credit suisse slides 11-10-11

8/3/2019 Credit Suisse Slides 11-10-11

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Credit Suisse Annual Healthcare Conference

Thomas C. Freyman,

Abbott


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Forward-Looking Statement

Some statements in this presentation may be forward-looking statementsfor purposes of the Private Securities Litigation Reform Act of 1995,

including the planned separation of the research-based pharmaceuticalcompany from the diversified medical products company and the expectedfinancial results of the two companies after the separation. Abbott cautions

- that may cause actual results to differ materially from those indicated in theforward looking statements, and there is no assurance as to the timing ofthe planned separation or whether it will be completed. Economic,

, ,Abbott's operations are discussed in Item 1A, "Risk Factors, to our AnnualReport on Securities and Exchange Commission Form 10-K for the yearended Dec. 31, 2010 and in the interim reports filed on Form 10-Q for

su sequen quar er y per o s, an are ncorpora e y re erence. oundertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.

2 2011 Abbott


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Two Independent, Publicly Traded Companies

Abbott: Diversified Medical Products Biopharmaceuticals

New Pharmaceutical Company

Sales MixEstablished

Pharma25%

MedicalDevices

27%

ProprietaryPharma:Primary Care

~25%

Nutritionals28%

Diagnostics20%

Proprietary Pharma:Specialty

~75%

Sales

Chairman Miles D. White Richard A. Gonzalez

~$22 Billion Nearly $18 Billion

an

Key Brands

3 2011 Abbott


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Abbotts EvolutionStrategic Actions Driving Shareholder Value

Strategic Action Year Rationale

Knoll acquisition 2001 Expanded global footprint; bolstered pipeline with Humira

Hospira spin-off 2004 Sharpened strategic focus, investment in higher-growth segments

Globalization of Nutritionals 2006 Created international organization to enhance strategic focus

Guidant Vascular acquisition 2006 Expanded vascular business, launched #1 DES (Xience)

Pharma pipeline prioritization 2006 Narrowed discovery focus, emphasizing areas of greatest potential

Restructured Diagnostics 2008 Repositioned for greater profitability

AMO acquisition 2009 Entered demographically attractive vision care market

Solvay/Piramal acquisitions 2010 Provided critical mass in emerging markets; #1 position in India

Creation of EPD 2010 Provided focus to maximize portfolio of branded generics

Proprietary pharmaceutical 2009-2011 Added to pharmaceutical pipeline with nearly a dozen newcom ounds e. . Facet Neurocrine Reata

4 2011 Abbott

,


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Well Positioned as Two Independent CompaniesAbbott: DiversifiedMedical Products

New PharmaceuticalCompany

ra eg c ocus :

Expanding geographically

Developing new technologies

ra eg c ocus :

Continuing growth of leading brands

Advancing specialty-focused pharma pipeline

Accelerating margins/cash flow Strong margins and robust cash flow

Strengths of Each Company

Broad product portfolios, global scale and footprint

Strong balance sheets

Strong investment-grade credit ratings expected

Significant, durable cash flow

5 2011 Abbott

Each expected to pay dividend, combined will equal ABT dividend


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Abbott

A Well-Balanced PortfolioMedical Devices

27% of SalesEstablished Pharma

25% of Sales

Vision Care Diabetes Care

50% emerging markets

Diagnostics

20% of Sales

Global Nutritionals

28% of Sales ore a ora ory Molecular Point-of-Care

e a r c Adult

6 2011 Abbott


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Abbott

Broad Emerging Markets Exposure

Emerging market sales to approach 50% of sales by 2015

O.U.S.Developed

Markets

34%

U.S.29%

O.U.S.Developed

Markets34%

U.S.27%

U.S.25%

O.U.S.Developed

Markets28%

EmergingMarkets

37%

EmergingMarkets

39%

EmergingMarkets

47%

2015: Abbott Sales by Geography2011: Abbott Sales by Geography

7 2011 Abbott

Emerging markets include all countries/regions excluding the developed world: U.S., Canada, W. Europe, Japan and Australia


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Abbott

Delivering Top-Tier Performance

healthcare investments

High-single-digit sales growth with well-stocked new product pipeline

Targeting sustainable double-digit ongoing earnings-per-share growth

8 2011 Abbott


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Abbott Nutritionals

Leadership Positions

Abbott Nutritionals Global Nutritionals

Pediatric

o a a es x #1 or #2 in 20 countries Leadership for majority of categories 50 consumer brands; 140 countries

54%

46%

Pediatric Nutritionals #1 in the U.S.

u t #1 in the U.S. #1 worldwide

9 2011 Abbott


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Abbott Nutritionals

Sales Growth and Operating Margin Improvement

Share growth throughsuperior execution,geographic expansion

Improving both grossand operating margins

and new products

Generating-

>700 basis pointexpansion in

digit sales growth operating marginby 2015

10 2011 Abbott


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Abbott Established Pharmaceuticals

Growing Leadership Positions

Established Pharmaceuticals Broad portfolio 500+ branded eneric roduct ortfolioo a a es x Strong brand equity >50 percent of sales are self-pay

Lar e commercial foot rint

Emer in

Large sales force; distribution network

Manufacturing expertise Driving efficiencies without

DevelopedMarkets

Markets compromising quality

Development pipeline Hundreds of new product launches

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Reshaping Abbott for Emerging Market Growth

AbbottLegacy/Knoll

SolvayPharmaceuticals

ZydusCadila

PiramalHealthcareSolutions

EstablishedPharmaceuticals

2001 2010

Strategic actions provide critical mass and right structure to become one of thelargest branded generic pharmaceutical companies in emerging markets

12 2011 Abbott


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New Business Model Poised to Deliver Growth

Large sales and marketing organization focused on the brand

500+ diverse and growing product portfolio

Quality manufacturing and nimble development organization

Scale, structure and single-minded focus on success

13 2011 Abbott


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Abbott Diagnostics

Multiple Leadership Positions

Diagnostics Core Laboratory DiagnosticsGlobal Sales Mix n mmunoassay

#1 in blood screening >69,000 customersMolecular Diagnostics

CoreLaboratory

Partner of choice in companiondiagnostic tests

Pioneering the rapidly developingbio-identification field with Plex-ID

Point of Care Diagnostics Market-leading bedside testing

MolecularPoint of Care

14 2011 Abbott


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Abbott Diagnostics

Historical Mar in Im rovement

Operating Margin Expansion

t i c s

S a l e s .

11.3%

o f D i a g n o

8.0%

.

Delivered 100 to 200 basis points of improvement in operating

15 2011 Abbott

margin annually over the last 4 years


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Abbott Diagnostics

Future Margin ExpansionOperating Margin

5-year CAGR: double-digits

>$1B Operating Margin Expectations

>$1B in op margin by 2015

>600 bps of expansion

$0.6B >20% of sales

>14% of sales

16 2011 Abbott


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Abbott Medical Devices

Global Market Leadership

Global Sales Mix Vascular Devices #1 drug-eluting stent brand #1 manufacturer of coronary stents #1 manufacturer of guidewires #1 carotid stent

Vascular

DevicesDiabetes

Care

~20 new products in pipeline

Vision Care

Diabetes Care Fastest growing in insulin-dependentVision Care

pa en s n . .

17 2011 Abbott


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Abbott Diabetes Care

Near-Term Growth Opportunities

Continued Focus onInsulin-Dependent

Patients

Continue to ImproveOperating Margin

Successfully LaunchNew Products

Im rovementdriven by patient

mix andcost reductions

InsuLinx in EUin May lll

U.S. BGM playerin this segment

18 2011 Abbott


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Abbott Vision Care

Share Gains and Geographic ExpansionGrowth Drivers

Vision CareVision Care

Expand growth in international markets2

Growth by GeographyGrowth by Category

Refractive

(LASIK)

Solutions

ROW

merg ng

ye areSolutions

Refractive(LASIK)

Cataract

Europe

Europe

merg ng

ROW

a arac U.S.U.S.

19 2011 Abbott


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Abbott Vascular

Future Growth Drivers

Emerging marketgrowth

opportunitiesIndustry-leadingpipelinedelivering new

Leadershipacross

numerousEndovascularexpansion

pro uc s

Mid-to-high-single digit sales growthGross and o eratin mar in im rovement

20 2011 Abbott


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Abbott: Diversified Medical Products CompanyFinancially strong at ~$22B in sales with robust cash flow

Well-balanced across businesses, geographies and payors

Continued focus on opportunities in rapidly growing emerging markets

- -

Expect to deliver sustainable double-digit ongoing earnings pershare rowth; amon the fastest rowin of medical roducts eers

21 2011 Abbott


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Overview

Leading Proprietary BrandsLeadership positions in immunology, HIV,

cystic fibrosis, low testosterone,th roid disease amon others

Promising Pipeline Medicines that demonstrate strong clinicalperformance and economic value

Strong Team Track record of outstanding execution

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Strategies for Growth1 Grow Humira

2 Maximize current portfolio

3

4

Advance pipeline

Driven by strong commercial platform androductive R&D or anization

23 2011 Abbott


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Humira

Growth Strategies

Continue to expand the Drive early diagnosis and faster cycling

from conventional thera iesant - mar et

Increase penetration

Launch new indications Further penetrate in global markets such

as Brazil, Japan, China, Russia2

Improve patient adherence on nue o evo ve es - n-c ass supporprograms3

24 2011 Abbott


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Broad Portfolio of Specialty Therapies Focused on maximizing commercial

Planned realistically for maturing lipids Humira represents durable growth

,

Well-positioned for accelerating growthin 2015 and beyond

25 2011 Abbott


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Pharmaceutical Pipeline Snapshot

32 New molecular entities currently in human trials

15 Biologics currently in development (Discovery Phase III)

>20 Compounds or indications currently in Phase II or Phase III

Numerous pipeline opportunities with breakthrough potential

Goal to bring to market products that demonstrate strong clinicalperformance, patient benefit and economic value

26 2011 Abbott


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Significant Opportunities

Bardoxolone Daclizumab HCV Combo

First-in-class compound;potential to dramatically Potential for high efficacy withmanageable safety

Triple-combo has potential toshorten and simplify treatment;

increase cure rates

Significant peak-year sales potential

27 2011 Abbott


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Chronic Kidney DiseaseBardoxolone

Current treatments (non-specific) only modestly slow progression

Patients ultimately progress to end-stage disease/dialysis

Significant cost to healthcare systems worldwide

Annual cost of treatment of average dialysis patient >$75K

Significant quality-of-life implications

DiseaseOverview

To date, no treatments shown to reverse progression

Phase III program underway

Oral, first-in-class anti-inflammatory: Nrf2 activator

Novel mechanism of actionBardoxolone Improves estimated glomerular filtration rate (eGFR) Improves kidneys ability to filter and remove waste from the body

First-and-only treatment shown to reverse disease progression

Highlights

28 2011 Abbott


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NeuroscienceMultiple Sclerosis: Daclizumab

In development for relapsing remitting MS (RRMS) Most common form of the disease 85% of patients initially diagnosed with RRMS

Current therapies have either marginal efficacy with nuisance sideeffects or high efficacy and serious, unpredictable side effects (i.e. PML)

DaclizumabHighlights

Daclizumab offers potential to deliver right balance of high efficacy,manageable safety

Phase IIB data promising: potential for annual relapse rate-

29 2011 Abbott


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Hepatitis C VirusInterferon-Free Combination Program

ABT-450Protease Inhibitor

Partner: Enanta

ABT-267NS5A Inhibitor

ABT-072 and ABT-333Non Nucleoside

Pol merase Inhibitors

High potency Low resistance

Significant antiviral activity QD dosing

Additive antiviral activity to SOC Well-tolerated

QD dosing

Phase IIB ro ram recentl initiated Phase IIB ro ram recentl initiated First time evaluating all three classes in combination Evaluatin various ermutations of three MOA First time evaluating all three classes in combination Evaluatin various ermutations of three MOA

30 2011 Abbott


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Hepatitis C VirusStrategic Approach

Broad HCV program: Protease, Polymerase andNS5A inhibitors in development

Significantly shorten and simplify course of therapy2

Interferon-free3

31 2011 Abbott


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Other Pipeline Highlights

Immunology Oncology Womens Health

DVD-Ig Anti-CD4 JAK & SYK

Elotuzumab (CS1) Linifanib (Multi-targetedkinase inhibitor

Elogolix for endometriosisand uterine fibroids

IL-17 Veliparib (PARP inhibitor) Bcl-family proteins

Stron clinical erformance Patient benefit Economic value

32 2011 Abbott


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Summary

Compelling opportunity to create new, independentharmaceutical com an

Distinct investment opportunity for shareholders Greater visibility enables investors to clearly value new company

Well-positioned to succeed as an independent company Portfolio of leading brands, such as Humira, which will drive

strong, sustainable earnings growth and cash flow Advancing pipeline to fuel future growth Strong track record of performance and execution

33 2011 Abbott


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Two Unique and Compelling Investment Identities

Diver ent business models with distinct investment identities

Pharmaceuticals

Diversified Medical Products

Significant potential for new products Greater focus on developed world

Diverse payor base Greater emerging markets presence

EstablishedPharma

MedicalDevices

ProprietaryPharma:

Primary Care25%

Nutritionals28%

Diagnostics20%

~25%

Proprietary Pharma:Specialty

~75%

34 2011 Abbott


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35 2011 Abbott

credit suisse slides 11-10-11

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