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Abbott Has a Powerful Product Lineup in the Chamber
The company is on track to be the fastest-growing company in medtech again this year.
Amanda Pedersen
April 18, 2024
3 Min Read
GIF showing Abbott's TriClip transcatheter edge-to-edge repair (TEER) device being deployed to repair a leaky tricuspid valve.GIF created from a video courtesy of Abbott
For the first time since 2016, Abbott raised its organic sales guidance for the year during the first quarter. The company now expects to achieve organic sales growth between 8.5% and 10% over last year, excluding COVID testing.
“And medical devices, I mean, what can I tell you? It’s just been a real strong performer. The team's done an incredible job there,” CEO Robert Ford said during Abbott’s earnings call Wednesday. “Last year, we were the fastest-growing medtech company, at least from what I have seen from our guidance and from the other guidance’s in the market. That's what it seems to be again this year.”
Analysts were surprised by the earlier-than-usual guidance raise.
"The company has not raised its full-year guidance after first-quarter results since 2016, which we believe speaks to the momentum of the core business and reiterates our thesis on sustainable 8% to 10% top-line growth the next several years as a result of end-market growth, new product launches, and share-taking opportunities across the portfolio," Margaret Kaczor Andrew, an analyst at William Blair, wrote in a report Wednesday.
Ford cited the company’s strong pipeline and recent product approvals as contributing factors to its accelerated growth.
“I put all that together and I just feel that this type of performance that we deliver just gives us the confidence for the remainder of the outlook of the year,” Ford said.
In the first quarter, Abbott saw broad base growth across its portfolio, particularly in medical devices with 14% growth in the segment. One major win for the company in the first quarter was FDA approval of the TriClip transcatheter edge-to-edge repair (TEER) system.
Image courtesy of Abbott
Ford called out several other product milestones and growth drivers across medical devices and diagnostics:
Point-of-care diagnostics
FDA cleared a concussion test in April that runs on Abbott's portable i-STAT Alinity instrument. The new test aims to determine mild traumatic brain injury or concussion in 15 minutes. The test is significant because it allows testing in urgent care centers, physician offices, and other closer-to-patient locations.
Diabetes management
FreeStyle Libre sales were $1.5 billion, up 23%, driven in part by expanding reimbursement coverage for Libre in geographies like France and Germany, especially for basal insulin users.
Cardiovascular devices
Electrophysiology sales increased by 18%, driven by growth across regions and product categories.
Structural heart sales grew by 13%, with strong performance in transcatheter aortic valve replacement (TAVR), left atrial appendage closure, mitral valve repair, and tricuspid repair.
FDA approved the company's TriClip TEER system in April to treat leaky tricuspid valves (or, tricuspid regurgitation).
Cardiac rhythm management
Sales growth of 7.5% was led by Aveir, Abbott's leadless pacemaker, which is capturing market share in single chamber pacing and expanding into dual chamber pacing.
Neuromodulation
Sales growth of 17% was driven by Eterna, a rechargeable neurostimulation device for pain management.
In January, Abbott launched Liberta, touted as the world's smallest rechargeable deep brain stimulation device for movement disorders like Parkinson's disease.
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