A Troubling Lab Report 6-4-07

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FANS OF ABBOTT LABORATORIES ARE FOCUSED on the company's launch of a new drug-coated cardiac stent, which they believe could trump competitors' products and snare up to 40% of the $5 billion market. Expectations for the product have helped fuel a 50% increase in the past 18 months in shares of the Abbott Park, Ill.-based health-care concern, which closed Friday at 56.30.

But investors may be overlooking the fact that most of Abbott's profits come from its slower-growth, lower-multiple pharmaceutical division, not jazzy technologies. And some prominent doctors have started questioning the safety and efficacy of one of Abbott's best-selling drugs, TriCor, which helps patients lower triglycerides, a type of non-cholesterol fat.

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