Abbott cuts 200 jobs in Lake County

North Chicago-based Abbott Laboratories is eliminating 200 jobs in Lake County as part of a 700-job cutback affecting workers in the U.S. and Puerto Rico, the company said Wednesday.

The 200-job reduction in Lake County is part of an “efficiency plan” announced in 2008. Workers were told of the layoffs on Wednesday.

The medical device and drugmaker said more jobs are expected to be cut later this year, mainly in the vascular stent manufacturing business housed in Southern California. The company expects fewer orders for the Promus stent, said Abbott spokeswoman Adelle Infante.

The company has about 13,000 workers in Lake County and Des Plaines, Infante said.

The job cuts were part of Abbott’s fourth-quarter earnings report, where the North Chicago-based company reported a 12 percent profit increase, as the blockbuster anti-inflammatory drug Humira continued to dominate the company’s performance with double-digit sales growth.

In October, Abbott surprised investors and analysts with the announcement that it would spin off its branded drug business, including Humira.

Company executives said the split would allow investors to separately value Abbott’s businesses, which also include baby formula, generic drugs and medical implants.

Wednesday’s results highlighted the rationale for the split, with top-selling drug Humira dominating the company’s results, contributing $2.18 billion, or over 20 percent, of sales.

While Humira has been the key to Abbott’s growth, it has also weighed on the company’s stock, overshadowing performance of its other businesses. The drug, which is used to treat psoriasis and rheumatoid arthritis, loses patent protection in 2016, and no obvious successor has appeared in the company’s pipeline. The split-up frees Abbott from the risks and obligations of developing innovative pharmaceutical drugs, leaving the company with a more predictable business built around nutritional formula, generic drugs and heart stents.

Abbott earned $1.62 billion, or $1.02 per share, up from $1.44 billion, or 92 cents per share, in the prior-year period. Excluding one-time items the company earned $1.45 per share, up from $1.30 in the same period a year earlier. Total company sales grew 4.1 percent to $10.38 billion.

ŸDaily Herald Business Writer Anna Marie Kukec contributed to this report.