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Abbott Laboratories

Abbott Laboratories is an American pharmaceuticals
and health care products company. It has 72,000 employees and operates in over 130 countries.[2][3] The company
headquarters are in Abbott Park, North Chicago, Illinois.
The company was founded by Chicago physician Wallace
Calvin Abbott in 1888.
In 1985, the company developed the first HIV bloodscreening test. The company’s drug portfolio includes
Humira, a drug for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn’s disease, moderate to
severe chronic psoriasis and juvenile idiopathic arthritis;
Norvir, a treatment for HIV; Depakote, an anticonvulsant
drug; and Synthroid, a synthetic thyroid hormone. Abbott also has a broad range of medical devices, diagnostics and immunoassay products as well as nutritional
products, including Ensure, a line of meal replacement
shakes; and EAS, the largest producer of performancebased nutritional supplements.
The company’s in-vitro diagnostics business performs immunoassays and blood screening. Its medical tests and diagnostic instrument systems are used worldwide by hospitals, laboratories, blood banks, and physician offices
to diagnose and monitor diseases such as HIV, hepatitis, cancer, heart failure and metabolic disorders, as well Dr. Wallace C. Abbott
as assess other indicators of health.
Abbott Point-of-Care manufactures diagnostic products
for blood analysis to provide health care professionals diagnostics information at the point of patient care. Abbott
also provides point-of-care cardiac assays to the emergency room.

Canada (Fact 21). Expansion continued in 1962 when
Abbott entered into a joint venture with Dainippon Pharmaceutical Co., Ltd., of Osaka, Japan, to manufacture
radio-pharmaceuticals. During this year, Abbott’s expansion projects in England, Italy and France were also completed.

With all these developments abroad, Abbott adopted an
International Division Structure (Ranjan 41). Under this
organization of management, Abbott added another diviIn 1888 at the age of 30, Dr. Wallace C. Abbott (1857– sion to the three product based divisions to be responsible
1921), an 1885 graduate of the University of Michi- for all foreign operations. This international division is itgan, founded the Abbott Alkaloidal Company. At the self divided regionally, with each country reporting to the
time, he was a practicing physician and owned a drug international management.
store. His innovation was the use of the active part
of a medicinal plant, generally an alkaloid (morphine, In 1967, the company successfully challenged the FDA
quinine, strychnine and codeine), which he formed into on labeling regulations before the Supreme Court in
tiny pills which he called “dosimetric granules”. This was Abbott Laboratories v. Gardner.
successful since it allowed more consistent and effective In 2009, Abbott opened a satellite research and development facility at Research Park, University of Illinois at
dosages for patients.[4]
As the company’s overseas sales and reputation was grow- Urbana-Champaign.



ing, Abbott had to consider new ways to organize its In May 2014 the company entered into a binding agreesections. International expansion began in 1931 when ment to acquire Chilean generic pharmaceutical company
Abbott formed its first international office in Montreal, CFR in a deal worth $2.9 billion which the company said

immunodiagnostic. However.[7] On September 8.[10] On April 21. refractive. In January 2007. As part of the agreement.making Ross a wholly owned subsidiary of Abbott.division of BASF.) which owns 73% of Chilean pharmaceutical company. Abbott assisted Boston Sciencompany. and proteins at 2010.2 billion (EUR 4. CFR Pharmaceuticals. sales and spinoffs. Ab. Abbott purchased the vascular device division of Guidant. California. which it and it is currently India's largest healthcare products merged with its MediSense division to become Abbott Diabetes Care.[6] tific in its purchase of Guidant Corporation.2 2 ORGANIZATION would more than double its branded generic drugs busi. the pharmaceutical Veropharm (Voronezh) in a deal worth $631 million. endovascu. it spun off its hospital products division into a Abbott Laboratories has been present in India for over new 14. the company completed the sale of the UK manufacturing plant at Queenborough to Aesica Pharmaceuticals. it acquired Ross Laboratories. try once the deal closed. 2010. med. said brand to Chattem. for $2.'s Gain). On February 26.5 billion) acquisition of Solvay • Animal Health: anesthesia for animals. In June 2014 the company entered into a definitive agree. In ment to take over Russian pharmaceutical manufacturer 2001. These units were slated to be integrated into the GE Healthcare business unit. are: In February 2010. In 2006. Abbott Laboi-Stat) ratories acquired the company for $14 per share in an allcash transaction valued at $123 million. it was announced that Abbott would acquire the holding company (Kalo Pharma Internacional • Vascular: stents. a diabetes-care company. it divested the Selsun Blue bott. vessel closure devices. 2010. the company completed its Abbott’s core businesses focus on pharmaceuticals. the company sold Clear it planned to set up a manufacturing presence in the coun. The acquisition gives Abbott a Vision supplemented through acquisitions.[14] lar and coronary technologies • Optics: cataract. which have been Ana. the company agreed to sell its in vitro diagnostics and Point-of-Care diagnostics divisions to General Electric for more than $8 billion.It has divested itself of less profitable businesses through ness in Latin America.L. Abbott • Nutrition: baby nutrition (Similac. and ac100 years through its subsidiary Abbott India Limited quired TheraSense. Abbott announced that it had terminated its agreement with GE because the parties could not agree on the terms of the deal. The transaction was approved by the boards of directors of Abbott and GE and was targeted to close in the first half of 2007. In 2002. sition of a Hollywood. Later in 2002. Clinicare Pharmaceuticals.acquisition of Advanced Medical Optics based in Santa ical devices and nutritional products. which already employs 1. Abbott completed its acquisition of Facet Biotech the molecular level Corporation.Healthcare Solutions unit for $2.[5] In 2004.[8] This provided Abbott with a liquid animal diets and other veterinary products large and complementary portfolio of pharmaceutical products and also expanding its presence in key emerging • Diabetes Care: Glucose monitoring devices and markets. 2014.2[12] billion to become fect) and special dietary needs (Glucerna) the biggest drug company in India. 2007. No announcements have been made reAbbott office stricting the movement of staff to Abbott unlike other sell outs.9 billion. In 2007. and corneal products . RNA. strengthening its pharmaceutical pipeline in immunology and oncology. 2009.[9] medicine On March 22. on July 11. the company completed its acqui• Diagnostics: Hematology. adult health products (Ensure and ZonePer.400 people in Russia. a private equity-owned UK manufacturer. Under the terms of the deal.Eyes and Murine to Prestige Brands. The firm’s divisions Eye Care division. the company acquired Knoll.000 employee company named Hospira. In 1964.S. Ross was renamed Abbott 2 Organization Nutrition. Florida-based LIMS company oncology and clinical chemistry (including the STARLIMS.[13] On May 16. • Molecular: analysis of DNA. Isomil. Abbott completed its $6. 2007. and Laboratories said it will buy Piramal Healthcare Ltd.[11] On May 21.

2015. Canada. Leiden has been appointed executive vice president of pharmaceuticals and Abbott announced the shareholders of the company will reports to White.[23] structure worked well for their Chicago headquarters. previously announced the splitting of the company. The product division Pharma employers by Science Careers. White (CEO).idents. The new company. AbbVie opened its Innovation Cen.[17] The separation was effective as of January 1. the chairman and chief executive of matrix structure. AbbVie. However.[19] Each international office reports to the international management division in Chicago. clearly defining the responsibilities of each executive vice presidents. 2013. to keep employees motivated and diversify their work.thermore. Miles D. entry level employees who are constantly reporting to a On January 20. Champaign.higher-ranked employee. previous executive of Abbott.3 2. their products: pharmaceuticals. which manages all the diagnostics business on a global scale. University of Illinois at Urbana. 2013. Abbott will continue to be man resources). Only Within each division headed by the executive vice presthe shareholders who are listed as owning a share of Ab. In 2010. Abbott has had to cut jobs to minimize the costs caused by areas of overlap with Solvay (Reuters). The medical products company retained the Abbott name. there are senior vice presidents who are responbott by December 12 will be able to receive one share sible for all departments that compose the division. called the diagnostics division. the lateral movement of employees within their level of hierarchy. this type of hierarchy within the divisions allows for a hierarchical control over each employee. but when international expansion began in Montreal. The researchbased pharmaceuticals company is named AbbVie. This type of company division is called a run by Miles White. On November 28. AbbVie will be led by new named CEO. departmental separation within the headquarters. Abbott’s international division was responsible for all the for. the day the company will split. Abbott has “drastically cut expenses” and taken a US$478 million charge in Q3-2012 to pay for the restructuring. the company announced that it planned to separate into two companies. Under this organization. 2011. located in the north suburbs of the Chicago area.S.The ranking of the employees is ter at Research Park. with Vie will feature the drug Humira. FurRichard Gonzalez. Abb. receive their one share of AbbVie common stock beginning on January 1.6 Litigation eign operations. Jeffrey M.1 AbbVie On October 19. Another division was added in 1973. For example. Abbott also uses job rotation. the company was ranked 15th in the Top 20 Bionutritional products (Ranjan).-based corporation. 2. ABBV. today. Abbott stated in the Chicago Tribune that once it splits into two on January 1. Diof AbbVie. 2012. The deal was approved on November 28. 4 Management structure Abbott. hospital products and In 2012. is expected to begin trading on the New York the senior vice presidents and oversee the managers (huStock Exchange on January 2. which incorporates both divisional and the company. Abbott has been 3 Divisional structure placed fourth on the “Best Places to Work in Industry” list by The Scientist and one of the “Best Companies for The company split into three main divisions based on Women” (100 Best).[15][16] In preparation for this reorganization. Both are now publicly traded. in 1931.[17] oversees the executive vice presidents of every internal division. whose symbols rectors of the employees within the departments report to are. one in medical products and the other in research-based pharmaceuticals.2 Acquisition history The following is an illustration of the company’s major mergers and acquisitions and historical predecessors (this is not a comprehensive list): 5 Management practices Along with being ranked 75th on the Fortune 500 list of largest U. separate from the international division (Corporate). .[18] AbbVie was officially listed in the New York Stock Exchange on January 2. the shareholders of the company would receive one share of AbbVie common stock for each share that they owned of Abbott.changed after every 5 years. Abbott adopted an international division structure (Abbott Fact Book). Abbott acquired Solvay SA’s pharmaceutical unit (Press). The company has implemented a new management structure to provide leadership focus in the three product divisions.

“Abbott to Become No.[24] [1] “2014 Abbott Annual Report”. 2012). U. “Abbott lays off 550”. 2013). Retrieved May 16. Retrieved March 13. 2010). Retrieved March 22. 2014. but the court ruled against Abpletes Acquisition of STARLIMS Technologies”. Shareholders then brought derivative suits against Retrieved Dec 27.intoday. “Abbott Com- pletes Acquisition of Solvay Pharmaceuticals”. “Abbott Completes Acquisition of Facet Biotech”. [3] "Abbott Laboratories". “Abbott to Separate into Two Leading Companies in Diversified Medical Products and Research-Based Pharmaceuticals”. Retrieved July 07. the company directors for breach of fiduciary duty[26] [10] Abbott Press Release (March 22. District Court Judge Samuel G Wilson of the Western District of Virginia imposed it given Abbott’s guilty plea related to its unlawful promotion of Depakote for uses not approved by the FDA. Abbott Laboratories. 2012. Of this sum. Abbott was required to pay CAT US$255 million. the judgment ruled for CAT.[27][28] On October 2. 2012. 2012. Rachel. Funding Universe. [19] AbbVie Press Release (January 2.5 million forfeiture for illegal marketing. “Abbott to acquire CFR Pharmaceuticals”. 2009. including depression. anxiety. 2010). “Abbott Completes Separation of Research-Based Pharmaceuticals Business”. the Medical Research Council (United Kingdom) (MRC) received US$191M. [15] Abbott Press Release (October 19. [16] Abbott Press Release (March 21. Abbott had advertised Depakote to be used to control behavioral disturbances for patients with dementia and schizophrenia. Rebott’s motions to dismiss and reconsider. the company agreed to pay at least $1. Lopatto. British company Cambridge Antibody Technology (CAT) stated its wish to “initiate discussions regarding the applicability of the royalty offset provisions for Humira” (Adalimumab) with Abbott Laboratories in the High Court of London. and in addition. without FDA approval. secdatabase. providing that Humira remains on the market. Abbott was asked to pay the MRC a further US$7. Retrieved April 17. 2013. the shareholders.S. billion for illegally marketing its Depakote epilepsy drug [25] to the U. p43 [13] Abbott Press Release (May 21. Patients”. Retrieved January 2. attention deficit disorder and autism. 2012 7 See also • List of biotechnology companies • List of Illinois companies • List of pharmaceutical companies [18] Abbott Press Release (January 2. posttraumatic stress disorder.S. 6. some of which was to be passed to its partners in development. 2010” (PDF). and in a plea agreement was assessed the second-largest criminal fine in U. 2012. it is [9] “Abbott Laboratories Feb 2010 Current Report. Retrieved March 22.3 March 22. The court also ordered Abbott to a five-year term of probation and court supervision for its CEO and Board of Directors. “GE. government and 24 states. “Abbot Selects AbbVie as New Name for Future Research-Based Pharmaceutical Company”. [5] Key Developments: Abbott Laboratories (ABT) [6] http://businesstoday. and in favor of trieved March 22. 2012). 2012. 1 Pharmaceutical Company in India with Acquisition of Piramal’s Healthcare Solutions Business”.com. 2007). 2013). AbbVie Pharmaceuticals. [4] “Abbott Laboratories Company History”. alcohol and drug withdrawal and psychiatric conditions in children. To date. [12] Abbott 2011 annual report.1 Humira NOTES AND REFERENCES 8 Notes and references In March 2003.4 8 6. Peter (October 17. Abbott End $8.13 Billion Diagnostic Sale Deal (Update2)". 2012. obsessive-compulsive disorder. Form 8the third-largest pharmaceutical settlement in U.2 Depakote [2] "Abbot Laboratories Worldwide Fast Facts and Statistics".html [7] Layne. Retrieved January 2. Abbott Laboratories. 2010). Elizabeth (July 11.S. Retrieved March 22. the company was charged with a $500 million fine and $198. 2014. 2012. tory. “AbbVie Celebrates Launch As New Biopharmaceutical Company With Employees. [14] Bloomberg Release (May 16. [8] Abbott Press Release (February 16.[29] [11] Abbott Press Release (April 21. Bloomberg News. Retrieved March 22. . retrieved November 16. history for a drug company. hisK. 2013.5M over five years from 2006. 2012. Chicago abbott-india-and-the-extraordinary-future-it-is-building/ 1/215073. 2011). Retrieved In October 2011. Filing Date Feb 16. “Abbott Comwhich Abbott objected to. Abbott Laboratories. 2013. 2014). 2010). including conduct disorders.S. [17] Frost. In additionAbbott marketed Depakote for other psychiatric conditions in adults. In December 2004.

com/ 2014-06-23-Abbott-to-Acquire-Veropharm [22] http://abbott. 17. Illinois. Dietzler v.). [28] Memorandum Opinion And Order denying Abbotts’ Motion for Reconsideration. Mulcahy v. US Dist.mediaroom. May 7.. ex rel. Press Release. 5.D. 2013.S. Jun.).. 2014. United States Department of Justice Office of Public Official website • AbbVie. 1:08-cv-0054 (W. ex rel. US Dist. 2011. 1:07-cv00081 (W.D. Spetter v. Va. [25] “Abbott Said to Agree to Pay $1. McCoyd v. 2014. 9 External links • abbott. U. 12. ex rel. 1:09-cv-00051 (W. 1:10-cv-00006 (W. 17 2014. Eastern Div. Bloomberg. 17. Va. Abbott Laboratories. U.D. Va.D. Eastern 2013-07-15-Abbott-to-Enter-Laser-Cataract-Surgery-Market-through-Acquisition-of-OptiMedica [21] http://abbott. [24] “Cambridge Antibody Wins Lawsuit Against Abbott Labs (Update5) . .S. Abbott Laboratories.D. 11 C 8114.5 Billion to Resolve Criminal & Civil Investigations of Off-label Promotion of 2014-12-22-Abbott-Completes-Acquisition-of-Topera-Inc [23] “Annual Top Employers Survey: Stability in the Face of Change”. Abbott Laboratories. [26] U. October 22.).D. 2012.).. U. Accessed Aug.5 [20] http://abbott. No. C. N.mediaroom.Bloomberg”. [29] Abbott Labs to Pay $1. Va. ex rel. 11 C 8114. [27] Memorandum Opinion And Order denying Abbotts’ Motion to Dismiss. In Re Abbott Depakote Shareholder Derivative Litigation.3 Billion for Depakote Suits”. Illinois. 2013. In Re Abbott Depakote Shareholder Derivative Litigation. Accessed Aug. C. Abbott Laboratories.. No.S.mediaroom. N. Accessed Aug.S.

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