[DewDiligence]

ABT inks deal to sell biosimilars in emerging markets:

https://www.prnewswire.com/news-releases/abbott-broadens-access-to-cutting-edge-biosimilars-in-key-emerging-markets-301932956.html

This is a good fit for ABT’s “branded generics” business, which sells off-patent small-molecule drugs in emerging markets and comprises 13% of ABT’s overall sales (#msg-172393746).

[DewDiligence]

ABT acquires—(private)—Bigfoot Biomedical for undisclosed price:

https://finance.yahoo.com/news/abbott-acquire-bigfoot-biomedical-furthering-203000744.html

Abbott and Bigfoot Biomedical today announced a definitive agreement for Abbott to acquire Bigfoot, a leader in developing smart insulin management systems for people with diabetes.

…Bigfoot developed Bigfoot Unity, a smart insulin management system that features the first and only FDA-cleared connected insulin pen caps that use integrated continuous glucose monitoring (iCGM) data along with healthcare provider instructions to provide insulin dosing recommendations. The dosing recommendations are displayed on the pen cap's digital screen to help people know how much insulin to take.

The Bigfoot Unity system exclusively works with Abbott's world-leading FreeStyle Libre technology and includes a customer smartphone app connected to a cloud-based online portal used by healthcare providers to support their patients, including through remote care. The system works with FreeStyle Libre 2 sensors and all major brands of both long-acting (basal) and rapid-acting (bolus) disposable insulin pens offered in the United States.

ABT’s FreeStyle Libre has annualized sales of more than $5B and is the largest-selling medical device, ever (#msg-172393724).

[wiwineguy]

Great report!!

[wiwineguy]

True

[DewDiligence]

That's quite an understatement!

Check out #msg-172397644.

[wiwineguy]

Good report

[DewDiligence]

ABT 2Q23 CC transcript:

https://www.fool.com/earnings/call-transcripts/2023/07/20/abbott-laboratories-abt-q2-2023-earnings-call-tran/

[DewDiligence]

ABT 2Q23 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency) 
 Medical devices*  43%       +14% 
 Diagnostics       23%       -46%† 
 Nutrition         21%       +10% 
 Branded generics  13%       +13%

62% of overall corporate sales were ex-US.

*Includes diabetes care.

†2Q23 COVID-diagnostics sales were $263M (11% of total 2Q23 diagnostic sales) vs $2.3B in 2Q22; excluding COVID diagnostics, 2Q23 diagnostics sales were +7% YoY.

[DewDiligence]

ABT reports 2Q23 results—increases 2023 guidance_for_organic_sales_growth:

https://abbott.mediaroom.com/2023-07-20-Abbott-Reports-Second-Quarter-2023-Results-Increases-Outlook-For-Underlying-Base-Business

2Q23 GAAP and non-GAAP EPS were $0.78 and $1.08, respectively, down from $1.14 and $1.43 in 2Q22. The YoY declines were due to sharply lower COVID-diagnostics revenue: $263M in 1Q23 vs $2.3B in 2Q22. (ABT now expects 2023 COVID-diagnostics sales of $1.3B, which implies ~$300M for 2H23.)

2Q23 FreeStyle Libre sales were $1.3B, +25% YoY. FreeStyle Libre is already the largest-selling medical device, ever, from any company.

ABT’s full-year 2023 guidance is essentially unchanged from three months ago: GAAP EPS of $3.02-3.22; and non-GAAP EPS (which excludes restructuring costs and FX) of $4.30-4.50. ABT was able to retain the pre-existing guidance despite the reduced forecast for 2H23 COVID diagnostics because the 2H23 outlook for ABT’s organic (non-COVID) business has improved.

Specifically, ABT now expects 2023 organic sales growth in the low double digits, an upgrade from the guidance three months ago of “at least high dingle digits.” 2Q23 organic sales growth was 11.5%, up from 10% in 1Q23.

Please see #msg-172393746 for a breakdown of ABT’s 2Q23 sales by business segment.

[DewDiligence]

Medical-device stocks (including ABT) are strong today, while health-insurance stocks (e.g. HUM) are weak. Somebody apparently just realized that elective-procedure volumes are back to pre-pandemic levels and growing.

[DewDiligence]

ABT—This looks like a meritless lawsuit:

https://finance.yahoo.com/news/1-abbott-labs-sued-over-213744088.html

Nevertheless, crazier lawsuits have succeeded, so an investor can’t take anything for granted when it comes to tort exposure.

[DewDiligence]

ABT 1Q23 CC transcript:

https://finance.yahoo.com/news/q1-2023-abbott-laboratories-earnings-043458274.html

[DewDiligence]

ABT 1Q23 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency) 
 Medical devices*  40%       +12% 
 Diagnostics       28%       -47%† 
 Nutrition         20%       +10%‡ 
 Branded generics  12%       +11%

60% of overall corporate sales were ex-US.

*Includes diabetes care.

†1Q23 COVID-diagnostics sales were $730M (27% of total 1Q23 diagnostic sales); excluding COVID diagnostics, diagnostics sales were +4% YoY.

‡Excluding effect of small divestiture; including the divestiture, nutrition sales were +6% YoY.

[DewDiligence]

ABT reports 1Q23 results—slightly increases 2023 guidance:

https://abbott.mediaroom.com/2023-04-19-Abbott-Reports-First-Quarter-2023-Results-Increases-Outlook-For-Underlying-Base-Business

1Q23 GAAP and non-GAAP EPS were $0.75 and $1.03, respectively, down from $1.37 and $1.73 in 1Q22. The reason for the decline is, of course, falling COVID-diagnostics revenue, which was $730M in 1Q23 vs $3.3B in 1Q22.

1Q23 FreeStyle Libre sales were $1.2B, +9% QoQ and +20% YoY (+50% YoY in the US).

ABT reiterated full-year 2023 guidance from three months ago: GAAP EPS of $3.05-3.25; and non-GAAP EPS (which excludes restructuring costs and FX) of $4.30-4.50.

ABT now expects 2023 COVID-diagnostics sales of $1.5B (i.e. $770M for the remaining nine months of the year, only slightly above the $730M logged in 1Q23).

Excluding COVID diagnostics, ABT expect 2023 organic sales growth of “at least high dingle digits,” which is a subtle word change from three months ago when the phrase “at least” was not in the guidance language. In 1Q23, organic sales growth excluding COVID diagnostics was 10.0%.

The stock is +7% as I’m typing. Investors are evidently impressed with ABT’s ability to maintain—and subtly increase (see above)—2023 guidance despite the steep falloff in COVID sales.

[DewDiligence]

FreeStyle Libre gets expanded Medicare coverage:

https://www.prnewswire.com/news-releases/abbotts-freestyle-libre-continuous-glucose-monitoring-systems-obtain-significantly-expanded-coverage-for-medicare-beneficiaries-301798550.html

[DewDiligence]

FDA clears ABT's standalone glucose reader from FreestyleLibre:

https://finance.yahoo.com/news/fda-clears-reader-abbotts-freestyle-130000671.html

Abbott today announced that the U.S. Food and Drug Administration (FDA) has cleared a reader for its FreeStyle Libre 3 integrated continuous glucose monitoring (iCGM) system, which features the world's smallest, thinnest and most discreet glucose sensor. With the FDA's clearance of a standalone reader, Abbott is working to get the FreeStyle Libre 3 system added to Medicare's list of covered systems as soon as possible.

[DewDiligence]

FDA enables_integration_of FreeStyle Libre with automated insulin delivery systems:

https://finance.yahoo.com/news/u-fda-clears-abbotts-freestyle-120000948.html

Abbott today announced that the U.S. Food and Drug Administration (FDA) has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring (iCGM) system sensors for integration with automated insulin delivery (AID) systems.

…AID systems help people manage daily diabetes care by automatically adjusting and administering the insulin delivered by an insulin pump based on real-time glucose data from their FreeStyle Libre 2 or FreeStyle Libre 3 sensors.

Abbott is working with leading insulin pump manufacturers to integrate their systems with the FreeStyle Libre 2 and FreeStyle Libre 3 sensors as soon as possible. The company is partnering with Insulet and Tandem for future integrations in multiple countries, including the U.S. Outside the U.S., Abbott's FreeStyle Libre 3 sensor is already authorized to work with the mylife Loop solution from Ypsomed and CamDiab in Germany, with additional launches in the UK, Switzerland and the Netherlands planned for the first half of this year.

FreeStyle Libre, already the biggest-selling medical device from any company, is projected to reach $10B(!) in annual sales during the next five yeaqrs, according to ABT’s statement at the JPM conference in January 2023 (#msg-170908089). Current annual sales are more than $4B.

[DewDiligence]

ABT TriClip (tricuspid-value clip) highlighted_at ACC…

NYT story (Gina Kolata):
https://www.nytimes.com/2023/03/04/health/tricuspid-valve-clip-leakage.html

ABT’s own PR:
https://finance.yahoo.com/news/data-show-superiority-abbotts-triclip-154100517.html

[DewDiligence]

ABT acquires CSII for $20/sh cash—a 50% premium to today’s closing price:

• Abbott will gain an innovative, complementary solution in treating vascular disease through CSI's leading atherectomy system, which prepares vessels for angioplasty or stenting to restore blood flow

• CSI's offering will support Abbott's ability to provide better care for patients with peripheral and coronary artery disease

The nominal deal value is $890M. Closing requires approval of CSII’s shareholders, but that’s a fait accompli.

The Medical Devices business segment is ABT’s largest, accounting for 37% of corporate sales in 4Q22 (#msg-171028943).

ABT’s 2023 financial guidance remains unchanged—see #msg-171028771 for details.

[DewDiligence]

ABT reports 4Q22 results—issues 2023 guidance:

https://abbott.mediaroom.com/2023-01-25-Abbott-Reports-Fourth-Quarter-and-Full-Year-2022-Results-Issues-2023-Financial-Outlook

2023 GAAP EPS guidance is $3.05-3.25, -19% YoY at the midpoint of the range. 2023 non-GAAP EPS guidance (which excludes restructuring costs and FX) is $4.30-4.50, -18% YoY at the midpoint of the range.

The reason 2023 guidance is below 2022 results for both GAAP and non-GAAP EPS is, of course, declining COVID-diagnostics revenue. In 2022, ABT sold $8.4B of COVID diagnostics, but 2023 guidance is only $2.0B as testing volume has fallen off rapidly from the peak of the pandemic.

On a positive note, 4Q22 Freestyle Libre sales were $1.1B, including a 40% YoY increase in the US market.

Excluding COVID diagnostics, ABT expects 2023 organic sales growth in the high dingle digits.

[DewDiligence]

ABT CEO at JPM: “Libre will become a $10B product in the next 5 years.”

I.e., Libre is almost certain to be the biggest-selling medical device, ever.

[DewDiligence]

ABT increases dividend for 51st(!) consecutive year:

https://finance.yahoo.com/news/abbott-increases-quarterly-dividend-marking-154800419.html

The new annualized payout is $2.04, up from $1.88 (an 8.5% bump). At the current share price ($107.84), the new payout is a yield of 1.9%.

[DewDiligence]

ABT 3Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/10/19/abbott-laboratories-abt-q3-2022-earnings-call-tran/

[wiwineguy]

Yes sir Dew, I was nit taking a shot at you Thought everyone already knew this and was already priced in. Then consider guidance. Should not be down like this.

[DewDiligence]

From my post earlier today:

The stock is trading down this morning because 3Q22 sales were hit by three factors: 1) The recall of infant formula produced at the Sturgis, MI plant; 2) declining COVID diagnostics ($1.7B in 3Q22 vs $2.3B in 2Q22); and 3) the strong US dollar.

[wiwineguy]

And yet its selling off like crazy

[DewDiligence]

ABT 3Q22 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency)   
 Medical devices*  35%        +6%     
 Diagnostics       35%        -1%     
 Nutrition         17%       -10%     
 Drugs†            13%       +12%

3Q22 COVID-diagnostics sales were $1.7B, 46% of 3Q22 diagnostics sales.

61% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT reports 3Q22 results—raises 2022 EPS guidance:

https://abbott.mediaroom.com/2022-10-19-Abbott-Reports-Third-Quarter-2022-Results-and-Raises-Full-Year-EPS-Guidance

The stock is trading down this morning because 3Q22 sales were hit by three factors: 1) The recall of infant formula produced at the Sturgis, MI plant; 2) declining COVID diagnostics ($1.7B in 3Q22 vs $2.3B in 2Q22); and 3) the strong US dollar. Despite all this ABT now expects full-year 2022 non-GAAP EPS of $5.17-5.23 (up from the [lowball] prior guidance of $4.90B+).

4Q22 COVID-diagnostics sales are expected to be $500M, assuming no new spike in the pandemic.

3Q22 Freestyle Libre sales were $1.0B, +40% YoY in the US, but down YoY ex-US due to timing considerations (i.e. a changeover from Libre 2 to Libre 3 in major EU markets).

[DewDiligence]

ABT’s TCT presentations:

https://finance.yahoo.com/news/breaking-data-show-breadth-abbotts-184500590.html

[DewDiligence]

ABT 2Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/07/20/abbott-laboratories-abt-q2-2022-earnings-call-tran/

[DewDiligence]

ABT 2Q22 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency)   
 Medical devices*  33%        +8%     
 Diagnostics       38%       +37%     
 Nutrition         17%        -5%     
 Drugs†            11%        +9%

2Q22 COVID-diagnostics sales were $2.3B, 53% of 2Q22 diagnostics sales.

57% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT reports 2Q22 results–raises 2022 EPS guidance:

https://abbott.mediaroom.com/2022-07-20-Abbott-Reports-Second-Quarter-2022-Results-and-Raises-Full-Year-EPS-Guidance

The new 2022 non-GAAP EPS guidance is $4.90+ (up from the prior guidance of $4.70+).

The main reason for the raise in EPS guidance: in 2Q22, ABT sold $2.3B of COVID diagnostics, down from $3.3B in 1Q22 but crushing the prior guidance of $1.2B for 2Q22/3Q22/4Q22 combined. Full-year 2022 guidance for COVID diagnostics is now $6.1B (up from $4.5B), which implies $500K combined in 3Q22/4Q22.

2Q22 Freestyle Libre sales were $1.1B, +10% QoQ and +26% YoY in constant currency.

[wiwineguy]

Should be $150+

[DewDiligence]

FDA approves ABT’s Freestyle Libre 3—the most advanced version of the product, which has been approved internationally for several years:

https://finance.yahoo.com/news/abbotts-freestyle-libre-3-receives-120000002.html

• The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor1, with readings sent directly to a smartphone every minute.

• Designed for access and affordability, the FreeStyle Libre 3 system will be available at the same price as previous versions, which is one-third the cost of other competing continuous glucose monitoring systems available today.

ABT’s Freestyle Libre franchise had annualized sales of $4B in 1Q22 (#msg-168608801), making it the largest-selling medical device from any company.

[DewDiligence]

ABT is developing a monkeypox diagnostic:

https://finance.yahoo.com/news/1-abbott-developing-test-monkeypox-174632058.html

Roche is too.

[NOLA1961]

should be $140

[weedtrader420]

ABT $120 TARGET PRICE TODAY

[DewDiligence]

It was hit pretty hard in February, when this problem first surfaced.

[Termite7]

Surprised the stock wasn't hit massively.........

[DewDiligence]

ABT infant-formula plant expected back online soon:

https://www.wsj.com/articles/abbott-could-restart-baby-formula-production-within-two-weeks-11652293871

This has been weighing on the stock.

[Hunting_for_multiples]

Thanks. Was looking for a non Seeking alpha source

[DewDiligence]

1Q22 FreeStyle Libre sales were $1.0B (yes, a $4B annualized rate), +26% YoY in constant currency.

~40% of users are now type-2 diabetics who take insulin only once/day, a market segment where ABT itself is surprised by the degree of penetration.

[DewDiligence]

ABT 1Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/04/20/abbott-laboratories-abt-q1-2022-earnings-call-tran/