consumer, infant, and nutritional products joined the roster in the 1960s, diagnostic equipment followed in the 1970s.

The company spun off its proprietary pharmaceutical products division, including top-selling autoimmune drug Humira (the first fully-human monoclonal antibody drug approved by the FDA in 2002), into AbbVie in 2013.

To focus on cardiovascular and diagnostic operations, Abbott sold its Abbott Medical Optics subsidiary to Johnson & Johnson for $4.3 billion in early 2017.

Alere San Diego, Inc.

9975 Summers Ridge Rd
San Diego, CA 92121-2997
Phone: 1 (858) 455-4808

Firm Stats

Employer Type: Privately Owned
Electrical Engineer: Hiep Dinh
Qa Qc Engineer: Cathy Gugala
Research Scientist: Uday Veeramallu
Employees (This Location): 1,003
Employees (All Locations): 1,003

Major Office Locations

San Diego, CA