Positive Barron's Article Can't Help Abbott Labs (ABT) Stock Today

Shares of Abbott Labs (NYSE: ABT) are down this morning despite a bullish article published in this weekend's edition of Barron's. The stock most recently traded at $54.25, down 1.24% from Friday's close.

The Barron's article places Abbott Labs at the top of the pharmaceutical totem poll, pointing out that "Abbott has a broader product base than many drug companies, including a sizeable medical-devices business, and it has relatively little exposure to patent expirations, the bane of Big Pharma." Despite a stock which trades at a substantial premium to the majority of the Big Pharma sector, Barron's believes the valuation is warranted given the company's pipeline of blockbuster drugs, each which have material room for potential growth.

Several of the drugs highlighted in the Barron's article include:

• the Xience drug-coated stent - sales grew 78% last year, yet versions have not yet been released into European or Japanese markets.
  
• Humira - the injectable drug used to treat arthritis, Crohn's disease, etc, which now makes up about 15% of Abbott's total sales. The patent for Humira does not expire until December 2016.

The article is also bullish on a recent initiative with AstraZeneca (NYSE: AZN) in which the company's will attempt to develop a drug which combines Abbott's TriLipix with AstraZeneca's Crestor. Further, Barron's mentions Abbott's acquisition of Advanced Medial Optics, which will expand its reach into the ophthalmology market.

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