uploads/2015/08/Article-41.jpg

Nutritionals: Abbott Laboratories’ Main Segment

By

Updated

Nutritionals

As we discussed earlier, Abbott Laboratories’ (ABT) nutritional products segment includes a broad line of pediatric and adult nutritional products manufactured and marketed worldwide. This segment contributed $6.9 billion, or ~34.34%, of the total revenue in 2014. It contributed $6.7 billion, or ~34.30%, of the total revenue in 2013 and $6.46 billion, or ~32.90%, of the total revenue in 2012. The key franchise in this segment include:

  • infant formula and follow-on formula
  • adult and other pediatric nutritional products
  • nutritional products for use in enteral feeding in healthcare institutions
Article continues below advertisement

Key products

Abbott has acquired many companies in the nutritional products segment. The major one was M&R Dietetics—with its popular infant formula, Similac—in 1964. The Similac brand contains various forms of prepared infant formula and follow-on formula. Other brands associated with infant formula and follow-on formula are Isomil, Gain, Grow, and Eleva.

The Ensure brand contains various forms of adult and pediatric nutritional products. Other brands associated with adult and pediatric nutritional products are Glucerna, ProSure, PediaSure, EleCare, Juven, Abound, and Pedialyte.

Other nutritional products used in enteral feeding in healthcare institutions include Jevity, Osmolite, Oxepa, Freego, and Nepro. Apart from these, ZonePerfect bars and the EAS family of nutritional brands include Myoplex and AdvantEDGE.

R&D

The R&D (research and development) for this segment is focused on identifying and developing ingredients and products that address the nutritional needs of a particular consumer class. The six platforms spanning the pediatric, adult, and performance nutrition areas include immunity, cognition, lean body mass, inflammation, metabolism, and tolerance. There are many new products under development.

Other companies like Perrigo (PRGO), GlaxoSmithKline (GSK), Allergan (ACT), and Dr. Reddy’s Laboratories (RDY) compete with Abbott on different nutritional products. The Health Care Select Sector SPDR ETF (XLV) has invested ~2.30% in Abbott.

Advertisement

More From Market Realist