Latest news with #Libre
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Abbott Laboratories (ABT)?
We recently published a list of . In this article, we are going to take a look at where Abbott Laboratories (NYSE:ABT) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 20, a caller asked whether to hold or buy more shares of Abbott Laboratories (NYSE:ABT), amid a pending lawsuit over baby formula. Cramer remained positive on the outlook but advised waiting for a lower entry. 'The outlook is fabulous. There is a lawsuit in July involving formula — its competitor Reckitt Benckiser lost a case. I think that this is not going to be a big deal. But it doesn't matter — people know what happened with J&J and they're scared. We're waiting till at least it gets to par or 100 to be able to buy more. But we believe in the company.' Abbott Laboratories delivered steady growth with a 28.54% gain, justifying his patient buy-on-dip approach. Abbott Laboratories (NYSE:ABT) is rebounding as its diversified healthcare products and diagnostics tools see renewed investor interest. An operating room with a doctor monitoring a patient's vital signs during surgery with a medical device. Discussing the stock's valuation, Cramer gave the following analysis in May this year: 'Okay, their forward PE shows that there's going to be a, pretty much of an earnings explosion. And I think a lot of that's going to be coming from Libre, which is their diabetes, they have the best diabetes device. It's cheaper than everybody's. Overall, ABT ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ABT as an investment, 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
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
18-05-2025
- 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. Sign in to access your portfolio
Yahoo
18-05-2025
- 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. 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
15-05-2025
- Health
- Yahoo
Abbott's Libre® Technology is First Continuous Glucose Monitor Associated with Reduced Hospitalizations for Heart Complications in People with Diabetes
New data reveal a 78% reduction in cardiovascular disease-related hospitalizations for people living with Type 1 diabetes with prior severe low blood sugar episodes.1 This significant decrease is linked to the use of Libre biowearable technology compared to traditional blood glucose monitors.1 Results also show a reduction in hospitalization for cardiovascular complications in adults with Type 2 diabetes on insulin using Libre technology.2 ABBOTT PARK, Ill., May 15, 2025 /PRNewswire/ -- Abbott (NYSE: ABT) today announced results from its REFLECT real-world studies that show the use of FreeStyle Libre® continuous glucose monitoring (CGM) technology is associated with a significant reduction in the risk of hospitalization for heart complications in people with diabetes. For the first time, data show that CGM technology can help lessen the severity of cardiovascular complications – regardless of a prior history of low blood sugar events or heart disease-related hospitalizations – in individuals with Type 1 diabetes.1 Findings from the studies also show a similar reduction in heart-related hospitalizations for those with Type 2 diabetes on insulin using Libre biowearable technology.2 Diabetes remains a serious chronic disease worldwide, affecting approximately 589 million people3 and often accompanied by cardiovascular complications.4 People with Type 1 and Type 2 diabetes are 2-4 times more likely than someone without diabetes to develop heart disease, a major cause of death for both groups.5 While heart risks for Type 2 diabetes are well known, there's low awareness about heart complications in people with Type 1 diabetes. Adults with Type 1 diabetes who have had serious low blood sugar episodes are twice as likely to be hospitalized for heart-related issues.6 For people with diabetes, the REFLECT findings suggest that the use of Libre technology could also potentially lead to lower healthcare costs due to the reduction in hospital admissions related to heart complications. "These results are remarkable, as we see dual benefits from CGM technology in managing diabetes and its associated cardiovascular complications," said one of the lead authors of the studies, David Nathanson, MD, PhD, Karolinska University Hospital in Sweden. "CGMs empower people to proactively manage their diabetes and make informed health choices through real-time, constant feedback on their glucose levels. This data shows that using CGMs is linked with significantly reduced hospitalizations related to heart issues, which can have a significant impact on patients, their families and the healthcare system by easing medical, emotional and financial burdens." The findings also reveal that the risk of hospitalizations for cardiovascular disease was reduced by 80% among people with Type 1 diabetes with no prior history of cardiovascular disease when using the Libre biowearable technology compared to those who used a traditional blood glucose monitor. For individuals with a prior history of cardiovascular disease, the risk of hospitalizations was reduced by 49%.1 "These data are transformative and show just how valuable FreeStyle Libre technology is for managing both diabetes and heart health, helping millions of people live healthy lives," said Mahmood Kazemi, M.D., chief medical officer for Abbott's diabetes care business. "With its heart benefits, Libre makes it easier for people to take control of their health." The REFLECT research considered a range of cardiovascular-disease related conditions including non-fatal heart attack, non-fatal stroke, coronary artery disease, heart failure, atrial fibrillation and cardiovascular death – conditions commonly seen in people with diabetes.7 "I regularly treat people with diabetes who have problems with their blood vessels, resulting in heart attacks, strokes and amputations," said Ramzi Ajjan, M.D., professor of Metabolic Medicine at University of Leeds and Leeds Teaching Hospitals NHS Trust. "These blood vessel problems, known collectively as cardiovascular disease, remain the main causes of ill health and death in people with diabetes. I am very excited to see data that show 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." About REFLECT Studies:The REFLECT studies, funded by Abbott, were real-world retrospective studies conducted using data from the Swedish National Diabetes Register (NDR), one of the largest and most comprehensive diabetes registers in the world representing approximately 90% of all patients with diabetes in Sweden.8 The studies, published between October 2024 and April 2025, assessed: 1) the impact of intermittently scanned CGM versus blood glucose monitoring on HbA1c levels and hospitalizations in adults with insulin-treated Type 2 diabetes; 2) the impact of intermittently scanned CGM versus blood glucose monitoring on hospitalization rates for metabolic and vascular complications and HbA1c levels for adults with Type 1 diabetes;9 3) the risk of cardiovascular complications after severe hypoglycemia in adults with Type 1 diabetes, and the risk of post-severe hypoglycemia cardiovascular complications for intermittently scanned CGM users versus blood glucose monitoring users. About FreeStyle Libre:Abbott continues to pioneer ground-breaking technology to support people living with diabetes. The company revolutionized diabetes care 10 years ago with its world-leading FreeStyle Libre continuous glucose monitoring portfolio, which today is used by more than 7 million people across over 60 countries.10 People use Libre technology to see their glucose numbers in real-time, providing insights into how food, activity, or insulin impacts their glucose to help them make progress on their health goals. There is full or partial reimbursement for Libre systems in more than 40 countries.11 About Abbott:Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries. Connect with us at and on LinkedIn, Facebook, Instagram, X and YouTube. Product for prescription only; for Important Safety Information, please visit 1 Eeg-Olofsson, K., Diabetologia (2025): 2 Nathanson, D., Diabetologia (2024): 3 International Diabetes Federation – Facts & figures, accessed April 2025 from: 4 CDC – Diabetes and your heart, accessed April 2025 from: 5 Dal Canto, E., European J. of Preventive Cardiology (2019): 6 Amiel, SA, The Lancet Diabetes & Endocrinology (2019): 7 AHA – Cardiovascular disease and diabetes, accessed May 2025 from: Cardiovascular Disease and Diabetes |American Heart Association 8 NDR - Nationella Diabetesregistret, accessed April 2025 from: 9 Eeg-Olofsson K. Diabetes Care (2024): https: 24-0690 10 Data on file, Abbott Diabetes Care. Data based on the number of patients assigned to each manufacturer. 11 Data on file, Abbott Diabetes Care. View original content to download multimedia: SOURCE Abbott
