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Bloomberg
Abbott Laboratories posted a surprise third-quarter net loss after the value of its stake in EpiPen maker Mylan NV slumped as the stock dropped in recent months.
Abbott became Mylan’s biggest shareholder last year after selling its generic drugs unit in Europe and developed markets to the drugmaker, and still holds a 13 percent stake. As Mylan became embroiled in public outrage over the rising price of its EpiPens, the stock slumped 10 percent in September alone, causing a $947 million writedown in Abbott’s third quarter.
Abbott’s shares declined 1.6 percent to $40.51 at 8:47 a.m. on Wednesday, before the U.S. markets opened. The medical-device maker has been grappling with problems that cropped up at two companies it has agreed to acquire. One of them, St. Jude Medical Inc., posted third-quarter earnings that missed analysts’ estimates earlier on Wednesday.
Excluding the Mylan writedown, Abbott’s earnings of 59 cents a share beat analysts’ predictions of 58 cents, on average, helped by rising demand for its generic drugs and medical devices. The company also said in a statement that it narrowed its profit forecast for the year to $2.19 to $2.21 per share — in line with the $2.20 anticipated by analysts.
Abbott is dealing with complications from two major deals — one that it wants to complete, another it’s trying to get out of. At the end of January, the Abbott Park, Illinois-based company agreed to buy Alere Inc., a maker of medical tests and supplies. The $5.8 billion deal has since turned sour, with the companies trading accusations and Abbott saying it wants to end the transaction, while Alere wants it to go through. Alere’s shareholders are slated to vote on the acquisition on Friday.