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Yahoo
28-05-2025
- Business
- Yahoo
FDA approves Abbott's TMVR system to treat mitral valve disease
The US Food and Drug Administration (FDA) has granted approval for Abbott's Tendyne transcatheter mitral valve replacement (TMVR) system for individuals with mitral valve disease. This device claims to be the first of its kind to replace the mitral valve without the need for open-heart surgery. It is now available for those whose mitral valves are not working properly due to severe mitral annular calcification (MAC), a condition characterised by calcium buildup within the annulus supporting this valve. Abbott noted that for severe MAC patients at elevated risk for open-heart surgery, as well as those whose mitral valves could not be repaired with the company's MitraClip device, the TMVR system provides a minimally invasive replacement option for the leaky or narrowed valve. Tendyne is indicated for treating symptomatic severe mitral valve dysfunction in patients unsuitable for traditional surgical or transcatheter edge-to-edge repair. Designed to accommodate various patient anatomies, Tendyne is available in several sizes and features a self-expanding valve that can be delivered via a small chest incision and progressed into the heart for mitral valve replacement. The valve is retrievable and repositionable during implantation, optimising patient outcomes. According to Abbott, the health circumstances and requirements of patients, along with the intricate nature of mitral valve disease, present a challenge for surgical intervention. Abbott's structural heart business senior vice-president Sandra Lesenfants said: "Tendyne is a much-needed addition to our comprehensive US structural heart portfolio that offers less invasive treatment options for a range of heart diseases. "This approval builds on our more than two decades of mitral valve leadership, which includes developing first-of-their-kind devices that truly change – and save – people's lives." Abbott's recent REFLECT studies on its FreeStyle Libre continuous glucose monitoring (CGM) technology have cut the risk of hospitalisation for heart complications in individuals with diabetes. "FDA approves Abbott's TMVR system to treat mitral valve disease" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
FDA approves Abbott's TMVR system to treat mitral valve disease
The US Food and Drug Administration (FDA) has granted approval for Abbott's Tendyne transcatheter mitral valve replacement (TMVR) system for individuals with mitral valve disease. This device claims to be the first of its kind to replace the mitral valve without the need for open-heart surgery. It is now available for those whose mitral valves are not working properly due to severe mitral annular calcification (MAC), a condition characterised by calcium buildup within the annulus supporting this valve. Abbott noted that for severe MAC patients at elevated risk for open-heart surgery, as well as those whose mitral valves could not be repaired with the company's MitraClip device, the TMVR system provides a minimally invasive replacement option for the leaky or narrowed valve. Tendyne is indicated for treating symptomatic severe mitral valve dysfunction in patients unsuitable for traditional surgical or transcatheter edge-to-edge repair. Designed to accommodate various patient anatomies, Tendyne is available in several sizes and features a self-expanding valve that can be delivered via a small chest incision and progressed into the heart for mitral valve replacement. The valve is retrievable and repositionable during implantation, optimising patient outcomes. According to Abbott, the health circumstances and requirements of patients, along with the intricate nature of mitral valve disease, present a challenge for surgical intervention. Abbott's structural heart business senior vice-president Sandra Lesenfants said: "Tendyne is a much-needed addition to our comprehensive US structural heart portfolio that offers less invasive treatment options for a range of heart diseases. "This approval builds on our more than two decades of mitral valve leadership, which includes developing first-of-their-kind devices that truly change – and save – people's lives." Abbott's recent REFLECT studies on its FreeStyle Libre continuous glucose monitoring (CGM) technology have cut the risk of hospitalisation for heart complications in individuals with diabetes. "FDA approves Abbott's TMVR system to treat mitral valve disease" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Abbott vs. Medtronic: Which Dividend-Paying MedTech Stock is Better?
Abbott ABT and Medtronic MDT, two leading giants in the global medical device space, are demonstrating strong momentum in 2025 despite various macroeconomic challenges, including significant tariff pressures. Medtronic just wrapped up a strong fiscal 2025 with 10.9% earnings growth and a 5.4% revenue improvement year over year, fueled by momentum in cardiovascular, neuromodulation and diabetes segments. The company reached new milestones with its Cardiac Ablation Solutions (CAS) and ENT businesses crossing $1 billion in annual revenues and announced a significant strategic move to spin off its Diabetes unit. Meanwhile, Abbott achieved high single-digit sales growth and double-digit earnings growth in first-quarter 2025 despite lingering post-pandemic disruptions. The company is gaining from a full pipeline of innovation, expanded biosimilar agreements and promising launches in diagnostics and neuromodulation. With each company focusing on its core strengths, the stage is set for a compelling comparison between the two. Let's delve deeper to find out which stock has the edge. Year to date, shares of Abbott have jumped 18.8%, while those of Medtronic have improved 6.5%. Both the stocks outperformed the S&P 500's mere 0.8% gain over this period. Image Source: Zacks Investment Research Robust Growth in Diversified Business Segments: Abbott's FreeStyle Libre franchise surged nearly 20% organically in the first quarter of 2025, reflecting strong global demand and the product's growing role in managing Type 2 diabetes through advanced digital health integration. Meanwhile, the Diagnostics segment showed stabilization, with organic growth in core lab testing helping offset post-COVID declines. The Established Pharmaceuticals (EPD) segment posted mid-single-digit organic sales growth, driven primarily by strong performance in emerging markets. Beyond individual segments, Abbott delivered organic sales growth across all four of its major business units, Medical Devices, Diagnostics, Nutrition and EPD, highlighting its diversified revenue base. Strong Cash Flow and Shareholder Value Creation: As of the end of the first quarter, Abbott maintained a healthy balance sheet with strong liquidity, including over $6 billion in cash and short-term investments, giving it flexibility for both organic growth and potential M&A activity. Abbott generated $2.3 billion in operating cash flow in the first quarter of 2025. In terms of the company's commitment to returning capital to shareholders, Abbott increased its quarterly dividend by 7.8% earlier this year, marking the 52nd consecutive year of dividend growth. Notably, Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for 25 consecutive years. Abbott's payout ratio presently sits at 49% of earnings. Check for more details. Image Source: Zacks Investment Research Growing Momentum and Pipeline Expansion: Medtronic has been gaining significant traction across key therapeutic areas. Its CAS business grew nearly 30% in the fiscal fourth quarter, driven by strong demand for Affera's Pulse Field Ablation technology, including the Sphere-9 catheter and the upcoming Sphere 360 system, which are set to enter pivotal U.S. trials. The Structural Heart segment posted 10% growth, fueled by rising adoption of the Evolut TAVR platform, supported by favorable real-world data and positive outcomes from the SMART trial and five-year low-risk studies, helping Medtronic gain share at leading U.S. centers. Neuromodulation also advanced 10%, led by next-generation systems like Inceptiv SCS and BrainSense DBS. Meanwhile, the company is expanding its digital surgical footprint with the Hugo robotic platform in 30 countries and scaling its AI-powered Touch Surgery system. These innovations, along with ongoing investments in renal denervation and hypertension trials, reinforce a strong long-term growth pipeline. Shareholder Returns and Dividend Growth: Medtronic returned $6.3 billion in fiscal 2025 through share repurchases and dividend payments. Notably, the company declared a dividend increase for the 48th consecutive year. Medtronic's payout ratio presently sits at 52% of earnings. Check for more details. In addition, the impending Diabetes business separation is structured to be accretive to EPS and tax-free for U.S. shareholders, with a planned share retirement during the split-off. This strategy is expected to reduce share count and unlock shareholder value in both Medtronic and the newly independent Diabetes entity. Image Source: Zacks Investment Research MDT is trading at a forward 12-month price-to-earnings, which is a commonly used multiple for valuing healthcare stocks, of 14.41X, below its 5-year median of 16.19X and pretty close to the 5-year low of 13.13X. Meanwhile, ABT is presently trading at a forward 12-month price-to-earnings of 24.87X, which is above its 5-year median of 24.03X. This suggests that Medtronic remains attractively valued when compared with Abbott, as well as its own historical average. Image Source: Zacks Investment Research While Medtronic and Abbott, carrying a Zacks Rank #3 (Hold) each, present strong fundamentals and a solid history of dividend growth, MDT currently offers a more compelling value proposition for investors. Trading below its 5-year median and near historical lows, Medtronic is more attractively valued than Abbott. Medtronic also has a higher payout ratio than Abbott currently. The upcoming Diabetes business spin-off, structured to be EPS-accretive and tax-efficient, further underscores the company's focus on unlocking shareholder value. For value-driven investors seeking reliable income and long-term appreciation, Medtronic emerges as the more favorable choice over Abbott. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
From Acquisition to Advantage: Abbott's Growth in Heart Care
Investment Thesis With 7% top-line growth and 8% bottom-line growth across the majority of its divisions, Abbott Labs reported a solid first-quarter performance. Due to the possibility of sustained high healthcare utilization in 2024, the company's growth is anticipated to continue in 2025. The Libre franchise, structural heart, and heart failure were the main drivers of the 13% annual growth in medical devices. Weak sales of COVID tests caused Diagnostics to drop 5%. Tariffs are predicted to have an annual impact of about $300 million, with an additional $500 million in 2026. Abbott anticipates further increases in its gross margin in 2027 as a result of optimizing its manufacturing footprint to reduce tariff exposure. The company's Volt pulsed field ablation device was approved by European regulators, which may help it take market share away from rivals. Abbott has used its mapping technology to defend its electrophysiology business, even though it was late to introduce its own PFA ablation catheters, falling behind Boston Scientific and Medtronic. Whether practitioners will leave Abbott or move to Volt is still up in the air. Competitive Overview Drugs: Regarding the drug industry, Abbott comes head to head with Pfizer, Novartis, and Johnson & Johnson. Much like Abbott, these rivals are focusing on the same therapeutic fields, like cardiovascular health and diabetes management, and are taking away parts of the Abbott market due to their advanced research potential and wide range of medicines. Medical Equipment: The medical devices division pits Abbott against Medtronic, Boston Scientific, and Stryker. These competitors produce devices that are relevant to cardiovascular devices, neuromodulation, and diabetes care, for example, Abbott's FreeStyle Libre, which is a glucose monitoring system. Competition is fueled by ongoing international patent disputes, the latest of which was with Medtronic regarding the cardiovascular devices technology, which led to legal and innovative pressures. Diagnostics: In the diagnostic field, Abbott is the one that dominates the market by a large margin, especially after its breakthrough COVID-19 testing kits. But Roche, Siemens Healthineers, and Thermo Fisher Scientific being fierce rivals make things a little tough for it, as all of them supply analog diagnostic tests and devices. A rivalry of this magnitude was seen across the pandemic period, as demand for effective and trusted testing processes increased, they had no choice but to keep coming up with new ideas. Food: The section related to food has Abbott contesting with Nestle, Danone, and Reckitt Benckiser. Such rivals are selling equivalent products like baby formula (e.g., Abbott's Similac vs. Nestle's NAN) and adult nutrition, catching consumer trust and shelf space in a highly brand-driven market. Investment Upsides The market is dominated by three or four competitors, including those in the following areas: immunoassays, coronary stents, venous closure, continuous glucose monitors, cardiac rhythm management devices, surgical heart valves, and nutrition. Abbott benefits from intangible assets that generate economic profits in these markets. One of Abbott's most lucrative divisions is the nutritional division, which holds a dominant position in a highly consolidated market valued at an estimated $35 billion globally. The company has created proprietary formulas of specialty infant formulas for infants with allergies and metabolic issues, as well as intangible assets like brand trust with pediatricians and new parents. Due to the rise in middle-class families and the resulting demand for adult and pediatric nutrition products, ambient markets, including emerging markets, present more promising long-term growth prospects. Abbott is able to enter new markets thanks to its powerful Similac and Ensure brands, which give it an edge when launching new formulations and line extensions. Known as branded generics, Abbott's well-established pharmaceutical product line primarily sells to pharmacies and doctors directly, functioning more like a consumer business than traditional branded medications. Abbott's primary advantages in this market are its reputation and brand recognition, which could shift in the long run as more emerging markets adopt the developed-nation tender system. The 2017 acquisition of St. Jude Medical by Abbott for $25 billion was a high game changer in the cardiovascular segment. As a leading company in vascular care, Abbott, which combines the St. Jude's strength in the areas of heart failure, arrhythmia, and structural heart devices, has increased its market share effectively. The company revealed that it held the No. 1 or No. 2 positions in the cardiovascular segment, which comprises a $30 billion market, resulting from the accomplishment of a considerable increase in market presence that is inherent to the above-mentioned situation. Moreover, a revenue boost was also experienced. In 2016, the cardiovascular sales of Abbott were $2.9 billion. After including St. Jude's $5.5 billion, the total sales for the year 2017 reached the fantastic figure of $10.7 billion. The organic growth was down by 2.9%, but this was due to the integration, which was, of course, a temporary effect. To continue the growth story, in 2018, the organic growth was at 10.1%, in 2019 it was at 7.3%. Thus, it can be said that the acquisition gave a solid push in the long run. Although the first year of the acquisition saw the profitability get hit, recently there has been a turnaround. The medical devices segment experienced a decrease in operating margin from 38% in 2016 to 13% in 2017 mainly because of the integration expenses tagging along. Nevertheless, it was on track again in 2018 with 18% operating margin and again in 2019 with a further increase to 20% operating margin, all this due to the $500 million in annual synergies attained by 2020. In summary, the acquisition facilitated the growth of Abbott by enhancing its market position, increasing the revenue, and after the initial challenges, the profitability in the cardiovascular segment improved. Abbott gains a great deal from legacy St. Jude's remarkable proficiency in heart failure, structural heart, and cardiac rhythm management. Specialized engineering knowledge, proficiency in navigating the regulatory pathway, and solid sales representative relationships with practitioners are examples of intangible assets in this segment. After being implanted inside the body, high-margin devices like pacemakers, cardiac resynchronization devices, spinal cord stimulators, and implantable cardioverter defibrillators benefit from high switching costs. The diagnostics segment exhibits switching costs, which are common in the life sciences market, and deviates slightly from the other divisions. Abbott uses intellectual property to protect some degree of product differentiation and to keep rivals out of the device and diagnostic markets. In the field of medical technology, patents are not infallible, though, because rivals may develop a different approach to a comparable solution. Although Abbott's businesses show signs of moatiness, there is less confidence in the company's long-term ability to foster and revitalize innovation. The business is more likely to follow Boston Scientific and Medtronic to market than to forge its own route. Intrinsic Valuation ABT's shares are modestly overvalued. Despite the COVID-19 crisis, Abbott's balance sheet has remained a solid pillar of strength. Leverage was increased by the acquisitions of Alere and St. Jude Medical, and the company's debt to EBITDA ratio has remained at about 1.5 times, suggesting that it can produce $6 billion to $7 billion in free cash flow annually. Abbott has been able to support large dividend increases and make more tuck-in acquisitions thanks to the Covid-19 windfall. Over the next few years, the company's estimated interest coverage of EBITDA/interest will increase to 20 times. Revenue from non-COVID diagnostics is anticipated to remain stable in 2025, with Abbott largely regaining market share in infant formula. The established pharmaceuticals business will stabilize with mid-single-digit growth, and procedure volume will continue to be strong. There will be a moderate uptake of Abbott's recent new product launches, such as the Amplatzer Amulet for left atrial appendage closure. Throughout the explicit forecast period, the company can increase its operating margin by about 230 basis points, mostly as a result of new products and a closing operating margin gap between Abbott and its main rivals. Notable Guru Holdings Jeremy Grantham (Trades, Portfolio) (Trades, Portfolio) 48 Abbott Laboratories transactions (GMO data-href="" style=""/> Ken Fisher (Trades, Portfolio) (Trades, Portfolio) 48 Abbott Laboratories transactions (Fisher data-href="" style=""/> Jeremy Grantham (Trades, Portfolio) of GMO LLC, knowing for his long term investment philosophy had been buying shares since 2023 and ABT has awarded him with commendable returns as his average buying price stands at $53.9. Investment Downsides The potential commercial success of Abbott's Libre franchise, which includes expansions to new patient populations, and persistent problems with its left ventricular assist devices are among the risks the company faces. Additionally, the business is susceptible to disruptive innovation from competitors, especially in its diagnostic and medical device divisions. Abbott faced a significant formula recall in the US as a result of Cronobacter poisoning cases, despite efforts to safeguard itself against recalls. There is still a chance of product quality problems or recalls, which could harm the company's reputations and connections with healthcare providers. Abbott is under more pressure to lower prices due to tighter budgets and more competitive tenders in China. The US Food and Drug Administration and regulatory bodies abroad also keep an eye on Abbott's operations, which may cause delays in product approvals or manufacturing. Portfolio Management While Abbott has acquired some noteworthy companies, like Knoll and St. Jude Medical, it has also acquired less noteworthy companies, like Advanced Medical Optics and the Guidant stent division. Given that the majority of its cardiovascular portfolio was acquired through mergers and acquisitions, the company's capacity to foster innovation after acquiring assets is a cause for concern. Given Abbott's history of dividend increases and dividend payments, the level of shareholder distributions is appropriate. However, these buybacks were somewhat dilutive because the company spent $1.5 billion on repurchasing shares in 2020 and 2021, right when demand for diagnostics related to the pandemic was booming. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Abbott Laboratories (ABT)'s Libre Linked to Fewer Heart Hospitalizations in Diabetes
Abbott Laboratories (NYSE:ABT) recently shared findings from its REFLECT real-world studies, revealing that the use of its FreeStyle Libre® continuous glucose monitoring (CGM) system is linked to a notable decrease in hospitalizations for heart-related complications among people with diabetes. For the first time, the data demonstrate that CGM technology can reduce the severity of cardiovascular issues in individuals with Type 1 diabetes, regardless of their history with low blood sugar or previous heart-related hospital stays. The studies also showed a similar drop in heart-related hospital admissions for people with Type 2 diabetes who use the Libre biowearable device while on insulin. In its announcement, Abbott Laboratories (NYSE:ABT) highlighted that diabetes affects 589 million people globally. Managing blood sugar and preventing complications like heart disease are critical challenges for those living with the condition. Ramzi Ajjan, M.D., professor of Metabolic Medicine at Leeds University and Leeds Teaching Hospitals Trust, made the following comment on this development: "I regularly treat people with diabetes who have problems with their blood vessels, resulting in heart attacks, strokes and amputations. These blood vessel problems, known collectively as cardiovascular disease, remain the main causes of ill health in people with diabetes. I am very excited to see data that show a significant reduction in cardiovascular disease-related hospital admissions. It's great to see the clear, positive impact of FreeStyle Libre technology on cardiovascular outcomes, making diabetes management more effective and improving the health of our patients." Abbott Laboratories (NYSE:ABT)'s breakthrough in diabetes is well-received by analysts, its dividend policy has also garnered investors' attention over the years. The company is a Dividend King with 53 consecutive years of dividend growth under its belt. Currently, it pays a quarterly dividend of $0.59 per share and has a dividend yield of 1.75%, as of May 18. The stock surged by over 30.6% in the past 12 months. While we acknowledge the potential of ABT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ABT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None.
