Should You Invest in Abbott Labs?

A number of analysts and hedge funds are maintaining or increasing their estimation of health care titan Abbott Labs.For example,Deutsche Bank reaffirmed its buy on the stock on 19 March;BTIG Research reaffirmed its buy rating on 26 April;Credit Suisse reaffirmed on 17 April;Wells Fargo reaffirmed on 28 April,as did Jefferies Group.Overall,there were six holds and 18 buys on the stock,as well as one strong buy.*
Among the hedge funds,Neuberger Berman increased its Abbott holdings by 9.7% in Q4;DNB Asset Management hiked its Abbott holdings by 69.7%;and Cambiar Investors LLC raised its stake in Abbott by 4.6% in Q4.*
Abbott Labs was founded in 1888 by physician and drug store owner Wallace C. Abbott (People's Drug Store,Chicago),who eventually began manufacturing drugs himself.Today it employs about 73,000 in more than 150 countries.Its four operating segments and some of their products are Nutrition (Similac,Ensure,Glucerna,PediaSure);Medical Devices (glucose monitoring and laser vision-correction technologies);Diagnostics (immunoassay diagnostics,blood screening,bedside testing and companion diagnostics);and Pharmaceuticals (branded generic medications for pervasive and persistent health conditions outside the US only).*
Abbott Labs recently acquired medical device maker St.Jude Medical for 25 billion dollars-its largest ever acquisition-on the desire to gain bargaining power with hospitals.The company paid a 2.67% dividend as of Friday.It scored a double beat on Q1 earnings.Earnings per share were 0.41 versus an estimate of 0.39;revenue was 4.9 billion dollars versus the 4.77 billion estimate. *
Abbott Laboratories (ABT)

Pharma Flash:AbbVie Continues To Court Shire PLC

AbbVie,the Chicago-based biopharma concern,is continuing its courtship of Ireland's Shire PLC,despite repeated rejections on the grounds that AbbVie made an inadequate offer.It has made a third offer of 46 billion dollars,also promising a plan to buy back shares and offer shares as well as cash to Shire shareholders.*
Shire has several ADHD drugs in its portfolio,such as Adderall.The deal would also be an inversion for AbbVie,i.e.,by being Ireland-based,it would lower AbbVie's tax rate to 13% and free up overseas cash.That's significantly less taxes than US competitors pay.*
AbbVie was formerly part of Abbott Laboratories.It was spun off on 1 January 2013 as a global biopharma firm.With 25,000 workers,AbbVie has launched a Phase III study of Veliparib for Advanced Breast Cancer.
AbbVie claims the proposed combination is strategically compelling to AbbVie and Shire and would create a larger and more diversified biopharmaceutical company with multiple leading franchises and significant financial capacity for future acquisitions,investment and enhanced shareholder distribution and value creation.It offers attractive free cash flow and an enhanced return of capital policy.The new company would be listed in both London and on the NYSE.*
AbbVie(ABBV),Shire PLC(SHPG)