Abbott Laboratories 2012 Annual Report Download - page 5

Letter to our shareholders
in large and attractive markets. Many of our flagship products in each are number one or
number two in their respective categories.
•InDiagnostics, we’re the world leader in immunoassay and blood screening, and have
the leading point-of-care monitoring system.
•InMedical Devices, Abbott is number one in coronary metallic drug-eluting stents
and bioresorbable vascular scaffolds, number one in LASIK devices, and number two
in cataract devices.
•InNutrition, we are the U.S. leader in pediatric nutritionals and the worldwide leader in
adult nutritionals. And,
•InEstablished Pharmaceuticals, our portfolio comprises literally hundreds of trusted
branded generics — including leading products in important treatment categories —
which we market in the world’s fastest-growing economies.
Aligned with the future of healthcare, worldwide
Technologically, geographically and demographically, Abbott is well positioned to serve
rising healthcare trends and needs, and to capture future growth.
In new technology, we remain deeply committed to new-product innovation that creates
value for patients, customers, and payers. We’re engaged along the entirety of the product-
innovation spectrum, from transformational medical technologies, to next-generation
systems, to new formulations, packaging and brand enhancements, including localizing our
products to meet the specific needs and preferences of individual markets.
Geographically, we are now one of the most truly globalized of healthcare companies, with
only 30 percent of our revenue coming from the United States, a remarkable reversal from
just 10 years ago. Another 30 percent of our sales come from established international
markets, while 40 percent now come from the world’s fastest-growing international markets,
including India, in which we are the largest pharmaceutical company. We expect this to
grow to 50 percent over the next several years.
And, importantly, half of our business now comes directly from the patients and consumers
who use our products, rather than third-party payers. This makes us one of the most
customer-facing companies in healthcare, which is motivating to our team and gives us the
opportunity to build direct, long-term relationships with the people we serve.
In terms of demographics, Abbott’s businesses are highly aligned with the population and
socioeconomic trends that will drive future healthcare growth. For instance, the global
population is aging rapidly, with the over-70 group expected to grow from 269 million to 1
billion by 2050. As the world leader in adult nutrition and the number-two maker of cataract
devices, Abbott is positioned to serve this growing need.
Similarly, the incidence of chronic disease is rising around the globe, with cardiovascular
disease now the leading cause of death worldwide and 70 percent of diabetes/obesity
Abbott has paid 356
consecutive quarterly dividends
since 1924 and has delivered
39 consecutive years of
increasing dividends.
Total return outperformed the
DJIA, as well as the S&P 500
indices over the last year.
Consistent Dividends
(dollars per share paid)
Total Shareholder Return
(year ended 12/31/12)
$1.56
10.2%
$1.72
17.9%
$1.88
16.0%
$2.01
20.3%
09 10 11 12
Abbo TT
S&P 500 HLTH
S&P 500
DJIA
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Abbott 2012 Annual Report