Abbott Laboratories: Advancing Cardiovascular and Diabetes Care – Investor Overview from J.P. Morgan Healthcare Conference 2024

Jan 14, 2024 00:02 CST Updated 00:02

Abbott

Diagnostic and pharmaceutical product manufacturers

Source: Heart Future; Editor: Liu Xinyi

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Heart Future

From January 8 to 11, 2024, the 42nd J.P. Morgan Healthcare Conference (JPM) was grandly held in San Francisco, California, USA.JPM Conference isThe Largest Scale in the Global Biomedical and Health FieldThe industry's grand event, and alsoThe Largest Global Information VolumeMedical Investment and Industry Exchange Cooperation Conference，Covers the entire global healthcare field, including pharmaceutical companies, healthcare service providers, for-profit and non-profit organizations, as well as medical device companies.

At Abbott, the conversation with J.P. Morgan's medical technology analyst was led by Robert Ford, the company's Chairman and Chief Executive Officer.

Robert Ford

# Performance Overview

Robert said that Abbott has an ambitious goal, which is to exceed its current level by 50%.Improving the lives of 3 billion people by 2030Abbott's story dates back to the late 19th century, and since then, Abbott has been making groundbreaking innovations in the modern healthcare field, being one of only 49 companies that have consistently remained on the Fortune 500 list.

Currently, Abbott has more than 115,000 employees worldwide, serving over 160 countries. The company has built a strong reputation with a range of well-known brands, which generate annual sales exceeding $40 billion, doubling over the past decade. Abbott's composition has evolved over the years, but its commitment to a framework that delivers long-term value to shareholders remains unchanged. Abbott aims to maintain a balance across its portfolio, different geographies, and various types of payers.

Abbott hasMore than half of the revenue comes from regions outside the United States., withOne-third of the revenue comes from emerging markets.Although the demand for COVID-19 testing has significantly declined, the company's core and fundamental businesses have once again become the driving force behind its performance, achieving double-digit organic sales growth in the first three quarters of 2023. This strong performance was driven by a combination of factors, including favorable market conditions, robust execution, and accelerated contributions from new products.

Abbott's business is divided intoMedical Device、Nutrition、DiagnosisAndMedicineFour parts. In terms of medical devices, Abbott inCardiovascular、NeuromodulationAndDiabetes CareIn terms of market leadership.

# Advancing Cardiovascular

Cardiovascular care is one of the largest and most innovative fields in healthcare, and Abbott isCardiac Management、Heart Failure、Electrophysiology、Structural Heart、Coronary ArteryAndPeripheral VesselsThese large, rapidly growing fields occupy a leadership position.

AbbottTriClipIt is the world's first minimally invasive clip-based repair device for treating tricuspid regurgitation or tricuspid leakage. Tricuspid regurgitation affects more than 5 million people worldwide. Before the advent of TriClip, there was a lack of effective treatment options for tricuspid regurgitation. This product has been on the market in Europe since 2020 and is currently under FDA review for approval in the United States.

TriClip Transcatheter Tricuspid Valve Repair

In addition, Abbott'sAveirIt is also a major advantage in the cardiovascular field. This is a leadless pacemaker, which differs from traditional pacemakers in that it does not require an incision in the chest. This is the world'sThe First Leadless Pacing System to Offer Dual-Chamber PacingRobert believes that this highly innovative technology has the capability to completely revolutionize the multi-billion-dollar pacemaker market.

# Diabetes with No Place to Hide

In diabetes care, Abbott has a long history, with its market-leading continuous glucose monitoring devices.FreeStyle LibreIt can be said to have fundamentally changed the management of diabetes. Currently, there are more than 5 million Libre users globally, including 2 million in the United States.

Freestyle Libre glucose monitoring system

Abbott's strategy isTargeting the Mass Market. The market needs a painless, highly accurate, easy-to-use, and cost-effective system, and the advent of Libre has met these needs. Currently, Libre's annual sales will not exceed $5 billion. However, Abbott has achieved initial success, with more than 500 million diabetes patients worldwide, and Abbott will embrace several new growth opportunities in the future. Robert hopesLibre Sales to Reach $10 Billion by 2028(Equivalent to a compound annual growth rate of approximately 15%.)

Moreover, healthcare payment providers around the world (especially in the United States, France, and Japan) are gradually recognizing the value of Libre for patients, healthcare providers, and healthcare systems, soThe reimbursement scope for Libre is also expanding.. Recently, for example, the reimbursement scope is expanding to cover more patients with type 2 diabetes.

In addition,Now Libre can connect to automated insulin delivery pumps., which is the result of several recent cooperation agreements reached between Abbott and insulin pump manufacturers. This is good news for those who choose to receive insulin through wearable pumps.

In addition,Wearable Device LingoExpected to become Abbott's next major growth catalyst. Lingo can track blood sugar levels and, with the help of an app, provide users with personalized dietary and exercise recommendations. This device will soon enter the U.S. market, utilizingDirect-to-Consumer Model, no prescription is required, nor the involvement of insurance companies or other paying agencies—only cash payment is needed.

# Ubiquitous AI

In addition, Robert also mentioned the application of AI in the medical field. He stated that Abbott has identified three areas where AI will play a significant role in healthcare and also mentioned the company's...Ultreon Vascular Imaging Software. This software uses AI to automatically detect calcium levels in blood vessels to help guide doctors in making more accurate treatment decisions. In the future, Abbott will continue to explore methods to integrate artificial intelligence throughout the company.

Later, Robert also mentioned that Abbott had made two acquisitions last year to expand its portfolio; currently, the pipeline is healthy and can maintain high single-digit organic growth. Therefore,Less need to maintain high growth mode through mergers and acquisitions, and are more capable of taking the initiative to be in a favorable position, flexibly evaluating different opportunities.

Overseas Cardiovascular Devices:

Products of Chinese Cardiovascular Companies:

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