Abbott laboratories, Inc. - Mergers and Acquisitions 1.

EXECUTIVE SUMMARY
Abbott Laboratories is classified in the brand pharmaceutical industry, a highly competitive industry in which the firms rely on research and development to create innovative drugs. Over the last century, Abbott has developed into a diversified medical products company, developing, producing and marketing a range of products that are used in prevention, diagnosis, treatment, and care. The company has two major product groups; the first, diversified medical products include diagnostics, nutritional products, established pharmaceuticals, and medical devices. The second, research-based pharmaceuticals, has been the core line of business for Abbott and spurred most of their growth. Term paper I am going to study is on the topic, Mergers & Acquisitions of Abbott laboratories . I will be analyzing about the mergers & acquisitions. I will also analyze what were the strategic actions Abbott have taken , acquisitions highlight, scope, reasons for acquisitions and how this has been helped in their market share growth and expansion.

2. INTRODUCTION TO THE INDUSTRY GLOBAL PHARMACEUTICAL INDUSTRY HISTORY

The roots of the pharmaceutical industry lie back with the apothecaries and pharmacies that offered traditional remedies as far back as the middle ages, but the industry as we understand it today really has its origins in the second half of the 19th century. Whilst the scientific revolution of the 17th century had spread ideas of rationalism and experimentation, and the industrial revolution had transformed the production of goods in the late 18th century, the marrying of the two concepts for the benefit of human health was a comparatively late development.

Merck in Germany was possibly the earliest company to move in this direction. Originating as a pharmacy founded in Darmstadt in 1668, it was in 1827 that Heinrich Emanuel Merck began the transition towards an industrial and scientific concern, by manufacturing and
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selling alkaloids. Similarly, whilst GlaxoSmithKlines origins can be traced back as far as 1715, it was only in the middle of the 19th century that Beecham became involved in the industrial production of medicine, producing patented medicine from 1842, and the worlds first factory for producing only medicines in 1859.

Meanwhile, in the USA, Pfizer was founded in 1849, by two German immigrants, initially as a fine chemicals business. They expanded rapidly during the American civil war as demand for painkillers and antiseptics rocketed. Whilst Pfizer was providing the medicines needed for the Union war effort, a young cavalry commander named Colonel Eli Lilly was serving in their army. A trained pharmaceutical chemist, Lilly was an archetype of the dynamic and multi-talented 19th century American industrialist, who after his military career, and trying his hand at farming, set up a pharmaceutical business in 1876. He was a pioneer of new methods in the industry, being one of the first to focus on R&D as well as manufacturing. Another military man in the drugs business was Edward Robinson Squibb, who as a naval doctor during the Mexican-American war of 18461848 threw the drugs he was supplied with overboard due to their low quality. He set up a laboratory in 1858, like Pfizer supplying Union armies in the civil war, and laying the basis for todays BMS.

Switzerland also rapidly developed a home-grown pharmaceutical industry in the second half of the 19th century. Previously a centre of the trade in textiles and dyes, Swiss manufacturers gradually began to realise their dyestuffs had antiseptic and other properties and began to market them as pharmaceuticals, in contrast to the origin in pharmacies of other enterprises. Switzerlands total lack of patent laws led to it being accused of being a pirate state in the German Reichstag. Sandoz, CIBA-Geigy, Roche and the Basel hub of the pharmaceutical industry all have their roots in this boom. It wasnt just Swiss companies had their roots in the dye trade. Bayer was founded in 1863 as a dye making company in Wuppertal, the hometown of Karl Marxs collaborator Friedrich Engels. It later moved into medicines, commercialising aspirin around the turn of the 20th century, one of the most successful pharmaceuticals ever at that point. The unregulated nature of the trade in medicines during this period ensured there was a far less strict delineation between pharmaceutical and chemical industries than we have nowadays. These companies focused as much on cod liver oil, toothpaste, citric acid for soft
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drinks, and hair gel as on prescription medicines, as well as selling products like heroin on the over-the-counter market.

The national rivalries and conflicts that characterised this period also had their impact on the developing industry; Bayer had the aspirin trademark and its US assets seized during World War One, whilst American Merck (now Merck & Co. in the US or Merck Sharp & Dohme [MSD] elsewhere) was compulsorily split off from its Germany parent company (Merck KGaA) at the same time. Bayer also had its Russian subsidiary seized during the Russian revolution. This disruption to Germanys position as the leader in pharmaceuticals in the early 20th century by the war meant that others, particularly in the US, could take relative advantage. The beginnings of the globalisation of the industry were seen both before and after the war in the UK, import duties incentivised many foreign companies such as Wyeth, Sandoz, CIBA, Eli Lilly and MSD to set up subsidiaries in Britain in the post-war years.

The interwar years also marked two breakthroughs that presaged the arrival of the pharma industry as we know it today. The first was insulin; Frederick Banting and colleagues managed to isolate insulin that could treat diabetes, up until that point a fatal condition. But it was only in collaboration with the scientists at Eli Lilly that they were able to sufficiently purify the extract and industrially produce and distribute it as an effective medicine.

The second was penicillin, a discovery of an impact possibly unparalleled by any other in medicine. After Alexander Flemings initial discovery of the penicillium moulds antibiotic properties in 1928, and Howard Florey and Ernst Chains further experimentation, a government-supported international collaboration including Merck, Pfizer and Squibb worked on mass producing the drug during World War Two, saving thousands of soldiers lives. The immense scale and sophistication of the penicillin development effort marked a new era for the way the pharmaceutical industry developed drugs. The war had also encouraged research into everything from new analgesics to drugs against typhus, with a great deal of collaboration between the companies and government.

After the war, the arrival of social healthcare systems such as the UKs National Health Service (NHS) in Europe created a much more structured system; both for prescription of drugs and their reimbursement. In 1957, the NHS brought in what was essentially a price
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fixing scheme to allow reasonable return on investment for drug manufacturers, solidifying the incentive to invest in new medicines. This greater role for the state in healthcare was paralleled on both sides of the Atlantic in increasing government regulation of medicine production. The Thalidomide scandal of 1961 prompted an increase in the regulation and testing of drugs before licensing, with a new amendment to US Food and Drug Administration (FDA) rules demanding proof of efficacy and accurate disclosure of sideeffects for new medications (the Kefauver Harris Amendment) being implemented in 1962. Likewise, the 1964 Declaration of Helsinki put greater ethical structures on clinical research, clearly cementing the difference between production of scientific prescription medicines and other chemicals.

Fordian methods enabled more rational methods of mass production, and increasing understanding of biology and chemistry enabled drug candidates to be chosen systematically rather than discovered serendipitously. This golden age of drug development took place in the broader landscape of the post-war boom; a general context of massive improvements in standards of living and technological optimism that characterised the 40s to the early 70s, as well as the science-boosting competition of the cold war. As the barriers to entry in drug production were raised, a great deal of consolidation occurred in the industry. Likewise, the processes of internationalisation begun before the war were continued in 1951 alone Pfizer opened subsidiaries in nine new countries.

The list of novel drugs from the post-war era speaks for itself. The contraceptive pill, introduced in 1960, had an impact on society almost as massive as that of penicillin, enabling women to effectively control their fertility and enabling sexual equality for the first time. Valium (diazepam) was brought to the market by Roche in 1963, followed by the introduction of the monoamine oxidase inhibitor (MAOI) class of anti-depressants and antipsychotic haloperidol. These drugs ushered in a new era of psychiatric treatment, adding effective biological treatments to the psychoanalytic ones that had previously characterised psychiatry in this era. The 1970s provided a wave of cancer drugs, as part of the US governments war on cancer; a recent report from Cancer Report UK showed that survival rates have doubled since the early 70s due in large part to the massive innovation in oncology medicines that has occurred since then. ACE inhibitors arrived in 1975, improving cardiac health; and even drugs as ubiquitous as paracetamol and ibuprofen were developed in 1956 and 1969 respectively.
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As the 1970s drew to an end, a shift began in the way the pharma industry focused its energies. In 1977, Tagamet, an ulcer medication, became the first ever blockbuster drug, earning its manufacturers more than $1 billion a year and its creators the Nobel Prize. This marked a new departure as companies competed to be the developer of the next big blockbuster, and many achieved great success. Eli Lilly released the first selective serotonin reuptake inhibitor (SSRI), Prozac, in 1987, once again revolutionising mental health practice. The first statin was also approved in 1987, manufactured by Merck (MSD).

But whilst there were some breakthroughs, the enormous expense and risks involved in R&D caused many to merely ape their competitors, trying to get a cut of market-share using me too formulations rather than innovating novel medications. For example, AstraZenecas popular proton pump inhibitor Nexium (esomeprazole), released in 2001, is merely a purified single isomeric version of an older drug which happened to be losing patent protection. Patents, or the lack of them, became a problem for the industry. The Hatch-Waxman Act of 1984 regularised generic production in the US, and some developing countries made policy decisions to ignore medical patents. The industrys focus increased on marketing to maintain market share, on lobbying politicians to protect commercial interests, and on lawyers to enforce legal claims on intellectual property rights. These activities have brought a greater suspicion of the industry in the public at large. However, this can be linked to a wider antiscience feeling and more pessimistic outlook on the possibilities of technology in society, as seen in panics over issues such as genetically-modified crops and suspicion towards nuclear power.

Companies have tried to overcome some of these problems by outsourcing various aspects of their processes, and through buying up smaller companies that perhaps retain more of the innovative entrepreneurialism of the pioneers of the 19th century. But new technologies are what really promise a positive future for the industry in the 21st century. Both computing and biotechnology have allowed great leaps forward in both development and production of new drugs. Automation of the drug discovery process through high-throughput screening, and the computerisation of genomics have allowed breakthroughs at a much higher rate than previously. Starting with insulin in the 1970s, genetic modification has allowed production of
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human proteins by bacteria. And biological drugs such as the monoclonal antibodies, introduced around the turn of the millennium, hint at a whole new panorama of far more specific drugs that could impact on human health as much as the medicines of last century.

3. INTRODUCTION TO THE COMPANY

ABOUT ABBOTT
Dr. Wallace C. Abbott founded Abbott Laboratories in 1888 in northern Chicago. Over the last century, Abbott has developed into a diversified medical products company, developing, producing and marketing a range of products that are used in prevention, diagnosis, treatment, and care. The company has two major product groups; the first, diversified medical products include diagnostics, nutritional products, established pharmaceuticals, and medical devices. The second, research-based pharmaceuticals, has been the core line of business for Abbott and spurred most of their growth. Abbott currently employs over 60,000 people worldwide and sells its products in 140 countries.

Abbott Laboratories is classified in the brand pharmaceutical industry, a highly competitive industry in which the firms rely on research and development to create innovative drugs. Through securing patents for these discovered drugs brand pharmaceuticals are able to protect their drugs against replicas. In this industry patent protection lasts for twenty years, but the long development process necessary to bring drugs to market makes their effective lifespan a little over a decade. Once these patents expire generic pharmaceutical companies can immediately begin duplicating the drug and offering it at a substantial discount, undercutting the branded pharmaceuticals and eroding their sale volume and revenue. Although research-based pharmaceuticals have been Abbotts main line of business throughout the past century, in recent years they have shifted more of their focus on to the diversified medical product sector. The culmination of this shift came in October of 2011 when they announced the spinning off of their research-based pharmaceutical business and the intention to keep the diversified medical products under the Abbott name. This shift comes at a time when big pharmaceutical companies face an extremely murky landscape going forward. Research and development costs for new drugs have skyrocketed in recent
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years and increased government regulation projected to shorten patent protection periods has made it increasingly difficult for pharmaceutical companies to produce high enough revenues to cover their costs of production. Griffin agrees with Abbotts decision to shift their focus away from branded pharmaceuticals towards other pillars of their business. They will, however, need to focus on increasing their margins in these lines of business, especially as they expand internationally in to high-growth emerging markets. Abbott has already begun expanding overseas and 2011 saw 60% of Abbotts net sales generated abroad. This trend should continue with the bleak outlook for American pharmaceutical demand and the increased demand, especially for branded generic products, in emerging market countries. While they still operate both lines of business it is in Abbotts best interest to develop synergies between their product lines. Currently, although it is a diversified company, Abbott operates its product lines fairly independently. If they instead restructured slightly to incorporate aspects of each of their lines in their products they might be able to produce more cutting edge, innovative products. An example of this is Xience, Abbotts blockbuster drugeluting stent. This product was developed jointly between Abbotts medical devices and pharmaceutical branches. Abbott is one among few companies diversified and developed enough to produce such a product, and as such as seen the stent become a best-selling product with essentially no viable competitors. By creating more synergies within the branches of its business Abbott can take advantage of economies of scope and create novel products that carve out their own distinct niches in the marketplace. The final aspect Griffin believes Abbott can pursue its further diversifying their product line through acquisitions of biotech companies. Biotech products tend to be produced using microorganisms and DNA, making them much more difficult to copy than traditional pharmaceutical compounds. This complexity will allow Abbott to retain more market share of their products after the patent expires, reducing their exposure to generic erosion, the main threat for all big pharmaceutical companies. In this same vein, increasing focus on Abbotts branded generics product line will allow the company to retain some of that erosion, and perhaps get a leg up on other generic manufacturers since they will already have the infrastructure and scientific knowledge in place to produce the drugs efficiently.

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3.1.

HISTORY

Abbott got its name and start from Dr. Wallace C. Abbott, a practicing physician and pharmacy proprietor at his Peoples Drug Store in Chicago. In 1898, Dr. Abbot began producing tiny pills called dosimetric granules using alkaloid to improve his patients medications. Soon the demand for these granules grew beyond that of his patients and so began the Abbott Alkaloidal Company in 1900. Abbott Laboratories had modest origins, bringing in just $2000 its first year, but by 1910, Abbott had expanded into New York, San Francisco, Seattle and Toronto with over 700 products in its catalog. Five years later, Abbott Alkaloidal Company officially changed its name to Abbott Laboratories to reflect the companys new direction into research and synthetic compounds. The company went public in 1929, and now Abbott has more than 120 facilities worldwide and has become a global innovator in healthcare and new products. With a long, rich history, Abbott has been a major player in innovation, health care expansion and development of new products since its inception. During WWI, Abbotts antiseptic agent Chlorazene helped soldiers clean wounds. Seven years later, Abbott developed Butyn, a butyl alcohol-based anesthetic, which began Abbotts pioneering role in the development of anesthesia products. In 1930, Abbott introduced Nembutal, used to treat seizures, preoperative sedation and insomnia; today, the anesthetic is still one of Abbotts best-known and widely-used products. In the early 1930s, Abbott doctors Ernest H. Volwiler and Donalee L. Tabern created another anesthetic, Pentothal, which is now on the World Health Organizations Essential Drug List. The invention of Pentothal began Abbotts expansion into the I.V. segment. Fifty years after Pentothals introduction, Volwiler and Tabern were inducted into the U.S. Inventors Hall of Fame. Throughout the rest of the century, Abbott introduced groundbreaking products that have led to them becoming a global leader in pharmaceutical, medical, and nutritional products. Since Abbots inception, the company has grown and entered new segments through acquisitions. In 1964, Abbott acquired Ross Laboratories, turning it into a wholly owned subsidiary of Abbott and renaming it Abbott Nutrition in 2007. Since 2001, Abbott has purchased Knoll, the pharmaceutical division of BASF; TheraSense, a diabetes care company; the vascular device division of Guidant; and Advanced Medical Optics, giving Abbott a Vision Eye Care division in 2009. All acquisitions served to improve Abbotts standing as a leader in global, broad-based health care and an innovator in new medicines,
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technologies and health management. The acquisition of the pharmaceutical arm of BASF Knoll has proven especially beneficial to Abbott. BASF created and owned the drug Humira, which treats rheumatoid arthritis, until the Abbott acquisition. Humira has proven to be a highly profitable drug and has potential to add $10 billion in sales for 2012. In 2010, acquisitions continued with the purchases of Solvay Pharmaceuticals, expanding Abbotts presence in emerging markets and enhancing its portfolio of pharmaceutical products; STARLIMS, a LIMS company based in Hollywood and Florida for an all-cash transaction valued at $123 million; and Facet Biotech Corporation, strengthening its oncology and immunology divisions. Recently, Abbott acquired Piramal Healthcare Ltds Healthcare Solutions unit for $3.72 billion to become Indias largest drug company. To refine Abbotts focus, it has also sold several subsidiaries. In 2002, Abbott sold the Selsun Blue, Clear Eyes and Murine brands. These acquisitions and divestitures have helped position Abbott as a leader in six targeted sectors: pharmaceutical products, nutritional products, diagnostic instruments & tests, medical & surgical devices, animal health, and vision technologies.

3.2.

HISTORY TIMELINE

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More than a century ago, 30-year-old Dr. Wallace C. Abbott, a practicing physician and drug store proprietor, founded the Abbott Alkaloidal Company. Using the active - or alkaloid part of a medicinal plant, he formed tiny pills, called dosimetric granules, which provided a more accurate and effective dosing for his patients than other treatments available at the time. The demand for these accurate granules soon far exceeded the needs of his own practice and from these modest origins was born Abbott, one of the worlds most broadbased health care companies and a leader in the discovery, development and manufacture of products that span the continuum of care.

Founding and Modern Science: 1888 - 1910 From the very beginning, Dr. Abbott and the companys early founders championed scientific investigation to benefit patients. With alkaloidal medicine, Abbotts founders were pioneers in the creation of the scientific practice of pharmacy, devising a new and better way to deliver medicine granules to improve the quality of care for patients. Abbott was an early innovator in physician education as well, supporting a sizable publishing operation.

1888 Dr. Wallace C. Abbott, a practicing physician, begins manufacturing dosimetric granules. Dr. Abbott is one of the founders of modern pharmacy. 1894 Dr. Abbott acquires and becomes editor of The Alkaloidal Clinic. 1900 The company is officially incorporated as the Abbott Alkaloidal Company. 1906 To reach more physicians, Dr. Abbott establishes the companys sales force. 1910 Abbott establishes its first European agency in London and branches in New York, San Francisco, Seattle, Toronto and India.

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Growth and Service: 1916 1938

After the first years of Abbott's success based primarily on alkaloidal medicines, Dr. Alfred S. Burdick, a young medical professor and writer hired in 1904, convinced Dr. Abbott that the future would take a different direction. With the world standing on the threshold of rapid progress in chemistry, Abbott shifted its research focus from alkaloids to synthetic (chemical) medicines, an area positioned for tremendous growth. In 1915, the name of the company changed to reflect the commitment to new areas of research, beyond alkaloids. The newly renamed Abbott Laboratories entered a period of growth characterized by war, strategic acquisitions and constant scientific pursuit. 1916 Abbott acquires its first synthetic medicine, an antiseptic agent called Chlorazene, which is used extensively on the battlefields of World War I to clean wounds. 1920 Dr. Abbott breaks ground for a new facility in North Chicago, Illinois. The site serves as the companys world headquarters for more than 40 years. 1923 Abbott develops the synthetic drug Butyn, a local anesthetic, based on butyl alcohol. It marks Abbotts official entrance into the anesthesia market, and butyl alcohol becomes a keystone of Abbott's scientific research in sleep-inducing agents. 1929 Abbott stock is listed on the Chicago Stock Exchange with an offering of 20,000 shares at $32 each. 1930 Nembutal, a sedative - hypnotic agent and one of Abbott's best-known and longest-lived products, is introduced. 1931 Combining an existing sales office and the Canadian operations of the recently acquired Swan Meyer, Co., Abbott establishes its first international affiliate in Montreal, Canada. 1936 Abbott introduces Pentothal (thiopental sodium), which will be the most widely used induction anesthetic in the world for more than 50 years. Abbott enters the I.V. business by supplying
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hospitals with bulk intravenous solutions. This innovation lead to the introduction of two of their scientist in the U.S. Inventors Hall of Fame. 1938 Abbott celebrates its 50th anniversary with the dedication of its North Chicago Research Center.

Progress: 1939 1959

In the mid-twentieth century, Abbott rose to a new level scientifically, commercially and as an employer. New programs to benefit employees were created. Research during and after World War II yielded important new products in many therapeutic areas, including antibiotics. Sales and marketing innovation led to great commercial growth, and new operations around the world continued to open. 1939 Health care benefits are extended to employees' dependents. 1941 Discovered in Great Britain in 1928, penicillin had tremendous clinical value, but had yet to be produced on a large scale. In 1941, Britain seeks help in starting large-scale production and Abbott accepts the challenge. Within three months Abbott begins commercial production of penicillin, one of the five pioneers in the United States. 1942 Abbott introduces Halazone, a water purification tablet shipped by the millions to every fighting front in World War II. 1943 Abbott opens its first facility in Puerto Rico, later to become one of its largest manufacturing operations. 1945 Abbott introduces Tridione for treatment of epilepsy, Surbex, a high-potency vitamin, and Venopac, the first fully disposable intravenous administration set.

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1946 Abbott is the first pharmaceutical company to have a special laboratory for radioactive pharmaceuticals, or "radiopharmaceuticals," a move that leads to the creation of what will become the worlds leading immunodiagnostics business. 1947 Abbott introduces Aminosol, a new protein solution for intravenous feeding of surgical patients. Abbott develops the Abbott Sanitary Counting Tray. 1949 Abbott introduces 74 new products in a single year, including pharmaceuticals, medical devices, and improved variations of existing products. 1950 Raymond E. Horn steps down as president because of illness. His successor is Dr. Ernest Volwiler, the first president since Dr. Burdick with a scientific background. Abbott introduces Sucaryl, its first truly consumer product, opens a registered entity in France, and enters into business in Spain. 1951 Abbott introduces Selsun Suspension shampoo for dandruff control. The company establishes an employee contributory stock purchase plan. 1952 Abbott introduces Erythrocin, a new antibiotic with good activity against gram-positive bacteria. 1953 Abbott's radiopharmaceutical business introduces Radiocaps, capsules containing an accurately controlled, invisible and un-weighable film of radioiodine that simplifies the diagnosis and treatment of thyroid disorders. 1959 Abbott introduces a new logo, which features a stylized a symbol that is still in use today.

Expansion to Specialization: 1962 - 1988 The second half of the 20th century is one of continued growth. Abbott moved into a variety of businesses, including several that it would exit, such as sweeteners, eye drops and golf equipment. By the 1980s, several businesses were divested as Abbott began to narrow its focus where its expertise best aligned with patient needs. 1962 Abbott enters a joint venture with Dainippon Pharmaceuticals Co., Ltd., of Japan to manufacture radiopharmaceuticals. This venture will become Dainabot, and eventually evolve

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into Abbott Japan, the companys largest operation outside the United States. 1963 The Triosorb diagnostic test kit, even simpler than the Radiocaps introduced ten years earlier, no longer requires a patient to swallow a radioactive substance; rather, a blood sample is inoculated with a radioactive form of thyroid hormone. 1964 Abbott acquired M&R Dietetic Laboratories of Columbus, Ohio, best known as makers of Similac infant formula, one of the first milk-based infant formulas. M&R eventually becomes Abbotts Ross Products Division. 1965 Abbotts growth warrants expansion at its headquarters location, and the company begins to move some operations to Abbott Park, a 420-acre site southwest of its North Chicago operations. 1972 Abbott introduces Tranxene, a tranquilizer, Ausria, a radioimmunoassay test to detect serum hepatitis, and the ABA-100 blood chemistry analyzer. 1973 Abbott forms a diagnostics division to bring together all diagnostic products and services. The company also introduces Ensure, the first adult medical nutritional. 1977 TAP Pharmaceuticals, now known as TAP Pharmaceutical Products Inc., is formed as a joint venture between Abbott and Takeda Chemical Industries, Ltd. of Japan. 1981 Abbott introduces the TDx therapeutic drug monitoring system. 1983 Depakote (divalproex sodium) is approved in the United States. 1985 Abbott wins U.S. approval to market the worlds first diagnostic test for AIDS. Abbott also launches ADD-Vantage, an intravenous drug delivery system, and TAP receives its first product approval for Lupron (leuprolide acetate). 1987 Hytrin (terazosin hydrochloride) receives U.S. FDA approval. 1988 Abbott celebrates its centennial. The IMx diagnostic instrument, used in medium-sized laboratories, is introduced and will become the worlds leading immunoassay system and one of the best-selling new products in Abbotts history.

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Specialization: 1990 1998

By the end of the twentieth century, Abbott further refined its focus, delivering both scientific and financial results. New, more specialized products were introduced in many divisions, some developed in-house and some brought from the outside. Abbott continued to divest other products so that it could concentrate on what it has always done best: create quality health care products for people in every stage of life. 1990 Clarithromycin launched. Clarithromycin is known as Biaxin in the United States and Klacid and Klaricid in countries around the world. 1991 Several major products are introduced worldwide, including Survanta (beractant) and a prostate-specific antigen (PSA) test to screen and monitor therapy for prostate cancer. Abbott enters the hematology testing market with the acquisition of Sequoia-Turner Corp. 1993 Abbott launches AxSYM, a new labor-saving diagnostic system. 1994 Abbott introduces sevoflurane, and completes an agreement to cross-license LCR and PCR, two gene amplification technologies. 1995 TAP receives approval for PREVACID (lansoprazole). In diagnostics, ABBOTT PRISM, the first, fully automated high-volume blood analyzer is introduced. Today, the ABBOTT PRISM is used to screen the majority of the worlds donated blood supply. 1996 Abbott launches Norvir (ritonavir). The company enters the glucose testing market with the acquisition of MediSense, Inc. 1997 After extensive research, Abbotts Ross Products Division launches an improved version of Similac called Similac Advance. 1998 Abbott launches Glucerna shakes and snack bars, specially formulated nutritional products for

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people

with

diabetes.

The

U.S.

FDA

approves

several

major

products

including TriCor (fenofibrate) and Zemplar (paricalcitol).

Transformation: 1990 - 2006 In recent years, Abbott has adapted to the rapidly changing and intensely competitive health care environment of the twenty-first century. As weve added new businesses and reorganized, weve kept our focus where it has always been on the patient. 1999 Abbott launches ARCHITECT, a next-generation diagnostic system. Abbott acquires Perclose, Inc., the leading arterial closure device manufacturer, which provides the foundation for building its vascular business. Later that year, the FDA approves The Closer, a next generation vascular closure device. 2000 Abbott receives approval for several new drugs and line extensions,

including Kaletra (lopinavir/ritonavir), Biaxin XL (clarithromycin extended-release tablets), and Depakote ER (divalproex extended-release tablets). Abbott introduces an innovative award-winning, 32-ounce, reclosable plastic bottle for Similac with Iron. 2001 Abbott acquires the pharmaceutical business of BASF AG, including the global operations of Knoll Pharmaceuticals. In addition, Abbott acquires Vysis, Inc., and receives clearance to market the Vysis UroVysion test to monitor for recurrent bladder cancer. 2002 Abbott receives FDA approval for Humira (adalimumab). The company launches Similac Advance, Isomil Advance and NeoSure Advance infant formulas in the United States. Abbott acquires the cardiovascular stent business of Biocompatibles International plc., as it works to build its vascular business. 2003 Abbott launches HUMIRA in Europe. The company launches three new immunodiagnostics systems for use on the ARCHITECTplatform. Abbott also continues to build its medical products business through several strategic acquisitions: JOMED's coronary and peripheral intervention business lines and Integrated Vascular Systems Inc.; Spinal Concepts Inc., an innovator of spinal implant devices; and ZonePerfect Nutritional Co., which signals Abbott's entrance into the fast-growing healthy living category of the nutrition market. 2004 Abbott acquires TheraSense Inc., a leading blood glucose monitoring business, to complement
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its fast-growing diabetes care business. The company also enters the point of care diagnostics market with the acquisition of i-STAT Corp.; adds to its healthy living nutrition offerings with the acquisition of EAS Inc., and firmly establishes its presence in the spinal device market with the acquisition of Spine Next S.A. Abbott also spins off its hospital products business as Hospira, an independent, publicly traded company. Hospira is one of the largest global specialty pharmaceutical and medication delivery companies serving the hospital. 2005 Abbott introduces several medical devices including the Xact carotid stent with the Emboshield capture device; the FreeStyle Connect blood glucose monitor; and, in the United States, launches the ABBOTT PRISM blood screening system and the CELL-DYN Sapphire

hematology system. The company also receives FDA approval for two new uses for HUMIRA. Abbott also makes changes to its Kaletra product. 2006 Abbott acquires Guidant's vascular business, which, combined with Abbott's ongoing business, creates one of the leading global vascular device companies. Abbott acquires Kos Pharamaceuticals, greatly expanding its presence in cardiovascular medicine including lipid management.

January 2013 Abbott reached one of the most significant milestones in its celebrated history. Realizing that addressing the worlds evolving healthcare challenges requires focused solutions, delivery systems and approaches, Abbott separated into two independent companies: Abbott and AbbVie.

4. PRODUCT OVERVIEW 4.1. Pharmaceutical product

Abbott laboratories pharmaceutical products include a broad line of adult and pediatric medicines which are manufactured marketed and sold worldwide. Most of these products are only available through prescriptions or physicians recommendations. Generally,

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pharmaceutical products are sold directly to wholesalers, government agencies, health care facilities, speciality pharmacies and independent retailers. Pharmaceutical products made up about 60% of total sales revenue for Abbott laboratories in 2012. Medicines the segment treat a wide range of problems including: HIV/AIDS, rheumatoid arthritis, crohns disease, autoimmune disorders, migraines, epilepsy, bipolar disorder, obesity, thyroid disorder, high cholesterol, hypertension, dyslipidemeia and all type of cancers. Though a few key products drive sales in the pharmaceutical segment, Abbott offers over 100 medicines in the pharmaceutical area. Key Products: Humira Humira is used to reduce the signs and symptoms of moderate to severe rheumatoid arthritis in adults. The drug is intended to prevent further damage to bones and to help patients more easily perform daily activities. Humira can also be used to reduce signs and symptoms of certain types of moderate to severe juvenilie arthritis in children over 4 years of age. In addition to treating rheumatoid arthritis, Humira also is used to reduce the signs and symptoms of Crohns disease in adults who have not responded positively to traditional treatments. Kaletra Kaletra is used for adults and children 2 years of age or older who are infected with the HIV virus, the virus that causes AIDS. Kaletra works by inhibiting an enzyme that the HIV virus needs to multiply. The drug is known as Aoluvia or Norvir in areas outside the United States. Synthroid Synthroid has several different use, all stemming from problems with the thyroid gland. It can be used to treat hypothyroidism, a condition where the thyroid glands does not produce enough of a certain hormone. The drug can also help to decrease the size of an enlarged thyroid gland, a condition known as goitre. Finally, synthroid is effective in treating thyroid cancer.

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4.2

Nutritional Products

Abbott laboratories nutritional products include a broad line of adult and paediatric products, which are manufactured, marketed, and sold worldwide. The company produces some of the worlds most trusted names in adult, paediatric, and healthy living products. Nutritional products are generally marketed and sold to institutions, wholesalers, retailers, health care facilities, and government agencies. Nutritional products are made up about 17% of total sales revenue for Abbott Laboratories in 2008. Total sales in the nutritional products segment were up 12.2% in 2008 compared to 2007. Products in the segment include several popular consumer brands. The company also offers nutritional products and feeding devices to patients with special feeding needs due to food allergies, injury, illness, respiratory conditions, and gastrointestinal impairment. Though most sales in the nutritional products segment are driven by a few consumer brands, Abbott offers 9 products in this segment. Key Products: Similac Similac is an entire line solely dedicated to infant nutrition. 3 products ( regular, iron enchanced, and omega-3 / omega-6 enchanced) are available for infants ages 0-6 months that are intended to replace or supplement regular breast feeding. 2 products (regular and omega-3 / omega-6 enchanced) are available for infants ages 6-24 months. These products are intended to promote continued growth as well as bridge nutritional gaps common in making the nutrients infants need for growth and development. Products are offered for infants with special needs such as lactose intolerance and multiple allergies, as well.

Ensure Ensure is a nutritional drink intended for adults that offers complete, balanced nutrition with essential vitamins and minerals that promotes improved overall health and energy. Ensure is lactose-free and comes in many different variations including Ensure Plus, Ensure high Protein, Ensure Fibre, and Ensure Pudding.
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Glucerna Glucerna is a nutritional line specially intended for individuals living with diabetes. Glucerna has been clinically proven more consistent blood glucose levels rhan standard medical nutritional drinks and snack bars. Glucerna is available in both nutrition shakes and snack bars.

4.2.

Diagnostic Products

Abbott Laboratories diagnostic products include a wide range of diagnostic instruments, which are manufactured, marketed and sold worldwide. Diagnostic products include tests that are used worldwide in hospitals, reference labs, and blood banks. Abbott intends for its diagnostic products to provide health care professionals and patients with fast, convenient, and accurate test results. Diagnostic products are generally marketed and sold to hospitals, laboratories, clinics, and physicians offices. Diagnostic products made up about 10% of total sales revenue for Abbott Laboratories in 2008. Total sales in the diagnostic product segment were up 13.2% in 2008 compared to 2007. Products in the segment include instruments that diagnose a range of serious health issues including infectious diseases, cancer, diabetes, and genetic conditions. Though most sales in the diagnostic products segment are driven by a few key products, Abbott offers 27 products in the segment. Key Products: ARCHITECT ARCHITECT is a diagnostic instrument capable of testing for many different health issues in the areas of drug abuse/toxicology, general chemistry, metabolic, specific proteins, and therapeutic drug monitoring. In all, ARCHITECT can conduct over 85 specific tests. ARCHITECT is able to conduct about 1200 tests per hour, enough to meet most laboratory testing needs.

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m2000 m2000 is an instrument that automates the extraction, purification, and preparation of DNA and RNA samples from patients. The instrument is also capable of detecting and measuring infectious such as HIV and HPV. m2000 has multiple validity checks to ensure improved accuracy.

4.3.

Vascular Products

Abbott Laboratories vascular products include a broad line of coronary, endovascular, and vessel closure devices, which are manufactured, marketed, and sold worldwide. Abbotts vascular products are known for their safety, effectiveness, and ease of use in treating patients. The company is focusing on improving patient care by combining the latest medical device innovations, world class pharmaceuticals, and research and development. Vascular products do not currently make up a huge amount of Abbott Laboratories total sales revenue (Around 7%). Total sales in the vascular products segment, however, have risen dramatically in the past few years. Sales rose 32.8% in 2006, 54% in 2007, and 35% in 2008. So far, in 2009, vascular products are accounting for nearly 10% of total sales revenue for Abbott. Products in the segment include a wide range of devices used in the treatment of patients with vascular disease. Though most sales in the vascular products segment are driven by a few key products, Abbott offers 25 products in the segment. Key Products: Xience v Xience v is Abbott Laboratories most recent, technologically advanced stent for the treatment of coronary artery disease. The Xience v stent uses the proven technology of the MINI VISION stent along with an effective drug coating that helps to open and prevent renarrowing of narrowed arteries. Though still a very young product, the Xience v stent has been billed as technologically superior to its competitors and is already seeing a huge increase in its market share.

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MINI VISION MINI VISION is Abbott Laboratories first cobalt chromium stent for small vessels. The device features thinner struts, which have been proven to lower vessel injury. The alloy is also much stronger than stainless steel, which allows the MINI VISION to have 45% reduced metal volume as compared to its competitors.

StarClose StarClose is a vascular closure system that features innovative design ideas in the clip. The system is designed to promote the primary healing process to achieve a secure close of femoral artery access sites following vascular procedures.

5. Abbotts Business and Growth Strategies

For fiscal year 2012, Abbott Laboratories focus on several key areas. First, the company plans to continue leveraging its staple drug, Humira. Sales in the drug have increased from $2.0 billion in 2010 to $4.5 billion in 2011, and Abbott forcasts sales of Humira to increase 25% in 2012. The increased revenue will stem from continued research and development as well as selling support dedicated to maximizing the worldwide potential of the drug. In addition, Abbott is studying two possible extra applications for the drug. Abbott Laboratories also plans on maximizing its market share in new worldwide markets. Over half of the companys total sales revenue comes from international markets and much of its recent growth has been due to increased international sales. International sales rose 23.9% in 2011 and 24.1% in 2012. So far in 2011, international sales have only risen 0.7%, but this is more of a reflection of a relatively stronger U.S. dollar. Net international sales increased 8.0% in the first six months of 2011, including a 10.5% increase in the second quarter. The relatively stronger U.S. dollar has decreased international sales in 2011 by 13.0%. with this taken into account, Abbott expects to see steady continued increase in sales revenue from international markets. Abbott Laboratories also hopes to continue its growth in the vascular products segment. Research is being performed on new devices in the segment, including a drug eluting stent

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and a bio absorbable stent. After huge gains in 2009-2011, the vascular products segment has been a 38.3% sales revenue increase in the first nine months of 2011. In February 2009, Abbott Laboratories acquired the outstanding shares of Advanced Medical Optics, Inc (AMO). AMO is a marketer of ophthalmic surgical technology and devices as well as eye care solutions. AMO was acquired for approximately $1.4% billion, and was financed through long-term debt. Abbott also acquired $1.5 billion in debt from the transaction. Abbott acquired AMO in hopes of taking advantage of increasing demand for vision care technologies due to population growth and demographic shifts. Abbott Laboratories has recently engaged in acquiring several smaller health care services companies. In October 2009, Visiogen Inc. was acquired for $400 million. Visiogen Inc. specializes in eye care products for patients with cataracts. Also in October 2009, Abbott bought Evalve, which specializes in non-surgical treatments for patients with heart disease. Evalve was acquired for $410 million. Of perhaps more importance, in September 2009, an agreement was reached to obtain Solvays pharmaceutical business. Solvay has the capabilities to produce a vaccine for the recent outbreak of the swine influenza. The agreement was for $6.6 billion and is expected to close in the first quarter of 2010. In 2010, Abbott acquired Piramal health care.

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Source: www.abbott.com

6. ACQUISITIONS BY ABBOTT India: The Indian Pharmaceutical Market

India is one of the world's fastest-growing pharmaceutical markets, due in large part to branded generics. The market will generate nearly $8 billion in pharmaceutical annual sales this year, a number that is expected to more than double by 2015. Abbott estimates the growth of its Indian pharmaceutical business with Piramal to approach 20 percent annually, with expected sales of more than $2.5 billion by 2020.

Branded generics have significant brand equity in many international markets, providing durable, sustainable franchises for future growth. Piramal markets the products in its Healthcare Solutions business in India only and does not market traditional generic products. Today, branded generics account for 25 percent of the global pharmaceutical market, have the majority of market share in the largest emerging markets, and are expected to outpace growth of patented and generic products. The Mumbai-based Piramal Healthcare Solutions business has a comprehensive portfolio of branded generics with annual sales expected to exceed $500 million next year in India, and market-leading brands in multiple therapeutic areas, including antibiotics, respiratory,
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cardiovascular, pain and neuroscience. Piramal has a strong commercial presence, including the largest sales force in India with a unique model that includes dedicated sales personnel in rural areas inhabited by 70 percent of the population. The combined Abbott and Piramal sales forces will be the industry's largest in India.

Piramal's Healthcare Solutions business will become part of Abbott's newly created, standalone Established Products Division. Piramal's Healthcare Solutions business employs more than 5,000 people in India. Abbott, has more than 2,500 employees across all of its businesses in india.

6.1.

Piramal healthcare Ltd:

About the Piramal Group:

The Piramal Group, led by Ajay G. Piramal is one of India's foremost business conglomerates. Driven by the core values of Knowledge Action Care, the Piramal Group has interests in a myriad of industries that encompass healthcare, drug discovery & research, diagnostics, glass, real estate and financial services. The Piramal Group steadfastly pursues inclusive growth while adhering to ethical and value driven practices. The Group's turnover exceeded US $1 billion in FY2012.

Acquisition Highlights:
On September 8, 2010, Abbott acquired Piramal Healthcare Limiteds Healthcare Solutions business, a leader in the Indian branded generics market, for $2.2 billion, in cash, plus additional payments of $400 million annually in 2011, 2012, 2013 and 2014. Abbott recorded a $1.6 billion liability for the present value of the additional payments at the acquisition date. The acquisition was financed with cash. The allocation of the fair value of the acquisition resulted in the recording of $2.7 billion of deductible acquired intangible assets and $1.0 billion of deductible goodwill. Acquired intangible assets consist primarily of trade names, customer relationships and associated rights and are amortized over an average of 19 years.

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Scope:
Strategic action will propel Abbott to No. 1 position with annual sales growth approaching 20 percent in India, expected to exceed $2.5 billion in sales by 2020. Piramal's comprehensive portfolio of market-leading branded generics spans multiple therapeutic areas ; combined sales force to become industry's largest in India, one of world's fastest-growing markets, generating nearly $8 billion in pharma sales this year; expected to more than double by 2015. And also Abbott's collaboration with Zydus Cadila as well as the creation of a new stand-alone Established Products Division to focus on expanding the global markets for its leading branded generics portfolio.

Reasons to buy:
This strategic action advance Abbott into the leading market position in India, one of the world's most attractive and rapidly growing markets. Abbott's strong position in branded generics and growing presence in emerging markets is part of their ongoing diversified pharmaceutical strategy, complementing their market-leading proprietary pharmaceutical offerings and pipeline in developed markets. Emerging markets represent more than 20 percent of Abbott's total business. With this piramals acquisition, the combined health care solutions and Abbott business became the clear market leader in India, with a market share of approximately 7%.

Abbotts market share in India:

Abbot would be able to leverage the combined sales force of 7,000 and gain access to tier-3 towns where it was not present. The deal not only gives it 18-20 per cent volume growth but also size. Says an analyst, With a 7 per cent market share (Abbot was languishing at 18, with 2.3 per cent market share and Solvay was at 35th position in the formulation sales pecking order before the deal), a per cent gain in the Rs 40,000-crore Indian market will add Rs 400 crore to abbotts top line. its leveraging potential is immense. In addition to the formulation business, the US-based company will also be able to benefit from the introduction of patented products in the country. Analysts say with the share of patented products expected to increase from seven to nine per cent in 2015, the deal would position Abbott to take advantage of both its core and new business. The new diversified
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business model of spreading its risk from cash-intensive, R&D-based, innovator drugs to the robust cash flow-generating branded generics will help Abbott in the long terms. Abbott is also utilising its presence in the country by outsourcing drug manufacturing and marketing it though its centres worldwide. Recently, it entered into a licensing agreement with Zydus Cadila to market 24 products in 15 emerging markets, with an option to add another 40. Its India focus can also be gauged by the fact that the abbott had agreed to buy Wockhardts nutrition business for Rs 620 crore before legal problems stalled this.

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Abbott's Established Products Strategy

Throughout the past decade, Abbott has built a leading portfolio of branded generics, through its own products as well as those acquired with the 2001 acquisition of Knoll's pharmaceutical business. In 2007, the company established a separate business unit within its international pharmaceutical division dedicated to established products.

Additionally, a new geographic region focused on Russia, India and China was created, which resulted in the doubling of Abbott's growth rate in those countries. Most recently, the company acquired Solvay Pharmaceuticals, obtaining a diverse branded generics portfolio and providing significant critical mass in key emerging markets.

As a result of these combined actions, Abbott is now among the leading multinational health care companies in numerous emerging markets. Approximately 20 percent of Abbott's pharmaceutical sales today are in emerging markets.

Abbott have assembled a market-leading branded generics portfolio tailored to the unique needs of emerging markets, strongly positioning Abbott to meet the current and future geographic and market dynamics in pharmaceuticals.

Pharmaceutical sales in emerging markets are expected to grow at three times the rate of developed markets and account for 70 percent of pharmaceutical growth over the next several years. This explosive growth is occurring as demographics, rising incomes, modernization of health systems and an increase in the treatment of chronic disease create greater demand for medicines.

Financial Highlights:

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Under terms of the agreement, Abbott purchased the assets of Piramal's Healthcare Solutions business for a $2.12 billion up-front payment with payments of $400 million annually for the next four years, beginning in 2011. The transaction will not impact Abbott's ongoing earnings per share guidance in 2010. Abbott plans to fund the transaction with cash on the balance sheet. This transaction is subject to shareholder approval of Piramal Healthcare Limited and other customary closing conditions, and is expected to close in the second half of 2010. This transaction is being conducted by a wholly-owned subsidiary of Abbott, resulting in full ownership of the assets of Piramal's Healthcare Solutions business (Domestic Formulations).

6.2.

Solvay:

About Solvay Pharmaceuticals

Solvay Pharmaceuticals is a research driven group of companies that constitutes the global pharmaceutical business of the Solvay Group. These companies seek to fulfil carefully selected, unmet medical needs in the therapeutic areas of neuroscience, cardiometabolic, influenza vaccines, gastroenterology and men's and women's health. Its 2010 sales were EUR 2.7 billion, and it employs more than 9,000 people worldwide.

Acquisition by Abbott: Highlights:

In February 2010, Abbott acquired Solvays pharmaceuticals business for EUR 4.5 billion ($6.6 billion) in cash, providing Abbott with a large and complementary portfolio of pharmaceutical products and a significant presence in key global emerging markets. The acquisition also includes full global rights to the fenofibrate franchise. Currently Abbott has Solvay U.S. right to fenofibrate and pays royalties to Solvay.

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Belgium-based Solvay pharmaceuticals will add more than $3 billion in annual sales, the majority outside the U.S. Solvay has significant presence and infrastructure in key highgrowth emerging markets, including Eastern Europe and Asia. Emerging markets are growing faster and increasing in importance due to demographics, rising incomes and expanded treatment of chronic disease. The acquisition added approximately $500 million to Abbotts annual pharmaceutical R&D investment, providing Abbott with the opportunity to further accelerate near and long term pharmaceutical growth.

Scope:
The acquisition of Solvay Pharmaceuticals further diversifies Abbott pharmaceutical portfolio, expands their presence in key high-growth emerging markets, enhances their investment in R&D and accelerates their long-term earnings-per-share growth outlook. In anticipation of future market needs, Abbott ensures about the technologies, products, infrastructure and reach to serve patients globally and continue to deliver sustainable industry-leading growth. These acquisitions, as well as the others they have announced contribute them to achieve their long-term goal. With this transaction Solvay Pharmaceuticals has found a new strong home, within a respected company with a solid and committed position in the industry.

Reasons to buy:
Solvay's pharmaceutical portfolio complements Abbott's presence and expertise in specialty markets such as cardiovascular disease, neuroscience and gastroenterology. Solvay has treatments for Parkinson's disease, Mnire's disease (abnormality of the inner ear), vertigo, and irritable bowel syndrome. Solvay also offers products to treat men's and women's hormonal health, and exocrine pancreatic insufficiency (inability to properly digest food), which is associated with several underlying conditions including cystic fibrosis and chronic pancreatitis.

The acquisition also includes Solvay's vaccines business, which will provide Abbott entry into the expanding global vaccines market. Solvay has a small molecular diagnostics unit that will become part of Abbott's diagnostics organization upon the transaction close.
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Abbott's international pharmaceutical business has grown significantly over the past several years, driven by specialty products in developed markets. In emerging markets where chronic disease is being treated more aggressively, the combined Abbott and Solvay portfolio of branded generics expands the global reach of these medicines. Solvay's business will also give us a platform to enter the attractive global vaccines market.

Financial Highlights
The transaction will be approximately $0.10 accretive to ongoing earnings per share in 2010, accelerating to more than $0.20 by 2012, increasing thereafter, all before one-time transaction-related items, which will be provided at a later date. These one-time transactionrelated items are expected to occur between 2010 and 2012. The transaction also includes payments of up to EUR 300 million if certain sales milestones are met between 2011 and 2013. Abbott plans to fund the transaction with cash currently on the balance sheet. This transaction is subject to customary closing conditions and regulatory approvals and closed in the first quarter of 2010. As a result, the deal will have no impact on 2009 ongoing earnings per share. The board of directors of both companies have approved the proposed acquisition. Barclays Capital served as an exclusive financial advisor to Abbott on this transaction.

6.3.

STARLIMS

About STARLIMS
STARLIMS Technologies Ltd. (Nasdaq:LIMS) is a leading provider of laboratory information management systems (LIMS), with over 20 years of LIMS experience. The Company's flagship product, STARLIMS, improves the reliability of laboratory sampling processes, supports compliance with domestic and international regulations and industry standards, and provides comprehensive reporting, monitoring and analysis capabilities. STARLIMS software is used for quality assurance and control, testing and monitoring, and research and development in government, manufacturing and life sciences organizations.

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With operations in the United States, Canada, the United Kingdom, Israel and Hong Kong, the company serves over 500 organizations in 40 countries.

Highlights:
In March 2010, Abbott acquired STARLIMS Technologies for $123 million, in cash, net of cash held by STARLIMS, providing Abbott with leading products and expertise to build its position in laboratory informatics. A substantial portion of the fair value of the acquisition has been allocated to goodwill and amortizable intangible assets.

Scope:
The acquisition provides Abbott with leading products and expertise to build its position in laboratory informatics, an emerging and rapidly growing field focused on helping to manage the increasing amount of data generated in laboratories. STARLIMSs advanced web-based software applications help laboratories efficiently store, retrieve and analyze data and are designed for a wide variety of laboratory environments operating across a number of scientific, industrial and clinical disciplines. STARLIMS gives Abbott access to innovative technologies and technical expertise for a long-term strategy in laboratory informatics. The acquisition enables Abbott to provide a common informatics framework across all of their diagnostics businesses and equally important, which helps to accelerate STARLIMSs growth strategy in the non-diagnostics market segments. STARLIMS' advanced web-based technologies help Abbotts customers operate efficiently across the core laboratory, molecular and point-of care segments of the global diagnostics market. Healthcare informatics is the application of information management and technology to the planning and delivery of high quality and cost-effective healthcare. Advanced informatics systems are becoming increasingly important to clinical laboratories as a means to automate the retrieval, communication and management of medical and laboratory data and aid compliance with global regulatory and industry standards. Informatics systems can help laboratories improve operating efficiency through process standardization, reduced labour

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costs and increased capacity. Improved laboratory operations benefit physicians and patients through improved turnaround times and more consistent interpretation of test results.

Reasons to buy:
As Abbott integrates STARLIMS into its existing portfolio of laboratory information management products, the company continue to support and expand the non-clinical market segments currently served by STARLIMS. Under the terms of the agreement, Abbott acquired all outstanding equity of STARLIMS for $14 per share, for a total purchase price of approximately $123 million.

6.4

Facet biotech:

About Facet biotech:

Facet Biotech is a biotechnology company dedicated to advancing its pipeline of five clinicalstage products, leveraging its research and development capabilities to identify and develop new oncology drugs and applying its proprietary next-generation protein engineering technologies to potentially improve the clinical performance of protein therapeutics.

Highlights:
In April 2010, Abbott acquired the outstanding shares of Facet Biotech Corporation for approximately $430 million, in cash, net of cash held by Facet. The acquisition enhances Abbotts early- and mid-stage pharmaceutical pipeline, including a biologic for multiple sclerosis and compounds that complement Abbotts oncology program. A substantial portion of the fair value of the acquisition has been allocated to acquired in-process research and development that is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation.

Scope:
The new Abbott compounds include daclizumab - a Phase II investigational biologic intended to treat multiple sclerosis that is expected to move into Phase III development in the second
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quarter 2010 - and oncology compounds in early- to mid-stage development that are being studied to treat different types of cancer, including multiple myeloma and chronic lymphocytic leukemia. Facet's depth of biologics experience and sophisticated antibody engineering platforms complement Abbott's current R & D programs in oncology, immunology and other therapeutic areas.

Short-form merger:
The final step in the acquisition process was a short-form merger of Amber Acquisition Inc., a wholly-owned subsidiary of Abbott, with and into Facet Biotech Corporation. As a result of the merger, all outstanding shares of Facet common stock not tendered in the cash tender offer (other than those as to which holders properly exercise dissenters' rights) were converted into the right to receive $27 per share in cash, without interest and subject to any required withholding taxes.

6.4 Scope:

Advanced medical optics:

In February 2009, Abbott acquired the outstanding shares of Advanced Medical Optics, Inc. (AMO) for approximately $1.4 billion, in cash, net of cash held by AMO. Prior to the acquisition, Abbott held a small investment in AMO. Abbott acquired AMO to take advantage of increasing demand for vision care technologies due to population growth and demographic shifts and AMOs premier position in its field. Abbott acquired control of this business on February 25, 2009 and the financial results of the acquired operations are included in these financial statements beginning on that date. The allocation of the fair value of the acquisition resulted in non-deductible goodwill of approximately $1.7 billion, nondeductible definite-lived intangible assets of approximately $900 million and net tangible assets of approximately $400 million. In addition, Abbott assumed $1.5 billion of debt. Acquired intangible assets consist of established customer relationships, developed technology and trade names and are amortized over 2 to 30 years (average of 15 years). In
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addition, subsequent to the acquisition, Abbott repaid substantially all of the acquired debt of AMO.

6.5 Scope:

Visiogen:

In October 2009, Abbott acquired 100 percent of Visiogen, Inc. for $400 million, in cash, providing Abbott with a next-generation accommodating intraocular lens (IOL) technology to address presbyopia for cataract patients. The allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $200 million which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible definite-lived intangible assets of approximately $24 million and goodwill of approximately $200 million.

6.6

Evalve:

About Evalve, Inc. :

Founded in 1999 by The Foundry and Dr. Fred St. Goar, Evalve, Inc., headquartered in Menlo Park, Calif., has developed a proprietary system which enables percutaneous repair of cardiac valves. The companys initial products are intended to reduce the risks, trauma and costs associated with current open, arrested heart surgical options.

Previous major investors in Evalve include: New Enterprise Associates; Delphi Ventures; Split Rock Partners; Apothecary Capital; Cutlass Capital; ABS Ventures / Kearny Venture Partners; Saints Capital; Three Arch Partners; Emergent Medical Ventures; and Integral Capital Partners.

Highlights:
In 2009 Abbott acquired the outstanding equity of Evalve, Inc., the global leader in the development of devices for minimally invasive repair of cardiac mitral valves.The acquisition provides Abbott with a presence in the growing area of non-surgical treatment for structural heart disease, in which physicians use catheter-based devices to repair or replace basic
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structural components of the heart such as mitral and aortic valves. The agreement includes an upfront payment of $320 million in cash, plus an additional payment upon completion of certain regulatory milestones, for a total of up to $410 million.

Scope:
This acquisition of Evalve provided Abbott with leading technology in the emerging field of minimally invasive heart valve repair and further broadens. Evalve is on the cutting edge with its nonsurgical approach to treating structural heart disease. With this breakthrough mitral valve repair technology, physicians were able to offer their patients a minimally invasive alternative to open heart surgery -- not unlike the opportunity that stents provided more than two decades ago for the treatment of coronary artery disease. Mitral regurgitation, a condition that prevents the mitral valve from closing completely, is the most common type of heart valve insufficiency in Europe and the United States, and affects millions of people worldwide. Traditionally, mitral regurgitation is treated through open heart surgery. However, only about 20 percent of the 600,000 patients diagnosed in the U.S. and Europe each year undergo surgery. Evalve's minimally invasive catheter-based MitraClip system, used to clip the leaflets of the mitral valve together to reduce regurgitation, is the first commercially available treatment option approved in Europe for non-surgical mitral valve repair for patients suffering from the effects of mitral regurgitation. The MitraClip system is an investigational device in the United States and is currently in clinical trials.

Reasons to buy:
By Combining Evalves first in class mitral valve repair technology with Abbott's global presence, commercial infrastructure and manufacturing expertise help advance minimally invasive treatment options for the millions of patients with mitral regurgitation. Evalve looks forward by becoming a part of Abbott and working together to accelerate the business and expand global reach to patients around the world with Evalves minimally invasive technologies.

Under the terms of the agreement, Abbott acquired the remaining 90 percent of outstanding equity of Evalve, Inc. that it does not already own for an upfront payment of $320 million,
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plus a $90 million payment if certain regulatory milestones are met. The transaction does not impact Abbotts previously issued earnings-pershare guidance of 2011. The transaction is subject to customary closing conditions, including antitrust clearances. Abbott closed the transaction in the fourth quarter of 2011.

6.7

Ibis Biosciences, Inc. (Ibis):

About Isis Pharmaceuticals, Inc.

Ibis biosciences, inc. is a subsidiary of Isis pharmaceuticals and it is exploiting its expertise in RNA to discover and develop novel drugs for its product pipeline and for its partners. The Company has successfully commercialized the world's first antisense drug and has 19 drugs in development. Isis' drug development programs are focused on treating cardiovascular and metabolic diseases. Isis' partners are developing antisense drugs invented by Isis to treat a wide variety of diseases. Isis is a joint owner of Regulus Therapeutics LLC, a joint venture focused on the discovery, development and commercialization of microRNA therapeutics. As an innovator in RNA-based drug discovery and development, Isis is the owner or exclusive licensee of over 1,600 issued patents worldwide.

Highlights:
In January 2009 Abbott to expand Abbotts position in molecular diagnostics for infectious disease purchased Ibis Biosciences, Inc., an Isis subsidiary, for a closing purchase price of $175 million. In addition to the closing purchase price, Isis received earn out payments from Abbott tied to post-closing sales of Ibis systems, including instruments and assay kits.

Scope:
Abbott is the ideal company to move the Ibis technology into larger commercial markets, such as clinical diagnostics, where Ibis' technology can revolutionize infectious disease detection. This acquisition enabled Abbott to offer an innovative approach to the detection and characterization of a broad array of pathogens for the management of infectious diseases.

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Reasons to buy:
In 2008, Abbott has acquired 100 percent of the outstanding shares of Ibis. Abbott invested $40 million in Ibis in exchange for approximately 18.6% of Ibis' outstanding equity. This investment, along with the $175 million paid at closing, resulted in a total acquisition price of $215 million plus earn out payments. A substantial portion of the fair value of the acquisition has been allocated to goodwill and amortizable intangible assets, and acquired inprocess research and development which are accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation. The investment in Ibis in 2008 resulted in a charge to acquired in-process research and development. In connection with the acquisition, the carrying amount of this investment was re valued to fair value resulting in recording $33 million of income, which is reported as other (income) expense, net.

7 CONCLUSION:
This analysis says that Abbott has a wide opportunity in emerging markets when compared to developed markets and this has been achieved by its strategic actions of acquisitions were major acquisitions of companies are of emerging markets. These acquisitions made them in expanding their product- line. And also their research activities makes them step into various divisions and to enhance their product quality, new products and also their place in market for a long period.

8 REFERENCES:
http://www.abbott.ca/ http://articles.marketwatch.com http://www.business-standard.com/article/companies/abbott-snaps-up-piramal-sformulations-biz http://businesstoday.intoday.in/story/ajay-piramals-three-teams-for-business-opportunities http://www.abbott.com/press-release/abbott-reports-fourthquarter-and-fullyear-2012results.htm http://www.abbott.ca/dotca/url/content/en

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