Medical Devices

Abbott's Medical Device Business is Rolling

Posted on July 19, 2018 by Medtech[y] Staff

Abbott ($ABT) announced another solid quarter yesterday, with all of their business segments exceeding expectations.

As noted by WSJ reporter, Charley Grant, the performance is becoming like clockwork for Miles White and team. 

While many of Abbott's peers have shows significant growth in one or two businesses segments, those same peers have segments that aren't carrying their weight. This isn't the case with Abbott. 

Abbott CEO, Miles White, stated,“Over the past four quarters, we’ve averaged more than 7 percent organic sales growth – a true differentiator for a company our size.” 

As shown in the infographic below, each of Abbott's segments are realizing strong organic growth:

Abbott Q2 Performance
Abbott Earnings Infographic

Specific to Abbott's medical device business, the company hit on all cylinders in Q2, organically growing worldwide medical device sales in 8.2%, or 11.3% on a reported basis. 

Abbot Medical Device Breakdown

  • Electrophysiology: growth was led by strong performance in cardiac mapping and ablation as well as share gains from the recent U.S. launch of Abbott's Confirm RxTM Insertable Cardiac Monitor (ICM),the world's first and only smartphone-compatible ICM designed to help physicians remotely identify cardiac arrhythmias. In May, Abbott announced U.S. FDA clearance of Advisor HD Grid Mapping Catheter, Sensor Enabled, which creates highly detailed maps of the heart and expands Abbott's leading electrophysiology product portfolio.
  • Vascular: Abbott received approval from the U.S. FDA for XIENCE Sierra,the newest generation of its gold-standard coronary stent system, which offers design and technology advances to provide an easier implant and greater ability to treat complex blockages. During the quarter, XIENCE Sierra also received national reimbursement in Japan to treat people with coronary artery disease. 
  • Structural Heart: growth was driven by several product areas across Abbott's broad portfolio,
    including AMPLATZERTM PFO Occluder and MitraClip, Abbott's market-leading device for the minimally invasive treatment of mitral regurgitation. In July, Abbott announced U.S. FDA approval for a next-generation version of MitraClip, with an enhanced design that provides even greater precision and accuracy. 
  • Diabetes Care: sales increased 39.8 percent on a reported basis and 33.6 percent on an organic basis, growth was led by continued rapid market uptake of FreeStyle® Libre, Abbott's revolutionary sensor-based continuous glucose monitoring (CGM) system, which removes the need for routine fingersticks1 for people with diabetes. 

As a result of this growth and continued success, the company is raising their full-year guidance. "All four of our businesses exceeded expectations and contributed to strong growth overall," said Miles White, chairman and chief executive officer, Abbott. "We forecast continued strong performance and are raising our full-year outlook despite recent currency shifts."