The Rising Influence of Rising Affluence

[DewDiligence]

ABT 4Q19 results/2020 guidance—FreeStyle Libre shines—(see bottom):

https://abbott.mediaroom.com/2020-01-22-Abbott-Reports-Fourth-Quarter-2019-Results-Announces-Strong-Forecast-for-2020

• Fourth-quarter worldwide sales of $8.3 billion increased 7.1 percent on a reported basis and 8.5 percent on an organic basis.

• Reported diluted EPS from continuing operations under GAAP was $0.59 in the fourth quarter. Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.95, an increase of 17.3 percent versus prior year.

• Abbott issues full-year 2020 guidance for organic sales growth of 7.0 to 8.0 percent, which excludes the impact of foreign exchange, and diluted EPS from continuing operations on a GAAP basis of $2.35 to $2.45. Projected full-year adjusted non-GAAP] diluted EPS from continuing operations is $3.55 to $3.65, reflecting double-digit growth at the mid-point.

• Medical Devices sales increased 9.7 percent on a reported basis and 11.3 percent on an organic basis in the fourth quarter. Sales performance was led by double-digit organic sales growth in Heart Failure, Electrophysiology, Structural Heart and Diabetes Care.

• Established Pharmaceuticals sales increased 7.8 percent on a reported basis and 10.0 percent on an organic basis in the fourth quarter. Sales performance was led by growth across several countries in Latin America and Asia.

• Core Laboratory Diagnostics sales increased 8.4 percent on a reported basis and 10.0 percent on an organic basis in the fourth quarter. Sales performance was led by above-market growth in the U.S. and internationally, where Abbott is achieving continued strong adoption of its Alinity® family of innovative and highly differentiated diagnostic instruments.

ABT’s FreeStyle Libre continuous glucose mositor is now selling at a $2.1B annualized run rate; 4Q19 Libre sales were +62% YoY in constant currency. As noted in #msg-149945255, FreeStyle Libre is the rare medical device with bona fide blockbuster potential.