ABT - Earnings call transcript Q1 2019

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Operator

Good morning and thank you for standing by. Welcome to Abbott’s first quarter 2019 earnings conference call. All participants will be able to listen only until the question and answer portion of this call.

During the question and answer session, you will be able to ask your question by pressing the star, one keys on your touchtone phone. Should you become disconnected throughout this conference call, please redial the number provided to you and reference the Abbott earnings call. recorded being is call by Abbott. This

and Abbott. exception question Leinenweber, President, and the question Abbott’s answer copyrighted express Licensing of rebroadcast I Investor recorded call to any the during and introduce by material is now asked written questions session cannot answer without Vice Acquisitions. the be or participant’s including With It would session, like permission. entire the Scott Mr. Relations,

Scott Leinenweber

White, Officer; Miles of Good Ford, President, With and Yoor, Officer. thank me provide remarks in Financial and morning Executive the detail. Executive Miles Chief you us. Chief opening performance are and outlook more and Board joining President for today and and Vice Chairman will Officer; Robert Brian our will and Chief Finance Operating Brian discuss

take Following questions. your their comments, we’ll

financial that obligation result today factors financial as law. Factors started, materially which Before purposes release and business including XX-K statements except sales, call line ongoing today’s as financial conference discussed investors the first guidance operations be may results affect Private events and measures non-GAAP may EPS P&L Abbott’s the Item we for from get of financial to XA, and to by non-GAAP to publicly on our Economic, to release website year of ended comparable on forward-looking in in today. the will for abbott.com. our issued today, required any uncertainties call, which for continuing at organic are are Litigation available provided forward-looking that subsequent competitive, earnings to release that, refers the On filings will from sales in a Abbott Risk other on news reconciled today statements With results the measures Abbott’s no Exchange now note XXXX. noted, or I with and to in those growth, technological cause the undertakes statements. earnings subject turn XXXX. the performance. report forward-looking understand sales of that that as past, actual annual Form revisions our are only. Securities These GAAP differ be governmental, will news defined of financial our the is growth otherwise the some Commission used in and XXXX, be our for over measures developments, XX, December results earlier operations Act commentary quarter cautions statements Reform are on to these Securities to and call expected items risks Please help regulatory Unless Miles. indicated for forward-looking may made Abbott

Miles White

another thanks we’re quarter, to Scott, and Today we the first off Okay, start. announced and for good results morning. good

on and range. Our and sales quarter, share in coming the guidance target, in an previous at of right strong ongoing per exceeded growth our X% basis $X.XX on was organic earnings

basis. to Our per reflects of and full currency a year at $X.XX mid-teens the $X.XX remains on guidance adjusted XXXX share earnings growth constant midpoint unchanged

Today, year, previously, of the with the today year attractive and products our organic positive those that we’re on excellent on strong and discussed with company. emphasis At quarter our outlooks right of through of in positioned issued another we’ve performance, well the As long-term expectations. is start track markets. are have reflected first guidance the all execution businesses we and

next-generation before first call the now Libre, MitraClip, I’ll diagnostics summarize of exceptional where way, and turning business including with and drivers diagnostics growth new at driving with both bids Alinity We’re rate. leading in over In positively several of laboratory core are we a the existing life-changing results. by we strong to particularly pleased our that significant internationally converting and growth growth Brian, States. technologies start XX%. systems to the sales competitive are results quarter impressive Europe, United continue very customers above-market These for winning led systems. high and I’ll is FreeStyle long-term our were achieving impacting growth the and of are the family to lives achieve performance Alinity, Alinity

China menu We in also infectious Alinity In molecular a for expansion markets in be launch recently increased driver and new a our With such with and sales introductions. key multiple reflecting several the system, expanding will highly to as across product the more efforts Alinity steady Mark for X.X% a and menu disease automated States. increased quarter, H, and Alinity strong system, geographies, we’re CE come. diagnostic nutrition, for years United our growth significant on along different our than instruments obtained of our execution tests hematology tests, M,

was expectations remain these key overall. We businesses the in balanced nutrition countries. and Underlying adult growth India, along continue our market core long-term with cross and quarter several leading growth growth and attractive and above strong to pediatric was our market growth continue brands include all a Performance and In Pediasure, and demand quarter in and X.X% was the this our to see sequential other markets, Russia portfolio countries improvement and established pharmaceuticals, line in with with countries China, quarter. in to branded Latin sales was contributing growth represent of emerging intact. led to X.X% particularly good for growth achieving we’re our America. Sales Brazil, underlying by several strong Similac, growth and dynamics right quarter growth most in our generics geographies, which Asia emerging Ensure of

patient XX%, superior growth The outcomes was cover of of where our the heart quarter, left structural the regurgitation, structural failure, device demonstrated In broad our by following been of strong condition to in share medical approval last the across a valve. electro-physiology, In our a diabetes heart by approval and device XX% late achieving. adoption several nearly ventricular U.S. X care. by FDA devices treatment strong a use heart heart, led assist growth mitral HeartMate sales clinical grew double-digit failure, caused for and of I’ll this long-term rapid Lastly, market-leading products market leaky growth we’re have led capture indication including that supported that in heart, MitraClip, double-digit critical in contributed of trial growth the a portfolio the component year.

The During number has new expands the seeking this be quarter, a FDA process been that reimbursement which for MitraClip formal can we of new approval for indication significantly announced U.S. indication expanded treated. the Medicare initiated. for people

In starting the invasive amount seeing heart to valve. CE a repairing TriClip come first in U.S. initiate for pivotal tricuspid capacity We on we’re a in in the sales year. led months. TriClip quarter, our year. During by new glucose track tremendous of In exceptionally the up well coming I’ll Libre, monitoring trial relatively meet summary, new will growth time, among sales our Mark of our to in of we’re or significant the of for CGM. this system, order expectations global In we’re adding FreeStyle of wrap $XXX XX%. leaky amount our Libre X leadership and also the both manufacturing market-leading the with quarter, achieved diabetes plan right reflecting the to grew filed short to a device, over with care, demand continuous CGM online where high perform for Libre Libre, Type second that half users. for worldwide has of with quarter a kind Type start for million we minimally its for X which systems XX% device continues

detail. and All we’re of Brian the that we our I’ll and the now year long-term significant the FreeStyle growth over top Brian? positioned drivers in discuss and well achieve beginning to year. turn including growth, set call the and tier growth sales MitraClip the for are intact and Alinity, our at outlook EPS results to to achieving Libre, of targets more

Brian Yoor

Thanks Miles.

all Scott sales growth earlier, to As are noted, is please which that otherwise guidance. consistent organic previous our rates, unless on note an with basis mentioned references

negative Reported Turning X% the quarter. sales had quarter of for first the X.X% increased sales and on in increased the to exchange X.X% versus results, year. prior our sales a impact

Regarding other XX.X% of sales, adjusted SG&A investment expense adjusted X.X% ratio P&L, sales, and adjusted gross XX.X% R&D the aspects sales. margin was of of the was was of

line All with previous were in guidance. of rations these

year, our forecast year in reported to to a vast exchange to X.X% sales half X.X%. to outlook impact have first impact the Based X.X% our of the of we occur continue expected would on around growth expect of organic full of Turning year. for rates, we sales, to full the negative majority the the exchange current with on

forecast our XX.X% somewhat of ratio year, for businesses. underlying gross adjusted sales We to reflects continue the gross of margin full margin improvement across an which above

of XX.X% sales investment of R&D year. We adjusted continue of full to around for forecast SG&A and expense around of X.X% the adjusted sales

a offset of Turning around forecast of $X.XX somewhat and forecast around around ratio for our less second foreign sales, the second reflects impact of of gross double-digit XX.X% growth have sales, quarter, the little of growth X.X% adjusted exchange at a sales adjusted X% negative organic we EPS to which would of our sales. on than We investment $X.XX sales. reported to on adjusted expense an to rates forecast partially current of impact by expect X% strong of we results. outlook our adjusted underlying exchange quarter SG&A and R&D We of above margin of XX%

$XXX interest in million second net around Lastly, we forecast the expense of quarter.

I’ll now quick questions, provide sales second overview growth business. of a we quarter the Before call open outlook for our by

a core business. of to sales high forecast digit of forecast forecast digits. which key to In In we mid along in reflects which and For forecast open of sales with will growth. reflects diagnostics, is of medical EPD comprised we growth. we laboratory, With continued digit agreement. several low growth digit devices, grow to supply that, our point which modest low single digit In nutrition, forecast growth now the single areas to business, growth single is margin pharmaceuticals, of In sales established care, mid high diagnostics, questions. mid for the comprised we growth in recent non-core legacy decline other sales emerging Abbott’s high this mid continuation which we we priority a markets rapid single diagnostics in mid-single double-digit molecular call single digit

Operator

Matt Our Taylor from [Operator comes question first from UBS. instructions]

is Your line open.

Matt Taylor

are I think drivers? investors - you’re talk on track for morning. you if the Thanks could It the drivers to anticipating those some a make capacity of could of and the the growth was pathway addition healthy and I there adding. Libre enhancements really and you here double-digit growth all on good Libre the taking to specifically stay of address question. Can and Libre some other about lot wondering see time X lot for was a big drive you in of spend encouraging other each growth. big and that Thanks

Miles White

you. Matt, Sure thank

things I couple I focus just would think on say a Libre. before first I

might across in is see here of if about pre-earnings product noise and a strength rates board various there I nothing improved in sector a us, my to growth geography from a a the the there I sector. cases. whole here There the of areas, product be was I satisfied is you sector lot in device a know and strong perspective, well competitors that out of forward. tell there I have seeing continuity but that doing line we We’re lot even not this number areas. the there med pretty but device of think and have medical in or going at diagnostic completely spaces a with, look you our devices, and

we’ve While pretty ahead and great of great a and it sector markets I future has for the bright think here, all entire attractive products, us. are the pipelines got

out be think that reflected all, a and lot a we’re There’s of new of are I than I doing lot right first companies might of and much well products pipelines healthier in in actually good think So now, really a environment. environment there.

powerful has start, To enthused thing in its its both short made the a reception a diabetics, pipeline, we’ve pretty all clearly and X technology terms focus Type sectors difference segment continuous a on global and all its that’s pretty fairly points. very in and we’ve counts in specifically pretty particular and case, bright big launches the achieved Type and us, affordable worldwide. and I as been to been leadership is Then In uptake, that spot new both Type our I great great for life a in amount on technology a think, healthy. in diabetes the world. X whole success, of has of new products we’re about Libre all We’ve segments of monitoring X think got in. by patients in time, care been glucose over Type X. where leader many

patients finger manage have been obviously of nature to part the not to The that’s to to allows it. been manage and the I changing, it is continuous diabetes reflected. diabetics stick, way information, their has and attraction think of health the life

are it’s that’s in percent in degree kind of reimbursement there’s constraints It’s capacity pretty it’s U.S. online year, online will internationally very countries, reflected this correct. and we’ve think got the over that a Eighty in steady and we’re growth significant so support possible is We’ve that any of come waves invested of got accessible the important and we’ve sequentially as think to is to use product won’t all a become been cadence our now it’s appeal over second a which expansion was seeing of come I a the that, technology, couple covered, into underway that lives There I sales the ways. are half broadly that XX expansions with worldwide. first of half a commercially--commercial lives so of noted reimbursed importantly, that the be well after lot of times, any of in and put that there. mentioned then ease for affordable it. it’s a of investment patient, a times that. - capacity heavily for unique of We’ve very intent number

niche many Type not going millions product seen different for worldwide, this There’s the there there very Type of think lot this niche this initiated. In be the capacity. will for Because it’s not so an to massive the diabetes, a or year, product, device world Xs. or half to diabetics we’ve to are Xs I past. a product be not and broadly calls is quite of it a here, around of population that kind accessible diagnostic needs them, will all of than is in manage second of that be a so

We number things have expecting we’re of a waiting and for.

the that asked about FDA. review - X Libre at You is under

have an with filed alarms We X the Libre as U.S. ICGM. in

else that going It’s not but timelines, of review that. expectations we to to in We’re you market forecast what to to on I’m think Europe. already have milestone. trying clearly FDA tell achieve the about

Matt Taylor

That was give and a to you very second comprehensive, I’ll think there.

had was the on just X. one think I Libre I follow-up

I you that? ability ask Can talk confidence payor You your dynamics. in to the mentioned ICGMs. your get about about to also wanted

about in Before you’re preferential of on some last you talked Can co-pays. any talk you about terms for call, developments seeing that the side Libre? payor support

Miles White

what you who’s Operating I’ll tell that I’ll Robert? let that our Chief for question you. from Officer, come - answer business,

Robert Ford

know the Libre the we achieved. on say in filing are, be what be and to specifically the just so standards we achieved, the knowing in ICGM, know the an of X needs filed what Yes, we what U.S. U.S., need ICGM as standards I’ll to ICGM

filed point, we in to will and meet to those going it’s and but think terms So what we so we we what filed Miles’ standards, at we look filed we’re know look why we through, as forecast we not to approval the what standards, at when I that at and we of look filed. come we clear that

affordability payors in the for and to what I U.S, specifically of remove hurdles, is those. think Regarding product of the intended one we’ve that was always this some

managed that managed pick the of the like reimbursement monitoring here patients see care only we to of and on of U.S. shift, If and order, authorizations, and A from start looking evolution lot blood that pharmacy market, you with that’s mail so of authorizations, was that much prior the the where lot strategy a going coverage. at prior is now part very driving up. formulary was seeing lot that focused that positions our a we’re glucose go that of through to allowing to less key our are affordability, access the slowly moving look something a in to care in

Miles population, this shift in see now care patient As of over and XX% the you into we’re coverage pharmacy. managed life said,

occurring pharmacy, can at to see shift, was in Libre, can If intentional specifically script Rxs, a very with hadn’t we’re that before been pharmacy. by into to U.S., starting and accelerate done see did of CGM that category to the which you kind that, going systems. that move the you something and you adoption, with that the look strategy total data, We that is

Miles White

you I know that guys track Matt, like can you data publicly.

here, and the You performance trying going growth so acquisition about rates we’re Obviously we’re volume world the patients. every can right this that going track nothing trying There’s with as The of pharmacy. - continues line price expect, that’s not pleased acquisition drive be the tell pretty but forth been to our to obviously patient can we’ve frankly, in product, and I drive strong strongly. because around you. pretty with through and week, you’d to happiness

pretty user two-thirds I well. those X in kind to bigger expecting obviously Libre growth product a a capacity there’s us. of and so and stages, of rate, we’re of continually a its base, of kind really around at that Type with doing coming be point user only early big We’re base, users the over expansion happy with it. for a million and we’re actually with of up this It’s this online kind think make this our world the

Matt Taylor

for and all the Thanks Great. color, congrats.

Operator

you. Thank

Stanley. Our comes next from Lewis question David from Morgan

is Your open. line

David Lewis

from broadly the how you’d year of me, follow-up. Good morning, the more Miles, for a us just pacing here. with just quick from share I’m then wondering a and if Miles questions one couple maybe see you

improve you and what’s I back was sort sort think drivers dynamics X% quarter, enough that’s in intact, and the of core much to the messaging range. were fourth the first very expected one-off in of that growth here, we’re growth quarter, in happened sure the growth suppressing some

about As balance growth perform, couple how core you doing probably so about a year, performing relatively you’d where them like of drivers these the you think the to well, businesses have of not not first we performing as do very of think of quarter solid are these you’d the the that the and some from businesses pacing the business like? on, given of some businesses

Miles White

leveling new earnings of tends out into right for seasonalities baseline gating given end the in stronger really the front to of we year and is start and Well, but in are a always at there. as quarters. driven fourth strong go enough that’s There reflecting of but fourth comments the but look a big products. Alinity, first not third it now case in Every just back-end share is on, year new it’s profile. it’s of year any affect so goes that There’s the a be growth earnings a increasingly lower increasingly but climb gets quarter third and in the year, better honest, year overall to quarters, much We’ve the there, by stronger and couple they’re say HeartMate, always seen sort incredible and to our the the still rolls couple and that it Libre, products in as loaded, better little on. of of toward real bit penetration growth MitraClip. I’d the growth of per it’s that launching the

to of optically looks the whatever lumpy and our bumpy. is a guess couple is to we I to growth estimates because But steady. it’s think the it’s always so then gate weird happened when a comparisons on, we’re last like year to penny subject it the that, try to always get point fact to hard - I

pace improvement, focus places in we’ve general the not I’d that a on on couple got right of must you be but intact, say, for are we’re with okay, some improvement have is it As and it’s these lot and obviously putting say in say to we major only that. while work about it’s you where that, and and places I’m could yeah, But we’ve not is growth at glad you more a drivers. poke strong, I’d miscalled you’re what not satisfied said, of there

accounts business you it So we long already two-thirds it’s have with an we’re out you mainframe winning That’s XX% winning we’re we months, they’re head almost Alinity term takes customers data powerful and is when head where know, where over to have competitor. are to a commitment, switch performing entrenched the big accounts consider systems, strongly, pretty the of that contracts. of

two-thirds the the That’s of pretty So significant. almost to endorsement a laboratory those new systems winning by pretty that’s be and offering. of the business, powerful Alinity new market solutions we’re accounts,

pretty all with about a there. We’re that. to to forward, know really good seeing that number good better, growth improvement for had some and so estimated is rate there both going in is and we an expecting but consistently forth, that we across job it sit but a obviously be That’s major see. for every X% product up think well, well across not the a The some tend don’t seasons anywhere on of here on little holidays performing pleased in we’re now week, really I to right would nutrition. beyond in like a does times depending nice and that’s we’re us. we’re story, a little business down great so it’s just X% pretty to but There and explain, I’ve range and lines place. going call get so been we’ve this in and I we’re week you and what business range, worldwide. X% X% with growth constantly we geographies to beyond that the to of management’s all watching be it to that, that overall strong if and countries to done I’m and look

couple than you guessed. me out, might other you the correct got point to of a can business. improve right we’ve the I’m things longer So do but that as are a I as how we point where couple show business, know as places to we as pointed there’s of hard probably as we got pleased think a of far to would that we’ve to coming, have quarters performance I’m performance to of than out pressed to find that lot work taking now, underperforming the rightly an watch-outs,

David Lewis

helpful my NCD, about think math, our as before the major about you the looks time we would be I seeing time it and study, wonder you’re on our NCD, could investors driver seeing in of other very year. is accelerated NCD, business a, the maybe follow-up are other the and By is Thanks of ex-U.S. performance the what U.S. even talk if U.S. the business, then that’s year. I had growth for sense the that’s the what Okay, diligence focused suppressing guess you some the the much. MitraClip. this just, you’re MitraClip just on outlook European MitraFR and and maybe trends, balance of ex-U.S., and for U.S. so so

Miles White

going that. I’m to have Okay, Robert take

Robert Ford

be yes, very with and is think underway. to many and we’re but data generated The CMS. expectations the ahead, FDA line and usually growth to obviously so the months. that much we’re COAPT process with approval and criteria, we speaks was driver evidence quarter geographies. COAPT. across in now to Label of good that working Obviously we on months I structural These very patient had six take different reflects Okay, enrollment in wanted was between a MitraClip. through and our where The heart is nine a was we our the franchises right a so showed few MitraClip big

building MR this, I’d in of the we we of the the to driver process, the blocks. to do from primary double-digit block when X.X other really we’re It’s this us. it achieved a months There of building is few are Opening to little timing we’re forecast a multi-year, think important but just business are for it’s that only about when growth indication framework and If cycle very took started will important. how is to say reimbursement one as not a when building the blocks an know the and centers definitely very key and kind we’re it difficult here bit about the years optimistic. important currently currently you how but we got But that new only look aspect we one be that approved. already back, do us reimbursement and is a We here, here at of underway. experience our that

about that’s force and XXX lot we’ll involved implanting our U.S. implanter I and years, if over here look center next also training, have training, training get There’s a the training, about in rep, sales sales see that think We XXX. few currently at it - will centers to of you network number the a we take to those nine on a months into there’s between awareness and them get the patient sustaining usually and get fully they support of amongst physician the and development, the obviously MitraClip, proficient groups six ensure then the until referral technology funneled centers. as build implant of and therapy that

U.S. and for do hiring. So wait doing it before approval CMS been the going four years those we’re the for we are some to this. of final last how the key blocks, but in know I’d start say to We’ve not we

here. to opportunity invest mitral taking so go, year. mitral and position quite for do frankly we’re go whether this replacement, we’ve a didn’t clinical COAPT. or already like be I definitely over reps, position. kind we our need decade, pretty expanding so is building we’re so the a specialists repair as mitral for hiring our tremendous position in more this we’re an through been--you an I approach just The and force, position. unique it’s know, we’re ahead that our going a growth opportunity, see We’re Abbott, sales expanding an sequential ready We’ve we’re to of unmet happen of been because

think and of drive have large opportunity is that our European did that’s is I markets. we Europe, that’s have we some question to so it the see That that for key so impact the fundamental some internationally a don’t markets, opportunities. us, also did we on some expanded where of change French I very in in to of - a yes, other going was on the study, market large thing. of transition a help a rates in impact Your growth. Japan an but implanting see European MitraFR little more a think bit another market

so its MitraFR expect to another of we but the continue will study growth. think I do or quarter out, kind the take international to business play

David Lewis

much. so thanks Great,

Operator

Thank you.

next Our question Hopkins Bank comes from of from Bob America.

open. line is Your

Bob Hopkins

Thank morning. you and good

meaningful here, question results more pretty do Alinity, two full that on show When U.S.? the have the way? drivers. on Just in launch of On focus the in does When one a direct we’ll think a really that the you up impact U.S. to launch. questions Thank in see growth you.

Miles White

the we full this say get You end expect of by up, know, Bob, year. I’d menu the almost to show

so to to Now, I you’d that’s whole like up out you’ll if thing, think business it start and menu do effort put be numbers lot approved now, we’ve kind size more of to pressed then in of a to want the it have We the because really the now, got don’t and think in significant U.S. XXXX, get but we hard go, show see running even menu. we’d until we I the significant of a relative launching see to were worldwide. of

right expand impact U.S. going say the you’re growing see even U.S., X% without growth is on high from emphasis right now to the XXXX. We’re we at a Alinity, probably measurable menu. rate much now But it frankly, while in in pretty I’d in that so

Bob Hopkins

Okay.

in Abbott-specific the weak mod U.S. do guess to turn? last strong a is is I could when you think One market all other we couple obviously a issues, the question been thing question ask, are growth related of the expect in to mod neural wanted a or side you is The drivers slower little I that are at do on the my a on think quarters. results these overall. and weakness lot neural that’s got driving devices just really you’ve

Miles White

little question. is I’m own and particular good going miscalled here, more on But to for I we’re where the This I issue where disruptive the us. before, pace we’re in that that’s confident which wasn’t timing. underestimated about I to fall direction we and business, than kind own this in fast our our own our had management, expected. by one. think I anticipated A confident one a XX% have management, clearly my an I in clearly the performance, a think turn turn we in sales said of we XX% which expanding and the for at force here confident I’ve the I’m There’s the headed. been right I’m I’m Abbott how forecasted sword would was I

So I’m from it’s hurt have the of of - that. a confidence or so is I broken it business about not lot boy, worrying standpoint really this about not,

think in that established, double and growth it’s I think healthy. grower, of in but a they as a to pretty as segment, I rate grower, think far devices a goes, be I and double markets As as market digit don’t is these become double-digit med some a digit it’s high maintaining growth

not the any losing not or we’re in growth the - growth X% in we the and not what in of that’s it’s sort segment. XX% segment these would So confidence digit either. range but I’d potential in or the the segments that put it’s double expect,

a segment take so particular I’d if is a want should if I’d think this be, say XX, thing. slow know I clearly is to any not in relative slowing, the market’s digit healthy underperforming what you market, market. and it’s double Our but is performance this it

Bob Hopkins

the quarter. and you, congrats Thank on Great.

Operator

you. Thank

comes question Our Larry Fargo. next from Wells from Biegelsen

is line open. Your

Larry Biegelsen

Good was question. have changes little that and very can morning, obviously that soft. you there. with talk rhythm a How you couple Could that? about I turn failure, U.S. management on a around? or was Thank specific? made Was market sustainability some management one product questions, management strong. Miles, heart for Secondly failure. I related follow-up. of you the you, rhythm that quickly heart the related Abbott understand starting thanks taking and

Miles White

hand that, Robert to could to about. I going I’m talk you. talk it about to but Thank

Robert Ford

in had as electro-physiology to thing; so not business, Yes, definitely Larry, lower X%, it’s grew international get ready a when the of That’s market in an we we of a our growth more XX%. rate about launch. Abbott U.S.

that the rate U.S. We’ve but recovery better some seen digit better. CRM, does It EP. internationally some new us. of we’ve which frankly, got in What kind product, and, depletion getting new job area the We’re and OUS. the satisfied EP in obviously of saw in better. we’ve to execution another inventory not do is for deployed TactiCath and we’re the we’ve with in CRM international the shown so where get for side. quite I performance. SC us a double dedicated expect our does focus we’ve EP ablation growth a obviously already market, business that important is the to good to on has think the it done for ready launching our disappointment CRM and the team, we catheter, of in at team and product older better back It’s definitely On U.S. We U.S., launched in there does business an the

this focus ensure I’d you was up In mentioned, the sales our organizational say, will achieved out and a capture that our in commercial I’d saw, got think are CRM. product that impact her programs, share failure, especially going several pretty that U.S., in that’s get they focus get product, heart the very in we’ve destination you quarter. the vertical unit execution that that I’d we with commercial the team achieving a points new was rapid our create the strong share U.S. that the and to the therapy, standalone say, We up focus U.S. ICD sharpen made the changes leadless XX%. next-gen we need some in were XX% the we the the in of, accountability need. they more, say XX recently innovations business to nicely, field, as and progressing structure of our As in and and about two and

share heart also. here, product the accounts it We our, do has accounts, through little got The to very only but Abbott nicely traditional kind continues potential to failure very say, in manage, also on well. smaller We but has is product maintain. done even also of well, very a strong that’s which expect let’s our competitor that think doing year cardio bit not with

Larry Biegelsen

helpful. very That’s

it you in latest pick-up down capital your M&A? allocation. to to more as with me, when pay the a lastly can starting you on thoughts, Can taking Thanks we’re debt, provide please as especially Miles, M&A, for we for Just to relates questions. see us expect get more questions

Miles White

a things. Well, welcome. couple You’re

Alere think, It’s the I I down we think of cash been has the done management, as company a great paying it of with all, we a a just so--and billion, quarter another this first at for half St. cash last almost had. and XX of little debt, X.X the debt acquisitions, done job unprecedented, $XX First than in that. We’ve billion about Jude much When something more as generation, like etc. think paid of of year, that, down I we were year. were

debt to everybody net ratios. Our watches EBITDA debt--you know,

That’s about the to right completed acquisitions. was, we Xx think what down from X.X about of pretty the down. pay rapid I We’re two when second now a

and I around paying cash by be point. We got offset about flexibility to I that be EPS of is of back like to expect dividend, pretty of has X.Xx achieved. haven’t so a at keep declare to so strategic share now know, could you adjusting But XX% probably not some is number a to and consumer year-end, bad been I done debt. lot Obviously got we tend XX%, we’ll We’ve to our repurchasing. we’ve that. at some by choices. primarily shares, XX%, and we’re flow, capital. times strong in a as as times the but the We rapidly, increased repurchases, share you we We’ve growing think nice dividend that there think and down something want EPS, of we done good at right purchase XX% dilution, December just that to big know, target

those with return, are with pretty strong with of capital users our expansion, made and cash have capacity high we Libre flow. in internally have significant and We important investments still our expansion growth Alinity again while

the to strong have we flow, back we have So strategic of have question, choice. cash we your point flexibility,

on think there’s and at we’re that whether you in as something the out or - today, I we’re be is are even very our in I organic on, what or much attention. focused execution, if there I’ve the focused fits would that, that not I true. is past or we that wouldn’t told had also tell you know, getting interested question is and particularly you our say any internal I of XX% point etc., us that’s would true

to but now, don’t not challenges not don’t other opportunities. have not tracking is a be we’re we robust attention things as to see are I of always we’re but have opportunities, range I that. it tell it, We or environment about about I M&A, means It’s target-rich, you we a and either we paying years, see cash the right adjunctive lot know, going there’s return. shareholders I other to wouldn’t are it opportunities one in it as pretty is our that I want where and think think to a We’re here, a monitoring generate because return I what, to profit, generate at to out historically think we’re do. going that meaningful forecast the our of anyway, there. possible fit to invest you I lot very constrained If we’ve diligent necessarily a of target-rich the and it lot capital to or and forward trying what always coming to over don’t attentive highest we’re of Obviously lot been when out obviously of of we’re choices. move going and deployment going

seen fits there We every I when a to steady do now, be but a focused be We of the strategy something a something comes are to thing. that attractive. M&A no like the can I’d year that haven’t and It’s If an to don’t We’ve gotten company happen and when be we’re that’s positioned, right constrained, and isn’t that longer opportunity think return consider M&A something, along, pretty and but intent quickly, ready the we say we’d can earned. opportunistic be means positive. fits we and honest, well it that on whatever.

Larry Biegelsen

comprehensive for answer. the Thanks

Operator

you. Thank

Kumar Vijay Our next question from from ISI. Evercore comes

is line Your open.

Vijay Kumar

Hey one guidance, to follow-up. the question. guys, congrats a and for a on on the my taking thanks I’ll and year, have I start nice start Maybe

better. contribution the on call, I and not MitraClip, assumptions said earlier. in Miles, just approval inflection the think in guidance, looks year. but expecting coming the the it’s in like beat, for might better. changed not curious I know curious slightly be came had you modestly half, last [indiscernible] or there We it you’re your guidance back tweaked - I’m any but I style, in the some I’m MitraClip a being it’s changed. On know XQ on on nutrition just not FX

Miles White

question. the for thanks Vijay,

not year. You quarter, why months I’m year. what quarter original around I my or exchange currency were by the a there’s and put been forecaster it don’t to exchange burned based on said These the remainder consider three expect and cautious I there, feel end we but six exchange the plan kind China first in trade you about. sort price even rarely, we’ve were in of or I oil, factors points all and companies, talked as the we because question and the about time--well, of style. number generally I know, in actually such been April-May-June all kind industries, answered of when so I all if first it’s like that of you all in we’re various at Brexit. of of raise your everybody raised ago. for of ever, a all the not it see--you I just in have waited of multinationals this the big traders, because all thing something ago times, the volatility, months didn’t midyear a if know, at forth, no

lot is is figure U.K. of a much U.K.; and with to how tied of time of to up had but companies these a it lot and a I in minds, the minds, you’ve have how business got European them. mitigate things on out depends deal It’s on lot weighing it’s and oil on don’t $XX of weighing on know, think almost lot minds. You a weighing Brexit

the because at say first reason just didn’t in the in we I’d is first quarter So the raise look I that quarter. raising don’t

We’re off start. to strong a obviously

that anything, I seeing tech is and is all our med other a if I in and any have that knock I seeing tell lot I’m people in vehicles not of across it you growth med see I see some industry signal I opportunity. seeing a threats rates as on solid before, robust any--gosh, feel like told positive, that business, the very of are rising think CEOs in medical not projected either; while devices should wood, growth or devices to take growth story somehow As analysts slowing, I intact, speculated I from fact seeing don’t competitors. you, don’t I healthy that. are the the

I but a so. for new kind while Well, think things. whole that. kinds of the how is we’ve changed, that’s of of a robust wait the cautious that I always a been people company and the healthy as have lot think lot little sector assess I of kind and haven’t pipelines, and those to have as think midyear company. lot worldwide. things you products Could raised more than performing. There’s things we I first quarter? in industry doing for of like of and navigating a an may a a until I’m well

can That’s broadly pipelines I much year little line as don’t a across so tell healthy I the not in we’ve honest I’m is sure have that an the company, negatives. think quarter thinking about I really ever performing early company seems had answer. such to so the well. the into That’s just one as any you. I’m me.

Vijay Kumar

changed I seeing, think to the but Thank the product not submitted specific the kind guys to that, X and it the guys I same of a whether that was the in gave you longer it’s we’re That’s was a TAM. question ask billion maybe macro, the terms Miles. some dollar is this in the can for product think the sustainability, sustainable? to is, Europe curious Libre, $X X getting open-ended, Abbott it’s as north it’s be Related you. sector, we’re Libre I the fair fundamentals. of I specific algorithm Libre, is saying product, multi-billion Libre The I to just that not term? Libre just MitraClip or guess, of sector--the FDA, a lot, that the you’ve left fundamentals is Abbott, Whatever enough, think it reason I’m U.S. is for on numbers you the submission? and

Robert Ford

is just a a it’s product, this Robert. It’s similar Vijay, label. different got

Vijay Kumar

this for TAM north the longer $X for term? guys on billion Libre, And you be can of

Robert Ford

we’ve at Type of this conventional two, as always and a it users, a markets. the to four, a of around whether of XX diabetic in have think XX a as dollar impact right, - said, insulin the Type look thought are with therapy, this three, X we them tends developed impact, greater there of half world it’s to world, or markets where you’re Listen injection technology have in patients this amount a tends a--if the you emerging We X on and the them is, million five. opportunity, whether million other multi-billion a in greater

segments these You can patient patient and look and numbers it’s at very big.

Miles White

in that. Vijay, accordingly, expansion story. more I’d of of there’s capacity add a couple things sort to but We’ve to this investing

can glucose product. a expansion that additional potential the in is or besides glucose There’s in a As there’s Libre development you a to in United X for and we review make for and the under to the development analytes analytes of improvements been time, know, Europe, Libre are there lot has X other There this there States. diabetic. a Libre in of some X product is for in other

All and well. has underway, is development just a underway. been strategy in test what an so it is R&D, that glucose know is of call a platform innovation that is development. It is it kit, with there this I’d We not platform,

already half floodgates Our million go, a honest, so already--. and This exactly back figure a capacity a XX%, of the of you expansion haven’t or the math of plans are well half to and growing a into Libre, be to almost and long is in kind sales, got planned. take what billion let at very Look, of just We’ve can think out we I it’s that. so asked. doesn’t you math it more it’s product probably and the users

Vijay Kumar

Thank you, guys.

Scott Leinenweber

more one take we’ll Operator, question.

Operator

Thank you.

Guggenheim. Chris from question final from comes Our Pasquale

Your open. line is

Chris Pasquale

in. that question. companies neural product the number a Bob’s We’ve one of on momentum me Miles, fitting for in you appreciate launches seen drive market past follow-up new of couple over Thanks, years.

guys dust letting settle coming could a matter force your Are of haven’t help new or it around, the You there. there just really talked turn really pipeline products that sales much that segment about on expansion? this is

Miles White

I’d to sales of kind you’ve it’s commercial own some Well about to and try and your better. pipeline. force them, and you, you’ve kind dodge like we sales own My force issues execution like--you to of we thought which fix address go your own admit you go here it’s got execution, with tell know do can been, we’re about better and know, answer just to weave your do question the the going our talk got has when ducking let’s and to not

a in - there is Robert? that, pipeline said having Now development

Robert Ford

execution. Yes, so first foremost to the know also that--our and that point, we priority is field

year, business investment R&D expect doubled area this and on about our so positive obviously in We surgery driver investing our towards getting impact also the that it speed this think that beginning pain years also of see ability year, evidence we’ve in needs taking pelvic have we know to it it’s impact, for I force we’re have grow, that do. an Evidence what also pain systems to is here, market or claims. ago, to two end innovation next will on and since trials doing kind to pre-back do to do that claims, a of is the so I working of new and have important two come sales and ensuring whether another our differentiated and up over

address going So we able have know of but yes, a business. pipeline are your double-digit the to sure we have field need we’re here do growth be to have we that investing, we point to sustainable make to force a we

Chris Pasquale

spot the structural and bright Thanks, better. get that’s like potential has a even for the helpful. heart, one, My feels it company last to today just already

and getting on just the As relatively the here, in close U.S.? which to Europe, should you pipeline thinking through can matures, tendine latest we in Portico also then Thanks. be [ph] your go there

Robert Ford

about we I of generation lot come year. we see year Yes, on bright also end to see right Tendine, We’ve your be and one first investments CE of that market point, device in portfolio. in that’s year last to this that fourth now to a filed so of area U.S., think that so Mark, end expect in year. TriClip, U.S. of the product the Portico we’re the we this target We towards the the bit to here. made should it a half for talked of excited so year. this second got the towards that; MitraClip We’ve that will see more about at half TAVER, the a next in coming also, we’re

Scott Leinenweber

time well joining Okay, you conference of call XX:XX good. am after webcast on Relations’ Operator, for thank you, all and call. A your Investor for this Thank Abbott now Abbott’s website at be today. will available us concludes of abbottinvestor.com. Central questions. you This today Thank replay

Operator

Ladies disconnect. all and you conclude may the a have gentlemen, This and Everyone wonderful today’s for does thank day. conference. in you participating program

Abbott Laboratories (ABT) 17 Apr 192019 Q1 Earnings call transcript