Abbott
(NYSE: ABT)
today reported fourth-quarter earnings that included double-digit revenue growth across its entire Medical Devices unit.
Shares of ABT fell more than 2% to nearly $111 apiece in morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down slightly.
The Abbott Park, Illinois–based medtech giant posted profits of $1.6 billion. That equals 91¢ per share on sales of $10.24 billion for the three months ended Dec. 31, 2023. Abbott recorded a 54.3% bottom-line gain on sales growth of 1.5%.
Adjusted to exclude one-time items, earnings per share totaled $1.19, equalling expectations on Wall Street. Sales posted a narrow beat as analysts projected $10.18 billion in revenue.
The company’s most significant growth came in the Medical Devices segment, which saw sales increase by 17.7% year-over-year. Within that segment, Diabetes Care grew the most (22%), followed by Electrophysiology (21.5%). Both segments recently had major news, too, with the first integration of the FreeStyle Libre CGM with automated insulin delivery technology, followed by the first procedures performed with a new pulsed field ablation catheter.
Across the remainder of Medical Devices, Abbott saw sustained growth in every unit. Neuromodulation (18.8%), Heart Failure (16.6%), Rhythm Management (13.3%), Structural Heart (12.9%) and Vascular (12%) all increased significantly year-over-year.
“The strength and diversity of the Abbott portfolio drove our success in 2023,” said Robert B. Ford, Abbott chair and CEO. “We’re entering 2024 with a lot of positive momentum, and with our highly productive pipeline, we’re well-positioned for growth in 2024 and beyond.”
Abbott said it expects to log adjusted EPS of $$4.50 to $4.70 in 2024. The company anticipates sales growth to range between 8% and 10% when excluding COVID-19-related revenues.
More detail from the Abbott earnings call
On Abbott’s earnings call, Ford highlighted the success of the Medical Device business, singling out a few product lines. With Diabetes Care leading the way, he said FreeStyle Libre growth came in at 24%.
The CGM ended the year by surpassing $5.3 billion in sales. Ford echoed the same sentiment he had a few weeks ago at the J.P. Morgan Healthcare conference.
“In terms of sales dollars, Libre has become the most successful medical device in history,” Ford said. “It has outpaced market growth in 13 out of the last 16 quarters.”
Read more on the Diabetes Care unit’s growth at Drug Delivery Business News.
Electrophysiology’s growth included a more than 20% improvement in Europe, he said. The recently launched Aveir pacemaker spurred double-digit growth in Rhythm Management, while MitraClip drove the Structural Heart business. Ford said chronic and acute circulatory support devices drove Heart Failure sales, while the recent launch of the Eterna rechargeable neurostimulation device led the way in Neuromodulation.
“In summary, we exited the pandemic and are in an even stronger position,” Ford said. “2023 was a very successful year and outperformed our initial expectations on both the top and bottom lines. The pipeline is generating a lot of new opportunities for growth.”
More on the EP business
When asked about the EP business’ performance, particularly overseas, Ford said Abbott recorded “robust growth” around the globe.
“Even in the face of actual in-market competition, it’s been strong across the board,” Ford said. “I don’t think it’s just been a Europe story. The U.S. has been strong and China has been very strong for us this year. … It’s really about the strength of all the portfolio.”
Ford highlighted the company’s mapping system, as well as the recently launched TactiFlex ablation catheter system. Positive outcomes and a “really great team” round out the EP business, the CEO said.
With the company’s recent milestone on the PFA front, it enters a highly competitive field, but Ford has only optimism for the EP business when it comes to PFA.
“I think it’s a great technology and I think there are some challenges with some of these first-generation technologies,” he said. “But I do expect there to be uptake and usage. … The question will just kind of be speed but I think the team has done a really good job here on the ground with the technology.”
