Abbott's White: It's a 'good time' to buy health care companies

Abbott Laboratories, with $3.77 billion in cash, is looking to buy non-pharmaceutical companies beaten down by the recession, joining other big drugmakers shopping for bargains.

Abbott, maker of insulin pumps and heart stents to prop open clogged arteries, is browsing small and medium-sized companies that make medical technology products, Chief Executive Officer Miles White said on a conference call today with investors. The North Chicago-based company is seeking deals that would complement products it already sells rather than expand into new therapeutic areas, White said.

"It's a good time to be a buyer," White said. "A lot of values are depressed -- for good reasons in many cases and for not-good reasons in others. My priority is non-pharma, but I'm not going to pass up an attractive pharmaceutical deal if I see one."

Abbott expanded its medical device business earlier this month by agreeing to buy Advanced Medical Optics Inc., the world's top maker of eye-surgery equipment, for $1.36 billion. The company's acquisition ambition follows Johnson & Johnson's model of pursuing a mix of drugs, medical devices and diagnostic tests as a shield against the economy.

Abbott isn't looking for deals "of gargantuan size," White said. "In times like this, you want a lot of moving parts."

Pfizer Inc., Merck & Co. and GlaxoSmithKline Plc also have said they're interested in deals as prescription sales wither from generic competition.

Abbott's fourth-quarter profit increased 28 percent, driven by its anti-inflammatory drug Humira and its new Xience heart stent, the company said today. J&J yesterday said its quarterly profit climbed 14 percent.

Abbott had $3.77 billion cash and short-term assets at the end of September, according to Bloomberg data compiled from the most recent filings.