‘A little bit of an overreaction’

Abbott Laboratories CEO Robert Ford unpacked his company’s latest quarterly report in a Thursday interview with CNBC’s Jim Cramer, saying that Wall Street’s reaction to the results was extreme.

“I think this is a little bit of an overreaction. Of course, we are all over this,” Ford said. “We’re focused on this, but the fundamentals of the entire rest of the company are pretty much intact, and this is just really a point in time that we have to get through.”

While Abbott posted a top and bottom line beat for the second quarter, investors were disappointed that the company tightened its full-year earnings guidance. Shares were down more than 8% by close. Abbott is known for a variety of products and services in the healthcare field, including medical devices, diagnostics, nutritional products and generic pharmaceuticals. The company is currently facing a number of lawsuits related to its specialized infant formula, but it managed a major win in court late last year.

According to Ford, Abbott’s diagnostics business in China was not as strong as expected. But he emphasized that the company saw improvement in the segment “everywhere else except China,” pointing to growth in the U.S., Europe and Latin America.

While Ford said Abbott wants its diagnostic business in China to recover “as soon as possible,” he conceded that it might not happen for a few quarters. He said his company has made management changes and meets “every single week with the diagnostic team.” But it was more “prudent” to plan for a recovery in the fourth quarter rather than the third, he said.

Abbott is seeing strength in other areas, Ford said, including its medical devices arm. According to Ford, that business has seen double-digit growth for several quarters. He attributed some of the progress to a “very rich pipeline” of devices, including those that help treat diabetes and heart issues.

He also said Abbott’s generic pharmaceutical business is doing well in emerging markets.

“We bring a very large portfolio to these markets that have great fundamentals — growing middle class, aging population, higher birth rates,” he said. “And they’re looking for companies like Abbott to bring high-quality health care innovations to the market.”