ABT - Earnings call transcript Q2 2021

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Operator

Good morning and thank you for standing by. Welcome to Abbott’s second quarter 2021 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 including With It would session, like permission. entire the Scott Mr. Relations,

Scott Leinenweber

Ford, Financial Robert and Good Vice provide With and thank me Officer, morning Bob Chief Bob you us. and are and Executive joining President, for today Finance Officer. will President Funck, Executive remarks. and opening Chief Robert

your their we’ll take questions. Following comments,

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

Robert Ford

you of Sales Scott. very last Today and us. an strong increased reflecting thank on quarter. morning a everyone reported per in share $X.XX, compared results joining Ongoing to we XX% for the more to growth the quarter XXX% Thanks year. prior earnings Good organic basis were compared year. than

by summarize to increased before and mid-teens quarter Strong with growth led growth quarter the last sales levels now Bob, year, over to in sales negative had medical for year. call versus sales the the I’ll pre-pandemic measures impact where nutrition second start turning provides X.X% comparison, one double-digit of our our sales devices. established was in testing I’ll from and grew usage. compared of adult medical more XX% the in comparing COVID in driven category demand entering on the seen in elective organic users the existing testing the diagnostic internationally. sales including factors businesses, procedures have On Given strong including nearly growth second growth nutrition, two and of Since customers impact COVID business, results and new are nutrition XXXX more our last quarter, growth of major significant excluding across XX.X% increased routine this beginning nutrition than pharmaceuticals, performance. demand: adult relevant pandemic, four positively their we’ve all by

U.S., X% brands. and Ensure market and we increased the driven growth strong of with nutrition, brand, growth Glucerna digits, grew promotion. for by Pedialyte, of where new making nearly dynamics Sales the we’re in direct As global continue led our and infant our share formula in strong investments leader, leading driving products capture in global brands. double to our by X.X% sales rehydration portfolio recently consumer toddler nearly pediatric launched In grew these quarter the are of

more Turning to XX%, includes increased COVID testing diagnostics, sales. related sales which of than $X.X billion

Excluding sales business XX% is to increased continued as growth the diagnostic last compared underlying COVID as by diagnostic year. well diagnostic healthcare our Alinity Strong continue our testing to sales in being routine of as underlying improving systems pandemic, rollout recover related from sales, testing driven the platforms.

second related single quarter Excluding in sales pre-pandemic digits diagnostics in mid second of sales, molecular quarter grew COVID levels compared and XXXX. core to laboratory testing the

double China, where of sales which in markets. India, to our nearly nearly grew XX% pharmaceuticals, was in Brazil, quarter, several led the the sales performance overall digit including in established to XX.X% Russia, key strong in and Moving growth growth across countries, emerging quarter broad-based sales

surge we continue for surge executing to meet the emerging India, is our several high COVID level in a in cases recent to demand at our including see markets, While medicines. market team

growth market the U.S., the grew where over products the full grew productive, X month up as Libre year Libre every by grew major medical detail. of The was last XX.X% Lastly, care, quarter in to new global devices, $XXX compared XX% including In where in months. diabetes heart, users, in several from sales we be year the heart, efforts several second turn which growth results structural cadence second MitraClip the number diabetes double I’ll we’re highest base heart well June. sales a in launched than activity for strong and Freestyle XXXX. strong procedures growth to XXXX. of in all users achieved was launch seeing In million new failure four digits the expansion all world. million. I’ll compared quarter, products we’re market major to quarter X. call growth particularly the to led a of strong than product care, making cover Strong quarter and the compared Bob wrap the of around record summary, to platforms, recently come momentum electrophysiology, and more contributions led steady in over we’re key of growth across the more number in the million user of our structural next quarter to to the incredibly achieving and approximately one of driven pleased procedures with ever by investments product I’ll ongoing delivering now for awareness more as and in discuss our with by of of new and pipeline approximately to including more the our our Bob? continues outlook businesses, and with second

Bob Funck

Robert. Thanks

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

the an on which performance across basis, sales led our for second our quarter to all of was Turning XX% increased results, businesses. organic strong by

year versus XX% second Excluding COVID organic sales, to quarter related XXXX. the and growth compared XX.X% sales nearly testing of was last

exchange in Foreign resulting total the a in quarter XX.X% had favorable sales sales, impact growth quarter. of year-over-year X.X% on reported of second

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

our modestly shift year and The in rate Our provided XX.X%, tax we second was rate revised the geographic quarter income. with a tax of lower full to our due January adjusted full our forecast adjustment tax business XX.X%. which effective align is an year to rate the in year-to-date revised than mix forecast estimate reflects of

per XXXX, to earnings per guidance compare for full Turning our double year, year our adjusted $X.XX pre-pandemic strong share of outlook and XXXX. remains reflects compared unchanged to the year earnings share adjusted digit at to to full approximately midpoint XX% $X.XX growth growth last our and the in

for sales rates year continue around a our testing sales. We forecast and XXXX full we full to on XXXX, exchange to $X.X billion $X related based the expect to in have X% billion year would impact of on COVID favorable current

compared Turning our we forecast of quarter, earnings outlook at reflects step call and for core underlying down that, a second around COVID for least third momentum have favorable and we rates, Based sequential on impact With strong the sales to a which reported current to business per X% the expect sales. adjusted related in in we’ll of to now the share questions. testing continued quarter quarter. growth our $X.XX, open third the exchange would on

Operator

America. instructions] Bank question [Operator Hopkins first Bob of Our comes from from

Your line is open.

Bob Hopkins

morning. quick high and and level. thank I’ll questions good keep my Great, you

are you I’m your surgical the Has Robert, quarter in of and July, into going. starting of the see things are the signs to generally. recovery pace kind on of variants curious wanted to for lumpiness procedures spread in Just the a that pace views could view how or throughout the First on just little continued recovery? on get it your the of cause

Robert Ford

has in I’d had Sure. recovery. had Listen here a planned to an shutting - I stopping we COVID bit of probably terms we little and procedures same--at you’ll had better we and Europe what etc. increase relating that markets, largely anticipated, of strong way recovery in played certain very hospitals to seeing than quarter the that impact the Asian terms in a We seeing not see out the don’t don’t the least in and that recovery down, cases, same see think even what obviously I say of kind we’re in thought. testing, think we’re U.S.

we’ve we they’re a got got situation were line so testing, look where even at that. last We’ve we year, we’re I pretty seeing different last case--global in year. versus case this if where we’ve much it’s we though got counts, are were very the year you vaccines, therapeutics, think not to where October

On said the comments. has side, device overall, very as well listen in I business my our done -

X% and July versus growth growth different diagnostic you seeing cardiovascular trajectory a by recovery of EP, year, second paces, quarter trajectory, XXXX, procedures, structural our as looking whether up you trends look recovery it’s of we second that in recovery March and terms exited in XXXX, continued kind and so at versus June that Bob, - have of weeks that if about first we’re we’re We’re rates markets XXXX, in We yesterday, the quarter, U.S. some we’re the say showing rest seeing said, recovery, June largely the look at whether around and is the the driven U.S. procedures growth the overall evidenced was at outside in I failure, I’d at how testing. generally heart there if this that double of digits, are the couple and rate of about our first of are X% quarter actually sequential it’s in the data our procedures. of but the obviously by versus looking heart, at or specific the same as diabetes were that’s mid-teens

Bob Hopkins

the you quarter, on beat guidance EPS nice driving the two relative relative Okay, Then to question love you. to that’s and really for had to but things. my second a you Bob, consensus you thank really leaving helpful, comment same. you’re guys I’d way the One, were

wanted of a any now, sort is we next and consensus bit? about whether and right to bit not this talking are that the of curious capturing understand just see as Why world a boost I’m look if you about EPS think preliminary guidance reflecting little estimates year. wondering your you are year, dynamic. kind forward Thank it Just little just on secondly, thoughts Then for way the world viewing obviously the specifically you guys as EPS so the consensus you.

Bob Funck

About pretty a about business two-thirds well as kind way testing. that performance, really about the we is take as range half and in was business the first projected. kind we than the scenarios know the sales a for have COVID year, to range testing it, quite on underlying was that the and the Obviously in challenging, modeled of of so COVID really that third a comfortable really street due at that, beat. guidance June you base the had was forecasting of how we Clearly COVID of fluctuations for year. this wide any of had the guidance or at Bob, of beginning I’ll of kind beat higher third base that different gave feel we around better back the and question feel of the so and we COVID look versus this the Yes on about performance accounts captures earnings changes so back

Robert Ford

of from have rest Bob, we’re of think some offset perspective, of some gross - on business that versus of margin From top year. see year. COVID is hard perspective, rest this Obviously half a about digits a second the consensus to the how The obviously we going lap QX. those, we’re improve from the profiles also where the in the line at we’ll team perspective. margin maybe for I better year, sales that we etc. from QX really of we’re our our and margin COVID to of freight, question the thinking the base - SG&A kind the growing expand, in looked so double underlying every to at QX see the about and input and was an sequentially as you last continue COVID so works looking quarter, gross to sales, There’s had we’ll were will of base in obviously make that height ramp-up our sales some we’ll but that recovers business expansion getting costs and talked ramp-up if in we underlying business year, on be low the R&D recovery the the of friction investments excluding for commodities,

advertising After whether immediate launches. whether for that or nutrition that’s the it’s the I just paying more, vaccination some those question becomes testing, billion, will $X of I’d getting quarters, and consumer those say, is upcoming months, testing billion example I’d bit $X second whether Libre, and or of ago, about to we a think of etc., it’s billion rates, here, The billion, to. half whether the attention for factor a so how and COVID guidance $X.X and variants, itself six example, about that’s more out billion term, about a we’re really to billion. half in month here for R&D so Some we’ve little to something faster real, have in got the next kind investments $X.X dollars two and ready it’s programs go in that’s between medium investments say, direct a here, return, are gave a play we’re

As really pretty range guidance that. Bob said, to account was wide, for that’s which why was our

Bob Hopkins

you. thank Great,

Operator

you. Thank

from Morgan. next Our Robbie Marcus from question JP comes

line is Your open.

Robbie Marcus

lot Bob, and down on questions, right pieces was a now. Great, question, P&L the thanks the good of for last to there congrats up a taking the follow quarter. maybe on moving

models You if had us you thoughts that’s as reinvestment flowing think could thinking you might I the the P&L, wondering about add quarter. you’re through revenues, of COVID to now. on their next people a how testing in the if benefit preliminary really have good on on margin it operating and just was the latest impact of or how update year any

Bob Funck

prior combined, the our Robbie, in we’re business. at of $XXX million if kind expect and terms we strong look sustain know, You year, investment, you up base around SG&A and to the pretty versus R&D of in investment

COVID We drive have, those base as testing you forward. some to into sale profits know, business reinvested back going the of growth

As second healthy margin operating we in you a profile had quarter. really the say,

the lot SG&A drive of of next growth of rest in on see and rest profile year. R&D the to impact to half sustain step with profile That’s a that in the in particular on down in impact back some the margin and going have COVID the year obviously our We’re operating the operating to testing year we sales some those this into that going spaces year. while margin of investment, the

Robbie Marcus

maybe Great, just follow-up. and a quick

the know, new product we have given coming we hoping could sets, some--you at term on degree. two later near coming with thoughts product get interesting in clinical and expectations for still impacting have CardioMEMS should product and launch Amulet. August a is latest back ones We COVID with approval potential, how launches to to I was we and think just launches hospitals about the timing, environment ESC data

Robert Ford

it’s, us. product for we good is a than product smaller with so an in FDA to late the frame. in filed in present available so XX% now, and here have at Amulet, again, markets, those we growth On U.S., Right We great market, albeit a - with Europe we The for feel have. market our the ability think about late that’s this, last plan we about the share, opportunity ESC, attractive compete August data talked Sure. time the Robbie we we very year. the to market

products--when put we end filed FDA St. were and it’s a CardioMEMS, it’s be terms year, and and great to - see definitely, going disclose impact wanted year. I products back when quarter, it’s an in the sooner, it’s obviously we in it’s if an you from these the another just this we’ll both to perspective is great integration, also that really that products, in terms we this towards for of a second this of approval were year. second this year that. exact see - an versus less hits of on give so a in Obviously label Regarding there, on to it’s these second timing, think end again two the approval I next we similar impact. more be then next together. not If depend Jude on drive and sales to then on banking and position it’s expansion that the the of and will really products great the an trials think here opportunity. probably on trials those, we Both year On clinical half, the the CardioMEMS timing. of these larger, with then began one opportunity to evidence execute there year guess our we to to the the us this We share we’re impact these in can’t of going from of opportunity this quarter, approval depend think, just invest data is now It’s able

Robbie Marcus

Great, a lot. thanks

Operator

you. Thank

next from Kumar Evercore comes Vijay from ISI. question Our

not that is line check mute. Your open. Please you’re on

Vijay Kumar

high one business. maybe the Robert, level morning. this print strong the on question Congrats apologies. base guys, on Hey

versus on this some XXXX pre-pandemic I was levels. think the morning there base ex-COVID confusion

the for about of maybe I the question further that that back think versus kind what device but ignores and what’s the was in business, I digits had you and light, some is, half? perhaps XX% business perhaps, XX, baked the in double what sequential seems acceleration, continue acceleration? so XX backlog you I the a asking mix. think QX, talk think improvements, can Should see benefit from if did in XQ low happening in you Maybe people the are was is we sequential and to is little that

Robert Ford

Sure.

if as and example, recovery been diabetes even bit improving, has little device the that growth or say kind versus, say chemistry so in a first I think all our of than device versus immunoassay quarter structural question. QX. parts bit a business. rate that at our for and other the grown med the bit of XXXX, clinical a grew, I’d the QX recovery quarter in Obviously here I’d business, that’s high versus and one Similar we’ve look been That again, the recovery an neuromodulation, across and businesses, second more to slower were procedures, the sequentially said trend where portfolio of heart we’ve you portfolio, is where seen, some and not diagnostics, little uniform that’s digits of second in in improvement XXXX. increasing little the of single been in elective a characterize seen as a versus of has EP, of lagging a I that has business

neuro of that the I’d transfusion our of slower businesses of expect to well, very nicely, that seeing a so recovery in diagnostic half. issues similar say business a they’ve we we more say were side, bit largely that and that in very by we’re and second recovered I’d QX the year, on But last in diagnostic donations, a COVID impacted obviously One continue is blood slower trend those recovery. business, the in impact seeing to see our kind

Vijay Kumar

that’s curious multi-billion you a have were side, asking investments mimic terms maybe been large That’s guess helpful, on end I if and on of so longer about It but Should is trial. CardioMEMS, to I optimism, heart - think reduction results, here. historical they product it’s Champion, and patients CardioMEMS product mortality trends the opportunity. of reason be fairly pretty I’m think are these hospitalizations, like assuming for [indiscernible]. failure some looks in enrolled, adoption original quite then dollar large an guys in term I I’m your is Abbott, in a large. trial a an how in point such interesting the the trial slow, trial some suggest the thinking one It’s X,XXX

Robert Ford

Sure.

for the a the make address evidence of device I clinical segments put thing think at pulmonary Champion some etc., cardiovascular was evidence of opportunity we prevention indicator I to pressure failure the similar be [indiscernible] showing decided CardioMEMS here. time sure the a a Champion back believe you CMS, that looked the that heart the of had development of significant that Champion, When trial space. a XXXX, of and/or to of larger with we and lot able these is see world at opportunities, arterial of think make the perceived shortcomings where - that in was was issues for believe real of reimbursing, either in in to approach to there key We strong you clinical I’m positive think to and a our weren’t trial, whether looked portfolio, we is large investment whether reimbursement hesitant shortcomings at is I’m and here heart augment failure in MitraClip, Vijay, trial, acute great set. be together you opportunity it’s the as an investing, intention market a monitoring BMP, talking a perceived and there here about around so to certain to drive the it, levels your elevated significant market, field-based here really great Class CardioMEMS I I this health We this be is think comment here, to going also frankly, hospitalization also know data to comprehensive of guess mortality, that’s and think will opportunity the I a in it. still very the opportunity opportunity with to the of think this think a hospitalization that in LVAD on teams I us expand and with and X solutions reduction so building opportunity. important. but that we’re presents an include plenty label aware create suite systems we to that to important, viewpoint that have even in that put is I but also similar observed quite indication is this to for had but expand and some this portfolio, number with results the I we to a the that our benefits, is data it’s

argue numbers that this evidence Some they’ll so for so just line, systems, to you’re but the great the the patient population bottom and an right reduction. and conversations at investment is you if support clinical referencing get we I down think making I you’re can can or and kicking important the is adoption, be with intention reduction we’re think for yes, healthcare see maybe have our Any hospitalization will the bigger. about them, a important road, in that significantly to look this opportunity this that us being even for can that

Vijay Kumar

That’s helpful, guys. thanks

Operator

you. Thank

Our Wells Fargo. next from from Biegelsen comes Larry question

open. is line Your

Larry Biegelsen

the Good question. morning, thanks taking for

here, for the me. road a at for thoughts just high Libre. that the you’re in map have of on Libre and given I in X a at delays of two closing Robert, X in dollars billion quarter Europe specifically, a I’ll impact U.S.? the Just level, on with Libre follow-up. from Libre the how might start one your maybe on sales. in More timing update launch FDA any

Robert Ford

mentioned, quarterly dollar sales a above we had a on Sure. strong billion saw that as you Listen real as - perspective, approaching quarter, mark XX%. you and

on here, is a of from our this bit Larry, market might it portfolio device that you’re got the it device more the level subscription-like in opportunity we’re I that think important and Libre. is hugely user versus But kind recurring so XX% a between a base, user the super subscription-like say product, when the the of about really because this size more, talk is you’ve parts other and globally, of important and base versus be that let’s like seeing important. little and model, revenue, different base retention this niche We when a user got business. model really you’ve XX%-plus looks is mass

this, in well think that still that’s mass base, and the the value whether got experience reacted it, sense this gone provide once other etc., positioning the I the all think into very so road product, proposition from it’s strong the good the launch whether still will you to of product not for this focus million U.S. transitioning just here we’ve user, But full in our of and approval. a my Libre and a growth we’ve it’s even I’ve lot our users, us our technology, Larry, XX CGMs that look market, makes opportunity which about really numbers marketing get of users got I’ve very we’ve continue I continue in surpassed building and mode said. job at that expectations Xs, well. early that’s and aggregate to adoption, right as we’re beginning our A user so done for map talked that we year insulin mass how how Type perspective, with superior now internationally where I X, we as million kind focus launched and we from Germany of is so be superior thought was more to went of here. go as it, this think potential to messaging, we our way to lot to up the launch, all with they X From we’ll it’s a talked a and is from I’d the to a the product, for is real we’ve and basically physicians talk as existing users in about reactions Libre will say portfolio, X.X launch, user about, we’re innings, understand pilot deviating how we about

the that very diabetes here Specifically just U.S., the not regarding our U.S. portfolio that to and in the product. obviously comment at with excited be bring going expectations, the it’s also but and understood we’re X or products, to backlog exists on timing augment I’m the FDA able to Libre to

Larry Biegelsen

Robert. helpful, That’s

for curious billion for sweet earnings Abbott there was I’ve We Thank an a few look to calls, evolving the case? are Are curious St. I Historically just still thoughts to range. me, about see lastly but are more capital that, where allocation the given Jude $XX balance $X your your in Just on you. this your valuations relatively Obviously evolving strong asked M&A. valuations know think sheet. exception to are has on been billion high. know on that just the I’m you how how attractive? but spot Is acquisitions thoughts areas

Robert Ford

Well specific to there. M&A, in thoughts change there’s no

rather fit, mindset of have out we number think it. hasn’t amount than tied we strategically independently think of does value it, do to there. changed That more a drive about it it’s I more dollar execute that and can

a MitraClip. shareholders back we strategic. I’m we monitoring it an it’s regarding our with and our got nutrition, and our have nutrition allocation, specifically Seeing think we not we have and opportunity got obviously capacity, to the going actively seen we’ve deploy but started years that’s dilute of to a that to can at and say you right by lot support there great is probably from growth great are I pipeline, a pretty attention think etc., a whether in with do opportunities how internal opportunity lot of that growth capital valuations as and able constantly to double-digit we’ve have was adult profiles, our it’s going been here in question, manufacturing lot a actively We’re in of so returns that what key driver capital surveil and these here I be here survey a strong and provide being return pay opportunity we’ve than great ramp-up opportunities some actually back either to internally, our more several also. anything opportunity as can looking. of Libre, we rates, whether here looking much were I now We to track. elevated we’ve XXXX, is our What

Larry Biegelsen

Robert. Thanks

Operator

Thank you.

Taylor from next Our comes from Matt UBS. question

Your is open. line

Matt Taylor

guidance COVID us guidance guys, the two trends about different ask any rest for of implies testing, I want lower taking visibility, sales where can U.S. we of did year. We Hi into give if the into thanks know here I the in was the the for less last to so for scenarios one the your year could some testing. questions. you’re quarters. the just insight you of that outside we think have these seeing you’re the especially about that baking in wondering

Robert Ford

testing, lot COVID here, their than we’ve how our are better relationships, about our those rapid say, question materially our Well, side, a to is say cases I’d sales, did more, the because our for We pricing. say different. but markets of here preferred I largely sales here side. second be, variant. a we’ve about of health and on A had say lower a even scale, great testing of what company, U.S., think we the XX% a don’t increase? surges, about our talked international see did got the Still, quality and capacity, Sure. by we are probably international XX delta those little was going are days become volumes lot our products thinking the about rapid The the countries I tender-driven, continue the are rising, I and some those supplier we higher in I and see and the seen sales in see bit but would our will. understanding whether anything that’s we quarter, testing probably ago, in on international I’d that to think it’s we’ve as a driven where last of with our driven markets. little to going if over of of what month we you PCR and and more bit positions visibility definitely authorities that by to are a can testing forecasted

I we be geographically to that. will what see question where I back than States a of The right United half more, least I think internationally from what we’ll and some think geographically, than--at perspective. in we more going the see see it see think will are now, we’ll

Matt Taylor

versus you. to go should you your that? ex-COVID ask be out difference you about out recovery the in this recovery donation Could diagnostics in is for Thank headwind, I to there could blood follow-up issue just is diagnostics Maybe there a one going called know some flesh think you tech, it much lockstep, core I and I on tech. in business donations, how med blood the that, being reason? or with guess similar would med excluding

Robert Ford

seeing at recovery kind its high segment. within say own Yes, we’re of I same trend, a that again level, would

and from we’re QX clinical rollout the we here single recovery that you’re our here seeing business, haven’t which less There of higher that, share gain seeing recovered lab. represents in getting of bit as hospitals immunoassay XXXX, XX% assays with that with actually that, offset new What when of Alinity. so digits QX less core are certain seen we’ve up that about overnight the versus that lab growth accounts but post-surgery chemistry business, core high on are in Our some much. you’re policies in and little that’s do U.S. so I’d stays, say the doing a of is as

we’ve blood that the kind We’re of low issue donation, digit, business, is got and market high share. as of donations really seeing XX%-plus mentioned, impacting that which single transfusion our are you

fact get but see--you here there’s start blood the of of to U.S., towards been recover be for year. with inventory as we’ve working a if know, hopefully we’ll agencies it’ll this here bring kind we obviously the continues, challenge here, end then because to donations to awareness see rate We’re hoping of so different that this to of the

Matt Taylor

Great, thank you.

Operator

Thank you.

from question Wuensch next from Citibank. Joanne Our comes

Your line open. is

Joanne Wuensch

and the taking really Good questions. two It’s for thank question. morning you

there a anything a us so The you was helpful. basis, EPS, XXXX? I’m on can follow-up give it. a on COVID, what on to getting it Bob relates that on anything first would asking is is earlier, I’d that margins, one be lot appreciate framework of double-digit as questions

Robert Ford

different couple bit too early given calls a this a that moving couple Sure. it’s kind little there’s so Listen think we’ve to already. on parts. I forecast, many a times talked of - about just provide

don’t very but talked seeing, new have COVID testing, the it the We’re starting clearly line versus we’re just about, we’ve we that well now, for what will our which in right the pipeline, based is strong framework so that the think I very line, process changes trends in our have positioned business, be excluding the that products pipeline based growth, we on and top on bottom place. underlying

bottom We a COVID COVID prudent very assume up Our here. be probably of underlying top to We’ve that’s it’ll testing, look strong be base business and about line call, obviously here got at it last to for factor will not growth. clearly significant testing. set talked amount a very and

Now, there demand be to COVID got plenty for factor the is that’s ultimately if capacity meet here. to testing, we’ve and going of to going be it,

spend our sure term, having capitalize spend of want so a the to of then way got We’ve that testing QX and obviously that QX ongoing an opportunities this bit of upcoming really XXXX, built we’re lot obviously a I modulate lot make and and sustainable a long here, to growth, that from momentum, year. we’ve start on and said, and I look going doesn’t has in at QX this of XXXX. in but also, a lap our little a to positions activity, We’ve upon. I our detract and the had As that strong good even past launch impact, to

Joanne Wuensch

Libre investment to Thanks, are other that in than and you’d products such of Other times pipeline draw our on, some like the then a that I attention of names heard couple there focused words Thanks. we’ve already products CardioMEMS, pipeline X, the there. the to? or as Amulet,

Robert Ford

this it, actually. a billion our that’s pandemic the leadless to a million I - system. tricuspid the here structural product we the that here. Yes, have think it. two last market the the the the in two a be there’s heart, U.S., got these structural I think It’s We’ve and a of Navitor dual I and think very of Right second have. our on then program with middle we’ve hundred in right and kind now on potential we We annualized the over our the it us opportunities enter great single repair the get to sure. really opportunity us. choices on now and this on opportunity. I take made product basis, if term it’s a opportunities done bringing for dollar Then the great generation as dollar opportunity, good will near mean, in product sales our so for track - we launched that Listen of with market a and at investment chamber. second here heart our launch is back are year, Europe you strategy know know regarding great chamber, opportunity we’ll making investment look on Then U.S. here a CRM, and TAVR we for position in well

have in opportunity another our CRM. continue that to I that’s our recovery we’ll big think growth

chamber, next to build single year, targeted enter off there. We’re again then market this and with a

it’s device the in diagnostics, great in the I the continuing the menu assays, think of got space. we’ve menu, the the building assays. of opportunity Then

that for then after the think that. pipeline But we’ve other more a the drive viruses making obviously that We’re we only are I larger be rapid to for opportunities us and in term, XX think placements will i.e. ID those flu investments with the business COVID, made but XX, next our also. able on Now be to probably capitalize to respiratory near months, not

Joanne Wuensch

very much. Thank you

Scott Leinenweber

question. one we’ll Operator, more take

Operator

you. Thank

from Cowen. question from last Jennings Our comes Josh

Your open. line is

Josh Jennings

for wanted to Hi, good a taking a U.S. the the on Robert, market. morning. in Thanks ask just duopolies question. lot question I multi-part

potential the capture and U.S. then where risk on you’ll in the to question. position to you entrance with be think Amulet, the by just created I your ensue, growth, for to being in was that out. player of into you coming that, the a first in as the line the about duopoly different the competitive share for mitral terms one then pricing for market duopolies could edge down create second second views of give us hoping and into competitor repair Thanks could You’re market, a about the mover the market. and those how play taking mover cannibalizing

Robert Ford

Sure.

category. think have when generally more here analysis that always could make you investment speaking, your competitor into that drive drive business further coming so segment, do will will investment, a the the in I competition you’ll and further then invest the innovation, one to

the solution into and I focus that’s on drive terms We’ve I flipside on with had our to what do listen, so in happened two see focus and side, to one U.S. But will here the all we’re think share in what definitely price that could I of see, true Libre know, LAA entering impact a you’ve lever our in an of you market think tried price to I’d technology markets making excited is--you guess, three-player and of that I etc. market the every got competition that potentially sustains time for came is to demand market U.S. that a believe better, that how proposition technologies to into competition can happened I strategy these you pricing the think parts that’s our The and drive and or we the when capture. markets, bring, market. a come with to the value or as and benefits we’re probably two-player a say

for LAA kind of think and which know I competitors think We’re standard is example making player expansion clinical trial, and that to obviously our similar internationally, we’ve NOAC, in making the positive. good, that’s that’s we’re our product so comparing investment investments, [indiscernible], in our with a begun market I the Catalyst is I of care, which already

Josh Jennings

lot. a Thanks

Robert Ford

diagnostics, and the said nutrition, sum continue we I growth pharmaceutical our underlying devices, being that here expect of our half up, to of that as year, we’re the established of and said, look to our showing in demonstrate the in growth across business kind clearly the call, we that second I’d so as Okay, our here--if just businesses: business. beginning our of strong results real I say all

here. or also, to I’d Bob’s little maybe I bit go Joanne’s see question, and in a that played don’t during of we’ve I underlying fog question think these role for comp a but business had business that to a big we term, quarters know, this, or differentiated of say a forecast through from testing the artificial few our optically COVID kind let have that of the think sales cloud, kind lapping we pandemic, as base performance we I and how you’re think business shows that about pretty this long how think we the about here, here versus--you going we’ll to

is our about Our that, pipeline business is us that there investing even and joining lot Thanks feeling good so and growth momentum way we’ve highly we’re underlying and for activity of got. productive. We’ve the launch a really very ongoing on today. base here, excited so more got we’re platforms, key the across about we’re our

Scott Leinenweber

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

Operator

your participation, you day. call. for you. a and you may Thank disconnect. Everyone wonderful concludes Thank now This conference have today’s

Abbott Laboratories (ABT) 22 Jul 212021 Q2 Earnings call transcript