ABT’s Q1 profits drop

ABT’s Q1 profits dropHealthcare company, Abbott Laboratories' (ABT) saw its first quarter earnings go down by as much as 30 per cent. This happened despite the company's sales rose by 15 per cent.

ABT said that the increase in sales has happened because it gained in the field of drugs, medical devices and also the nutritional products. The drop in profit, however, is the result of US health-overhaul regulations.

The company reported that most of the sale came from in the drug segment, particularly in the arthritis treatment- Humira.

ABT has gone ahead with many acquisitions so that its dependence on Humira decreases. It has also forayed into other segments. To be able to grab the emerging markets it took over Solvay Pharmaceuticals for $6.2 billion.

Meanwhile, Abbott Park has lowered its earnings forecast for the year 2010 because of the recent change in the healthcare overhaul regulations.

As per the new law, the drug companies will have to pay more as rebate to the government health program. This has reduced the sale of Abbott by $60 million.

Post the announcement, the share price of Abbott went down by 1 per cent to close at $52.60, pre trading.