Abbott Reports Q1 Revenue Beat Driven by Strong POCT Sales in COVID-19 Diagnostics
Abbott
Diagnostic and pharmaceutical product manufacturers
Yesterday(April 20), Abbott released its first-quarter financial report, with sales increasing by 13.8% and profits rising by 36.5%. The results exceeded market expectations. Among them,
Abbott reported a profit of $2.4 billion, or $1.73 per share, excluding one-time items.27 cents higher than Wall Street analysts expected;
Sales for the three months ended March 31, 2022 were$11.9 billion, higher than the $11 billion expected by analysts;
Sales Organic Sales Growth17.5%；
Global sales related to COVID-19 testing in the first quarter were3.3 billion US dollars,Drive Total Sales Exceeding Expectations Growth；
Excluding sales related to COVID-19 testing, the first quarter reported a 3.9% increase in sales and a 7.7% increase in organic sales.
Business Details
Except for the nutrition business, Abbott's revenue in every market segment grew year-over-year, with
Diagnostic ServicesSurge31.7%, thanks to Q1 global COVID-19 testing-related sales totaling$3.3 billion, of which more than 90% comes from rapid testing, approximately $1.97 billion.。This is closely related to the significant increase in demand for rapid testing in the United States and international markets as the Omicron variant of COVID-19 spreads.
Medical DeviceRevenue Year-over-Year+7.4%Among them, diabetes care (+14.9%), structural heart disease (+14.2%), and electrophysiology (+12.6%) performed the best in this sector, while only neuromodulation (-3.1%) and vascular (–2.6%) business revenues declined.At the beginning of 2022, the volume of cardiovascular device surgeries was negatively impacted by the increase in COVID-19 cases, but as Omicron cases declined in the latter part of the quarter, the surgical volume steadily improved in April.
Mature DrugIncreased by 7.1%;Nutrition BusinessDecreased by 7%.
Abbott Chairman and CEO Robert Ford said at a press conference, "Abbott's diversified businesses have performed well in a challenging environment, and we are particularly pleased with the strong performance in our medical device and established pharmaceuticals businesses."
But Abbott expects revenue related to COVID-19 testing in 2022 to be only$4.5 billion, most of which came from the first half of this year. Meanwhile, Abbott maintained its forecast for the full-year adjusted earnings per share (EPS) at $4.70.
Main Dynamics
In addition, the main dynamics of Abbott in Q1 include:
In February, Abbott voluntarily recalled certain infant formula products manufactured at its U.S. facility. It is also working closely with the U.S. Food and Drug Administration (FDA) and has begun implementing corrective actions and improvements at the facility.
In February, the expanded indications for Abbott's CardioMEMS™ HF System were approved by the FDA. This is a small implantable sensor and remote monitoring system capable of detecting early warning signs of heart failure deterioration.
In March, Abbott announced that the FreeStyle Libre® system became the first and only continuous glucose monitoring system to receive expanded reimbursement coverage in Japan.
In April, Abbott's Aveir™ single-chamber leadless pacemaker was approved by the FDA for treating patients with slow heart rhythms in the United States. Unlike traditional pacemakers, leadless pacemakers do not require incisions in the chest for implantation or leads (wires) for treatment.