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Abbott Q2 Diagnostic Revenues Fall 1 Percent on Negative Currency Effects

NEW YORK (GenomeWeb) – Abbott reported on Wednesday morning that its second quarter diagnostic revenues decreased 1 percent year over year as its molecular diagnostics sales shrunk a fraction of a percent, both due to unfavorable currency effects.

The Abbott Park, Illinois-based company reported total worldwide revenues of $5.17 billion for the three months ended June 30, up 2 percent from $5.06 billion a year ago and beating the Wall Street estimate of $5.15 billion. Excluding the impact of 2014 acquisitions and foreign currency exchange, Q2 sales increased 6 percent driven by strong performance in Established Pharmaceuticals and Diagnostics, the company said.

Worldwide Diagnostics sales fell 1 percent to $1.18 billion on a reported basis, including an unfavorable 10 percent foreign currency effect.

Within the Diagnostics unit, molecular diagnostics sales totaled $116 million, down a fraction of a percent from the prior-year quarter and including an unfavorable 9 percent foreign currency effect. On an operational basis, MDx sales increased 8 percent.

Abbott said that its core focus area of infectious disease testing, which represents about 55 percent of its MDx sales, increased double digits in the quarter on an operational basis. As expected, US growth was impacted by continued market dynamics in the oncology business and the planned scale-down of the genetics business, the company said.

Also within the Diagnostics segment, core laboratory sales fell 2 percent to $947 million, and point of care sales increased 10 percent to $114 million.

In other business units, Nutrition sales decreased 1 percent on a reported basis to $1.72 billion; Established Pharmaceuticals jumped 31 percent to $977 million; and Medical Devices shrunk 6 percent to $1.29 billion.

Abbott's R&D expenses grew 11 percent to $345 million from $310 million, while its SG&A expenses grew 5 percent to $1.73 billion from $1.65 billion.

Abbott's Q2 net income was $784 million, or $.52 per share, compared to $466 million, or $.30 per share, in Q2 2014. Excluding special items, Abbott's Q2 EPS was also $.52 per share compared to $.49 per share in Q2 2014 and besting analysts' consensus estimate of $.50 per share.

The company said that its full-year 2015 adjusted EPS guidance range for continuing operations remains unchanged at $2.10 to $2.20. Its projected GAAP EPS for continuing operations is $1.50 to $1.60.