ABT - Earnings call transcript Q4 2021

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Operator

Good morning and thank you for standing by. Welcome to Abbott's Fourth Quarter 2021 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 expressed without permission. They Mr. now like would to I introduce Scott Investor Vice Leinenweber, President, Acquisition. Relations, Licensing and

Scott Leinenweber

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

questions. Following their comments, we'll take your

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

Robert Ford

Thanks, strong morning everyone, thank you for and reported us. another and for quarter successful Scott. year joining have Good highly Today, we Abbott.

been sales exceeded ongoing of we For and compared uniquely than prior years unique The organic we last the across has is the its set and customer have business original and types, year multiple more mix, of been January. innovation sheer diversified guidance, across it's business cycles $X.XX, the payer to EPS XX% of which These reported on of And the per levels. for year, the impacts. throughout earning the growth, footprint. XX% which value share balanced last of growth dimensions, our challenge breadth reflects many couple our reinforced truly Abbott, businesses our pandemic and model, including geographic

big makes tough have the win times, never play businesses course. and in test alone, pandemic. year part than to returns role years. billion the million last the But response the of strong situation. the this, been a XXX it's always strength the portfolio continue success fourth come growth more has the said shareholders. been be delivered for just to pandemic for of our to across our our continuing We with over across fuel and so a business and approximately delivering model of and opportunities Abbott's while tests to importantly, company, quarter pandemic regardless in good years innovations to delivering a world's the our our We will that significant more expand as allows we to during demonstrated strong COVID this by during a has past of times, resilient resilient, highly major global to more that growth us our It's tested proven testing us put and been couple

XXXX. Turning for to our outlook

complete $X.XX, than COVID strong which organic initial testing brand. for of XX% again market-leading tests, testing balanced to Glucerna, the includes rehydration oral brand; the our double-digit And $X.X demand sales forecast our recent the forecast we'll year year. We're base least forecast demand we we led of Pediatric of our I'll excluding sales the pre-pandemic growth in our one share Pedialyte, our morning, of and billion. growth remainder nearly sales And provide our We has quarter to brand. in year. growth expect for results I'll this details diabetes our quarter forecasting sales S. in the compared at in update of XX% a led know, as and call announced early variant. for the and our and the of with we reflects emergence And start single business, turning XXXX guidance over challenging. the Adult occur Similac, infant the Omicron strong initial once earnings year, at COVID a very start growth before brand; to for where baseline was that forecast Bob. high Nutrition, Ensure, time forecast an more grew sales compromises our this seeing for the quarter As year a the been the testing for with for year. over of U. leading market-leading nearly time more growth at by to the and than for growth delivered X% and more fourth share In formula COVID nutrition market part gains X% X.X% ongoing nutrition you Therefore, Nutrition, on months XXXX. per the few over digits, Nutrition by

extensions, continued portfolio and past Care line to we as Total plant-based, high-protein Nutrition the and launch Ensure products. Similac several of and Glucerna continued extensions our with XXX expansion lower-sugar new line with including expand such the brands the our product in U.S. year, of and Pediasure, During global

a approval MitraClip XX% Diabetes sales In Diabetes market-leading treatment Care strong approval drove valve Medical translates sales Amulet Amplatzer remotely. more to latest-generation the settings launches. U.S. glucose who will patients our in we benefit for for system. recovery full and in nearly Turning we reimbursement life-changing monitoring receive the growth from growth it grew U.S., possible We communicate where continued Clinic, of risk of Mark our the for Rebased billion past which to of in with for year. coverage technology pandemic people sales that for are Libre treats XX% both for Medical continuous ischemic received Devices, device, heart the expanded new was Device growth the and our technology. of $X people and which year impacts to continued XXXX. with nearly In quarter Care, XX% FDA led for billion strengthen to $X.X valve lets And of U.S. the quarter We fibrillation portfolio Virtual and with FDA XX%, FreeStyle and fourth aortic stroke. from received make Navitor, launched our replacement first-of-its-kind system This by our of year-over-year growth physicians people NeuroSphere heart to this Portico severe pipeline year, transcatheter replacement of CE over total with a Libre, aortic atrial several system. advancements at and Medicare stenosis;

of countries, full has in where Russia sales. the sales continues broad-based well and in testing help both supply we've EPD or year. billion we globally, across significantly Moving performance several by quarter to throughout ensure remain to expand and rapid fourth access. $X.X led XX% to remain was Since for platforms, X% increased testing for the Pharmaceuticals of were and Strong over the China. internationally, demand. nearly U.S., Established India, fourth meet approximately sales strong, EPD, to part the manufacturing ID by working the testing performed testing the NOW Panbio quarter the product of new flow the and and pandemic, was committed where a BinaxNOW up I'll big from therapeutic strong core COVID our U.S. fueled our global Demand in of story execution start capacity And including we're a build to introductions steady COVID wrap it. with of and areas. and compromising Diagnostics, in those invested to chains, far all but XX% further broad pandemic, international with

the worldwide the year. grew in sales, and testing quarter XX% Diagnostic sales for COVID over X% Excluding fourth

roll innovative across We and diagnostic expand platforms. test of Alinity, to our menus instruments, suite continue out our

chemistry year, we as molecular the During with approximately from Diagnostics, M instruments clinical the excluding of grew for continue our we Alinity testing, more and X/X testing. share those for internationally placed placements coming and COVID sales immunoassay both rollout double than in U.S. X,XXX Alinity Molecular instrument digits in of testing, And capture.

XXXX successful summary, for in year highly was So Abbott. another

cadence forward. going important new businesses built our the capacity. delivered our in and we to growth And overall in play areas. We to COVID-XX a strategic for over attractive All are combating Bob? of role from performance continue position our four call positioned major a scale steady continue past as massive turn this strengthen to of testing well success rapid we've several our in year a result now continued Bob. strong pipeline I'll products of vital with

Bob Funck

Robert. Thanks,

all sales exchange. excludes organic of noted earlier, basis, an are the As mentioned Scott which on impact rates references please note foreign to that growth otherwise unless

the sales on billion of COVID Turning with to strong quarter our quarter. was our the Sales an along led for basis, businesses, organic testing-related increased X.X% all performance results. fourth $X.X across which by in global of

fourth the pre-pandemic of sales, XXXX. Excluding and sales our quarter to in XX.X% was versus XXXX fourth XX.X% baseline COVID organic the compared quarter of testing growth

the year-over-year on fourth reported sales in X.X% resulting had in quarter. of growth Foreign an unfavorable of exchange total X.X% sales, impact quarter

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

to our which XX.X%, due tax modestly quarters we and a rate mix estimate shift the October adjusted year rate of of full provided tax in in an last is first higher which revised than three rate align to XX.X%, geographic reflects income. fourth business our tax the Our with adjustment quarter our for year of the was effective

year issued outlook $X.XX. XXXX. the for Today, year at guidance per for adjusted we full Turning full earnings of to share least our the

Based current COVID forecast year, sales, forecast testing-related update unfavorable testing We the portion expect approximately expected For of ratio excluding a digits. billion COVID year. mix, the X% our along inflation we have approximately certain of the gross impact to reported cost. distribution of approximately margin initiatives our reflects manufacturing business businesses, on for rates, which would our XX.X% on of forecast impact COVID testing-related We organic forecasted our early an an the We'll forecast high with to margin to quarter the improvement sales sales sales underlying throughout across these be gross adjusted in growth, sales. significant in with on exchange one of of and at a of sales single $X.X the the occur year, part impact of time year. the we sales

For of income the around and tax forecast $XXX million, upcoming of R&D and initiatives. ongoing approximately investments forecast SG&A to of and expense and reflects rate We around the full non-operating of million growth launches year. around expense year, $XX.X XX.X% several new net we strategic product which year of investment $X.X around a interest billion $XXX support adjusted for billion,

our be the Turning digits. at the in We of and testing-related of share sales, outlook growth, first single impact excluding sales high for least to per COVID to organic quarter. forecast $X.XX earnings the adjusted

we of With that, unfavorable first the open rates, reported we'll to now impact X% have sales. at for on would quarter call current an expect questions. Lastly, our exchange approximately

Operator

Wells question first our from And Instructions] from comes Larry Biegelsen [Operator Fargo.

line open. is Your

Larry Biegelsen

starting Good morning. about follow-up. COVID XXXX can testing how from upside $X.X really question you COVID you. reinvesting taking the strong EPS for to talk the congratulations in thought and And the Robert, a Why billion you $X.XX Thanks testing point? thinking have one And year. finish the about a guidance? guidance? are you is right I implied Thank how strong about on for the

Robert Ford

balance, opportunities probably than balance Sure, say, say the year at Abbott every you're more find long-term that some beginning this which the on think a unique the has, of pretty coming at your uncertainty beginning into And year You're probably the year, of is but I'd I'd to and growth say find and say bit the year, little Larry. the bit balancing year, uncertainty. that I'd right you're trying usual. right? are of a the with, I'd I right there's to trying little

unique that, think about pretty So about of growth out But how the of patients' they're a kind I'm necessarily and staffing some aren't now, challenges there's the new you're sure for that during the from to find they opportunities. surges. But there, our macroeconomic will the a we'll seen dynamics a Abbott. there trying you of lot of balance, that right that of out shortages that hospital forecasting duration go current long-term the quite frankly, are whether talk standpoint if existing to long to it's are some and to willingness procedure of potential we've last, the the business; and frankly, pandemic waves part surge, do in, quite base in

probably that's big of kind look So one to bucket at.

area, supply currency and is headwinds. that facing, chain side is Another kind on every macro inflation company of obviously, the challenges obviously, and

the So us, I'd challenges of what different lot how companies and the testing going in fact this all of away or testing Probably a look of just our given is facing consider say COVID to or like for those care, level. completely the lot magnitude of little it increasing outside bit are it at forecast between and companies, could companies what's are the that out in is play a of sector. going year rest quite to that a our health frankly, staying another medtech throughout

factoring year right of for kind also that. think starting full contemplating here, And initial only is So but flip those point underlying off the guidance business. over of all not very the was just Abbott start a some those of I I to like us base think kind this this on contemplating strong side, challenges, elements

said As comments, I single-digit my in growth. high

the our we acceleration built about guidance COVID this updating launches we only fully funded. portfolio a beginning challenge starting don't a the we go and zero we in simply way we've launches opportunities. But of of And of pre-pandemic. testing able So, there it as quite of this engaged forecast where the frankly, the versus magnitude, year, support X.X, of We've and in the be that of is the are initial all in be got go got definitely to expect lot forecasting, in end not I second a October, I investment And our talked lot in that's year, -- all to right towards quarter. to We've COVID we've capacity. got this of last to to along. felt I were been contemplated -- and will

that last seen You've over especially years, in rapid testing. this X.X

So we have we'll updating and be capacity, that it.

we to in range are So cap done which guide of Larry, if I would our want where right middle have But we $X.XX been the here, typically guys at. consensus, we're had is upside, our at the you $X.XX. didn't why the least

click think I guidance more about. of provide platforms whether and say, procedures, if that kind don't goes much our it for pandemic, sum fully of good contemplated can then device our fall it challenges I I've which et We've growth lot upside. a through excited look potential So cetera. very we upside away, chain, we're And I of the the of duration funded at testing there's are would I a because COVID it's of some that and that Okay. at companies facing, of now as up, medical as supply

the potential summarize. It's So and we've that's opportunities, probably the upside remainder into the to we I funded derisked, go best fully for long-term think of as way year. growth got

Larry Biegelsen

year? XXXX? super Robert, year. Libre helpful. of are that Thank had another in the growth question. for That's follow-up, this the taking just my about are How what drivers you Libre thinking And growth remarkable for

Robert Ford

it. next that initiated of It million rate XX couple now. to start in very this Sure. continues Libre year, Well, XX% over I a users base. mean, very X, yes, you geographic will the weeks. saw of a large and expansion strong -- We've and at grow X

at of that are of the to Germany kind at probably U.K. and about of we're per growth over that incremental that couple markets And been here XXXX, be looking key next We've growth. expanding Moving I'm France, and think growing those about billion weeks. expect I mean, into year, in if double-digit Larry, of out sales I I $X range. least strong

that growth. So XX% translates a into probably

as leader about biggest talking talked and think continuous I'm where million, quite monitoring is, driver forward, for of this numbers still users with from underpenetrated, a not right? X about being XX million, we've just it's the patients very I XX we year monitoring. million glucose million frankly, terms us sensor-based XX in benefiting look between but

The So historically underpenetrated. I'd have internationally S., to opportunities international. penetration still moving than say that continue aggressively biggest be lower much U. segments more the into CGM we've patient got is and then been in into

on Xs the injection look of at therapy. kind You type single

So opportunity we've good U.S., like another growth. close to got We us. had very great this for I opportunity XX% year would there. good year, is say,

the that's think number. I

the Now that's force make made last over paying in and need investments advertising, we've year X to terms sales million dividends. of that we users, and

new of to In terms a user new growth. share high users, of we continue have

of combine the population doing pretty expanding still Xs, what of growth kind story U.S., So -- early I X, of innings in you underpenetrated internationally, as like we've said, continued Libre we're expansion and of I've Libre the the in got think still into type here. a

Operator

Thank you.

next Marcus Our Robbie comes from from JPMorgan. question

open. Your line is

Robbie Marcus

on also Great I'll nice Two both I'll add them and a upfront. congratulations quarter. for my ask me.

a the First throughout on you spend could question, minute year. maybe cadence

than lot we than been First of testing quarter we've implies but cadence a a had different thinking. has also somewhat thought, COVID more sales

FX hitting bottom and into the top throughout? second it. impacts question there? probably is line, just So are And what How inflation tied is then

what current that about 'XX. you're here you just course in today device on of how of evolution If sit the and trends you're we procedure thinking and could seeing touch as the over

Robert Ford

Robbie. has sub-questions multiple there, got question first your Well,

But first I'll a then dynamics, inflation about So worthwhile then some some challenges We avoid let back the -- talk of does of of compare the the spending I also. more contemplate the just time especially I'll so were and your one, pieces. saw business and a second terms versus the because least the it in -- go little of beginning take for Robbie, real we to like me on nice back hospital-based in comp XXXX, bit QX. go in demand to always recovery trajectory might XXXX, be here, and first one that at some take I to one, can

pretty improving that of the were as use in December, a improving be And X% probably of because So we big Failure. we in -- X% two in again, in was that progressed. our rates QX a businesses, as XXXX. which more like versus obviously, until that Probably device probably let's device XXs versus the our a the looking range the was only drop and continuation we to didn't most probably Omicron progression of proxy, of That up was our that that where was businesses. like, December up cardio-like quarters drop mid-XXs in kind and percent saw to growth see probably in Libre, XXXX; Heart

So look as a us. and that other we an wanting patients impact we've a impact Asia to pressure say, geographies, compared by but in only the February like. the see have as January, also we bit on hospital. not some January. go basically going going even curve bit of that, the And again U.S. And can little to contemplated of best bit -- a what bit then March. staffing, into not more a into to as seeing say just into than think little recovery impact a We'll probably did better that little Europe least continued these held up geographically, have I'd say, is at I'd driven U.S. for postponing business, that's here and little in I'd predominantly of parts Omicron I

And and this rate. at We half at these then the look more normal it to we of expect second businesses better, get will better. you be year, for be QX expect their if to run

the U.S., pleased we're -- launches I the some think well, do about, rest always okay, we during I'd forecasting that they product too. and of how of launch I and had Europe seeing, both in product we're the in pretty this the that's new what quarter during So say cautious that year. was in kind that's of did -- environment? Actually, -- we're pretty we And the the

and think speaks products and innovation. that the the I So for well the technologies the about need

Delta mentioned consumer-facing Omicron did consumer see pretty they the Nutrition the see in didn't the you in side like either. well to we part pretty our it So done necessarily and well, -- business, but of of impact didn't so saw They Libre, QX, those They've in the EPD. businesses I pandemic. it

the innovation. going I this So precision about through then QX talked as we procedures have of testing those update to that we there, kind core that COVID in And is bit we device driver and On be it, we'll said: combination resilient. part say, confidence your cadence, of let's Libre, QX businesses then first just I I we'll more and a QX. regarding expect into testing, as our into is call of see regarding to flow kind see and that recovering question little pretty key it and able you. And mean be

we'll think through. sense the having we'll I is what number, I a COVID let like, only U.S. internationally. kind here that look then in as we're with going of And not forecast better have flow the it ability also QX that said, for when but to update to of April,

you working and that mean on focused is give that think and ask had we're that. color a inflation. I So Bob also I another about probably some you question to on on area

Bob Funck

currency And I'll we cover inflation. and Robbie, U.S. I kind particular last first. of about last since actually over few the middle Okay. year, of kind the you the currency dollar in months. of mean asked strengthen Yes. saw

through back the and the top the quarter, of impact -- around And year that less be so year. kind the bit We're as it'll quarter. the my a in of headwind see go get the in a for little going into opening And -- half of course current and second at X% severe the line as that's of first will to kind greater a I we rates, year. in impact said the on X% remarks, about the

that's chain challenges really inflation, supply catch strong terms chains to there. of demand inflation supply have In of able linked together as out been the to are kind not and up

a And seeing And areas price In across et of impacts the like cost, inputs, not in adjust business, bit we That's have manufacturing some here, us doesn't or transportation seeing we're businesses to our some the and so, that From we're a we're standpoint, impacts to unique certainly cetera. commodities, industry. those pricing in consumer-facing areas really business, other so. flexibility of Nutrition. more doing flexibility exist. the the

So margin seeing I'd across headwinds, improving time, think as cost our billion, I we chains areas. say, in in gross of over aggregate, roughly $X.X in of kind that's those guidance. expect we're start would and to normalize impacts see some contemplated on supply to And

example, outlook in historically the those kind kind the doesn't our Nutrition, that market. assume in currently, have commodities seeing changes of and But over up we're moved dynamics time. For costs any significant down for kind of versus of current

Operator

you. Thank

Kumar Vijay comes Evercore from ISI. question next from Our

Your line open. is

Vijay Kumar

there my here. consumer one Maybe question, morning, more big curious, CES, Maybe expected product the analytes, right? our see my a CES taking How when launch for first slightly made I'm some perhaps side. guys played Robert. Thanks pipeline? good U.S. be. in two opportunity Lingo. Robert, come from on sense the just some four at comments curious, you think how do and you this it's for for analytes is on Perhaps guys but the consumer But -- you at down perhaps we are And I kind different have mean you opportunity? Abbott, of expect I'm perspective. product was have at timing to I had should questions. new there products other markets. I is could

Robert Ford

Vijay. Sure,

to decision be of you areas. Abbott, analytes the and and about alcohol, we that that also. it with quite and talking using here was believed other that opportunities. into in those we've non-diabetes. have really about recently, some ketones, been a lactate sizable ago -- referenced talked ground on: Libre to several So for the And always developed made a other talked we what for opportunity are glucose analytes, look we I the had frankly, working platform start opportunity, years to this not a stake put about big And another we've people

is larger for kind a than little of is probably the I've the in is today, X with a covered on know whether usage get on through type injector example, like patterns. of usage would where bit type we've we're we pump or of TAM of As type terms data very It person, said, but much or here X, clear diabetes a more you're the intermittent different. in people, model a a a you a probably terms the the sensors X

So pattern the sample different, bit significant. but a is the size little usage

as the go-to-market it, always a leveraging sensor on a amount of but platform, bit opportunity real-time a their to If trying strategy They be funded -- side people, structure, big we managed development separate technical and the market is And differently. organizational they're there's on team you large to all think focused provide different this a and large differently. will about like able have somebody doing our differently, feedback a obviously and a keto think consumer But seen for we've who's the analytes and I to manage have keto little diet, disciplined work. I'd not large of very more on-off more of or that bit And think we'll people. developing kind say of a opportunity. keto just obviously the just there's it's whether it an market basis, the that, to about diets but amount to only completely how we they're a be pool have little

not pretty early really once these time, line pretty significant here, you and period of be it's inning stages I really, diabetes in think numbers the but could we're than bigger a So up. even over And good the maybe large. why

path more were that is bit at regulatory outside But the excited we'll going or I we of what seen this analytes, say, cetera. second that very moves. first the analytes, application, the other launch clinical States to this up, to CES we of consumer-driven United probably designing would Phase first half your call States, many little in medical the United conversations probably is terms our we these The whether On et back hospital our we've a be say, Timing, because towards question X in these. that consumer-facing, phase would the more we about about But is now having Part expect obviously and have, with announced are at or the it's -- more we other right I year. looking opportunity early opportunities. that would X, this I of we're intention, how years products talk I discharges, many, agency would yes, that. too about of In analytes say made to shape for of a the

opportunity there on. that is we're also working So, there

the right I creation. market it's So very and large, in we're of think in just beginning now terms

Vijay Kumar

Robert. maybe second helpful, And question the in my balance That's sheet.

that end I very see? billion with the guys in diagnostics, me kind down. number have right large of think opportunities as valuations Abbott of $XX do of things you capacity two markets. in always is you over one, your What most of one drives probably now And conservatively coming number

in is you -- I ground biopsy, If diagnostics, area at Is an a the Abbott don't that cancer opportunity, but Abbott? stake massive liquid area. would that's in look see having interest diagnostics, screening a that that

Robert Ford

a my regarding this the yes, show to that seems anything all will to I there We've that And But makes not we'll over cards I cash plenty guess say there there's some capacity, X.X in what strong you now. of there's meaningful that quite question I'm M&A out lot -- and flow, been could add as is, -- kind be generated years of If of then got here dislocation it's make financial sense. said. going to a Well, think us cash yes, last here. step-up frankly, for that be we've specifically, and strategic looks or I necessarily the so. of flow sense,

that looking say, team to said. I've carefully. but in that. be great So at we're the situations and strategically, present everything, I of a financial interested we're able to more areas always Scott's looking and will But We're looking Tuck-in likely, Devices are yes, those we as and deals that if now be referenced again, got always would again, are medium-sized looking fits, at at probably lens in he's always areas devices more at. the diagnostics. if in diagnostics, at are that you that special The everything. areas themselves. is -- here look things more list position are in

So changed nothing and M&A, we for financial makes about deliver said I strategic it what value can I've would sense it's if shareholders. our say, regarding yes, and has

a result are that a had, of great We conversion. with all the as now also now we've cash frankly, of kind helps. position cash, efforts flow quite And in that COVID

Operator

Thank you.

comes Cowen. next Josh from question Our from Jennings

Your is open. line

Josh Jennings

of in wanted question. part And early for you're $X.X fall think XXXX just And long for just to of in want has levers. don't where M&A, then you us that a with pull potential Thanks talked that range upside. second can taking year, other on franchise see you the that help you morning team us testing first, on to wanted of the And some some the turns you a But just question accretive June expecting just cost-cutting and understand year. COVID reductions. drive diabetes clearly, you refresh about guidance. just of runway. when have scenario Rob, to gentlemen. COVID think the reality, your EPS cap those outside from growth? levers stream the is get put a repurchase, Good franchise. there's share revenue to end on fell a a off, refresh the there the increased off into question that last ask can Clearly, guidance there top Libre COVID in upside could does the the testing revenue I if billion testing that in But the and through

desire Abbott's kind in into beyond? adds with devices You're But other the believe for the should taking of just leverage you the about answers I your and portfolio move be or looking other thinking we the to delivery questions. -- insulin diabetes of about Thanks about either as one consumer products, franchise how opportunity. talked there XXXX positioning we and

Robert Ford

look to that of then we your falls derisked, which the the have case. as potential fully we at kind for to I that make, of in XXXX. making scenario, like think have On got is I investments kind we're one, of highly adjustments the especially start kind don't obviously make testing If is off, we'll I first and the funded, we've to move the we said, into that mean, COVID testing. upside think Sure. COVID and we unlikely, I

to be that COVID is testing around. going still think I

how you'd months, it that catalyzed I question next of the in think going significant your that Omicron months question pretty have scenario, And to said, testing screening. global the being over is X and but just be make adjustments. So here -- to does to here? on shift kind evolve rapid a XX has

As And $X we're active to again have that COVID now, turns case year, that -- here think of in go platforms. I've it we Last managing that as we're since to XXXX. like the capacity. I'm investment XXXX, at I'd have this billion this flexibility not we adjustments make then also. But coming growth enterprise or whole, as was look of got business. If kind being managing the anticipate profits year the we funded bought in said, we that year obviously into market said, And I that about we'd lot I would. level reinvesting we're fully right and into on are we the our from out a -- then, be do

on So diabetes, Is -- and growth right, that could was your you second just... think, and question, -- I opportunities.

Josh Jennings

Sorry. Absolutely.

other of the programs that to franchise, so runway. internal advancing be Any just and has development channel over just successful can We on sensing last have you diabetes share a about about years consumer the outside and could in add been terms the portfolio? of long thinking thinking side. you the number you the of should the that playbook within with that's sticking diabetes realm device products diabetes Libre Just in on the anything

Robert Ford

Got it. Got it.

in we're the yes, opportunities, listen, whether penetration, internationally So of beginning under of type still here. lot lot it's Xs. There's a still or a

said, the here I expect expanding into in to now be is won't Europe, we'll specifics, Libre I've I able X your X guys would necessarily to figured advancing. to you pipeline here relevant globally. be is key and I this. As launched that but ensure is Libre launch We've aspect U.S. into get and the bring eventually ask

U.S. that but We the the happens process the iCGM diagnostic -- same have filed there, last year. timing in here FDA in the Libre as about won't tests. get review X I reviews agency it's into specifics an to

So on imagine, lot area you of going that there's as can a of work busy with agency. the

system. obviously data from now submitted obviously data about So where we're to say good pretty feeling we've We've seen we've stand. a our And that seen competitive I'd the agency. we

key there what I've have expand but is X, do about a that's necessarily insulin as to And strategy. Connecting and programs systems an that suppliers is pump to also that. to with think delivery be delivery to part active onto I we Libre we've connect that not able all is systems active Libre got portfolio. of talked So component program. that, the exactly pen also

platform and consumer-friendly, platforms, best use to also to So, price sticking affordability into strategy innovate with devices. I not look then other on other opportunities focused access for at to only our continue our connect think sensors the outcomes, those to sensor we'll but of showing sensor, and stay making to to and expand

Operator

Thank you.

question next from comes Our Citibank. Joanne Lunch from

open. is line Your

Joanne Wuensch

of one Big you have for CES in keynote was Amulet highlight then address the one Heart the love in a your the And of just out a question and marriage and question. my how market, bit are would of a Good Portico out product that taking to you take And little morning an of picture picture, do the tech curious of at I is market, has franchise. Thanks. lens on and I'm if themes doing? is medtech. you your those specific of in thank specific terms how products could with pipeline. sort I Structural one. your update in the big

Robert Ford

Sure.

elements And So of St. about seen doing started our are to other when just electronics portfolios we've provide able a to the acquisition yes, we consumer ultimately to or talked we to be this empower convergence. or outcomes. this Jude improve I've cloud set to to quite that better And able and to whether convergence like connect occurring integration. lot ultimately probably consumer frankly, the and be it's solutions

look been device as Cardiovascular pleasant time think see some in saw I only -- that down the So now the to Neuromodulation side. portfolio going on very path pleasantly the start not side, has you quite to very for also that

to but and my got in not time, business, stimulation, better same at DBS business change clinic, opening that also only said on our model cord I spinal I opportunity think an As comments the for the too. virtual that's outcomes of

So started thinking. in you've seen that and over to that We see saw then devices. Diagnostics, you

cetera, integrating to in do As kind an also an phone, can of to we where just be integrate and sure of to it that developing wanted pass expertise we make developed app able we have your be our and but of et able COVID, Binax, to were your you kind working detect kind into partners not to accurate that. test with

of business, it ensure patients you're digital that to we're using be portfolio. taking able their across tools the are So think In pharma all medications. seeing I our to

and going strategic businesses I'd of pretty, we're it. that's how elements across say, our about thinking So all

So, convergence say all portfolio. we part I in convergence to the it's our of be I it's and of wouldn't is just -- across that think a want happening, but not that one portfolio, it's leaders

Structural Regarding your question on Heart.

blood heard thinners. that the able to to better more need need So, to and be to been without superior in launch. of received leave the areas especially Amulet, last very I hospital anatomies in a the sizes And be we and we've strong, flexibility. broader more of able mentioned Portico Amulet. lot rates, has quickly initial think give you to closure approval of year, say also, to I'd Listen, QX moved feedback them fit

done very well. that's So

As had good part peer-to-peer and we proctoring. sure we good launch, proctor the of make wanted that to

became and a a But So and December December. done that, we've that into after pretty think Thanksgiving in all little of November well. of challenge I obviously, I think despite bit

we're in about pretty did in we market year, -- if put at you very look it's the I can I be into December, And and aligned did last end at know which think with we about we is good. what we mostly year much the a that what enter what as is we've XXX done where of in happened given and Obviously, not to to that, I would think us XX% think -- satisfied we we which XXXX. QX. Europe. But procedures share, mostly do regarding wanted

well. that's know we're this -- very great competitors Portico, We and I've and high-risk think area build Heart. a our systematically, we've going to also, our we're X there position. So very launched I And that very about a product We that's Navitor in said, received Structural important are think there. product. an there's as got patients. surgery for again, pretty entrenched here going profile is technology Europe, two for Generation clinical We great in methodically our it feedback also, competitive

position So, make here. need to to we're to making the that investments know we we our able expand be

about opportunity as we're XXXX. We've into talked feel the us. I and great position go is our big about how we portfolio. good So, made Heart for a I've Structural think in this I investments,

Operator

you. Thank

UBS. comes next question from from Our Matt Taylor

open. is line Your

Matt Taylor

Thank Good for the question. taking morning.

had remaining I frame it ask the for if the three margin the one, we year. quarters $X.XX I from questions. two I guess, So I'll first X.XX take wanted $X.XX the QX as, of that just about to implies to

is from earnings just base testing spending the more business COVID we conservative? of color some power? through additional Would you should still profits power ex-testing? how are earnings your the being year base any love that the view So Or business on or

Bob Funck

Yes, take This I'll Bob. Matt, that. is

is or the of funded that our the quarter. the the point starting majority rest this sales manage don't versus the from COVID. line manage we've Obviously, in first We we at throughout we of bottom benefiting the at we time, of think growth COVID about earnings company. So But our really forecasted kind quarter the whole got point. base

you our testing is first So throughout initial in year. testing, have but quarter, what that entire COVID investments COVID sales the

margin we through, fall of a as than certainly our so, level about, our And will testing that higher each talked overall update Robert as kind profile. at quarter, COVID

Robert Ford

full at in like beginning, how be to at prudent just expect quarter. the time. The it's of I'll to a a of there Matt, do we kind is first just And shift, magnitude that, absolutely given to to a add as what level. the quarter said COVID to the can on be this year I question able testing it forecast that, out after

here going April, in of So better have look testing, there. is and of we'll in like able when a to we're you we'll of kind sense terms COVID what update QX be to

Okay?

Matt Taylor

on so I just supply Can chain. inflation from follow-up margin, -- headwind there gross you. Got $XXX about mentioned on one you was that million

if add term that was minuses if XX%. longer normalize. back forward expectations about longer pluses guess I margins improve or wondering, gross you getting those going XXXX, margins to term? things if just and things levels so, in, if talk just And kind could And on you're that, I Ex in of you to we if see gross closer could gross for margins

Bob Funck

the little to gross Well, the inflation offset And ways but the way that. helping focused think benefit looking you gross expand I of every bit seeing to is margin impact below actually our that, about back businesses we Every for of year a of that our the think margin seeing. add gets on dedicated in teams some that initiatives. XXXX we're forecast has you're one

year. next program. a to that We continue not them every one-year do programs continue do We into we'll are those year, and those

benefit of a thing of the other The we're business mix. seeing is kind

recovers, So Obviously, diagnostic medical business. Robert gross about margin routine lot of testing for the opportunity. talked our devices that the as a benefits overall and

have that we Medical as in businesses, Device will drive those that our on to Some our gross opportunities more as And margin business impact overall even as in growth grow have profile. well of the Diagnostics. we a positive is

Robert Ford

Okay.

the transition long endemic, that market if look of that the at the the and accelerated. of Let and started. challenges I'll for I finish at anything, because care curves step hit some it's that, healthcare a none macro get disproportionately here need I very, market sector, to very you some diagnostics, health bit investors, definitely some then. there's important even how growth short of a procedures. been in phases, still changed me last, I of long-term have the the of will think of remains by look uncertainties, pandemic. Thanks recovery at I the important start least them to a and term: challenges wrap now remind specifically the long-term if and how medtech think by pandemic, of it think Bob. forecasting have that at great saying the in in creates those that I a take uncertainties in But up forecast. fundamentals acknowledge better and gotten back, here year little I terms the ourselves, lot -- environment right If area Listen, I a and of of

look have market here. think across they several context, trends fast-growing diagnostics, very but procedures been it's still favorable. positioned I at to including come of a diabetes; pharma. you demographic So whether markets, just testing, positions routine they're It's emerging And back, going come and are they'll month, that devices; cetera. the nutrition; segments: We're And if in And back. never pipelines within great stronger. pretty leading I perfect to et predict in two the months, degree large, COVID Abbott's testing; precision, innovation entire industry, the that uniquely difficult think with

positions, franchises have of across these. strong brands, all We

to connected on maximizes to leading a my and with And remote I very we're diversification is monitoring, the strong growth It macro obviously, customers, geographic just we're our payer and impacts devices, these diversity environment the hedge that provide unique. opportunities, a is supply cetera. going natural more that but the to think not I you and whether about that And it types, chain. very et -- resilient whether in time time. opening mix, from does biowearables, that's digital going think of in to business be So one and see patient-centric footprint comments, I to talked layer that some transformation then questions, care, of which it's it's

a whether sheet. with dividends, I rock-solid all talked got cash strong, it. translate health, real have balance it's sustainable, that about revenues, we've that flows, growing opportunities the into strategic we you So financial

positioned a strategically, excited I of really about us. we're think good lie in all the financially, that growth So I'm and opportunities ahead

and wrap I'll So that, us it joining everybody I'll for with thank today. up

Scott Leinenweber

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

Operator

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

Abbott Laboratories (ABT) 26 Jan 222021 Q4 Earnings call transcript