Abbott to cut 1,000 county jobs

ABBOTT PARK — Abbott Laboratories said Wednesday it would eliminate 1,900 employees — including 1,000 in Lake County — in marketing and manufacturing positions over the next five years.

The layoffs, which represent about 2 percent of the company’s global work force of 90,000 and 6 percent of its U.S. workers, are expected to save Abbott nearly $300 million annually over the coming years. Abbott employs around 13,000 workers in Lake County.

Abbott blamed the cuts on new fees and pricing pressures associated with the health reform law and a “challenging regulatory environment” at the Food and Drug Administration, which approves new drugs.

Abbott has steadily increased its revenue year after year, even as most of its pharmaceutical peers have watched sales fall as patents on blockbuster drugs expire. And while the company’s multibillion dollar, anti-inflammatory drug Humira continued to deliver in the latest quarter, Abbott has stumbled in efforts to develop new therapies.

Last week the company halted research on a next-generation psoriasis drug after the FDA indicated additional clinical trials would be needed to win approval. It also pulled its diet drug Meridia from the market in October because of heart risks, only one month after it recalled millions of containers of its best-selling Similac baby formula because of possible contamination from insect parts.

Abbott shares fell $1.21, or 2.52 percent, to $46.75 in Wednesday trading.

Despite the announced job cuts, the company continued to deliver double-digit earnings and profit growth in the fourth quarter. Looking ahead to 2011, Abbott predicts earnings growth between 9 and 11 percent, between $4.54 and $4.64 per share in 2011.

In the fourth quarter, the company said it earned $1.4 billion, or 92 cents per share, down from $1.54 billion, or 98 cents per share, a year earlier. Excluding costs related to the acquisition of Solvay Pharmaceuticals and Piramel Healthcare Solutions, along with a partnership, Abbott said it earned $1.30 per share. Revenue rose 13 percent to $9.97 billion.

Pharmaceutical sales drove revenue during the quarter, rising 23 percent to $5.94 billion. The company’s rheumatoid arthritis and immune disorder drug Humira led the way with a 15.4 percent boost in sales to $1.88 billion.

Meanwhile, nutritional product sales fell 1 percent to $1.43 billion while diagnostic product sales rose 5 percent to $1.02 billion and vascular product sales rose 14 percent to $822 million.

For the full year, the company earned $4.63 billion, or $2.96 per share, down from $5.75 billion, or $3.69 per share, in 2009. Revenue rose 14 percent to $35.17 billion from $30.77 billion.

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