|2013 med tech R&D budget (includes animal health R&D):||$1.03 billion|
|Change from 2012 budget ($1.08 billion):||-4.6%|
|Percent of segment net sales ($10.13 billion):||10.2%|
Abbott ($ABT) is one of the few companies to break down R&D by divisions. R&D spending was $336 million for vascular products and $416 million for diagnostics. Subtracting R&D spending from its four "reportable" divisions (including nutritional products and established pharmaceuticals), from the total R&D budget of $1.45 billion, the company spent $273 million of its R&D budget on its nonreportable diabetes devices, vision products and animal health segments. Devices accounted for about 70% of the company's total R&D budget.
The company recorded employee severance charges of $11 million in 2013, but that pales in comparison to the $150 million severance charge in 2012, "primarily related to the exit from a research and development facility," according to the annual report.
The annual report lists several vascular products that were in the pipeline to kick off the year. The FDA approved Abbott's Xience Xpedition drug-eluting stent this year. The company recently completed enrollment in a clinical trial for the CE-marked Absorb bioresorbable stent in the U.S., Japan and China. Finally, the FDA is reviewing the self-expanding Supera Veritas stent for treating peripheral vascular disease. It is currently cleared for the treatment of biliary strictures.
In its annual report, Abbott said that in 2014 it plans to launch preloaded intraocular contact lenses and submit a sensor-based glucose monitoring system for European approval.
"Abbott plans to manage its portfolio of projects to achieve research and development spend equal to approximately 6% to 7% of sales each year," states the annual report. Company-wide R&D spending accounted for 6.6% of net sales. -- Varun Saxena (email | Twitter)
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