The dip also comes on the back of an urgent field safety notice warning on issues with the TactiCath quartz contact force ablation catheter.
According to The Street, Goldman Sachs advised investors on June 1 to sell Abbott stock, claiming it “lost its early lead in coronavirus tests to competitors.” The report also mentioned that while the company has delivered on heightened expectations for testing, there had been concern over testing accuracy.
The safety notice, dated on May 28 and issued in Germany, warns of complaints regarding a loss of contact force information while using the TactiCath product. This issue could cause ineffective ablation that could lead to atrial fibrillation (AF) recurrence or need for the procedure to be repeated.
On May 29, a day after the notice was issued, Abbott shares were trading at $94.92, the company’s highest peak since May 11 when it traded at $96.07. A week later, shares of ABT have dropped 6% in total, sitting at $89.44 in late-afternoon trading today.
A report from Zacks Equity Research noted that Abbott is in the midst of issues with procedural delays for its non-COVID-19-related products, plus a decline in demand for hospital-based elective ablation and neuromodulation procedures. The Goldman Sachs report and field safety notice have only compounded the already existing issues.
Despite the dip over the course of the week, shares rebounded slightly today, as the $89.44 price was a 1.4% increase from the opening of the markets this morning.