ABT - Earnings call transcript Q3 2019

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Operator

Good morning and thank you for standing by. Welcome to Abbott’s Third Quarter 2019 Earnings Conference Call. All participants will be able to listen only until the question-and-answer portion of this call. [Operator Instructions] This call is being recorded by Abbott.

With the exception of any participant’s questions asked during the question-and-answer session, the entire call including the question-and-answer session is material copyrighted by Abbott. or Abbott’s recorded written be cannot rebroadcast express without permission. It

Mr. now Acquisitions. Vice like would Scott to and I Licensing introduce Leinenweber, Relations, President, Investor

Scott Leinenweber

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

their questions. Following comments, we’ll take your

subject be those we for Litigation that uncertainties some Before indicated including for forward-looking from started, statements actual to get cause of may statements. are cautions Act of made the to in Securities the today Private risks Abbott differ may financial forward-looking materially results these XXXX. forward-looking and the expected the results XXXX, purposes that Reform statements

other are annual XA, may the as governmental, law. that affect obligation except statements XX, technological competitive, year on ended Securities operations of any report result Factors events developments, and Risk subsequent Form and publicly undertakes to Exchange revisions December Abbott’s XX-K Economic, to no Abbott Commission a forward-looking required Item for factors to as in XXXX. or discussed release our by

as ongoing the growth, from financial website measures call, investors understand Please note which release release conference is measures Unless help today. be defined our provided on of news These issued and financial noted, at and business will our earlier growth organic are comparable P&L in operations available measures EPS items On regulatory are with the our be results sales in to our refers reconciled earnings sales commentary performance. which otherwise non-GAAP on earnings guidance today’s will the that abbott.com. on past, news today, sales, filings to GAAP for financial the line call today Abbott’s non-GAAP used and for only. in continuing financial

that, will now the call turn Miles. over I to With

Miles White

Okay thanks, Scott. Good morning.

per with on an quarter absolute Today, XX% we another earnings reported of currency. results when reflecting excluding $X.XX, of growth strong ongoing even share basis higher and the impact of growth

Sales increased established by sequential quarter and more diagnostics. the growth basis led and double-digit organic devices on improvements in in medical X.X% pharmaceuticals than an in

We the would $X.XX we earnings also reflect year $X.XX narrowed our adjusted set currency share excluding per year. of upper beginning range full the the growth of the teens current end at range of is guidance at impact at rates high and to which to the

recent strong on remarkably focus strategic As execution on shaping acquisitions company and organic is we completely we’ve performance previously, we’ve following our focused consistent basis. a This been discussed running delivering the on built.

averaged Over with strengthen continued organic reimbursement the products, access sales portfolio the last and We’ve that enhances X.X% expanded sustainability eight our quarters, strong with further variation. our to new outlook forward. growth also going and little coverage growth generated of very we’ve data worldwide new clinical

summarize key our FreeStyle results pleased particularly more platforms and Alinity I I’ll highlight Libre, of performance am which MitraClip exceptional third growth our detail. several with I continued including as across the quarter in

or business XX% achieved our leading Heart, Structural MitraClip for our sales In regurgitation growth double-digits for by quarter in heart market where a leaking treatment devices valve. row. second start the I’ll And the medical we mitral of sales led in increased device

the in MitraClip quarter XX%. U.S. growth including of nearly sales increased more than XX%

regurgitation of approval we TriClip the received MitraClip first U.S. next-generation we minimally invasive repair safety device and which trial of initiated FDA system. treatment U.S. our tricuspid pivotal quarter for efficacy evaluate will for the the our the ever During and

base, significantly as for that billion routine of the We in quarter add continued leading need by XX%. glucose market system sales our eliminates continuous Turning and $X.X reflected the global achieved organic to now to FreeStyle growth sticks. of Libre, user nearly finger our monitoring sales to

reimbursement base Canada. system plan During first obtained on and Quebec the any becoming only and provincial Ontario monitoring the health public to glucose in coverage be FreeStyle quarter, transfer Libre listed by

to people digital their condition insulin our solutions are with strategy continued Libre integrated recent seamlessly with to that of to as manage can where We platform as Omada develop Tandem well diabetes including announcements Sanofi of Health. seeking integrate advance across also technologies delivery we the devices, the and care

to easy-to-use expand the for around will of tremendous people drive and diabetes access our ongoing way affordable changing millions manage device Libre the awareness, to for is This world their and come. adoption growth years efforts

led Alinity the in in to growth core our growth where roll outside business diagnostics and Europe diagnostics. U.S. quarter laboratory to sales X.X% now in other The grew drive strong laboratory core double-digit Turning the international continues by of in out markets

In and our to launch these immunoassay of in the system, outperform the up efforts with to architect for legacy progress chemistry U.S. areas. market clinical achieving we our continue good beginning made Alinity and we’ve are ramp regulatory approvals where tests

for a matrix across geographies diagnostic well testing Alinity over a platform and be instruments, differentiated rollout business. diagnostics multi-year highly With multiple our to growth areas is time, and positioned

U.S. a by by was offset of sales adult than our several Greater in nutrition, for international other market nutrition, In third X% nutrition growth and little market partially nearly in In the XX% comprises challenging increased which above quarter row. overall less nutrition in pediatric dynamics double-digit the quarter, countries led sales. growth in China, a in the

to our segment we anticipate the in strong to consumers seen and long premium which in strengthening we've the rates. where footprint, other across as geographies China, and on volume up due global trade performance segments We continued such compete, term and growth opportunities decline adult nutrition. portfolio broad competitiveness across the remain While focused and continue given low birth for market is historically channels various brands and our portfolio purchasing

EPD for sustained market world. improved last pharmaceuticals several strong growth with the China above markets now three sequentially the geographies; has EPD, in well in pharmaceutical geographies positioned growth in market by fastest and largest leading growth of where led or each Sales of the in quarters, in I'll international for wrap some and with is several increased including sales positions up EPD established quarter growth X% India, in the Brazil. growing

So several in performing growth. in quarter strong we're another and well portfolio of across the earnings resulting areas sales summary, of

the and to growth year. platforms at and product to We steady product and with we our continue the upper EPS we're coverage ongoing key cadence at data beginning a end portfolios reimbursement track of clinical product strengthen organic set of and well new on approvals, the the of ranges sales deliver

I'll results detail. for in more the now over outlook year our Brian discuss to turn and the call to Brian?

Brian Yoor

Okay, thanks Miles.

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

Turning results, X.X% to the on organic an increased quarter for sales basis. our third

U.S. steady our strengthen modestly impact sales July. since the an of saw time we quarter, than on the at resulting from the exchange X.X% rates higher unbearable points dollar in call basis held or During XX in

sales in Reported X.X% the increased quarter.

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

outlook current somewhat our sales. growth have nearly which to forecast exchange the reflects to $X.XX of X.X% We at that’s EPS rates organic $X.XX midpoint. negative growth a of quarter and around to sales reported adjusted Turning we at XX.X% X% impact quarter, expect above forecast the would on for the fourth fourth

adjusted and adjusted forecast margin X% XX.X% of ratio sales around SG&A sales. of of R&D of expense sales, of approximately adjusted approaching investment gross an We XX.X%

of open businesses. we for Before I'll organic overview now call a provide the growth quarter questions, sales quick fourth our outlook by

devices, of digit forecast growth. we forecast similar low-to-mid-single we digit in areas single to growth. growth In digit which Pharmaceuticals, business. In continued growth, forecast high forecast we we nutrition, Established the For in several digit quarter, mid-to-high reflects medical third single this and diagnostics, double growth

the will questions. call for we that now open With

Operator

[Operator you. Lewis David first from our Stanley. instructions] And Thank Morgan from comes question

is line Your open.

David Lewis

morning. Good

Just from Miles, start just off a couple on of questions I to want me. gross.

focused this you time of sustainability and are year X.X% eight averaging investors to mean So the quarters. very been you've said, for seven obviously I on

are So more of business, years? one last doing get you those can confident in specifically, that in quarter X.X% implies then, call that bit the your X%, momentum, about as to you out quick little what of specific follow guidance up. think XXXX, the there? for you a fourth range a questions; growth of then been And deceleration couple you’ve drivers the anything couple And One, that deliver that

Miles White

Okay, David. Well what I'll said. you start with

averaging straight X.X%. We quarters eight have had

We've board. gave the mind. of that. year, our drivers, strong fourth we've we've we eight, frankly in, X%, see seeing to MitraClip all are the at a momentum actually very to Alinity and to quarter into quarter, pretty across think I very at in this change structural in here. hearts, EPD no we any last of improvement range beginning going Obviously sequential to the close or the strong got and areas anything, next are the that etcetera a momentum to strong. and Libre I be I comes are given, all And If systems don't range. that into change in think number seven somewhere Going then growth I that we expected going range we're we've of growth see got where and

I change this as better. If many momentum, it past no gets change is to see I I to rates. progress, as So, times, in growth and going the no no forward. said change -- sustainable said to anything strong

fourth So, and it clearly the will in quarter.

to And think make earnings for I it, guidance with the strong. So, here going any it's us. forecasts or fundamentals flows directionally, but not and all we're are strong anything, pretty

David Lewis

just product longer and approved; important concern The product, helpful, year. to I a driver the of question kind your Miles. led X about want for regulatory product has one Libre been timeline. the quick to get not next Very been obviously commentary. Okay. it's this just There's

confident how for to the product? in iCGM. Your iCGM timing Libre of you X you're X that still Thanks us are so confident yesterday in potential that partnership your much. Tandem and still view, Libre Are thinking you suggests about

Miles White

on but like working including that Robert future this and is anticipate with product everything but comment management. various And out with what I some think here, a the here there we with partnerships performing that we've I’m is while product I’m comment comment feeling of encouraged strong, lot concern. myself, a Robert The impatience we impatience, expansion There's all doesn't to and to We're going confident? us to lot the is say and I strong. glucose and to all be diabetes these yesterday, translate impatient, with of in as Libre nothing, including and a we'd yesterday. working of about. it looking are people know lot hand then good monitoring But and be wonderfully, announced, with recognize can the it's will forward interoperability Absolutely. to to going experience for quite growth the partners here not as pretty are first of is well. Ford I’d but you And

all think this And diabetes confidence I on patients. particularly for but just I not spectacular of it. nothing, is have but plan, in

let to turn me Robert over expand to that. So on

Robert Ford

the with you QX. data. meantime, under a longer We confidence what Admittedly, growth does, a got puts than look run right. just that open -- over in the at exceptional Libre through expected. billion, us the We're David. you $X.X in agency. an that. I'm we tell can same XX%. taking you, rate -- working confident if the on obviously confident billion in I've here misjudged currently that Yes. I'm items I'm $X had the had it's And with product, handful In Sales we of rate we had know of Miles I level QX,

large grew base. business a XX% on international and Our that's

And tripled. in U.S. sales, the sales nearly

So we're in a axis. you at high patients rate, and rate, and see new it's steady tool, can and tripled and progression strong our because our that a it's adding

supply had it's we to the how about bit little of a really of generation with one challenges demand to been So activities pulse about of over is, supply. those some And the aligning kind months here we've our our talked nine constraints.

in now capacity schedule. the quarter the third next of tranche end the towards plan, our So on manufacturing of quarter released on we've third

efforts, whether have not excited and really I over that’s whether intensify in can promotional that's able tell both the to etcetera, that to and U.S. And about you the really feeling is right advertising, being the start constraint now team international. commercial sampling commercial

going that's, into a lot think gives lot as year. I of we us as excitement that we the year a next of exit

mentioned explosive it's see payers. we The reimbursement, five saw strong reimbursement and kind in in growth. we the patients largest top it's markets, the world. only proposition monitoring in Canada, in We And U.K. a system Germany. reimbursement, glucose of to his national be attained in to some because still these markets the when saw continues public achieved in as similar we We and saw accelerated one and what to comments, value opening of Miles And pretty very reimbursed large that Canada. France in that sensor we physicians And to of important,

Canada. of suggests So we expect in trajectory same see early indication to curve. that An same that kind

So partnership strategy first team intentional move through we the big be adopted. for And the a that pleased -- approach gone exciting with into as it that'll we've at with also phased We've said, Miles as foot. also QX. very we're we've

we we As start feel connecting system insulin and yesterday, because pumps, roll with co-develop agreements our segment out into phase you to this now start our Libre a pumps. was that to pen as the partnership an Novo where Sanofi that thought of into with kind and we move to at moved manufacturers, that that we then important also that strategy. And next and systems we announcing integrated their know, to we're agreement connect the know insulin about Tandem announced to you an we can is phase like

cylinders, think on it's is So is our on stuff right, lot program. exceptional. operation, it's here of momentum It all whether firing commercial, whether going very R&D I Libre a as it's whether We've go QX. the into got we strong,

I'm confident going the on and of forward. very sustainability Libre So Libre

David Lewis

much. so Thanks Great.

Operator

Thank you.

Our from next question Wells comes Fargo. from Larry Biegelsen

is Your line open.

Larry Biegelsen

the Good for taking question. morning. Thanks

MitraClip. two Miles for with me on one allocation. one start, allocation, the Well capital So on me, capital let

buybacks. more I announced seem thinking allocation Yesterday authorization. are the the Now that deprioritize a capital share about call, importance financial on you you have how $X repurchase you flexibility, reloading you the to QX billion of pipeline? think and

had So has just I up your changed? view follow on one And MitraClip.

Miles White

we a through good ourselves lot say, paid Well a balance. think come find down of we've capital we've look I'd where period And in a debt. I

probably I with ratio pay gotten we we was think the of we've than earlier expected, where etcetera. that a is our an well targeted year got to ahead down net-debt-to-EBITDA strategy and what aggressive place

cash continue are debt? Our that prudent, business strong. Can refinance Yes. down can. balance are we cash. can We is we still Can we're generating flows we things We our performing strong, can, pay good And to debt? management? sheet also do

for talked cash, We that's expansion to on line just lot obviously of are in and manufacturing generating than all cash a of coming we've biggest, new Robert and fully invest more mentioned good. sufficient about. the and the sufficient one products funded

dividend of dividend? December, how targeted you EPS like last as we a know where and Well right we you well, all So say have we range then our that about to the the raised XX% dividend keep a percent etcetera.

the the your things are we that do the on to want well. good, shareholders as all prepared cash right, with and positive thing return be a returning we So if if And have across the also you flexibility can cash, is go etcetera. table to to as do to conditions is

flexibility on wanted back well. as the do to we We now, have add of focused repurchase you while pay as several done not we significant down But debt. years, share to for the know that

additions typical we businesses. and bolt-on’s We on know M&A with screen, you cash in strong pipeline. anything. good say any we're sheet debt, I'd about return to us strong to happy our in have continue position. or makes and position, with to We're find ourselves pipeline, strong already the are the basis some We do performance pretty got we've the that say, it's to flexibility I’d that general, active on follow pay so for whatever a basis. or position, sense R&D pretty happy we extent down track strong shareholder can to just return but a our forth don't radar balance tuck-ins So

not M&A and at in what forecasting may significant right our high standards all not now, are but I'm anything the about areas. what's So be, attractive pretty

our manage So we we options our cash want obviously, for shareholder. here to keep open with how

Larry Biegelsen

reimbursement Very goes helpful. in And then MitralClip, U.S. you have October. up

have will for indication spring. hopefully next MR You functional coverage the

growth like improved taking about MitralClip an are thinking you’re Thanks sales outside the about So How MitralClip, year feeling the improved, U.S? for it as looks Europe, in XXXX question. and this you for quarter. inflection

Miles White

to Larry, that Ford. toss I'm going Robert to

Robert Ford

for Larry. question. the Hey Thanks

to our XX% so of It the up in took the kind as timeframe MitraClip, the that's kind months, trying going timeline the in in growth reimbursement so XX% driver I in. months. is say. that's quarter about be NCD. kind going but filed be the there you But was maximum to we'll the about of January in So nine I August, that's of important, up of opened mid-teens, we kind exactly MitralClip usually we'll U.S. the and is mean, get that of takes to When we did that was a you know was think what our FMR see that seven MitraClip, statutory up structural big heart land in meantime, rate, December,

point there know is in So it. building a you the be going definitely be be component. as that will know when an here said block get we're on. you reimbursement It's important, a is to that we inflection But focusing previous call, I

new of centers is opening another building kind So block. key

today implanters about get we've XXX referral development generation overtime. train have that keep investments, We with to the of our I so specialists And only we centers, can therapy support networks. demand supporting with to also sales clinical of our specialists, about to and see, we through but demand force, want XXX train development investments in the that that been kind up these patient that the the our

it said independent has graspers, comments, innovation fourth in product we options is position. of to to more MitraClip side, how approval team. investment sizes, target, ramping also on obtain in the more ongoing, as good development July so side, that, etcetera continue that field which creates And the generation on our terms for invest the in in open Miles we the on we're So up plan, his

in going where overtime MitraClip is you here to to making I this opportunity ramp that. growth sure we're lead got, a continue is going we've think really make and that to early So I its it's we're know that multi-billion think multi-year, in to innings and investments the dollar

we and into to I we've I inflection So the momentum, yes, think think once have as growth. I right that an be look coverage, got there'll NCD

Larry Biegelsen

you. Thank

Operator

you. Thank

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

open. is line Your

Bob Hopkins

Hi, good thanks morning. and

related product quick two Just questions.

First, expectations. X of to the on kind Libre up set a commentary just follow

next you Just the curious, it agency from the Libre has X is longer? possible a think been the data new take the U.S. approval months requests there little of or any and in could couple

Miles White

what would is We've that. fall. misjudged – we’ve the say I Listen, obviously

So and I'm pinpoint of not going the to sit exact timeline and here try approval. the

As I handful through at. of with items the that's where said a also, we're actively working we're agency, open and

Bob Hopkins

confidence ask more fair to And -- you more on if comment then, please? wondering the bit pediatric elaborate comment And Okay, on on growth then, there. enough. just just nutritionals want a and and continuing also slowdown in in your little curious China, just so China, Pediatric if in on you Nutritionals on I in could broadly China China can the

Robert Ford

Sure.

me then. Let then here off question with nutritional start the

our growth under pediatrics up in just you X%, international was We the growth in saw really U.S. the in nutritional X%. double-digit had in business second quarter So row. good adult a for

here. some here challenge was our pediatric performance, China was would I dynamics say really Greater international driven the challenging by and really market So which

birth the Miles these As but up rate. we're into the premium the volume trade has brand low because been segment, of partly declining mentioned, seeing consumer

are segment. improving of activities dynamics, competitive environment, attention and really really the promotional our focus would So more this focusing. team position the much this attention, in thing in key to competitive in on competitive And say and full market terms but I now competitive a from the got has management our got is what we've market to of terms is here competitive here pediatric pricing, our fitness, full led the dynamics our

new weeks quarters. series new for relationship We've a several here consumer campaigns, got launching plans next We're in strategies regarding coming the the our media of the some strengthening launch to platforms. products

nutrition our of improving focus been has at on China. right focus that really fitness now in So I'd here in this say us point competitive key the to

Miles White

you give the context. in And businesses China. little the I'll on follow-up bit I'll a rest of of other

nervous the we about We, about are I think nervous do I'll this? in of world, the business China? what's Are business. think can't seem I U.S. trade? we or if about -- speak about us nervous affecting segments to I'll but directly, affecting it, multinational the all as CEOs you interesting and a but be CEO. you while nervous help some Are our we pretty we or doesn't tell businesses U.S. China, it be of we it's economy

any difficult device things so all know strong. that products. make Chinese coming they're forth or than and we businesses nutrition is and are people our performance a challenge double But supposed or ways would see trade that in so government hypothesize FDA the the that kind multinationals. business to There that the our And more of for China rates. doing businesses maybe timely other for our from actually in separate have in product birth intervene diagnostics The and and autonomy you economic and go is or The is do of issues completely we and -- forth U.S. are can everything digits approvals manner. kind

challenge for China haven't doing signs We pediatric at are kind kind that all. products other performance any strong issues. And nutrition, businesses demand all been we the of in well. than any the has got no our our of of Show of the with businesses seen the other and friction of

cetera are may is have automobiles, while et that segments our we're are that. whether big know not and industries And So, business that oil, I industries good. agriculture, challenges that seeing there it's tied particularly to China

Bob Hopkins

much. you very Thank Helpful.

Operator

you. Thank

Our next ISI. Vijay question from from Evercore comes Kumar

open. is Your line

Vijay Kumar

know I from a slowdown. diagnostic drug Thanks CapEx the parts, guys. are my on around question on off Two China question macro for last that XxX of side, some maybe the me moving Miles number questions there with taking slowdown, starting China. that, maybe

in China? markets how handle down to is the or Just of t side the you and to slowdown is on some general? on of some Abbott It diagnostics looks macro broadly maybe position is emerging exposure like markets are to will? if those clear, what your be slowing drug And comment

Miles White

to of other each at out answers question. who looking all what We're trying that figure part

say I'd is slowed in emerging some? It it It's Underlying know, slowed but relative Yes. Has some, has markets a growth You still thing. it good. this. still good.

underlying the it's China see America, growth all et India, Latin So good. we cetera, in

there's say occasional can You the Argentina.

there not of care -- the products, that's But for is advancement Argentina the thing. health are in systems, pharmaceuticals Okay, good. strong. advancement its cetera own demand health et

our Robert particular for conditions for business, of in don't remain have We're well. to a let think on strong. think us exposure. that in I China markets doing strong. those expand I'll the us pharmaceutical lot I we a minute. overall But for

As thing most deal it's we've times, said is single with many, currency, many difficult we volatile the volatile. if

And in isn't is, markets. favor in now, sometimes sometime working exactly And isn't. our right it currency those it

So while currency basis pretty Robert? erases grow that. the at market, of typically underlying a health some and on than faster rate we

Robert Ford

generic Yes. think referring seven to pharma China, I'll there. tendering in on just, the the Vijay, you're I plus process four

We going forward. and impact a don't seen impact anticipate an significant we haven't

XX more portfolio about are of concentrated here. products, segments kind of of where difficult is products kind just kind fairly there manufacture. a these to Most here specialized have We areas of of products in

in China. have to pharma tendering if a We we impact, process of have side But how going given part going we're about I bigger understand to here of less generic the an of the on susceptible impact So monitor. less to of this process. is Obviously, we're products business kind we portfolio We're the of think the work. this.

Vijay Kumar

looks implying expansion, just guidance guidance margin is Brian, QX one the And quick strong really like maybe one on XXX that basis for guys. helpful points That's Brian, plus.

And what on looking at QX to comments the FX; you, Thank headwinds of maybe general some an when are side. from the given kind of perspective? we FX you guys. clarified FX look in margin in the Just at XXXX, hit

Brian Yoor

year, back. a I topline circle Scott not can next going natural there on Vijay, topline back let that. year, you some but perhaps, think flow-through would about From But I'm next talk the on year, to next Yes. be me

look gross you you at QX, saw, we If XX.X%. of margin had

are correct. You absolutely

would XX.X%. Foreign us points. about it Otherwise, impact exchange XX had on of at basis be an

as good we the feel pretty out about we play where thought be I you'll bottom QX line, guiding beginning that QX. natural that more this So little how of well we're the quarter to about with through see get tend leverage and year. bit a consistent at the where

businesses know, going across just Its mean, additional to cash you we’re DNA. about gross continue of and to all and we how part think our its I upon margin do improvement, of flow of it think to continue the usually part improve what As start digit get our we something in that our growth SG&A it That's next we continue that I could expect growth. and into the and invest you our in we'll double for and R&D year. back to how with

Vijay Kumar

Thanks guys.

Operator

you. Thank

Our Marcus question next comes from Robbie from JPMorgan.

Your is open. line

Robbie Marcus

just Lab Great. really taking for this U.S. Alinity fantastic We could growth you in Thanks was out without in one company. negative thoughts we're touch seeing status is benefit quarter launch rollout? hoping business. how from the And and now us on in diagnostics Maybe hitting the terms What then competitors. you my of think are and called Miles, some uptake I for This Core because latest on in results even U.S. update you're terms as of many Europe that could questions. the the the multiyear competition, quarters you've the for we on a from durable, you where of growth saw there? seeing driver

Miles White

Rob. to do to Thanks that. have going I'm Robert Okay.

multiyear Robbie, very and about this been So focused how executing opportunity a on here. we've is talked we've this

of the market, And has particularly our we're entrenched we're Core targeted over out up placed for we competitor. generating where strong in in the that placed winning XXXX account, very kind Alinity rollout and well actually nearly are and all The that where see you about instruments tests doing think over contract, about Europe been number can instruments and if running the XX% when retaining process it's in topline. think comes you rollout renewal we our you -- the the we're so program, of of If we where give an business current in of Lab over the and businesses about placed XXXX talking that revenue.

well. very gone that's So

saw we the you approval for screening. blood also and that Alinity the quarter the plasma got In in an U.S.

So already in the and We of lot year. fourth launch. rolling out quarter of that success last in blood teams this plasma out a in Europe the kind systems rolling commercial here had Asia

it's in a on schedule the team And the So that U.S. opportunity. see ahead of the little great to jumped has here

on the Europe really need As that here is competitive kind and rate we focus up side, relates getting XXX% side, need. our of that up be the close we mark the let's to is assay in R&D lot to immunoassay fully about of menu, a completion of of say menu what assay ramping ramping kind the to

our U.S. bit in but place year. those rate here a start approved in as lot we'll U.S. little affecting we of is a next that and assay of systems, into growth in those move play the to get kind focus see to it's behind, our And and

I we're So, the well. internationally the onboard opportunity rates. be growth to here our think assays able doing come really at got accelerate to U.S.

I'm that has momentum really So pleased with here. the the done team

pushing feel always going Of on can course, And better. to keep that do too. naturally we're we we

Robbie Marcus

what to update market. in as the U.S.? you of stim Maybe the the seeing was I'm in driving deceleration one than a follow-up And you what you're us just softer that the little a assuming exactly Neuromodulation. and looking Abbott in came Thanks. is spinal big cord Great. for. here in ground in on chunk maybe quick was Numbers The with could think Street just market the

Miles White

Sure. Yes.

some here. progress productivity over you're about here hoped. we in specific it a very the in understand about of quarters and rep, last and takes it. talked work if it we a talked the time longer had still It's kind new process obviously the couple salesforce salesforce to of hiring, than When it’s devices, we little So selling initially

going decline the follows in well. couple little stabilization been them progressing So and that half had of in out force we right? that's some the – We've some this seen of been monthly a especially as But improving. of on, year it market first growth, of that's KPIs double-digit the they're pointed years also we've you sales a track and

look really to think with And early spinal as this only of but been across nice the got XR the U.S. focus us our leading here of are our launch, technology weeks, there's a a for to more to but salesforce early the I'd I signs of. monitoring execution the provide it's to lot at our the We signs approval say, And signs a on and our positive. tend So promote. aware be salesforce trials couple positive, and early indicator. new provide to and is trials productivity, of in portfolio Proclaim addition be are quarter, there of

look pacemakers really it’s so et here. data up like to at. have of rate source reports where to the wait added can side, market or usually third-party the and it's On a bit of no cetera, We everybody peg and stents at we in kind there's little see difficult here until have growth kind

here terms anticipate QX rate. that I is to of similar to half So mid here. in would in first year be decline low which That's the single of market growth this digit

Robbie Marcus

it. Appreciate

Operator

you. Thank

Stifel. from next comes Rick from Our question Wise

open. is line Your

Rick Wise

to years. high last actually embarrassed on and the always has solid the help there, targeting. because us expected about few currency level track has bit like as understand ask outlook going on slowed thoughts always way of to sustainably enough X a again, another seems you as relative that But quarter Is Good feel understand Maybe Miles, it see to think that right your but I it? morning to have markets don't would track. just growth little I emerging questions in that I the the some you're I'm about EPD everybody. it, understand like many really of business the

Miles White

never quite that's like Rick, I'd satisfied I'm of to couple sure. be, We've things. as learned I'd for as a say, Yes.

years of markets fundamentally emerging on dollar, and strength predict anything now challenge. if we by U.S. can't the always a this volatility also in so since I and that's driven which of the those growing is business eight currency say, XXX% been bit markets their I'd while is forth. was degree we've emerging think focused economies heavily of of things a or it the seven estimated of under was

it's probably so markets in owns Now those from markets the strong let's multiples who that you of make that company prices parts is -- long and of multiples track growth say generic interesting. the underlying they the of a steadily One money, branded in indicator forth And pharmaceutical worth. attractive the some attractiveness and anybody markets said, has thinks the that are those the time, and than those attractive and businesses business any know for the in they're the that business as we been worldwide. those highest just attractive, markets is, world are pharmaceutical

products most that that for markets are you're something or They as or to business. good profitable branded the like profitable if the very compared Europe in there. U.S. are They

real So, stably maybe frankly maybe have as this for still kind and we as There's matters. in we matter, reason. matters, the that like progressed those as Brands all strong. we strongly breadth cetera all but of business think the durable, targeted are and growth et economies its cases, attractive And there stable, some fundamentals quality growth. underlying not a are not would

depth lines somewhat own challenge own the to investments America into and continue R&D is its by Latin keep has Our our to India the its has cetera. region. product product We R&D decentralized et own. expand markets.

sequential and are performance exchange issue greater all in We're et and a we've to seen or then our in like quite activity had going underlying to out dent for a And steady at are our this and quite fundamentals given years into that greater manage. plugging for tax a cetera we've But away always tell India looking greater Argentina, know how strong, Venezuela productivity and improvement that. we're did country now a there last in rate keep that Every fundamentals the put going teams. greater launch we ago growth run and couple in excluding the we good XX%. and year, of you as are to year can and we

fact I an think to stronger, the are in better, and managers that. that's looking growth actions X% I to pretty drive get and business good. up rate That take get means pharmaceutical the better business to improvement corrective that that how think we know to of the to forward to even

think strong. pretty I that's

So we business. yes, like

Rick Wise

TCT, on you're really just mid-XXXX U.S. business And we're still launch. just pressured, last could focused on if I for doing? vascular how on some competition? saw Portico? U.S. that in we What know track not And improving. on it around? still things. business seems execution. of Great. I great are Thank data. the still there'll What – do I Portico solid Is updates issues? Any very quick you. Is the the it you're you follow-up portion turn two be assume At

Robert Ford

This Robert Hey, is here. Rick.

put submitted we so previously kind of launch, ready your getting mentioned mid-year of expect would agreements question call couple as there third-party On QX, we and noncommercial are the growth Portico I are we your that the here. yes, rate manufacturing Jude the on that. So on of place St. question, end royalties, a of part is impact items we're that These assets. and third-party what divestiture, here approval for in we vascular, some

into those those are even So ramp And those down they agreements growth they – the ramp those as U.S. manufacturing those royalties agreements line impact rate. the global we've as down, down, agreement. as though obviously ramp allocated

down, businesses items those that the that the over royalties and are to as you So, naturally as of if transition you those remove we going out. the down new ramp manufacturing owners remove

little our that stent We've vascular of actually the side. position dynamic business bit the And was the and U.S. international continued share in markets. Our seen grow the there leadership in pricing really was to on flat. we've maintain

side over was that's diagnostic is and on and then and that can need but will and know we our then offset those those we growth strategy we business that we're pricing so and know imaging of make by our to healthy double really that business, businesses vascular get be And maintain that and digits our some also which in in Endo our pressure strategy there DS part to enough a return competitive investing our our pressure peripheral the investments to Endo double-digit large there, and price can growth know rate. position imaging we in our

Rick Wise

Robert. Thanks

Miles White

question. take we'll one Operator, more

Operator

comes And you. Thank Taylor from from Matt UBS. our question last

Your line is open.

Matt Taylor

you payers getting base? there. of that the bit help the the the sustainability Thanks U.S. value comment do Could morning. anything was are Good especially of you the continued you dynamics a versus outside understand us Libre I mix hoping for just on continue outside Hi. that like involved, Type to larger the that where Type installed might the could growth U.S. questions. X like have see little larger X, our they that expand strength Anything and base, on seen taking you've given

Robert Ford

Yes.

lot here way look it the talk sales base. on this you describe to base million if let's the So that at at the of the end pretty close side, at X.X, that about users it's it's large growing. to we're one user focus X.X and quarter. the We mean, I but where

capacity. bit As we base that there's user a a talk a little on manufacturing constraint given little bit, our

So, as it, that base think the we've potential got here we've of grow even now faster. unleashed I that kind user

of hypo, using that. that here that as And world to real the sensor-based reduces things that large at that. payers important we convinced outcomes it they're we've proves look that and of this data is of We that on backed trials are the time start technology. in time seen the evidence with showing hypoglycemia One too. clinical a some actually that Libre very patients reduces up contract that lot trial is RCT out range, reduces that fairly have show also have of competitors and There's

So Authorities. the X we expansion expand or the versus that to, kind And very in been in the proposition had negotiations sense value it the proposition that Type the the cost that's we here makes of value Type proposition adopted. much base outcome as to I get you We the kind segments. they we see only And of the of is users at we've that not other a see the do niching use expand start in just Reimbursement see how is that said call, insulin that that small technology very can where the product beginning actually value beyond X. into it a but Canadian the payer intact, user of into and is growing, larger for and of markets with it technology

real a it's for of to value that proposition provide at is are outcomes the think we profile strong cost sense very here makes opportunity an of So, the and that the benefit the a payer. proven

that our we're seeing through evidence. our patients the and having trials world it's on impact So about through outcome ultimately for and and real

If utilization looking at Type a Type users, we're Type we're also the X X medication. but Xs, on that different of injections We're lot and rates, those or Xs you composition are getting XX/XX. all think Type about lot patients. There patients of but that insulin are a single the oral of getting are getting we're

Matt Taylor

follow-up, you now on are completely One manufacturing? unconstraint quick

Miles White

Yes.

Matt Taylor

a Okay, for color. Thanks great. lot. the Thanks

Miles White

a to quarter, going We started. strong had strong we quarter. up Okay. I'm where exceptionally wrap

in many continues. businesses, momentum great they drivers the platforms. Alinity them MitraClip, across some We've growth of Other board. Our the digits are Libre, double got all growing, and

that businesses So performance the heartening. It across all and all is sustainable. of is across balance geographies

was rate X.X% growth this topline Our quarter.

topline any which expectations this are for do We will find about I the rate to sales the think large see fourth reason company be close quarter fairly all people into that the able X% of XXXX, companies. in look for unusual to change other to think to is our a I it of growth as and we no tech know you strength

products. we the reimbursements new strength got our here of great launches, of capabilities to access those strength some our product owing so and the improvements pipeline, to And and/or further

So got sustainable good ahead of us. we've a road

or expectations there all, I and with that from which overall we good really want things. our time to evidence to are don't think meet accomplish the is super surprises good or to things But Obviously, performance, speed performance sustainably. time this

of XXXX strong economies around bullish and where the world spite optimism we in about sit. of in lot feeling and pretty uncertainties great a great So, We're look we and expectations at the pretty world. the with in the

we'll that, in see XX So with days.

Scott Leinenweber

be now you after Relations on of Central XX available you and Time am for for webcast thank Very good. conference questions. thank A today will concludes Thank you today. of at Abbott Abbott's your us This all operator abbottinvestor.com. Well, website this replay call Investors call. joining

Operator

thank in program. does This the participating conclude conference. gentlemen, and Ladies today’s you for

a all day. may Everyone, wonderful have You disconnect.

Abbott Laboratories (ABT) 16 Oct 192019 Q3 Earnings call transcript