Abbott's Medical Devices Segment Reports $16.89 Billion in Annual Revenue, Files for IPO

May 20, 2024 00:15 CST Updated 00:15

Abbott

Diagnostic and pharmaceutical product manufacturers

Source: Siyu MedTech; Editor: Sophia

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Not long ago, Abbott (NYSE: ABT) announced that the FDA had approved itsThe first TriClip Transcatheter Edge-to-Edge Repair (TEER) system.

TriClip TEERTechnology PassLeg Vein Delivery, can repair the tricuspid valve,Help blood flow in the correct direction without undergoing heart surgery.When the tricuspid valve fails to close properly, it willTricuspid regurgitation (TR) occursIf not treated in time, it can lead to atrial fibrillation, heart failure, or even death.Abbott ReportsTCTThe test results showed,90%Patients using TriClip have shown significant improvement in TR symptoms.98%Patients did not experience major adverse events within 30 days, and their quality of life significantly improved.

Abbott is a global healthcare company founded in 1888, headquartered in the United States, with operations in more than 160 countries and regions worldwide.

On January 24, 2024, Abbott announced its full-year financial results for the fiscal year 2023. Annual revenue reached $40.11 billion (approximately 290.3 billion RMB), with an annual net profit of $5.72 billion.Medical Devices Business Shows Most Significant Growth, with annual sales of$168.9 billion (approximately 122.26 billion RMB)，An increase of approximately 14% year-over-year. AndDiagnostic business plummeted 39.4% year-over-year.

After a century of development, Abbott Laboratories is ranked among the top four companies in the IVD industry alongside Roche, Danaher, and Siemens., with products covering the fields of nutritional supplements, pharmaceuticals, medical devices, diagnostic instruments, and reagents.

Today, Siyu MedTech takes you to review the development of medical device giant Abbott in recent years.

Overview of Abbott's Main Medical Device Products

Abbott's medical device products are mainlyCardiovascular, Diagnostic, and Diabetes。

(1) Cardiovascular Products

Cardiovascular products involve coronary intervention, peripheral intervention, vascular closure, and carotid artery intervention products, such as drug-eluting stents, coronary guidewires, balloon dilation catheters, peripheral stents, peripheral guidewires, vascular closure devices, and carotid artery stents.

1.Absolute Pro™ Vascular Self-Expanding Stent System

Absolute Pro™ is a self-expanding nitinol stent system made from elastic material, capable of conforming to the injury at the lesion site, used for the treatment of common iliac artery disease.

It adopts stent visibility technology and a special delivery system, which helps reduce friction during stent deployment and ensures accurate placement of the stent in the lesion area.

2.CardioMEMS™ HF System

CardioMEMS™ HF Implantable Heart Sensor System is a remote monitoring technology that uses a small sensor to detect changes in pulmonary artery pressure — an early indicator of heart failure worsening.

The system can be implanted in the patient's pulmonary artery during minimally invasive surgery, transmitting data about the patient's pulmonary artery pressure through sensors. Clinical trials have shown that the CardioMEMS™ HF system reduces heart failure hospitalization and mortality rates.

3.XIENCE Family of Drug-Eluting Stents

The Xience drug-eluting coronary stent system uses Slim Flex technology, featuring a lower crossing profile and greater post-expansion expansion force.

This system can be used for complex coronary heart disease lesions, reducing the number of stents implanted, decreasing the amount of contrast agent used and the contrast time, thereby shortening the patient's hospital stay and saving on surgical costs.

4.Navitor Vision Heart Valve System

In March 2024, Abbott announced the launch of the new-generation Navitor Vision heart valve system in the United States.

The new system delivers stability and precision with a low paravalvular leakage rate (PLV), and features clear and straightforward markers to aid in identification.

5. TriClip™ Transcatheter Edge-to-Edge Repair (TEER) System

Abbott's TriClip™ System is the world's first CE-approved transcatheter tricuspid valve repair device and is expected to receive FDA approval for market launch in 2024.

6. AVEIR™ Dual-Chamber Leadless Pacemaker

The World's FirstDual-chamber leadless pacemaker system, used for treating patients with abnormal or slow heart rhythms.About one-tenth the size of a traditional pacemaker.

Consisting of two devices, the AVEIR VR single-chamber pacemaker for right ventricular pacing and the AVEIR AR single-chamber pacemaker for right atrial pacing.

Adopted Abbott's innovative i2i (implant-to-implant) technology, allowing two leadless pacemakers to communicate and coordinate with each other to ensure the heart receives appropriate pacing support.

7. Assert-IQ Insertable Cardiac Monitor (ICM)

The Assert-IQ system is a small device with a sensor inserted under the skin on the chest, providing continuous, real-time monitoring.

Can detect and identify arrhythmias that cause symptoms such as fainting, irregular pulse, and shortness of breath. The system has a battery life of at least 3 or 6 years.

(2) Diagnostic Products

Diagnostic products mainly involve laboratory diagnostics, molecular diagnostics, and point-of-care diagnostics, covering the fields of infectious diseases, hematology, oncology, genetics, and automation.

1.Alinity ci-series

The Alinity ci-series integrated biochemical and immunoassay system is a member of Abbott's Alinity™ family. Among them, "Alinity c" is the biochemical diagnostic module, and "Alintiy i" is the immunoassay diagnostic module.

In addition, the Alinity™ diagnostic system also includes key laboratory disciplines such as hematology, blood screening, molecular diagnostics, point-of-care testing, and informatics systems, which can connect and integrate various solutions.

2.i-STAT 1

i-STAT 1 is a handheld blood analyzer that utilizes nanotechnology and combines microfluidic technology to create bio-testing chips, ensuring the accuracy and repeatability of measurement results.

This blood analyzer is lightweight, portable, and easy to use, capable of detecting electrolytes, blood glucose, hematocrit, urea nitrogen, creatinine, and more.

3.Vysis CLL FLSH Probe Kit

The Vysis CLL FISH Probe Kit is a kit for detecting the deletion of LSI TP53, LSI ATM, and LSI D13S319 probe targets, as well as for obtaining the D12Z3 sequence probe target in peripheral blood samples of patients with B-cell chronic lymphocytic leukemia (CLL) through fluorescence in situ hybridization (FISH).

Vysis CLL can be used as a companion diagnostic kit for Venclexta in laboratory research and evaluation of new therapies.

(III) Diabetes Health Products

Diabetes health care products mainly include blood glucose monitoring systems and accompanying test strips for in vitro diagnostics, as well as nutritional formula products designed for people with diabetes.

1.FreeStyle Lite

The FreeStyle Lite Blood Glucose Monitoring System is for in vitro self-testing only and serves as an auxiliary tool for people with diabetes to monitor the effectiveness of their medication at home.

Can be used for the quantitative detection of glucose concentration in capillary whole blood and venous whole blood from the fingertip, upper arm, and palm. However, it is not intended for the diagnosis or screening of diabetes or for use in newborns.

2.FreeStyle Libre 3

FreeStyle Libre 3 is a continuous glucose monitor (CGM), succeeding the second generation.Total volume reduced by 70%, with a 14-day usage cycle, high precision, and optional high and low blood glucose alarms.

A smartphone application that automatically receives real-time blood glucose data via Bluetooth has been developed simultaneously. It provides continuous, real-time glucose readings directly to smartphones and is suitable for diabetes patients aged 4 years and above.

Abbott collaborates with multiple insulin pump manufacturers,Libre can now connect to automated insulin delivery pumps, such as Tandem's t:slim X2 pump.

3. Blood Glucose Monitoring Wearable Device Lingo

Lingo can track blood glucose levels and also assist users through an APP.Provide personalized dietary and exercise recommendations. This device will soon enter the U.S. market without a prescription, which is expected to further drive Abbott's business growth.

Current Business Focus: Diabetes, Electrophysiology

On January 24, 2024, Abbott announced its financial report for the fourth quarter of 2023 and the full-year performance.

The Growth of Medical Device Business is the Most Significant, with annual sales of $16.89 billion,An increase of approximately 14% year-over-year，Among them, diabetes care grows the fastest (22.1%)., followed by neuromodulation (15.5%), and then electrophysiology (13.9%);

Electrophysiology-related products:

1. EnSite™ X EP 3D Mapping System

This mapping system received CE certification in November 2020 and FDA approval in January 2022.

The system isThe First Mapping System with Two Cardiac Visualization Methods, combining single-level measurement and bipolar measurement.

Unipolar measurement has advantages in direction and speed, while bipolar measurement can provide local signal measurement to locate the target area.

2. TactiFlex Ablation Catheter

World's First Flexible-Tip Contact Pressure Ablation Catheter, the distal end of the magnetic and electric positioning pressure monitoring ablation catheter features an optical pressure sensing design. It can bend upon contact with the heart wall to guide the flow of flushing fluid towards the target tissue.

This catheter can also be used in conjunction with the EnSite™ X EP System.

Recently, AbbottEntered the Pulsed Field Ablation (PFA) Track, announced the company'sVolt™ Pulsed Field Ablation (PFA) SystemFirst applied to the human body.

This ablation system has two major features. The first isCombinationAdvanced Mapping SystemUse(Also using the EnSite™ X EP), the second aspect is that there is a design feature at the tip of the ablation catheter.Dilation Balloon。

Currently,AbbottItsDevelopment of Pulsed Electric Field Ablation TechnologyCurrentlyBehind the Three Major Competitors：Medtronic(PulseSelect System and Affera System),Boston Scientific(FARAPULSE System) andJohnson & Johnson(Varipulse system).

Moreover, in Abbott's electrophysiology business, radiofrequency ablation accounts for about 25%, and interventional (Access) devices account for approximately 18%. Analysts stated that products making up about 90% of Abbott's electrophysiology sales...May be affected by the market shift towards PFAThe impact.

Abbott in China

In 1995, Abbott established offices in Beijing and Shanghai, officially entering China.

Shanghai Abbott Pharmaceutical Co., Ltd. was established in 1998, and the joint venture factory is located in Fengxian, Shanghai.

Passed GMP certification in 2000, and the Phase II pharmaceutical preparation plant officially went into production in 2006.

In 2001, Abbott Trading (Shanghai) Co., Ltd. was established in the Waigaoqiao Bonded Area, Shanghai.

So far, Abbott has more than 2,000 employees in China. Its China headquarters is located in Shanghai.

The 2023 "Top Employer in China" list is officially announced, and Abbott has been awarded this honor for 12 consecutive years.

In April 2023, Abbott announced itsWorld's First Integrated Customer Experience Center——Abbott Chuangyue Center will be upgraded,Comprehensively showcase Abbott's cutting-edge technologies and solutions in the fields of diagnostics, cardiovascular, nutrition, diabetes, and other health areas.

Review of Performance in the Past Three Years: Medical Device Business Shines

Fiscal Year 2021，Abbott AchievesNet sales of $43.075 billion (approximately 295.1 billion RMB), with a full-year net profit of $7.071 billion.

Among them, the diagnostic business revenue was $15.644 billion (approximately 107.2 billion RMB), and the medical device revenue was $14.367 billion (approximately 98.4 billion RMB). These two alone account for nearly 70%.‍

Fiscal Year 2022,AbbottFull-year revenue of $43.7 billion, a year-on-year increase of 1.3%; organic growth of 6.4%.

Diagnostics Business: Revenue for the full year of 2022 accounted for 38% of the group's total revenue, reaching 16.584 billion USD, a year-on-year increase of 6%. COVID-19 testing business accounted for more than half, and its growth was mainly driven by the high growth of rapid diagnostics at +19%. All other细分 businesses showed a declining trend. In terms of regions, the growth was primarily driven by the U.S. market with a significant increase of +21.3%, while international market revenue declined (-6.8%).
Medical Device Business: Full-year revenue in 2022 accounted for 34% of the group's total revenue, reaching 14.687 billion USD, a year-on-year increase of 2.2%, driven by growth in structural heart disease and diabetes care businesses.

Nutrition Business: Full-year revenue in 2022 accounted for 17% of the group's total revenue, reaching 7.459 billion USD, a year-on-year decrease of 10.1% due to the impact of the recall incident.
Mature Pharmaceuticals: Revenue accounted for 11% of total revenue, with full-year revenue of $4.912 billion in 2022, increasing by 4.1% year-over-year, primarily driven by key emerging markets such as India, China, Brazil, and Mexico. In terms of segments, the growth was mainly driven by strong performance across several therapeutic areas, including cardiometabolic, women's health, and central nervous system/pain management.

Fiscal Year 2023, Abbott ChinaRevenue of $40.11 billion, a year-on-year decrease of 8.1%Apart from the diagnostic business, which plummeted 39.4% year-on-year (USD 9.988 billion), Abbott's nutrition (USD 8.154 billion, up 9.3%), pharmaceuticals (USD 50.66 billion, up 3.1%), and medical device businesses (USD 16.89 billion, up 14%) all achieved positive growth (Nutrition and pharmaceuticals showed seasonal weakness).

Medical Device Business:

By region, full-year revenue in the U.S. was $7.696 billion, while revenue from outside the U.S. was $9.191 billion, indicating that Abbott places significant importance on markets outside the United States.By business division, Abbott MedicalAll instrumentation businesses achieve positive growth.。

Ranked by business growth rate as follows:Diabetes care grows fastest (22.1%), followed by neuromodulation (15.5%), then electrophysiology (13.9%) and structural heart (13.6%). Growth in other segments was: heart failure (12.1%), vascular (8.0%), rhythm management (6.5%), and vascular (8.0%).

The ranking by business revenue is as follows: the largest revenue-generating business is Diabetes Care ($5.761 billion), followed by the second tier of Vascular ($2.681 billion), Heart Rhythm Management ($2.255 billion), Electrophysiology ($2.195 billion), and Structural Heart ($1.944 billion). The third tier includes Heart Failure ($1.161 billion) and Neuromodulation ($890 million, although the amount is smaller, Abbott is one of the three giants in neuromodulation).

Diagnostic Services:

Abbott stated that the sharp decline in the diagnostics business was mainly due toThe Decline in COVID-19 Test SalesIn the fourth quarter of Abbott's fiscal year, global COVID-19 test sales shrank to $288 million. Although this figure is slightly higher than Wall Street's forecast of $205 million, it is still not optimistic.

Moreover, this also marks a shift in the company's development focus. The CEO of Abbott stated that the company's plan isInvest in Core Business with Revenue from COVID-19 Testing, which has also proven to be a very correct strategy, as these areas are important fields in the healthcare industry.

Nutritional Products Business:Total sales reached 8.2 billion U.S. dollars, increasing by 13.0% year-on-year.
Pharmaceutical Business:Full-year sales reached $5.1 billion, a year-on-year increase of 10.9%. Notably, significant growth was achieved in drug sales across therapeutic areas including cardiometabolic, gastrointestinal health, respiratory, and central nervous system/pain management.

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Editor-in-Chief | Zhao Qing Reviewed by | Yi He