bbott Laboratories (Abbott or 'the company') is a global, broad-based healthcare company withcommercial interests spanning branded generics, diagnostic, vascular, and nutritional markets.Thecompany has shaped much of its recent corporate development through acquisitions, which hashelped it diversify its portfolio and expand its reach. Intensifying competition, however, may have anegative impact on its market share.A
In our opinion Abbott's moat is evidenced by ABT being one of a handfull of competitors (oligopoly) that dominate the markets in nutritionals, glucose monitors, coronary stents, and immunoassays. ABT built its moat by efficient scale and intellectual property.
We believe that Abbott is well positioned to deliver solid growth on both its top and bottom lines over the next 3 to 5 years. Demand trends are holding up well in most of the core businesses and geographies, and we are particularly encouraged with the company's fast-growing presence in emerging markets
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Split enabled Abbott and AbbVie to actively optimize their portfolios
Acquisitions strengthened Abbott's hold in a variety of healthcare segments andterritories
Broad portfolio of healthcare products ensuring well-balanced revenue flow
Significant level of indebtedness may affectthe company’s financial flexibility
Product recalls hampering the company'sreputation
Acquisition of OptiMedica may contributeto Abbott’s growth in cataract market increasing acceptance of launched productsin major market
Collaboration with Janssen and Pharmacyclics could help Abbott developtest to diagnose leukemia
Favorable demographic trends likely to spur demand for Abbott's products
Healthcare reform in the US could negatively impact the company's profitability
Sluggish economic recovery and sovereign debt crisis
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The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.