Is Abbott Laboratories (NYSE:ABT) Overspending?
Post a competitive review, Abbott Laboratories (NYSE:ABT) has zeroed-in on Weber Shandwick to manage public affairs and company PR in Asia and Europe. The pitch started earlier in 2013 and Weber Shandwick continued being in the scene and has now been successful in bagging this assignment. Fee negotiations are currently in progress and there might be some expansion and Latin America might have to be covered as well.
Earlier in 2013, Abbott Laboratories (NYSE:ABT) had spun-off it AbbVie branded pharma division, worth $18B. The portfolio that the company is now left with has nutritionals, generic pharmaceuticals and diagnostics. Collectively, all these segments garnered approximately $21B in sales in 2012. The projection is that the emerging economies will fuel further growth.
Areas to be covered
For Abbott Laboratories (NYSE:ABT), the spin off also meant that its public affairs job was centralized and most of the markets did not have a comms team that was devoted exclusively to them. Weber Shandwick will now handle reputation-support in the Middle East, Europe and Asia. Apart from this, in certain countries, it will also oversee crisis management or market issues.
Steady does it
There was news that 3 other PR networks had also bid for this business across Asia and Europe. Collectively, a budget of more than $2M will be pumped-into this activity.
The belief is that the reviews will not affect any current agency relationships that Abbott Laboratories (NYSE:ABT) has and new requirement is the reason for the new mandate.
In Thursday’s trading, Abbott Laboratories (NYSE:ABT) rose by 0.03%. The opening price of the shares was $33.75 which climbed to an intraday high of $33.87 and dropped to a close of $33.66. Approximately 8.04 million shares were traded on Thursday and an average volume of 7.38 million shares was traded over a 30 day period. The company has a market capitalization of 52.31 billion.