As at the end of September 2009, ABT had cash and equivalents totaling $4.88 billion versus $6.95 at the end of June 2009.  At the end of September total debt amounted to $15.6 billion versus $15.7 at the end of June 2009.  Abbott plans to use available cash to finance the Solvay transaction.

ABT’s Board of Directors had authorized a $5.0 billion in share repurchase, which remains in effect but is expected to slow in light of acquisition activity.  The company has repurchased almost $3.0 billion in stock over the last three years.

Dividend:  On December 11, 2009, ABT declared the company's quarterly common dividend of $0.40 per share, up 11% y/y.  The cash dividend was paid on February 15, 2010, to shareholders of record at the close of business on January 15, 2010.
 

In December 2009, Abbott Laboratories agreed to acquire Israel-based Starlims Technologies Ltd (LIMS) ,a leading provider of laboratory information management systems, for $123 million in cash.  The acquisition strengthens Abbott's competitive position in the global diagnostics market, providing advanced web-based software applications to help laboratories efficiently store, retrieve and analyze clinical, managerial and administrative data.

ABT completed the acquisition of the 90% stake in Evalve Inc., a leader in minimally invasive cardiac valve repair technology for $410.0 million, in November 2009.  The acquisition provides Abbott with a leading presence in the growing area of non-surgical treatment for structural heart disease.  The Evalve product portfolio is focused on minimally invasive mitral valve repair, and includes the well known MitraClip device, which is commercially available in Europe and the subject of a high profile, and ongoing pivotal clinical trial in the US that is expected to be completed at year end 2010.

According to the analysts in the Digest group, the acquisition is a good addition to Abbott’s vascular products business.  The acquisition should not only expand ABT’s medical devices portfolio, it should also help the company establish a presence in the non-surgical market for the treatment of structural heart disease.

In September 2009, ABT agreed to acquire the pharmaceuticals unit of Belgian chemicals maker Solvay for €4.5 billion (about $6.6 billion) in cash, providing Abbott with a large and complementary portfolio of pharmaceutical products and a significant presence in key global emerging markets, including Eastern Europe and Asia.  The transaction is expected to close by the end of February 2010. Solvay’s key products include cardiometabolic (Finofibrate, Trilipix, Tricor, Crestor), Neuroscience (Serc, Luvox), Flu Vaccines, Men’s and Women’s health products (androgrel, duphaston), Pancreatic Enzymes, Gastroenterology (Duphalac, Duspatal), and Innogenetics (molecular diagnostics and multi parameter testing).  ABT would gain worldwide control of the cardiovascular drugs TriCor and TriLipix, which it currently markets in the US and would also gain an entry into new markets like pancreatic enzymes and vaccines.

The company expects the acquisition to add $0.10 per share to the earnings of 2010 and about $0.20 per share by 2012. The business would also add approximately $500 million to annual R&D expenditure.  The transaction includes potential milestone payments of up to €300 million ($438 million) if certain sales targets are met in years 2011 to 2013.

Humira’s future growth is heavily dependent on expanded indications, for which competing drugs Enbrel (AMGN) and Remicade (JNJ) have an early edge.

ABT faces the risk of integration of large acquisitions. The inability to effectively integrate such acquisitions could inhibit the attainment of anticipated synergies.

More than half of Abbott's revenues are generated by the pharmaceutical division. With expiring patents and an extremely competitive generic drug market, Abbott's pharmaceutical revenues could experience decline in sales.