Abbott profit beats on strong sales of glucose monitoring system
Business
Abbott profit beats on strong sales of glucose monitoring system
(Reuters) - Abbott Laboratories (ABT.N) on Wednesday tightened its profit forecast for the year after beating estimates for third-quarter earnings on strong demand for its diabetes care product.
FreeStyle Libre, the company's glucose monitoring (CGM) device used mainly by type 1 diabetes patients, brought in sales of about $1.4 billion in the third quarter, up 30.5%, and accounting for nearly 14% of the company's revenue.
However, analysts are predicting that sales of CGM devices are expected to come under pressure with the growing popularity of new diabetes drugs such as Novo Nordisk's Ozempic and Eli Lilly's (LLY.N) Mounjaro.
Abbott has tried to allay those concerns by saying it could be a "complementary relationship". It published a study last month showing how sales of FreeStyle Libre tracked the growth in use of GLP-1 therapies, to which the new drugs belong.
With all the concerns around a shrinking market for CGM devices due to surge in demand for GLP-1 drugs, it is ironic to see Abbott put up one of its best Libre prints, Evercore ISI analyst Vijay Kumar said.
Abbott's medical device sales rose nearly 17% to $4.25 billion, beating analysts' estimates of $4.16 billion, according to LSEG data.
The company is also seeing a recovery in sales of other medical devices such as heart valves and pacemakers as more people, especially older patients, opt for surgeries that were put off during the pandemic.
Abbott's shares rose 2.2% before the bell.
On an adjusted basis, the company now expects an annual profit between $4.42 and $4.46 per share, compared with its previous forecast of $4.30 to $4.50 per share.
Excluding items, Abbott earned $1.14 per share, above estimates of $1.10.
