EX-99.1
2
a06-10044_3ex99d1.htm
EX-99
Exhibit 99.1
For
Immediate Release
Contact:
Media
Melissa
Brotz
(847)
935-3456
Jonathon
Hamilton
(847)
935-8646
Financial Community
John
Thomas
(847)
938-2655
Tina
Ventura
(847)
935-9390
ABBOTT COMPLETES ACQUISITION OF GUIDANT VASCULAR BUSINESS
- Combination of Abbott's and Guidant's
Vascular Organizations
Creates Leading Vascular Devices Business -
ABBOTT
PARK, Ill., April 21, 2006 - Abbott today announced it has completed the
acquisition of Guidant's vascular business, which, combined with Abbott's
current vascular business, creates one of the leading global vascular devices
companies. This acquisition was made in connection with Boston Scientific's
acquisition of Guidant Corporation.
"The acquisition of Guidant's vascular
business builds on our broad-based business strategy to develop leading
positions in attractive health care markets - shaping Abbott for greater
balance and strengthening our business mix and breadth of pipeline
opportunities", said Miles D. White, chairman and chief executive officer,
Abbott.
-more-
"The combined Abbott and Guidant business
offers a broad line of leading coronary and endovascular products, a
pre-eminent sales force, and global manufacturing operations, as well as a
state-of-the-art R&D organization, which is developing innovative
technologies and devices such as the XIENCE™ V and ZoMaxx™ drug-eluting stents", White said. "Our newly
expanded vascular organization has the tools and the talent to transform the
way physicians treat vascular disease, impacting the lives of millions of
patients around the world".
Broad Vascular Devices
Product Portfolio
For the past several years, Abbott has built
a competitive vascular business through acquisitions, licensing agreements, and
internal scientific and commercial development. With the addition of Guidant's
vascular business, Abbott offers physicians, catheterization labs and clinics a
complete line of products and technologies for interventional procedures
including: a comprehensive line of coronary and endovascular stents; a full
offering of guide wires, catheters and balloons; and innovative vessel closure
devices. In addition, the combined business has a broad portfolio of
intellectual property, including rapid exchange technology and stent designs,
enabling the company to operate effectively in the competitive vascular devices
market.
2
Innovative Research and
Development Programs
In addition to its broad product portfolio,
Abbott is conducting advanced research and development programs that are
focused on finding innovative solutions for treating vascular disease. With
Guidant, Abbott now has two drug-eluting stents in development: ZoMaxx, a
state-of-the-art stent coated with a proprietary immunosuppressant drug,
zotarolimus, designed specifically to combat vessel re-narrowing; and XIENCE V,
an everolimus-eluting stent on the MULTI-LINK VISION® cobalt
chromium stent platform, which recently received approval in Europe. The
combined organization also is leading the industry with a number of
next-generation research programs including a stent that elutes two
drugs targeted at difficult-to-treat patients such as diabetics, and a
bioabsorbable drug-eluting coronary stent designed to be fully absorbed by the
vascular tissue following the restoration of blood flow.
Guidant
Vascular Sales and Employees
The
transaction provides Abbott with Guidant's vascular intervention and
endovascular solutions business units, which had combined sales of more than $1
billion in 2005. These business units add nearly 6,000 employees worldwide to
Abbott in three primary locations: Santa Clara, Calif.; Temecula, Calif.; and
Clonmel, Ireland. The addition of Guidant's California-based employees boosts
Abbott's presence in the state - currently the headquarters of Abbott's
diabetes care and vascular businesses - from more than 3,000 to more than 7,000
employees.
3
Financial Details
Abbott
paid $4.1 billion in cash for Guidant's vascular business. In addition, Abbott
will pay Boston Scientific milestone payments of $250 million at U.S. Food and
Drug Administration approval of Guidant's drug-eluting stent, and an additional
payment of $250 million upon a similar approval in Japan. Abbott also provided
Boston Scientific with a five-year, $900 million interest-bearing loan. In
addition, Abbott has purchased approximately 64 million shares of Boston
Scientific stock for $1.4 billion, which represents less than 5 percent of the
company.
Abbott
expects that the Guidant transaction will be accretive to earnings per share in
2007 and beyond. Further information, including financial details, will be
provided on the conference call scheduled for 8 a.m. Central time today (9 a.m.
Eastern), as previously announced. A live webcast of the conference call will
be accessible through Abbott's Investor Relations Web site at
www.abbottinvestor.com. An archived edition of the call will be available after
11 a.m. Central time. Abbott also furnished an 8-K today regarding the
Guidant transaction.
About Abbott
Abbott is a global, broad-based health care
company devoted to the discovery, development, manufacture and marketing of
pharmaceuticals and medical products, including nutritionals, devices and
diagnostics. The company now employs 65,000 people and markets its products in
more than 130 countries.
Abbott's news releases and other information
are available on the company's Web site at www.abbott.com.
4
Private Securities
Litigation Reform Act of 1995 -
A Caution Concerning
Forward-Looking Statements
Some statements in this news
release may be forward-looking statements for the purposes of the Private
Securities Litigation Reform Act of 1995. We caution that these
forward-looking statements are subject to risks and uncertainties that may cause
actual results to differ materially from those indicated. Economic,
competitive, governmental, technological and other factors that may affect
Abbott
'
s operations are discussed
in the "Risk Factors" section and Exhibit 99.1 of our Securities and
Exchange Commission Form 10-K for the period ended December 31, 2005,
and are incorporated by reference. We undertake no obligation to release
publicly any revisions to forward-looking statements as the result of
subsequent events or developments.
###
5

EX - 99 . 1 2 a06 - 10044 _ 3ex99d1 . htm EX - 99 Exhibit 99 . 1 For Immediate Release Contact : Media Melissa Brotz ( 847 ) 935 - 3456 Jonathon Hamilton ( 847 ) 935 - 8646 Financial Community John Thomas ( 847 ) 938 - 2655 Tina Ventura ( 847 ) 935 - 9390 ABBOTT COMPLETES ACQUISITION OF GUIDANT VASCULAR BUSINESS - Combination of Abbott 's and Guidant 's Vascular Organizations Creates Leading Vascular Devices Business - ABBOTT PARK , Ill . , April 21 , 2006 - Abbott today announced it has completed the acquisition of Guidant 's vascular business , which , combined with Abbott 's current vascular business , creates one of the leading global vascular devices companies . This acquisition was made in connection with Boston Scientific 's acquisition of Guidant Corporation . " The acquisition of Guidant 's vascular business builds on our broad - based business strategy to develop leading positions in attractive health care markets - shaping Abbott for greater balance and strengthening our business mix and breadth of pipeline opportunities " , said Miles D . White , chairman and chief executive officer , Abbott . - more - " The combined Abbott and Guidant business offers a broad line of leading coronary and endo vascular products , a pre - eminent sales force , and global manufacturing operations , as well as a state - of - the - art R & D organization , which is developing innovative technologies and devices such as the XIENCE ™ V and ZoMaxx ™ drug - eluting stents " , White said . " Our newly expanded vascular organization has the tools and the talent to transform the way physicians treat vascular disease , impacting the lives of millions of patients around the world " . Broad Vascular Devices Product Portfolio For the past several years , Abbott has built a competitive vascular business through acquisitions , licensing agreements , and internal scientific and commercial development . With the addition of Guidant 's vascular business , Abbott offers physicians , catheterization labs and clinics a complete line of products and technologies for interventional procedures including : a comprehensive line of coronary and endo vascular stents ; a full offering of guide wires , catheters and balloons ; and innovative vessel closure devices . In addition , the combined business has a broad portfolio of intellectual property , including rapid exchange technology and stent designs , enabling the company to operate effectively in the competitive vascular devices market . 2 Innovative Research and Development Programs In addition to its broad product portfolio , Abbott is conducting advanced research and development programs that are focused on finding innovative solutions for treating vascular disease . With Guidant , Abbott now has two drug - eluting stents in development : ZoMaxx , a state - of - the - art stent coated with a proprietary immunosuppressant drug , zotarolimus , designed specifically to combat vessel re - narrowing ; and XIENCE V , an everolimus - eluting stent on the MULTI - LINK VISION ® cobalt chromium stent platform , which recently received approval in Europe . The combined organization also is leading the industry with a number of next - generation research programs including a stent that elutes two drugs targeted at difficult - to - treat patients such as diabetics , and a bio absorbable drug - eluting coronary stent designed to be fully absorbed by the vascular tissue following the restoration of blood flow . Guidant Vascular Sales and Employees The transaction provides Abbott with Guidant 's vascular intervention and endo vascular solutions business units , which had combined sales of more than $ 1 billion in 2005 . These business units add nearly 6,000 employees worldwide to Abbott in three primary locations : Santa Clara , Calif . ; Temecula , Calif . ; and Clonmel , Ireland . The addition of Guidant 's California - based employees boosts Abbott 's presence in the state - currently the headquarters of Abbott 's diabetes care and vascular businesses - from more than 3,000 to more than 7,000 employees . 3 Financial Details Abbott paid $ 4.1 billion in cash for Guidant 's vascular business . In addition , Abbott will pay Boston Scientific milestone payments of $ 250 million at U . S . Food and Drug Administration approval of Guidant 's drug - eluting stent , and an additional payment of $ 250 million upon a similar approval in Japan . Abbott also provided Boston Scientific with a five - year , $ 900 million interest - bearing loan . In addition , Abbott has purchased approximately 64 million shares of Boston Scientific stock for $ 1.4 billion , which represents less than 5 percent of the company . Abbott expects that the Guidant transaction will be accretive to earnings per share in 2007 and beyond . Further information , including financial details , will be provided on the conference call scheduled for 8 a.m. Central time today ( 9 a.m. Eastern ) , as previously announced . A live webcast of the conference call will be accessible through Abbott 's Investor Relations Web site at www.abbottinvestor.com . An archived edition of the call will be available after 11 a.m. Central time . Abbott also furnished an 8 - K today regarding the Guidant transaction . About Abbott Abbott is a global , broad - based health care company devoted to the discovery , development , manufacture and marketing of pharmaceuticals and medical products , including nutritionals , devices and diagnostics . The company now employs 65,000 people and markets its products in more than 130 countries . Abbott 's news releases and other information are available on the company 's Web site at www.abbott.com . 4 Private Securities Litigation Reform Act of 1995 - A Caution Concerning Forward - Looking Statements Some statements in this news release may be forward - looking statements for the purposes of the Private Securities Litigation Reform Act of 1995 . We caution that these forward - looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated . Economic , competitive , governmental , technological and other factors that may affect Abbott ' s operations are discussed in the " Risk Factors " section and Exhibit 99 . 1 of our Securities and Exchange Commission Form 10 - K for the period ended December 31 , 2005 , and are incorporated by reference . We undertake no obligation to release publicly any revisions to forward - looking statements as the result of subsequent events or developments . # # # 5