Abbott delays pay raises to finance Humira launch

Medical Marketing and Media, Mar 2003 by Liebman, Milton

Abbott Laboratories is preparing a program that will provide its new rheumatoid arthritis drug Humira free to eligible Medicare recipients lacking the necessary drug coverage.

In internal communications to employees, Abbott Laboratories noted that it will delay salary increases in an effort to fund the cost of the Humira program.

The cash flow shortage was brought about by rapid approval of the drug on Dec. 31, about three months earlier than expected. Patients self-inject the drug, which competes against Enbrel from Immunex and Remicade from Centocor.