Abbott Laboratories (ABT) 20 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Scott Leinenweber	Vice President, Investor Relations, Licensing and Acquisition
Robert Ford	Chairman and Chief Executive Officer
Bob Funck	Executive Vice President Finance and Chief Financial Officer
Robbie Marcus	JPMorgan
Vijay Kumar	Evercore ISI
Josh Jennings	Cowen and Company
Larry Biegelsen	Wells Fargo
Joanne Wuensch	Citigroup
Travis Steed	Bank of America
Matt Miksic	Credit Suisse

Call transcript

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Operator

Good morning, and thank you for standing by. Welcome to Abbott's First Quarter 2022 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 Abbot's recorded written be cannot rebroadcast expressed without permission. It 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.

your Following their comments, questions. we will take

the competitive, factors including Reform purposes some expected XXXX, Before Abbott operations Item Abbott's to law. other today for no and GAAP past, to subject abbott.com. Private except subsequent XX-K earnings are our the not made our report Robert. from our that changes indicated website financial are the to growth. for foreign growth I refers events affect as in on reconciled governmental, XXXX. a measures which and will Abbott may turn results impact be the conference or the Risk exchange Note started, results in predict financial used comparable developments, release ongoing XA, unable which forward-looking Abbott non-GAAP the These now sales cause materially uncertainties measure financial which that has any to as release the may to to forward-looking non-GAAP foreign our by measures statements on that on that XX, to today, of we excludes is Act over With undertakes call, of in impact in growth from Securities sales will XXXX. in Litigation for December get financial Economic, company annual be measures may call On sales reported forward-looking available growth, the those regulatory result Abbott's risks exchange. on sales with these as performance. Form to organic required forward-looking to and statements help forward-looking at the differ of for that, actual investors Factors revisions provided of a are financial noted, are rates, cautions obligation business understand statements could news today's publicly ended GAAP basis, otherwise statements. commentary Unless because discussed filings organic future the year technological

Robert Ford

the Thanks, morning, Today, Earnings joining Scott. XX% quarter. and we thank the you increased reported sales. $X.XX, organic more everyone, growth were testing-related of another share Good led as XX.X% by in for Sales and to with us. in Devices, reflecting Medical than double-digit strong results per compared an Diagnostics, on quarter, basis well COVID growth year. without Pharmaceuticals prior as both Established

has Established double-digit quarter. CNS areas, Strong quarters. last therapeutic double-digit with sales this EPD, long-term of in areas. In along start countries strategic Pharmaceuticals, market the with strengthen call and products launched approvals including increased was performance before I'll addition over management. to to products growth or and the several strong led quarter during XX.X% the core across to I'll position recently X gastroenterology, continue first opportunities now growth more the and Bob. sales in EPD of regulatory X our continued our uptake And indications now in expanded by pain new and with we these several where quarter, in detail attractive organic results summarize quarter growth turning results achieved of growth use of respiratory

was where our mixed. Nutrition, performance to Turning

Pedialyte double-digit And and our which nutrition and in also products, at Adult by we continues to toddler Our business includes Nutrition achieved growth led high market-leading with Ensure Glucerna of global level a organic growth our XX.X%, perform Pediasure globally sales brands. combined our brands.

in recall products of February both retain you at Abbott all As that voluntary negative quality of the to samples we our know, as of infant back have of come in-house important U.S. system, of the that initiated formula ship It's highlight, products cause one of and part to facilities. by manufactured certain we we our however, presence recall to illnesses. action customers. for the FDA related retained the Testing samples bacteria reported a this

confidence in hope industry-wide we're parents, link customer source We by product strains and no course, formula situation bacteria the And the factory areas Europe other facility possible closely operations has registered therefore, available from and was is salmonella so our production ramping a of findings match ruled that obtained products. with doing to we our complaints, our and actions contact Importantly, U.S. why proactive in supply constraints lastly, there infant on contamination. or the our working FDA to and further plants. genetic that can That's any the other get shortages. found restart different up our know FDA supply caregivers at the bringing in And enhancements found samples in our product of of FDA FDA We out these we're facility. everything and, non-product exacerbated renewed the stakeholders in CDC no facility very of identified between facility. from mitigate and at suggesting the

from ID in quarter, COVID in more and the to where which XX% test internationally test, grew U.S., rapid were NOW the Diagnostics, came globally. sales of XX%. Panbio including $X.X our Moving billion than sales BinaxNOW

strong where Failure menus in by we procedure testing users I'll X In sales on approximately in and FreeStyle Libre sales, the driven quarter. the continued Global has -- in across Structural Excluding XX% Care, has diagnostic continued with the year, was Diabetes in steady XX.X% case COVID-related in an second into grew innovative Devices, performance organic impacted early and quarter testing-related came rates million of trends led the quarter, grew April. globally. the Heart, down by the our the by while tests in Devices, up which XX% and This Diabetes In Heart grew Diagnostics rollout Medical improvement platforms. more growth instruments Care, our double-digit sales than sales our half And Electrophysiology. wrap now basis negatively of of the Alinity, COVID expanding rates quarter, were saw in base as user a case COVID procedure elevated of Cardiovascular reached the suite volumes

day. also U.S., will for to now who leadless patients Aveir, market rhythms. received improved strong to pipeline. an indication the latest suffering with for patients trends cover improving received failure. addition of which we in pacemaker once In EnSite our earlier heart a X clearance use mapping. for the approval to heart all treat the people generation the expanded and And from was results, this U.S. cardiac U.S. our least our for treat Libre CardioMEMS insulin system, FDA provides expanded at quarter of heart XXX-degree In highly FDA for reimbursement more slow our productive diabetes a we Japan, view In stages received with another of

we're overall So and several our strong in across business. of areas growth summary, achieving

now coverage to in first the the which saw call in over into and continued we new I'll products, to and growth As reimbursement Bob. hospital-based we improvement progressed indications And with quarter April. has Bob? COVID our turn several attractive the pipeline areas. advance continue decreased, a trends, procedure levels steady

Bob Funck

Robert. Thanks,

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

in Sales billion Turning increased sales led first Diagnostics, testing-related to an by Devices Pharmaceuticals, quarter the COVID our results. basis, double-digit organic global in for $X.X and of which on the with Established XX.X% growth was Medical along quarter.

COVID Excluding sales, versus organic testing-related year. growth was X.X% sales the prior

impact of year-over-year on had Foreign X.X% quarter sales. unfavorable exchange an first

quarter, exchange time resulted continue in our a rates the at sales the to the of we earnings currencies, more several call to During in impact versus unfavorable U.S. compared on saw January. dollar strengthen which

manufacturing Regarding fall-through which higher-than-expected as was and recall margin production the other X.X% first the of the research aspects investment quarter. in result offset sales, quarter, adjusted of during and of on sales significant testing distribution and of somewhat than XX.X% adjusted the development quarter. sales costs inflation reflects a partially of the nutrition was XX.X% P&L, COVID normal volumes the first by in on higher was the SG&A ratio gross certain and of sales investment impacts Adjusted

was Lastly, tax rate quarter XX.X%. our adjusted first

growth outlook billion capital $XXX of $X.X opportunities. want capital an completed provide to on $XXX initiatives our Before included update support repurchases, which million the discussing of deployment strategic future of I approximately for repayment quarter, share $XXX full dividends, of year, expenditures, which organic million in our debt million the first scheduled and

which We strategy. a continue flow, required well-balanced capital generate execute to strong provides the cash to allocation flexibility

year for outlook our to Turning the XXXX. full

which billion continue of Established mid- to impact Our of We to Diagnostics, remainder our Medical COVID of in of the sales now share by approximately first recent occur expected guidance our of sales testing-related sales year. Nutrition. growth, recall. sales, unchanged. significant testing-related portion combined high digits includes the forecast due sales the We Pharmaceuticals, be nutrition we businesses, half the organic least areas single impact at $X.XX adjusted the event sales recall with earnings impacted forecast to digits, the total these in and organic excluding total company high of forecast recall, forecast to the for digits note, $X.X lower of the of somewhat of the the single COVID is single growth not impacted than Devices, It per which in testing-related excluding a is excluding sales in by high to remains important to prior

year to to quarter at the throughout update continue our as forecast a sales -- testing-related time appropriate. we'll X We continue COVID

an expect our sales. Lastly, than open a little have full for now exchange call based unfavorable current that, rates, reported on year would we'll the now questions. we impact X% With to on more of

Operator

from comes Instructions] And Robbie first JPMorgan. our from [Operator Marcus question

Robbie Marcus

Maybe how takes strong walk think to difference? the on a of up testing the I the most first start, reiterated and reconcile beat COVID was had to put puts double-digit for you can growth XQ bridging us you and the Bob, good through and quarter about hoping guys of businesses. maybe guidance and the in Robert some sales, or

Robert Ford

Robbie. Sure,

the is our for the X in testing I seen sales, what is as internationally. device recovery recovery comments. trend at COVID in a the would strong of in recovery you've on rarely we've going out. double of in comments, cardiovascular, mean, definitely think QX, the like good seen slower and had both said lot despite the procedure bit seen out a these of And I bit I going there's We've in I start in digit; We’ve but improving, X the portfolio, execution devices, in well, little diagnostic albeit routine a quarters, EPD than very there. we've company. especially U.S. And been year good little talked that, pointed to say. a things on a We calls while. about great raised you

is bit cash I here, flow that's kind Bob also too. launched but about talked flow Talked of pipeline and some flow. recent generation the the but the performance an and to the with the think about of that a to recently in of the important products. to shareholders, just aspect little our international of our of the approvals, not presence, share business. part continue able invest that deployment our cash We're approvals, cash

things and of for on So that you're that's there business, and reconciliation looking a managing, challenges probably good we're is that in the going piece there's the are the but there -- where happening. couple a of here actually lot

here that all, reiterated we're dates curves, et share working the FDA. of recall the terms guidance, recovery the on nutrition side, of scenarios in we've through And obviously with of cetera. various kind restart and managing contemplated in First

terms as now back across is simple think restart date challenge a the share. And is FDA, with in with now working think and right of it's we with FDA we the more macro gotten the starts. We're that where see probably shorter-term January. as begin which regaining but a in Probably that more has the coming when a this little companies a to the Abbott. the versus here definitely our And once not to I in other changed resupplying strategy were an I -- the this then see is little environment closely market, market we'll exact to So execute you'll align restarting bit give sense to I lot challenging. just bit part to here, it's second of right is unique

persistent throughout whether So et we be little to environment, cetera, kind that it's macro some of a supply more year. -- and of chain, bit expect this

and at just a look business well. nutrition investments the guidance and I'm to execution. on which made being big how going growth performing very wanted think forward to I base be that that we've the that of to out nutrition think the of of mean the well. that for for able the significant Devices -- then piece, said, Diagnostics us these performing, said, position the, the business exclude of of So next well. was business, of The we'll the that impacted the but very the rate how weren't after be strength by in the is our And assess X in great QX. very But that there's a parts probably was our months, portfolio, fan these you statements, performing without I here lot impacted XX%. products, I to over continue better reflects in business. like couple points and see a play do recall exclude pretty momentum not COVID about this, without the the but I I the context if and

So headwinds, said, absorbed, in portions chain, some that of challenges guidance, of as FX that absorbed recall. supply more in we've $X.XX, reiteration the absorbed nutrition Bob

I right now terms it's right QX. where guide EPS we after So are of in think the

Robbie Marcus

maybe color. forward, Omicron strongest go are I some of a lot that realizing January on And think Great. and February elevated of the follow-up, as the the to Really investors a weren't focused due levels. months good

on give quarter. maybe talk X into spread differences a color Johnson to volume reaching hoping coming was about Johnson geographic of volume we could yesterday the there? little little strong just you was sounds a quarter? April. how exited more and So like and trends and levels quarter & you're bit and growth you particularly in heard devices diabetes, that in missed the out you're The which It see Street seeing continue any seeing, And the second us the I in pre-COVID

Robert Ford

had our to said as bit staff at hospitals. I've we as was perspective obviously, some I quarter, along January, But and talked slower of I storyline I the the dollar March how comp issues the the that, similar, given do avoid definitely Omicron compare and sequential businesses here think started about that always a on that mean anticipated put my month of moved improvement versus the very levels every kind in than I it Sure. was comments, mean very from strong. ultimately we exist. pre-pandemic we little a off there surges in pressure

you our were 'XX If up rate QX we growth about look versus XXXX, X.X%. at

And U.S. So over of were well too. where up And was X%, ahead we XXXX, in versus X% XXXX. that pretty broad-based. was up was XXXX. Geographically, versus again international the

So performed side improvement I've as I The those strong, that we we've went quarter. business done numbers, March the too. and has very think has cardiovascular really of seen and our through well very kind well, was given device as

that -- environment, I launched year. launch also It's products started EnSite challenge that that we the the but I in seeing But Navitor rollout always it's is recently made to it good these Robbie, year, we're COVID would our last think a product. comments X part in it decision Europe, -- last make, also to whether recovery, put of QX Amulet, those in we're I was technologies TriClip of numbers, right in about it's seeing. on CardioMEMS, launching that and new momentum these began of

ahead of portfolio. say, the product both we new cases we're we that in in our of the having driving all I'd performance I but and were is COVID growth where also subside, the put, where that, XXXX, recovery think cardio it's combination, of which this would I rate pipeline the So as good say, launches

Operator

Vijay comes Kumar ISI. next Our question from Evercore from

Vijay Kumar

FX, the was be I incremental The billion, on was Like a Russia rate? much macro, or $X perhaps guidance That's from testing back by granularity COVID raised reiteration versus helpful. inflationary bit upside how what maybe question, right. is pressures? will of $X.XX right? the EPS, tailwinds like this recall this this little think, of this more -- and of is this Robert, guidance offsetting

Robert Ford

right inflation of got mean We've Sure. that. on hit difficult really FX $X.XX is that throughout chain kind costs, different I now to probably inflation and think I take the dollars there. having exactly. very curve. is another coming some couple the but about key back, the The restart of of it's a we've points about recall to -- pressures that couple me as Well, year distribution. and in on said the freight the of impacting it first a of I a terms of scenarios, able the we're terms -- I nutrition, we've step friction is the seen the million friction We've you hundred additional and of in rest strengthen in pinpoint be question of rest contemplated as costs, the -- got well, supply input of dollar mean from let

more So we said, some challenges. these absorbing And sales. COVID of that, seeing COVID are like tests is more I and

Vijay Kumar

And you've revenue our has my Japan? new a starts. declined. of starts that was Libre changing incremental And patients I trends? seasonality been all? what X should Understood. new revenue or couple reimbursement question we the And on the about is, sequential drove adding, think guess patient thousand I at Libre. then Sequentially, think, in the Is How hundred

Robert Ford

is to the to growth like U.S. scripts look I'd in scripts on U.S., go a there's couple Rx definitely I time here see time to mean total base. going of Libre Vijay. timing ordering. created from We've sequential the here, good of and seen some in QX QX from QX, that internationally we there. seen that see in that. think as of actually new-to-brand We've there that growth driver and some I biggest Yes. large And both at internationally, the very FX a to patterns QX, you say getting especially to from times you're that I close to XX% wholesaler the terms scripts, of

really U.S. job million in it's the the investments XX%. made We've We've salesforce, grown quarter our business Users users. well whether now this we've think So advertising. U.S., by I X in over the done good a in DTC

what I stride I'm and to establishes U.S. But there. sales its are really that can deployed I and want hit kind the CGM. investments think see more. introduced force with with of to we think getting do those more is not gets new starting beginning the to over satisfied. stride that They its physicians always relationships is team We the as to believe the that is hit know

think frankly, worked a shifting I Rxs that's think driver. and I look move value CGM patients. physicians always we the across whether the back, envisioned really away driver, is that a is what So evolution of and set the big from of a it's the think bit more a well. payers, value expand really out key is Libre I'm Libre more and is what see start I a sensing to but step things an now which signs insulin technology of I of a to quite to take pumper this The starting connectivity traditionally sequential, kind that. very move X which market at the proposition of If of market to pump a take the to is really here a from though, little the had be, X, beyond -- was of start a And market. to big And to of see much broader see play, of that. starting is segment important we're Type starting and And

again, that and I back strong what pretty about. X just said, really are over the mass made user this The to see a as we terms XX% as non-intensive. referenced, U.S. you opportunity at an We U.S., market of of really the in goes medications is patients get patients Type and Japan I a And base, this kind that, this we a you And to -- see market is comment data opportunity. base is expand using. our which growth a the If large look because already of in this reimbursement Rx driver. of to to become get see

study insulin we we're of patient at So devices of reimbursement how patient counter reimbursement proposition, UK than on about you're that think different to we maybe our price the TAM, segments how looking be we about are the versus it value the more where think in in clearly of a again, by effective, got TAM of for We've side. whether thinking have proposition is validation great and the NICE. was And strategy here of UK much in benefit value seeing where really pricing then opportunity look offer be you're a and product Japan to able the strong. for that, QALYs was NICE I cost is lot extremely in ICERs me, with a published users us. but was to ultimate view their shown reimbursement Japan, at our patients. to access you great by And can all or this to There

see So we're much starting than that market CGM the become to and the that more to mass of from for niche much of really kind a exciting more me play is evolution embrace to it's start Libre the for part market docs really real whether play. I physicians new prescription think primary to that, Type of reimbursement we're even CGM Xs. see of or access or And studies evidence is care seeing starting

Operator

Jennings comes from next Our question from Cowen. Josh

Josh Jennings

just start with I highest Bob, performance XXXX. and margins. was gross in just The to question the a XQ Rob on quarters wanted since

therapy follow-up on risk range in as thinking year, better just you're the is the then wanted return to gross carrying can profile? MitraClip XQ. occurs starting hear to next atrial should U.S. that Just understand the Pascal appendage the launch as market this I that you The place of XX.X% maybe MitraClip, out when And all -- that strategy margin have learned player, of XX% levels this in assuming plus #X achievable XXXX? imminent the and the in year what Amulet, in sustainability U.S. the in to defending player challenges your you years? closure #X early in be wanted into apply your And then is the the despite left in the days launch XXXX defense investors

Bob Funck

Okay. sales. Josh, the from margin the kind first margin the quarter, the I'll very take COVID high gross In certainly our benefited of question. gross testing

was mentioned than past in I we're had running of in remarks, that the on seen As full we've actually, higher the production because going that my plant, out on the that basically our fall-through volumes that. we through

quarter our that. definitely So first from benefited .

we're of As we the mentioned. at Obviously, unique look the the to going to not inflation and have recall the to have year, Robert rest inflation, obviously, inflation impact of that nutrition the increased us. is the

January, back increase at point an time. said sizable in we in some those and of we've as As think seen, I a And in of in seen other have a companies we what kind of guidance incorporated lot amount our headwinds. that

We've the the we lot's and obviously, supply going business, evolution that grow accretive top company. we time, that's gross profile how a line focus that chain in then in our over margin device year. something so of I future, in for captured is mean, a key teams company focused in our And margin mean, where gross dynamics are evolve dedicated within medical out the margin component. and goes, we and of to guidance that those think the And rest business gross depend, I of driving as year think will on be out inflation constantly. think, I we've on the this got as improvements. When overall to I each beyond the the the

where of so margin potentially And right future. the in gross now that's we and see kind

Robert Ford

commentary MitraClip procedure, right? quarter I'd end cardiovascular very the similar of Yes. progression COVID we high in So really and started On I'll kind growth your that on towards Amulet, but a of case say the little the accelerate so impact and February about was talk MitraClip. into our to my MitraClip had March. to question of on obviously bit

able been for cases we growth tell saw came and been improving strong the But And I this, with opportunity about on from the down, strong rate first of served. expansion a has mean, while, So to bit little work had break, growth incredible Josh, it's kind be while in talked you, we I'll robust I part this significant to data benefit and that rate. networks. I as put really as the pretty we patient those start of a don't have think from market we've And that to hold that, to COAPT, really benefit when able to took kind FMR indication, right and referrals from Delta got began that of COVID. and again the Omicron got when doing we its yet which the middle then been of and referral COVID those you

to can really the I'm again, So we take already so keep stay competitive looking is product. market, advantage we the forward kind and got in patient got this to really unique that strategy, which on ahead. putting to us to movements and We've place of Relating will network in that be unique the referral team to just of is reengage while. to indication, us for the into investing a

of be we And and we're a that great making the and mitral have investment staying us. iterating improving in patients. moderate great So performance surgery We're MitraClip, I about that investing risk a will position. for That new trials. and we've ahead with relationships done a on and our the in great talked strong team, opportunity we product. have

for market the So second Europe XX% an had there that fact a years competition largest is have We've in Germany couple remains position we'll competition. probably market, of not share. our and at global discounting the already.

investments established competition, -- do made all we but we will have have acknowledge of leadership because we've we to that position, that I create we this and intend this mitral So to the it market. defend

to think still been would indication. MitraClip. I about because into to don't come is think of that's we've So talk I what opportunity the best FMR the the still tap able I

of really initial job, start think quarter. Amulet, kind proctored. we to case same driven good reiterating the that by the in Regarding cases the comments, of with listen, again, beginning little a has the every challenged predominantly bit I done a wanted team the was fact the that And being

throughout U.S. proctors et move and to So the travel difficult cetera. international,

And bit spent slowed us and a But that year. of time March. and of beginning with to the in them contract up we definitely has the had all in February and you, the strong team as our attention team -- little tell that plan in of we established terms QX. has part of QX, a the caught I'll in So the lot really closes focus done had down a exit

the bit a get once supported get feel different really that's of of then it's what these shows well, dual is couple with the And performance commercial really of a unique of implants that's little And a it physicians and and of closure. the think the by I they but product. technique, So execution comfortable have superior because opportunity mechanism. the to sealing an doing is really data done, benefits they our had

out So the the came about leaks associated ACC, matter. which the importance were they're leaks was talked big whether matter, do they're with late-breaking data leaks some there leagues, increase And data and thromboembolic they an or of that in came leaks even that out small whether of events. small

here the pleased we're think team now with they're good the with what to doing, we've commercial So in position team, and a I got opportunities clinical Amulet. and I'm grow.

Amulet. building is momentum with think I

Operator

Our Larry Wells Fargo. Biegelsen question comes next from from

Larry Biegelsen

push So high-level me. Robert, thoughts see little preliminary XXXX. on a bit get if my One, I'll any questions can X and for luck we

benefit may this year, year. next You're getting which a materialize not testing meaningful

grow I and had margins year feel about testing earnings next ability demand how follow-up. So X your And as drops? do to you

Robert Ford

pretty In significantly what's decline to reported the a little to aren't regarding really and we U.S. cases testing your use the in testing, a bit we all cases in of Sure. kind now I that are going I covering think strong internationally. think that cases agree February. question, the of being Well, Larry. those you systems, that quarter I look are saw answer think some of the at we right right, available. all had have on currently of because U.S., But at-home And

be testing about to to live but be the day-to-day vaccines serious incredibly us testing been of to as really as more prevent endemic and And of that the that illness hospital have protect kind able part our process to and system, to really more endemic kind this state, checking. of and screening that's kind to this listen, we're state. hospitals move able state allows think I into So surveillance we this to as seeing move the it's we're -- powerful and endemic and moving of

our in So its its in the the here. here a country, whether really -- into cetera. well significant use, studies, product I it it's life, increase has, even and et think ease the maintained product U.S., coming pretty its of of a reliability with has status kind done preferred shelf It's

suppliers. do it So I testing One lot March yes, the of business. aspect our came confidence of we is Abbott testing sales we say, sense investing of an preferred that, does coming XX% markets. does And I that attention in XXXX that's there continue? international of in as international say, a get governments into have think even continue. as doesn't similar an go our from X the is testing And would COVID to test important I'd and state in endemic portion that

be certain of that So we go obviously, grow earnings. said, year, and to answer increasing diagnostic flu medical And the of going our of that's amount top as But look the to right? have as continue a focus business, testing business of systems the a I our portion we've investments can't then overcome, respiratory endemic state. like to on like I our in a there's device I that, do you there. that menus we'll your over think we important next that of And kind will more made that test think I think into kind question,

it's regarding base Yes, are to we but little strongly. XXXX, bit very continue expect grow I a early to planning. business our So

looking. are We

at looking some COVID able we're going are grow We to business and where year. next to be I'd be will say there of kind

next to I think and got. position strongest of very capitalize then year all the be in investments kind And lead probably in with strongly new going and we've that to is base market. business pipeline to the product that we're able do made we've our

Larry Biegelsen

in in past a M&A? if updated continue to strong your quarter. And this to think, unique $X.X What quarter? position balance billion like your back, you you I the you we going thoughts mentioned can't you're And sheet. you on are attractive bought saw with cash are stock return shareholders call, Robert, I this find on assets, saw to

Robert Ford

Sure.

rate. I'll that always we're make dilute our side, additive to want I looking to M&A We're the but profiles. that always that I We're be and I don't from mean, broken assets looking be yes, a dilute record it mean Larry. our our studying. business, our On growth to able looking. be into our will We want company the we're sure like I sound And to here, don't to need to needs always profile. ways growth at add add to to at perspective, strategic. to

the top at least line. So

and there, So always always looking. we're that's

Regarding returns our here. in listen, investments there our this of billion of because in are that opportunities And those our a strong Medical We're expansion you it's MitraClip, we've opportunity deliver returns year. And those We'll more. all great that is we'll Libre, done I at balanced for Devices, great are this always We've balanced opportunities look flow. our shareholders, shareholders. the return regarding take of -- kind for about for cash an $X made it's to growth We lot financial we'll if when for organic do whether approach. that always we're Diagnostics, a generating believe what flexibility approach, And approach, balanced dividend got approach. terms Bob Larry. talked going buybacks. of more,

Operator

from Next Citibank. from question comes Joanne Wuensch

Joanne Wuensch

on some would damage, thoughts of a to And back name, from brand little the get of business. is what investors feedback up? A regarding of concern I'm I level if circle to revamp brand bit it that sort to like take this nutritional curious you business I'd will. your the lot

Robert Ford

you're referring business? Nutrition to Sorry,

Joanne Wuensch

Yes.

Robert Ford

of We've the maintained that going we're very market. We've been robust contracts product of to even of a be brand is to the aspect a of be a got a contracts. key there's with A the with the got restart, I in of this kind we've resupply Listen, and quality those shortage lot Okay. to system. to some highlighted strong market. Obviously, We've process. doing able bit shortage. supply manufacturing little a we're things and network of Similac. a able that in that robust

year to look to at new to X had build was feel we that expecting us So growth our able just and we and resupply advancement. seen market of product everything with get last be I Joanne, that end back a a of last restarted a and to we the confident going of in big brand driver a And studied be kind once were our ability based HMOs year, and significant that's team's here on blend share. for We launched, had enhancers.

or competitors investments other even kind manufacturers, recovery, other question back and we'll of I we in issues that's that important. you the recover. market. happened going some past the share recover share just go with be to of the as of to at when Abbott and does say think have can it's historically, curve and us. is timing I'd do But So have look the with yes, The but And situations come to make these past, to whether some

Joanne Wuensch

year. way. forward What's big the And do it. this we're I the asking see talking going follow-up, going about as I COVID to think how testing I of talking we're be forgive it mean, next? you momentum But hope a about be to company, a don't me in for not of picture? sort

Robert Ford

COVID to we're think talked kind was testing past accelerate But it this about is also, in to that going or in told how people's expansion opportunity I for COVID testing an us And into testing which like do the is trend allowed it I the a lab we're the and don't connected. talking diagnostics mean, and pharmacies, play about the key to as I state. endemic I year. of of COVID way about point-of-care homes the do that past Larry, going we of believe and it decentralization what I've a further being in we think has yes, to into there's Well, be to be what said the in diagnostics, outside today Yes. talking role

where we're we'll that has COVID So when kind guess, more menus able that, say. we ID the more to panels, obviously building I tests. instrument, And different add be I think to Remember, started I accelerated would been NOW the about and we menu in pandemic, that of to deployed basically the XX,XXX opportunity an of capitalized that's market. that's be to able have fivefold into expand we into now instruments terms had the asset

back been on there's from our testing mean side say, I just portfolio, the the of the we've we've perspective a device rapid that still side. of to the early lot in pipeline I I'd on going working I next products what on launched still that the, say in innings that testing guess, decentralized would So are on here. that's what

Aveir we that quarter, and I'm them of approved this which excited One got our really is pacemaker. leadless about,

its business. get real our think be smaller I you're observe a mean the first could is I to you coming think what the product that it's portfolio when improvement a to maybe addressed market, an that whether think the didn't it's back But to the of the this X% I needs to to part reignite growth CRM generation already retrievability, do. be I -- device. second game But what And Obviously, ability to this longer-lasting We on kind quarter. now, retrieved, a Xx a what's dual chamber its product great going that about battery. with be portfolio. Right we've in it's ability about is it's that's kind know think think really our seen to XX%. a and exciting this market. single I market. upgrade chamber the is Aveir But existing is opportunity of had I to growth of our changer for about CRM

hearing interest from is the So we're upgradability its physician community. big what extremely

trial to So really to show I that think to dual think there. our I that's collect begin for and start is going chamber great for a us we evolve data as opportunity

look this great just to for that talked that's about opportunity just portfolio. we've the CRM really going I indication we have lot be product that the that excitement as think market. another implant opportunity is Amulet. seen up a post-expansion at We our CardioMEMS what me can gives great some of going be. a expanded about open I've indication, really started. seen to The of I and trends

I said as think that, X I've past, we're investing. is the TAVR that piece the in

seeing product, Navitor I extremely the as in market and months Europe and launched that we're it now. we've think is an been X competitive in

is in great Libre over Europe an the for expand but opportunity X not opportunities there. the in us, to market. continue there's U.S., only So to

and of really the diabetes in Lingo, using our look early as is last biowearable at call, opportunity is sensors that stages. great said outside think looking there. I But I another opportunities at

then So all I the we've are that their products next also. what early And stages. a that think in about talking now been right truly top, of lot early on we have

the about excited what I'm So next.

Operator

from next Bank of comes America. question Steed from Our Travis

Travis Steed

offset had on Or how the points? you're gotten like Just start with it Is confirm the raw to costs you're into to million inflation materials, biggest sound what it's that. $XXX just that curious wages, million supply I'm chain, thinking seeing $XXX you could about a expectations pain built some than P&L, degree? to the the potential when price? shipping and on ease for worse

Bob Funck

is Travis, question. take This the Bob. Yes. I'll

our we about said mentioned, did XXXX on a margin line. as January, we incorporated back guidance, million $XXX gross into million an incorporate now was which additional we've Robert And sizable in gross $XXX as really product So labor the margin on in is current guidance. and and much other The of total front. not impact logistics we're so Labor portion is some a inputs. smaller manufacturing our on seeing cost. It's in impact our commodities biggest the impact

So it's really on the commodities.

of when and very may the know do see we subside. lot costs we commodities, very would call And see come -- that it's a up, that exactly when pressures of of go. I they and will some of things that to some be, where a the affect kind but down. We and do We point, where this do historically, difficult go will expect on inflationary also ease cycles. will commodity terms mean, change, see we think inflation that -- In I at there's that's

Travis Steed

much would chain given China both of great, Libre X procedure of love also from a in and you're your then too. presence on I on and the thoughts be progress standpoint with would given the And hear there? how thoughts supply business have making your to And kind any standpoint, the a just FDA just China, you

Robert Ford

Sure.

started regarding bit and occur, where started in think then an well inverse we what pretty off little to saw the in China, other I all of of lockdown geographies terms quarter. the in as in to kind a the the saw specifically a And that as of of towards platforms of our in impact started proxy. at and procedures. see an Shanghai indicator end kind the early February into testing of look March, our We

So in of the also March. we the month started testing. of month weeks X saw of see diagnostic those April, April during during over a those down the And recovery -- last to go I'd say,

now starting of positive lockdowns, definitely we direction But weeks right trend back at think the the together and testing. were over PCR of some So there. in in before rapid of see X impacted that solid we I right the was kind hospital but lot of being direction. to level done to what obviously saw a was the shifted kind testing cities major of kind the in with that testing, routine was Still to not the the of probably starting move testing we're that

the would we're And same. all on in sequential not the are expect patterns So seen I kind to procedures. just past of week-over-week that based improvements move starting that to we've procedures in the

Some of them return faster.

kind and of April the to March have a do that saw of kind and start in different them impact expect Some recovery the improve. of little curve. in a devices of bit But we kind beginning I of

Libre had on a question X? you Sorry,

Travis Steed

the Any update would be like? label the is progress look Just FDA any might with great. or on what X. how Libre additional the Yes, color working

Robert Ford

did And X will say from a also. conversion call, I And of accelerate limited filed iCGM. to the moved there a Sure. this here of to Libre to much X very into regarding initial mentioned Europe Libre while kind of Libre feedback Libre That in Libre have think I kind I more an took that also accelerated an -- the X that. in from We in the X. gave process in you in X. Like don't to Germany. from rollout from Germany that about Libre positive We more really from of kind we when of system back started confidence a of update kind begin Libre market reimbursement to in the have moved Germany. really we got year. us well feedback in physicians, us as to I that transition we X X

over Libre think than Germany. that got going X. for coverage with I in we've reimbursement it's faster XX% be Libre X And to

So the high Germany, only for into that's not but the of now in moved year. gear, rest

it is a And focused very, on compelling that in lot now, can we're a we right have seeing is that what countries do product. it we do that approved. I'm Libre So the very with everything

Scott Leinenweber

Operator, question. we'll more Okay. X take

Operator

last from will come Our Matt Miksic question Suisse. Credit from

Matt Miksic

here some the could a these you in and And maybe rollout? menu with up products, few in growth context very what's what about the strong Just I the Amulet. for of follow expansion, the quarter. maybe of know potentially I know year level to new times just rollout did does next a through then this that if want about of through the And and set duration look talk like expectations, example, pandemic. this you Robert, I Alinity touched this started year? into it

year, comments in the get thoughts QX. is go put Any updated think the months? would love made where super around there XX thoughts could next helpful. picking you some U.S.? numbers up to in you I the your be here in on Just know pace your could share You've

Robert Ford

here, is with it it not systems. our only chemistry. recycle really Alinity to mean with with strategy multiyear of a done be We're I hematology. transfusion. able with We're this all doing kind at doing We're scale clinical Matt. never to been doing has Sure. of rollout doing we're This and immunoassay,

So I between the look think contracts lasting X that to set years. the market the way at are is up, if you XX

year, XX% of on you've any got coming an given up the So for market that's RFP.

renewal down multiple to of on definitely the legs in COVID renewal that that think The dealing key guess customer and the is just the years here able that I So XX% come. the just regarding But I kind RFP, I look focusing -- for the has terms and COVID. existing we've you're still think cycles, its slowed pandemic more of The what job what's what’s base, here. with at is lot And a not pretty balance asking, got done being like hospitals plenty would an good team balance multiple, a mean, that real defending really I having about of between to there's share say that strong up I in at gain. we've to a well. comes done

X we've over accounts, business win at to for been rate you coming So able that's say of maintain. here grabs, up XX then say, I'd the I'd And look out is XX%. if our

of once And instruments XX% think that's those the expand cost in XX% menu and use you in, about those put our retaining been they're winning when of ultimately there. the So You've math, got the capital that the to able what line got the while of drives that's be aspect to businesses, new an top service is growth. then instruments deployed, key you've deployed kind right? here account, then you

new from can do new line. top is menus, So everything et bottom the able be the to to add accretive tests, cetera, we and both

expand new a the systems. R&D that's on to would say what of with placement big to menus that concurrent the the able have is focus we be I this is kind team of So to the side strategy

question significant share. would position European position. in on the think listen, is that XX that here than we Longer capture share. our So… Amulet U.S. we We your we're share yes. Amulet, to The In aspiration I smaller U.S. a the -- I say, market, market, on estimate market much continue to have share a is in build double-digit term,

every new gets terms the So into technology. how I it's gets think coming in a believe used, the key implanted. is but is thing market, to us superior, it of have -- it different how We here for you time is you're ours player different

build the our our that system. sure learn out you from And to our there. as how need it product, roll implant, you use to you make there, physicians So off

think it. be also expansion existing looking at accounts, not utilization about but piece new I'm And that So that's getting I actually only very into accounts. excited in we'll the

there. movement we've that in and see we're started starting at to September back share looked accounts over As the October, we nice

exciting very us. that's So for

Matt Miksic

Thanks so much.

Robert Ford

close me here. just let Yes,

back we're the of at and being that great Abbott, of to grew my them building absorbing, think continue some in on start do is attrition are of doing year, We've to well, I on of Other facing, our said, off we a expect say, set supply the had all in excluding in which I working them That business lot I off positives. a continue restart. on excluding of to focused things with we've comments. January, build of very to side. the our absorbing, are said, business. companies the momentum. and company, quarter And I talked Like the that nutrition are like I I prepared that on I we're recall, FX to reaffirmed to very impact strong inflation a and know said headwinds to in in very chain that there's momentum about would beginning the I Bob guidance lot We're positive parts that recall and COVID, going that on that products, in and team continue well. challenges XX% some as the expect to building and that the absorbing said, the many hard base call.

thanks. So

Scott Leinenweber

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

Operator

This you. conference participation. concludes today's you call. Thank your Thank for

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

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