ABBV took the entire pharmaceuticals line with it, meaning a reduction of ABT earnings of about $2.70 per share. The price of ABT shares has not decreased in proportion to that loss of earnings. There is no short term prospect of ABT increasing earnings by $2.70 per share. Thus the increase in P/E. You have to decide for yourself whether you're comfortable with that level. It's not out of the range of large pharma, but ABT is no longer a pharmaceutical company. Not sure what companies it's being compared with now - medical products, I guess. So your question is hard to answer - except that ABT is no longer a drug company.
Abbott kept the long term cash cow portions of the business...
Nutritional products such as Similac & Ensure & animal health care products & a human pharma portfolio with too many offerings for me to mention here.
Minimally invasive coronary devices help physicians open coronary blockages to restore blood flow & similar treatments for blocked blood vessels in peripheral areas outside the heart. Products for peripheral artery disease address blockages in the abdomen and legs. Carotid artery stenting products help treat stroke-causing blockages in the neck. A pioneer in closure technologies, Abbott offers both suture-based and clip-based closure products for securing the vascular access site after coronary and peripheral catheterizations.
Diagnostic portfolio of immunoassay, hematology & molecular products:
1. Immunodiagnostic instruments and tests that detect disease and other medical conditions, including cancer, cardiovascular disease, infectious disease, thyroid disease, drug abuse, fertility and pregnancy.
2. Hematology analyzers to provide fast, accurate results for identification and monitoring infection, leukemia, chemotherapy and a variety of anemic conditions.
3. Molecular diagnostics to help detect genetic disorders, guide the treatment of breast and lung cancers, monitor people with HIV and even identify the best potential donors for bone marrow transplants.
Vision care products:
1. Refractive eye surgery (LASIK)
2. Monofocal and multifocal intraocular lenses (IOL) which are implanted into the eye during cataract surgery to help improve sight.
ABT is looking good here at less than $2 from its 52 week high. Kick the tires on another pharma REGN that's growing by triple digits in both revenues & EPS, that had great news yesterday (Sat) with positive results on a drug that REGN has for Atopic Dermatitis. Both ABT and REGN look very nice here.