Abbott Laboratories (ABT, Financial) will work in partnership with two companies Celgene (CELG) and Agios Pharmaceuticals (AGIO) to develop and market diagnostic tests using Abbott's m2000 RealTime System, an automated polymerase chain reaction (PCR) instrument, to identify isocitrate dehydrogenase (IDH) mutations in patients who are affected by acute myeloid leukemia (AML).
Celgene and Agios are specifically working on IDH2 and IDH1 mutations to develop an inhibitor to better target the treatment of patients with relapsed or refractory AML who show IDH2 or IDH1 mutations in the gene.
Acute myeloid leukemia is a type of blood cancer, characterized by a rapid growth of immature bone marrow cells that interfere with the production of the normal blood cells. If the disease is not properly treated, it can rapidly progress and be fatal. Its cause is not known.
AML has been classified as a "rare disease" since it accounts for approximately 1.2% of cancer deaths in the U.S., but its frequency increases with age.
Approximately 20% of acute myeloid leukemia patients show IDH1 and IDH2 mutations.
This is really important news that demonstrates Abbott's commitment to improving the health of all people with medical conditions without neglecting even those suffering from rare diseases.
Abbott Laboratories closed at $40.98 per share on Oct. 11, down 18 cents (or -0.43%), with a volume of 6,403,932 shares traded on the New York Stock Exchange –Â back to normal after the exceptional volume registered the day before due to the news that St. Jude Medical Inc. (STJ), a company that Abbott Laboratories is going to acquire according to last April’s PR, experienced battery issues with implanted defibrillators.
The stock lost 8.75% year to date and underperformed the Standard & Poor's 500 with 13.41%.
Abbott Laboratories has a price-book (P/B) ratio of 2.91. It also has a trailing price-earnings (P/E) ratio of 27.05.
Eight analysts out of 19 recommend buying Abbott Laboratories, and the recommendation rating is 2.3. The recommendation rating ranges between 1.0 (Strong Buy) and 5.0 (Sell).
The analysts' average target price is $7.09 per share.
The company has a market capitalization of $60.86 billion. As of the second quarter, cash and short-term investments amounted to $4.4 billion and total long-term debt amounted to $6 billion. Cash flow from operating activities was about $3 billion in 2015, a 19.3% decrease from the previous fiscal year.
Disclosure: I have no positions in Abbott Laboratories.
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