AbbVie is a global, research-based biopharmaceutical company formed in 2013
following separation from Abbott. The company’s mission is to use its
expertise, dedicated people and unique approach to innovation to develop and
market advanced therapies that address some of the world’s most complex
and serious diseases.
Distribution
The Pharmaceutical Products segment markets its
products in the United States and generally sells its products directly to
wholesalers, government agencies, health care facilities and independent
retailers from Abbott-owned distribution centers and public warehouses. This
segment directs its primary marketing efforts toward securing the prescription
of Abbotts brand of products by physicians. Managed care purchasers (for
example, health maintenance organizations and pharmacy benefit managers) and
state and federal governments and agencies (for example, the Department of
Veterans Affairs and the Department of Defense) are also important customers.
In addition, under its strategic alliance with
Celera Diagnostics, a joint venture between the Applied Biosystems Group and the
Celera Genomics Group of Applera Corporation, the Diagnostic Products segment
develops, manufactures and markets a broad range of in vitro molecular
diagnostic products for disease detection, disease progression monitoring and
therapy selection. Through a sales and marketing agreement with Enfer
Scientific Ltd., the Diagnostic Products segment also distributes diagnostic
tests in Europe and Japan that are used to detect bovine spongiform
encephalopathy (BSE) in cattle.
The Diagnostic Products segment markets
its products worldwide. These products are generally marketed and sold directly
to hospitals, laboratories, clinics, and physicians offices from Abbott-owned
distribution centers and public warehouses. Outside the United States, sales are
made either directly to customers or through distributors, depending on the
market served. Blood glucose monitoring meters and test strips for people with
diabetes are also sold over the counter to consumers.
The Hospital Products segments principal
products also include venipuncture products and Faultless' rubber sundry
products.
The Hospital Products segment markets its
products primarily in the United States. This segments products are generally
distributed from Abbott-owned distribution centers and public warehouses to
wholesalers and directly to hospitals, integrated delivery networks, and other
alternate site locations where patient care is delivered. The Hospital Products
segment also develops and manufactures injectable pharmaceuticals for other
companies.
Competition in the Pharmaceutical Products segment is generally from
other health care and pharmaceutical companies. The search for technological
innovations in pharmaceutical products is a significant aspect of competition
in this segment. The introduction of new products by competitors and changes
in medical practices and procedures can result in product obsolescence in the
Pharmaceutical Products segment, and price can also be a factor. In addition,
the substitution of generic drugs for the brand prescribed has increased competitive
pressures on pharmaceutical products which are off-patent.
Competition for the International segments
pharmaceutical products is generally from other health care and pharmaceutical
companies. A significant aspect of competition is the search for technological
innovations. The introduction of new products by competitors and changes in
medical practices and procedures can result in product obsolescence. Price can
also be a factor. In addition, the substitution of generic drugs for the brand
prescribed has increased competitive pressures on pharmaceutical products.
Competition for the segments nutritional products is generally from other
health care manufacturers and food companies. Nutritional products are subject
to competition in price, scientific innovation, formulation, and promotional
initiatives. The International segments hospital products are subject to
competition in technological innovation, price, convenience of use, product
warranty provisions, service, product performance, long-term supply contracts,
and product potential for overall cost effectiveness and productivity gains.
Products in this segment can be subject to rapid product obsolescence. Although
Abbott has benefitted from technological advantages of certain of its current
products, these advantages may be reduced or eliminated as competitors introduce
new products.