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D-Day for Abbott

Executive Summary

Abbott Laboratories' consent decree with the FDA, which requires it to pull 125 diagnostic tests off the market, doesn't only hurt Abbott. Abbott controls 40-50% of the immunoassay market worldwide, so the decree places a significant burden on customers as well.

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Diagnostic Products Corp.: Thriving, For Now

The popularity of DPC's random-access immunoassay system, the Immulite 2000, has helped the company become a significant player in the highly competitive automated immunoassay market. But DPC's benefited from some good luck--namely the misfortunes of top player Abbott Diagnostics and the slow efforts by other competitors to step into the gap left by Abbott. DPC's dilemma is whether it can maintain its narrow focus as Abbott re-emerges and other competitors get stronger.

Diagnostic Products Corp.: Thriving, For Now

The popularity of DPC's random-access immunoassay system, the Immulite 2000, has helped the company become a significant player in the highly competitive automated immunoassay market. But DPC's benefited from some good luck--namely the misfortunes of top player Abbott Diagnostics and the slow efforts by other competitors to step into the gap left by Abbott. DPC's dilemma is whether it can maintain its narrow focus as Abbott re-emerges and other competitors get stronger.

Post Abbott Consent Decree; A Changed World for Immunoassay Vendors

Abbott's prolonged problems with the FDA in the immunoassaay diagnostics market obviously created opportunities for competitors. Critics say, however, their response has been slow and none are able to step directly into Abbott's shoes. Companies initially viewed the situation as a short-term opportunity, but now they may become more aggressive as Abbott's grip on the market weakens.

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