Abbott Laboratories posts surprise third-quarter net loss
Shortfall comes after the value of its stake in EpiPen maker Mylan slumped recently
Abbott Laboratories made a net loss in Q3 after the value of its stake Mylan NV slumped as the stock dropped in recent months. Photograph: Danish Siddiqui/Reuters
Abbott became Mylan’s biggest shareholder last year after selling its generic drugs unit in Europe and developed markets to the drugmaker, and still holds a 13 per cent stake.
As Mylan became embroiled in public outrage over the rising price of its EpiPens, the stock slumped 10 per cent in September alone, causing a $947 million writedown in Abbott’s third quarter.
Abbott’s shares declined 1.5 per cent to $40.54 in morning trading in New York on Wednesday. The medical-device maker has also been grappling with problems that cropped up at two companies – Alere and St Jude Medical – that it has agreed to acquire.
Excluding the Mylan writedown, Abbott’s earnings of 59 cents a share beat analysts’ predictions of 58 cents, on average, helped by rising demand for its generic drugs and medical devices.
The company also said in a statement that it narrowed its profit forecast for the year to $2.19 to $2.21 per share – in line with the $2.20 anticipated by analysts.