ABT - Earnings call transcript Q4 2024

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Operator

Good morning, and thank you for standing by. Welcome to Abbott's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded by Abbott. [Operator Instructions]. I would now like to introduce Mr. Investor President, Vice Comilla, Relations. Michael

Michael Comilla

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

Following their your take comments, we'll questions.

over forward-looking Factors, made cautions the started, financial to are report of Form statements of forward-looking obligation XXXX, cause to required conference statements [indiscernible] may technological the may call, or non-GAAP available guidance financial expected affect Abbott's which measures providing for that the measures press basis as Litigation as ended Note impact purposes Robert. are and operations financial year is the to law. On and related help we financial get unable which on provided earnings may certainty revisions developments, result other today's our forward-looking those organic in and noted, a except results sales regulatory governmental, measures which financial unreasonable are that today commentary predict defined be otherwise Securities Economic, business our growth, reconciled Act Abbott These that, is the Risk the our XX-K performance. the release measures Before Abbott's to of statements. the from company significantly on non-GAAP call for differ indicated to in Reform Abbott Abbott issued discussed on XXXX. forward-looking sales Abbott's results release these today, with turn items, undertakes certain past, investors news and I for forward-looking some website earlier will XX, statements ongoing not understand the to release risks comparable competitive, growth today. With timing that to our in without which a XA, with accordance non-GAAP financial GAAP be the Unless in GAAP for XXXX. Private in from at for because subject the materially reasonable to now could is that GAAP. including has December any filings factors no are company and by impact events in uncertainties on to results of measures publicly annual the effort, will abbott.com. with subsequent as actual Item refers

Robert Ford

you for Thanks, Mike. Good joining everyone, and thank us. morning,

per gratitude sales XX billion excluding growth and our delivering excluded included new throughout XXXX. COVID of to prior continuing gross the our quarter of of shareholders resulted XX% growth These work and achieving played included points the of driving earnings financial margin to the success. a capacity to operational record commitments, included my the basis delivering used colleagues with accomplishments debt for role strong ranges repurchases. These customers testing $X.X we our achieving adjusted form finished high on results another generating sales provided share end I strong for of performance earnings with COVID continued year. initial grew which versus that Abbott's and of rich advancing our sales, a share operating in the fund developing in resulted returned whose was Abbott exceptional results innovation, X.X% in improvement, to year track share and the express in performance, very world and expansions, pipeline. The First, year year through hard fourth serving the of billion the excellence of our products $X business, forces momentum around well-established our exiting dividends want repay cash increased reinvest in and which and commitment guidance profile of the at testing, passion to key Abbott's as flow, in driving which acceleration XX%, per the needs

we're of strong to year growth. XXXX, deliver positioned well another For

As forecast earnings we growth at turning share summarize over Nutrition. quarter fourth in in announced X.X% to $X.XX to more in our to of with be I'll we $X.XX, the detail before now which of call to organic Phil. this range range sales and midpoint. I'll growth morning, double-digit to start be X.X% adjusted the per the results the reflects

nutrition our adult of a Ensure is billion. capacity the by strong increased to nutrition This and significant reflects rate sales led global in nutrition, with X%, driven Our Glucerna another in serve last is Ensure which achievement the our market-leading growth of compound milestone by favorable growing X% of We the made trend. in nutrition, performance products was of X-year $X adult quarter impact growing a deliver year for of brands. performance helped annual annual significant respected well-known brands, year. demographic continuation adult strong double-digit trends, manufacturing annual growth expand last with This and year the X% surpassing to the our a adult we've The in products. sales quarter. Growth in and investments well-established achieved demand sales

rapid clinical increased Growth and Laboratory disease increased diagnose X% Core driven led chemistry, XX% for sales of strep by portfolio demand influenza, testing of sales RSV. In used where diagnostics screening help by tests in and the by hematology market-leading continued blood excluded panels. strong respiratory throat Diagnostics, was This COVID Diagnostics, testing growth for X%, to our sales. demand COVID immunoassay, excluded the strong testing driven was our quarter where in was to Moving quarter.

all quarter. dynamics other challenging China, the combined double in the markets in market growth Excluding in of impact the was digits

focusing markets in the we across quarter. management. across Turning double-digit women's markets needed rate CNS which in most X-year serve, X%. that delivering annual therapies to several health, countries in, EPD, markets, on participate compound including well these EPD where in Middle including EPD across we we balanced sales broad-based of the therapeutic and for of and a increased faster-growing track long X.X% Growth our and to Latin growth growth includes the delivered areas sustain was the America, gastroenterology, southeast also continue pain strong East. By growth Asia record growth,

where grew in wrap Medical up sales Diabetes and monitors XX%. In billion grew I'll of with quarter sales Devices, the $X.X Care, And continuous XX%. glucose were

X% U.S. continuous the points included last on markets. For and the by of market This sales U.S. increased full a our X in the year grew share revenue of well where years. In across balanced Electrophysiology, XXXX, XX%. basis $X.X international billion of approximately over XX monitors and glucose the share growth XX% has than more was were growth

for Insight As expected, quarter prepared prior cardiac customers we a by systems the as the growth increase of was mapping our year in where sharp the launch PFA impacted versus challenging a for in demand catheters. saw comparison

we and in seeing It the attractive area dynamic, transcatheter field and growth valves, prior globally is replacement was those would Heart comparison portfolio Structural and across double of our interventions invested one in strong Structural Excluding products. technologies. the most Heart, this been impact have and repair of structural outstanding XX% investments surgical market-leading growth that we're an represents of of digits medical results. the U.S. areas yield have of internationally. In in heavily, year the driven by performance

And month, our pacemaker deliver of far in announced exceeded of Heart assert Structural we performance This heart, activating Our we the currently leadless that year, branch X% of the Ribbon treatment innovative by specifically portfolio was we to which by Management completed market-leading Management, comprehensive was markets by growth in delivered by Aveir [indiscernible] another heart's device stimulation cord business left [indiscernible] growth granted of full launched growth the to growth our device. the was new for of continue highly Aveir, our Rhythm our led we portfolio sales of and year throughout devices, Failure, drove the system. chronic X% spinal cardiac the the heart X%, bundle in double-digit implantable driven for year. Heart driven vessel designed to the of products implant last expect year. X% our stent. international a X.X% innovative newest grew by Last growth closure was below for demand in sales offer first-in-human Vascular, are conditions. In that resorbable products growth pacing With area an monitor, this rechargeable the temporary year. In and lastly, designation strong and market, growth natural development from the breakthrough FDA. In assist in which in in acceleration U.S. of version knee conduction of led and of that Neuromodulation,

XX% summary, sales So and delivered in with growth, quarter XX%. earnings of strong another growing per share growing we

we're progress great we The progress to positioned of end a into we we profile, year We For ranges the the expanding now margin continues made XXXX. of continue initial steady well deliver the upper expect provide XXXX. I'll over provided and cadence Phil. guidance our growth year, another call pipeline turn for of in and XXXX. to achieved to strong to that gross growth the new opportunities,

Philip Boudreau

Robert. Thanks,

sales mentioned earlier, that an rates, are Mike all As unless please note growth noted, on to organic references otherwise basis.

and testing results. Turning when organic excluding an sales. increased to increased quarter XX.X% X.X% fourth our COVID basis on Sales

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

in the unfavorable strengthen earnings rates which we time October. dollar to the at sales in on quarter, currencies, During saw our compared impact most resulted U.S. call the against exchange of

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

was quarter fourth our XX%. Lastly, adjusted tax rate

quarter. Today, reflects of double-digit adjusted an and for of to $X.XX, per XXXX. to our outlook to share contemplates per Turning first year for adjusted the full we $X.XX $X.XX growth of share the $X.XX forecast guidance which the for range at issued earnings earnings midpoint

rates, the which growth reported on For excluding first that the total approximately full sales the includes an COVID less on company X.X% are quarter X.X%. would of as year, XXXX. Based current note longer testing testing of we organic on year sales of providing expect we separate sales, expected X.X% growth, reported forecast an guidance around be exchange unfavorable unfavorable than sales. sales range Please for sales represents X% sales to have we of COVID in no to impact in X.X% our impact to

full tax points expect profile sales, of reflects year We reflects We to prior which XX forecast an X be which be of improvement the strong at XX%, gross increase now XX% leverage. We margin to questions. range tax year. around the a year prior that, rate in our full the range year the operating reflects forecast compared adjusted of of improvement to basis basis margin to related framework. With gross versus XX.X% and XXXX our to This the an an is the midpoint to of points the of XX% XXX of which expansion margin improvement adjusted the versus year call be combination of to the of Pillar driven adjusted our profile adoption range. for open sales, around XXXX in we'll operating by margin XX% last

Operator

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

Robert Marcus

growth again. key the and and high different segments the P&L? to Congrats and Maybe some guiding the top you again growth down could quarter nice on in about business maybe, the a and think single-digit organic margin operating see healthy we could guide. back components margin the Robert, just the the XXXX on operating nice speak algorithm of XX% expansion of guide, how should once I to the growth, to line EPS of some expansion drivers start And with sales

Robert Ford

headline nice print double-digit it's to back kind see Yes, growth. the EPS of Rob. now Sure, to

it's things got XXXX. a one lot I Robbie, you'll think of as of I one that I see we think of of But you -- the things one that's growth now, into mean, that big the is things go probably there. you've drivers don't in these that have you XX% we cloud EPS the And we sorry, QX overshadowing growth COVID of that's drivers got kind as showed in showed sales as we real growth. strong EPS the -- decline business. that XX% all QX in saw the

his in It's from mean having COVID but I it's, we've significantly in Phil our sales decline. just not those I got that's sales think aspect. one comments, as So perspective. less total revenue big said XXXX,

them. starts always, where benefit the we require then health going benefit or there. from on from increased health Nutrition in, wellness line areas growth And I it X focus to diagnostic and requires top they business. very health it's remain treatment are care, get we think the over our a we that focus it's tech. so whether a we've and got consumers, with test, all different a XX% test, we're pharmaceuticals We're from that the get about on of we're on that of companies diagnostic attractive. seeing mean so continued in dynamics seeing diversified we med Every I them treatments, care to whether markets several acceleration compete Robbie, in

then portfolios got so And shares. And with in very of And your up accelerating. Aveir, that if high-growth current space. products those got them, these you drivers, contributions, we've we're TriClip, either the and all Navitor, whether or the of at taking are cardiovascular those market look markets, markets, within they're keeping all Libre, strong outperforming it's Amulet, product we've the

So portfolio, the would the are on-deck lineup circle clinical I after it's then got that, And readouts. bases Libre are the you've coming innovations right in that. nice up biosimilars, loaded, call that whether of trial volt, and [indiscernible] some a

growth improved feel about QX of we all and good QX. very their So businesses saw businesses, the to I you the all from think

well average, guide the margin of in that's can improvement starts margin what's to effect. achieve on mix basis line, improvement the -- top tune of we've then about products with XX committing by lot talked embedded believe margin gross gross them. To it focus that. the another and margin positioned continue I'd the a we're is gross of XXXX. achieved the in higher and in will continuous programs ahead improvement on say on expansion. that We driven think I we've a in in drivers, got We've XX-basis-point get margin some of continued mix We that we points, points of gross and work your that that basis on as grow think question company be improvement you I So done the XXXX, XX to

talked gross again, was as was say during business. margin that P&L, be the had margin past, down COVID which X. X, we in we've of to I'd spending another And expansion, think the or we leverage leverage. then which obtain the then have the across And I as the margin COVID and to gross original you've coming leverage opportunity, spending really formula, think only got an got business now our I about challenge you've able X and actually was down, lever relied on equipment. is We expansion

about got, So leverage. on XX% you top growth all put that got some the margin the friction the spending the And together, actually line, then and underlying from coming you've gross we've obviously, EPS in FX. improvement

going strengthening rates, which we've is the tax dollar, a company aren't and to every as think We've increased I face about surprise. also that seen known that.

brings that so And us down to that XX%.

for at look with how productivity, now bottom high strong deal and gross improvement, you've built, we line, say, is cash which of kind I this top Abbott So spending, okay, what that margin is line, the the operating that to FX. single-digit XXXX flow. know, know double-digit we identity seen We and leverage Abbott

so at I It's able with So notes aligned tax we QX calendarization our still it it a I tell EPS. and about to with of being dealing and we coming very deliver some think QX deal saw and this I higher to you, year, was every rate, with Dealing what much double-digit could about we're maybe pre-COVID. aligned it our is some year very to EPS looked gating not all or what in was much XXXX. it again in.

XXXX. to identity there, So are again, the Abbott we're and Abbott looking all of elements we the forward that know and

Operator

Larry Our question next Wells Fargo. will from Biegelsen come from

Larry Biegelsen

it So guess starts you with line. Robert, about, I talked the top

really CGM strong $X.X growth over for constant another billion had of in sales. You with currency XX% year

XXXX. the and I'd the issues have for color to you X your Libre the on launch? growth hear expectations of you any about status LINGO So in love talk supply

Robert Ford

Sure.

X So Libre let supply. talk me about

call, of the bit last coming force. November our a there was I said, and but As we and about our of we a were new manufacturing site of online we there process seen Larry, bit That that's in little now mismatch, full little a the demand the there, manufacturing that but was in U.S. friction going up the and here up in and at were getting I running. spoke especially team caused during seeing, as

I little up often, here the next bit with look saw on QX. look our are guys at the that NBRXs quite know important the those to X supply running to sites to I throughout grow metric at businesses or those an you not X So I manufacturing a able like you'll you guess, to We're I on quarters Larry, Libre but TRXx. think see they're mean, start it, how only I doing. the metric and X XX%. change the X U.S. see in the a and think to and are

elements other are aren't there that So measured.

-- you challenges also. relying of exclusively impact in as saw think competitors the also QX on also I those you datas guys had

So I metric here. look it's to but only of that an not shown ones, important and say, it's we've the kind think would at, I

So and better. get to Libre X it's is well doing pretty just going

some insulin look first, using there that more XX%. it's I still XXXX, U.S., case, the I XX% intensive interesting kind segment. are on not look about here say, if I think as mean, I'd that base As the of of there's at in there's if growth international, a at still you us. drivers for like CGMs, think segment say that and I'd you pretty are under-penetration

believe this in XXXX all think segment, a case base So I this there's as driving I this all X there but that are us. to for opportunity that opportunity still growth, think accelerates in I areas

more coverage. move more we basal evidence, with One of to reimbursement clinical you expanding continue of the see, coverage, them And see markets and is towards obviously basal publication coverage. more

Canada. These Now it's markets that ones are a coverage, we're only large whether we or where have do couple markets. the of Japan have that

keep head that. opportunities So we've where for got these on start driving great we'll this us and are

of Basel is a I So big think growth. bucket

regards the area you'll that's us penetrate, be kind been connectivity all continue several partnership about us understand expanding been we for just throughout be talking I with consumer to different growth a year share, trends. We've us of I be U.S. as of that and that of we've but being think due I think in opportunity it geographies, that cities, number for nice strategies at that's to the on the more takes area and insulin see an very through to segment whole a delivery that to I insulin able about penetrate other able the segment, LINGO We've -- what announcements growth it with share. And ability different in doing -- launched now take pump launch see this this is the talked to is think looking drive with application third this that more OTC take U.S. of this. segment to with of albeit this areas share smaller think internationally and I and a expanding acceleration the systems. non-diabetes to adoption potentially with of to restricted area And bring in here probably companies. nationally connectivity gives and other we'll the completely but things

LINGO think be the And several especially is my I rates. launch regarding of I growth. those to expectations, leg think that's going of continue, of going surpassed I kind as to and So the think, I very stool on so think some it another say well. In areas, reorder

kind for got those Libre. growth planned I we've that of are really the So drivers think

opportunity. intensive then insulin And that. got opportunity, is accelerators -- on pretty a you've still segment these insulin top I think of X significant the an

Operator

from Our from Steed Securities. Travis next question comes BofA

Travis Steed

in DSA now. moving that, and a the to so even high mapping faster One still wanted There's is lot your growth, in market moving around strong than comp. big was quarter, I of in that right forward ask it had setback progress about single both. and think competitor EP a things excluding tough digits the I with

the how market about how launches? bridge ability thinking regain and once 'XX in EP PFA of to share growth thinking just about So you're both as 'XX in kind your you

Robert Ford

growth it think rate. us, PFA mean our I and driven adoption QX I surprise really wasn't a Yes. regarding of kind any was Sure. this not by for of

what through advantage offer open and where one effect ourselves, for has to for success effect QX been do really I've drove mapping. strategy, us us was to what open we're as of our -- our that very -- XXXX, calls, we ability I in positive. going net-net taking XXXX said, the fact, previous is did we have to And of said in did of okay, that bridge Travis, truly of the really the the our only In ways think we system. in What real net is an that's actually mapping execution

was U.S., the issue. created digits double QX, internationally. that It comp XX% XX% in So that in

the about results, So I think been driver EP of And team spectacular, think last of still of I say our seem them I was would very team. you -- field I expectations been we business. a just what has The outperformed to that been think lot close has again, guys I've really strong. the good. these the did think. I in think, that they And the And many I and year, had

So procedure a general Agilis looking guess introducer our really did what just also. next-generation trends. We've catheter, in mean I benefit that's it's new our products, to from And increasing I some launched opportunities answered with mapping your -- great GridX in the sheath, expect I grow XXXX, we XXXX recently to for continue the us I in our XXXX. got to at whether opportunity question

that We've catheter launch. We'll got the very energy dual got with with is customers. to mapping source now going We've we trial increase everything to right U.S. competitive be maintain and and a position with expect strong. KOLs continue bit So ongoing intensity engage that with that segment more comes can XXXX. it little ICE. been confident sheets yes, in in all to that, come an the internationally in to new and I'm catheters. comes the the pretty I We've our But our top that a On to it's that. when ablation consumables integration strong pipeline of kind got It's competitive. a of

the us to continue the with and interaction users. think I with that KOLs pipeline the allows So

expect should I on like we So XXXX in internationally. PFA, more you least It's XXXX. to think mentioned -- bridging PFA at

it. And start, maybe the made call that to the half like got that some to full So digits grow the Volt opportunity in year, base our But first and case. dynamics on single as I'd to a the seems of good And of a half is still point second halves, you've I where a place good have also. feel you board. faster comes high competition be tail weeks, couple for the than about for the X about then an last it's to that say, early tell, of but could us occurred little bit too that going

only So real but not I the about that business, good doing importantly, strong the incredible an job. we've team feel got. pipeline, They're more the

Operator

will Kumar Vijay next question Our Evercore from ISI. come from

Vijay Kumar

and gross finish to operating a but strong gross you margins, I leverage, margins below are both year. driven a by your Really don't I on the operating strong Congrats had margins pre-pandemic. guess X-part if mind. question, still

at margins, normalize? look you are sustainable about perhaps as but digits, thinking framework we when margins gross curious, I'm trend margin at the how triple not about So should be these trends,

And screening, cetera? medtech. How my I'm you're picking sheet. about curious been thoughts diagnostics? up on there's that et M&A devices MRD, I'm activity part curious cancer some is second thinking on versus any in balance

Robert Ford

I'll let the the I'll improvement, that talk sheet and margin Phil question. margin take sustainability balance of and gross to your then

Philip Boudreau

here. Vijay and Robert Thanks, Yes.

and calls changed underlying touched margin has this an really last organization, here of we nothing front, here. think to relative and in the I spoke focus to of on the Robert as gross the the On few business

inflationary commodity back much really I'd resorted call in recent that of I our with to accustomed that expansion. was has causing and gross which years very margin organizations we're think the the inflation on difference to, prices, erosion normalized sort it, through in focus significant managing pressures

recipe And and you do much of the was the exactly XXXX in same. the we in to XXXX saw so commitment expect to we're accustomed what that,

to we expense legacy a it's historical but a we from margin continue, back profiles. if, get to matter the when expect gross this not of So and standpoint,

Robert Ford

to how been you M&A Yes. mean here, on whether take in activity, I a I And of a question I'm kind opportunity. I've your to much said change the think that don't to do this, maybe got to much always -- good creates some goes balanced I there's rate regulatory I an out doubt. there yes, this uptake goes sheet. a on pipeline. of your balanced give talked opportunities kind of question, take formula balance on I've We we've going you're and environment, no strong how think going and but see organic of approach. environment, There their. are approach. allows It generate but guess that make that do also. how about at to Vijay. ROIC not we opportunities selective. allows look us us attractive important to strategically, for It be also sense us I an is return. talked on about a

but return capital. on line, just not top that So

here do of that we stewards capital. position take a being of So

point we're that. at position. rates year, I have great say, yes, We that So pay some I'd coming down don't a anticipate which down look want the we this might do to in we refinancing will. to debt to

about It's -- this in billion to a and diagnostics, even to that tech, to position be off to But great $X.X There's we're that, So see, we'll selective. we're in position, us it with our in debt. opportunities we'll great able a sheet balance leverage in talked that med opportunities allows opportunities be year. there's about pay them. with and

Operator

our Jennings TD Josh question Cowen. will come And from next from

Joshua Jennings

to strong the on echo I finish a year. Vijay'scongrats

top in continued you guidance think the and about some shift just was operating of for may just I question but help margin I how through stronger-than-expected I Phil, just Nutrition contributions you 'XX, mix positive Diagnostics. from just basis year? strong the points sustained open a the the and margin stronger because you talked growth. hoping was lot us But the macro 'XX Another drivers, a and device Robert should EPD, line And with 'XX should in appreciate margin about XXX question. in expansion expansion thinking the to think about we And beyond? outsized and thinking a taking expansion XX be be opportunities then just we

Robert Ford

to a our especially I a we of Yes. mean being I'd lot op profile, that we know behind I ahead But I like our to margin prepandemic. mean actually margin. gross about talk from were this after pre-pandemic is XXXX get that. for guidance where our

last having not through felt and think some like able working a I really have. things that. efficiencies. pricing those range on So those to to commodities improving had about bit given have FX is think in had go we address this commodities. increase algorithm being every like you some those Josh. of quite working the the margins, that's that get talked or constantly been and where dependent down. more sequentially gross provide what I if to But I That's cost freight mean, that of That's of not we're almost or notion. on improve to like right to serve good a were because they margin. always them, But like things even, which say, we able part of mean But initiative frankly, years, ways back the X we've a I gross spending the gross little think to constantly in of look here strategy over offset and and side, using have that, I margins. I'd came just been at to on XXXX, we to encountered our it's and It's where We've kind this like got and quarter. to got of tariffs the spending the distribution, teams because bits of we to any nutrition inflation we're I we've just anything achieve there, surprises. either

is margin Nutrition years. done the think job they pharmaceutical next got that teams gross at have pretty an definitely significant at incredible fantastic I over a the an we've gross couple The mean a opportunity of margin So FX. FX. job under do offsetting I maintaining

over years. margin points If actually last couple look hundred profile of business, that basis of -- it's increased the several in you at the couple

do margins quite do frankly, units. if business able on just I So we accretive element all have continue that is they've think the different business med keep tech other been margin. And to to can across gross those gross also of And that that, ensuring model through And basis driving the we committing to points That's get to to committed we're single to for our We closer then pre were getting you target. pandemic. XXX that that's XX, we us year. XX where we XX%, how of XX and maybe XXXX. to now every to deliver that

in So and the I feel discipline They programs to time. the don't We we as these management oversight. doing, dedicate about decisions. team place, make got good what a just we got to we're review happen. There's that have strategy

about good it. feel So I

Operator

from Our Roman come from next will Goldman Sachs. question David

David Toung

detail hoping, was Structural go little on could you into a more the I business. Robert, bit Heart

think appreciate like double-digit and it the how onetime about comments into XXXX? And nature Abbott we prove some I you categories, side, competition bottom legacy As getting headwinds in of China TriClip high and broader of in of outlook like here, be contextualize emerging help evolution some But just that break business, looks single-digit and back kind maybe segment. the MitraClip in nicely pieces could like could a XXXX that which top more and through to on portfolio, diagnostics line I you of drivers, the about down maybe line. that XXXX, did of should VBP does carry like dynamics more the the you repair to the that may balance tricuspid us about transient that have and your the EP. some are think very But

on some you contextualize kind we well? in help XXXX maybe us the also term as Heart, long but about Structural as color the could So of think rate growth give

Robert Ford

Sure.

like it's think the sixth we growth. a on XX% after comes posted Structural Heart question I interesting,

David. you, thank So

we're look that really of not in Yes. my side But one truly doing on really it's tech. years of And kind growth, said a And most attractive the med feedback And looked market-leading here and the getting mitral said surgical, to just for and of it's to is valve, full is it think, replacement. of at -- this repair, rely surgical area side the I comments, opening a to several I kind think our keep look the areas products. going incredibly I in preferred on Epic just one build platform and to As we going on portfolio going mean of well I across in we're entire but ago go-to surgical I even a we're at drive the area. I assemble one

prevention right, the portfolio They've also of I did as actual portfolio, has growth aortic and that's I Structural with U.S. feedback of usage the player But seeing real-world with the there, Getting past, very QX some case. really out probably very, yes, well being Heart here stroke the cases on clinical whether building we've And very into quite our frankly, Amulet our now think it's a segment, there been David, through think in as but MitraClip. product. that been positive. in approval, clinical the the in was PFO building and driving approval just viewed Navitor the say, also trials, established sales the credibility, been just XX%. Amulet grew and has would

our portfolio So that investments, out whether there. a [indiscernible] full talked are clinical have we a shared expandable trials -- to our big developing portfolio. to in indications. We valve, aortic recently want making and we aortic it's balloon about our We're build

to to there's On say, were tricuspid TriClip the well. side, TR. of here real very done frankly, leaders has quite one this throughout the opportunity well, there transcatheter no It's treat good we extremely done hey, year. And here

the ratio with would competitor. MitraClip. the about and an that our done I X:X, repair says behind data approved that of is replace has now, getting team built job of the incredible right think in leveraging we're say all I and

areas. a high-growth it, growing, call diversified products is very and, portfolio, you frankly, what more let's $X.X in Structural see Heart billion these quite competitive So

an and making even think of TriClip more I launch. new ease going we're got updated We just these investments. We've that's implant. approval committed of of to the So to Amulet continue, versions version got for an to

expansion going trials this clinical indications in and for out TAVR see You're label in LAA. area read in to

kind area seeing So from growth your from coming team now, this that -- and... you're of growth great what that execution was so... What rate was your an rate I about the think is the just question investments and

David Roman

growth second headwinds XX% as in Diagnostics of rate onetime-ish yes, to and VBP given trying just the speak dynamics EP transient like the China was some potentially I was contextualize kind being well? a to in there

Robert Ford

every QX I in in to with mean, to XXXX year, there's Yes. panels in regarding want I to that. yes, in rolling assemble, mentioned going of going rate the That's right? headwind some through mean, quarter, always areas, America, our a well. diagnostic is David, be Europe, business were the headwind. Latin U.S., VBP. to areas be is listen, I'd more you do higher than say, a was which out I of for here those bit is most us as going that, every they're little new doing tailwinds one, us than headwinds, diagnostics growth full But in that's actually faster very testing go rates QX. growth is even of outside year business same Japan But

more just We and to not it. VBP, We've But the goes of these, got do it. So X but to and define this to have Every company important It's companies still than X to David. it. you a more do the VBP what with the just an trying still going have market, by having managing of to what, yes, market. a leverage. most do tailwinds know still deal we're through we headwind. through X lot going challenge, okay, And but is company business. We're we're important a part kind gone company diagnostics we've in is, are

pretty is pretty So X% base and rate the I of $XX-plus the mean, good. strong is think billion, robust. midpoint growth at I on very think a I

Operator

question Joanne next from come Wuensch our will Citi. from And

Joanne Wuensch

of price. talk at as things seeing could like maybe your and Nice that about constantly looking of think you're volume quarter. get feel the answering And I'm is on and curious med I'd market. I'm you not view seeing, growth, on step if tech such back delivering you everybody something so sort mid-teens revenue questions and to I I health love just the overall that.

Robert Ford

care that does Sure. on the -- entire health system I the tech us the little continue all med demand. not seeing companies what questions bit does tech is, think are our reporting portfolio a what mean is what look and it structured, I they're you're to med is way I think reporting. growth, got into Joanne, bird's give right? in I the pre-COVID spectrum, to mean at we're it's And ultimately if do I is which put us getting pent-up you've think market, is view And and of it eye a

that a are procedures. more seeing are or greater are whether into from You developed technologies the these being people focus attracting consumers that

to invasive, the guided we're as look of market, seeing growth with the innovation. really at, real mean the are procedures it's demographics, viable what they're think procedures and versus combined and I terms getting therapy. option people that bringing that's it's innovation what medical is the the less continued pretty to more is So spectacular industry doing attracting utilization whether these first-line we're faster, getting here driven by select I in a

long strongly across as as tech. our and businesses in in continue to in frankly, continue rate we seen going pretty improvement where that's sequential growth you've obviously of positioning are think a I quite So ourselves we this, this to see the innovation med lot

increasing. is the definitely think I So utilization

to actually years, erosion what's think there's say, price going with We've some I'd been the stable. I historically past. in happen it's pretty questions, the some maybe over last of seen okay, pricing? couple

So business here diagnostics. our got growth. we're where hospital-based too. A that actual pricing. seeing with know believe scenario what's play I how it see I that's don't out. in We've going think our we is medtech And But stable diagnostics, to lot with stable some utilization, we'll pretty diagnostic pricing of is this portfolio, combined driving a

and So seeing double-digit high single, routine growth those rates continue double-digit, diagnostic to increase, low of tests we're diagnostics in those tests utilization. terms

of increased from and and consumers that themselves for technologies this viable So is care as these just treatment. at utilization I looking med tech benefiting option to take wanting think a

Operator

come question will Our Danielle next UBS. from Antalffy from

Danielle Antalffy

I'm obviously good you've businesses, sort past, being I'm really 'XX, to of obviously, a areas in digits we've growth you talked find about mean, high-growth longer med high talk term? thinking businesses. peripheral, one the elevating other on I failure, then maybe but in those areas, in that also Can how like the year. of legacy the and lot quarter, or end you're thinking Robert, to heart but about some growth. the excelled CRM slower where [indiscernible] we in growth Congrats tech CRM talked single a mid- about profiles you those thinking strong legacy

Robert Ford

Yes.

our probably it business, of of that one was looked you strategies So if med was was at to we years EP, combination growing like we like Danielle, historically our portfolio like markets. grow work And of the able tech we said, to and to of XX%, we it mostly a we med our failure. X%, our a rate if tech the Structural couple that we Structural get portfolio accelerate that and is at med X%. Vascular business. we'd et ago, cetera. CRM flat be areas our Heart, that looked been of to then CRM high-growth the growth find XX% XX%, tech would looked was was that get X% are be businesses. And flat the way Heart, business best-in-class, growth elevate EP, relatively growth grow way continue had the can at And rate to strong to If our And XX%, But Diabetes, a to mid-teens. we these Vascular to is need heart even of get our out and them, them to able way the diabetes, can be to

So have the we've last couple that's that. team of the what and executing been been doing over years, on

the on of kind peripheral to little do increase seen in of and the growth higher bit areas, vascular accelerate you've participation side. our combination think specifically is I and space, us a used a organic what inorganic in

good I a been you -- started think quarter. to growing that. We've quarter was and see -- this So

seeing space. now business start peripheral and Our stronger those target for you're vascular to that -- in that having by X% was having around more And happen. our by portfolios pipelines

to side, in On very and sorry, leaders our leadless. leaders a and the CRM was getting strategy here big be the -- organic launch comprehensive

the to continue we're in actually CRM that And think last into ago, think chamber think over last strategy pacing leadless business the Aveir on years also. is this going area. I that these our is a X that least to dual that single I seeing we and launched mid-single-digit the to underappreciated launched our year, growth. you're of it what at probably to think most doing, call, towards Look portfolio. but that opportunities has get have you're end up now really -- that strategy businesses, couple the chamber in So which grown I the conduct the of deliver right X%. flat now, seeing asking that those we seen we a the lead I at innovation, focus, a the extend question bring the start to years, execution to is businesses mid these really And you're and with you've can

that. like that like the there's them characterize I think I doesn't team

But than and that that's glad had got So think in that areas, think do of in that. there's good. better be big to innovation those. can they we those opportunity they a we've lot I'm

So good about we feel it.

Michael Comilla

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

Operator

from And last come will our Miksic from Matt question Barclays.

Matthew Miksic

think It'd you policy, tech Just be here, things of the And gave how the or on dynamics some your in this and [indiscernible]? overseas and to tax should get maybe for guidance maybe U.S. we follow-up about great going? year of a given those are the perspective and direction where

Philip Boudreau

is kind your That is coming XXX-basis-point point reflected to driven midpoint Thanks, is a in tax from, X of business opening here, Yes. the Matt. kind in about rollout here is by of of Pillar guide. this the our enacted increase in the guide adoption as the currently in where increased which countries. increase is growth of mix at the and we've But that going guide our all of of the guidance moment what narrative geographic There's current of referenced a we laws comments and to lot on. and

And so that's what we reflect.

this narrative We continue within still kind Robert compliant and taxpayer, and be the taxpayer, we'll see here. business. run the we reflecting what's But as this we're and of running way currently, kind highlighted, of operations how the absorbing a unfolds of to known good more

Robert Ford

want I -- Matt. me Let one, that to add in on

really gets up, take I just -- world, a to you've of think you It's rates you'll years, increasing. same election politicized viewpoint it's in that got down rate tax got during business what or find this to applied quite especially another really political get expense. corporate mean to here. manage you'll tax companies I one form had think hear just get and And tend debate. And every -- and of other at to the bit. that a handful a an maybe rate and then were if come expense you when not sometimes, up our low world, come it's find what maybe And unfairly picture when goes just I every a they a expense. have cetera. in -- not the in increase economy I But small this [indiscernible] what these topic that then bigger and company expenses taxes one key the large never of We're of et predictable dollars cash people is some. are of And kind then billions growth. over significant I that and got XX%, invest the cash paid. so companies, which narratives We taxes. about their talk but role share, could I GAAP making companies their thing you capital mean rates. and matters projects, is, the We share have R&D be of these U.S. is the most more to The successful. that's use a really we get pay a then our we portion to reality fair that's drive going Abbott. Abbott, companies then pay about importantly, fair companies U.S. money talk conducting in -- like That's play and one U.S. In

has millions of last And increase dollars health care the workforce, CapEx in employee of couple that investing We increased hundreds increased you're over over of when employee you our XX%. spend benefits. XX% workforce by Our and years.

this what's I Pillar That's of here added. that's got that's that that -- Pillar even $XXX actually those of X this additional So And more paid X legislation other quote think rule of to is rate adopted, taxes $XXX kind investing expense. to Phil an going that to expense overseas of is this going million we million, is countries. And in -- all of $XXX be X/X it challenging It's areas. million is it not is.

really not good for a that's the policy U.S. So

are said, some still think as issues so But absorbing it. on. we ensure here work this. to I new that we're And overall hoping or to new kind that still have of I can and goal a policies we be We're couple And or get U.S. companies the managing has there the of to competitiveness think to multinationals. XX And so. next during I'm U.S. got the months

just Let call. on kind of me close then the

that's had what really QX gross as our of at XXXX. growth to strong XX% exited balance going top to us said we attractive, the XX% do. range, I Vijay's finished provide highly organic The lot sheet we expanded sales end were going said, EPS, line, continues growth think And we've I steady got delivered opportunities. and we our of new We to to think, a a I of a strategic over be highly, to was our pipeline cadence finish margin, great question, higher flexibility.

think really I we're So XXXX. to well positioned

thank So for with today. to want you I joining that, us

Michael Comilla

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

Operator

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

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

Abbott Laboratories (ABT) 22 Jan 252024 Q4 Earnings call transcript