In numbers
Q2 revenue: $10.38 billion
It grew by 4% per year
Medical device sales: $4.73 billion
It grew by 10.2% annually
Revenue: $1.3 billion
Decreased by 5.3% year-on-year
Abbott raised its sales and revenue forecasts for 2024 on Thursday after a better-than-expected second quarter, boosted by growth in its medical device business.
Medical device sales increased 10.2% to $4.73 billion, including Abbott’s electrophysiology, structural heart and diabetes divisions. Abbott reported the results in the second quarter earnings call.
Stifel analyst Rick Wise wrote in a research note that the increase in medical devices and feedback on 'good practices' is a "good sign for MedTech in general. " Johnson & Johnson, which is often used as a bellwether for medtech earnings, lower than expected growth in results reported on Wednesday.
Robbie Marcus, analyst JP Morgan, added that the strength of the equipment translated into a good quarter for Abbott, with "seems to be a healthy approach and product cadence." However, he warned that the results may not be enough to completely shake the responsibility fear about the minors that Abbott sold, after the legalization. The trial began last week.
The company’s CEO, Robert Ford, dismissed the plaintiff’s claim that the formula could cause intestinal disease as "not valid," and spent most of the call discussing Abbott’s medical device products. . Ford shared the company’s thoughts on the market for pulse field ablation (PFA) and the first over-the-counter glucose monitors, though he declined to give specific predictions.
Electrophysiology increases despite PFA competition
Abbott’s electrophysiology sales grew 13% despite competitors Medtronic and Boston Scientific bringing their first PFA devices to market. PFA is a new treatment that uses electrical pulses to treat atrial fibrillation, unlike older forms of ablation that use heat or cold. Ford estimates that PFA can be used in about a third of all removal procedures.
Abbott is working with their own PFA tool but expect to bring to the market starting in Europe next year, said Ford. In the meantime, the market for Abbott’s radiofrequency ablation device is now ripe, he added.
"[Radiofrequency] still plays a role — it’s still a big role — and our business is growing faster than it’s ever been," Ford said.
US electrophysiology company Abbott grew 17% year over year, "clearly aided by diagnostic/imaging growth as PFA 'lifts all ships', at least in the short term," Wise said. wrote.
Random glucose monitoring
Abbott has received FDA approval for two OTC continuous glucose monitors, including came first to the United States It will compete with Dexcom, which has its own OTC sensor.
One of Abbott’s devices, called Rio, is designed for people with type 2 diabetes who do not take insulin. Another one called Lingo is for people who don’t have diabetes.
Ford did not share a specific sales forecast for a product. For Lingo, Ford said that "you’re looking at a billion-dollar opportunity," assuming that only one percent of the 400 million adults in the United States and Western Europe buy a few sensors each year. "We’re not there yet," he added, reflecting on Lingo’s earlier launch in the UK
"What I know based on the UK experience is that it takes a little time to educate and communicate with the sick public who, although they are happy to have new tools to carry out healthy habits, it takes a little time to get to know them . [them].”
Ford doesn’t expect insurance coverage for Lingo, but he sees benefits in generating data to communicate the value of the product to clinicians and users.
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