Medical Devices segment sales
In 2Q17, Abbott Laboratories’ (ABT) Medical Devices segment reported a strong performance once again. It registered a YoY (year-over-year) sales growth of 89.2% on a reported basis. On a comparable basis, the company reported a 4.1% sales growth for the segment. The double-digit sales growth was reported across the segment’s electrophysiology, neuromodulation, and diabetes care businesses. The structural heart business, however, registered high single-digit growth. Freestyle Libre continues to drive Abbott’s diabetes segment sales. The product achieved approval in Canada in 2Q17 and national reimbursement in a number of countries. For details of the recent reimbursement approval of the device in France, read Abbott’s Freestyle Libre Gets Reimbursement Approval in France.
Nutrition segment sales
Abbott’s Nutritional segment sales fell 0.60% as its performance continued to be weak amid challenges in China. For more information, read Abbott’s Nutrition Segment: Chinese Headwinds Continue. Abbott’s US pediatric nutrition sales, however, rose about 8.0%, led by the company’s leading market position and new product launches. Lower segment sales are weakening the company’s market position amid other large players such as Nestlé (NSRGY), Mead Johnson Nutrition (MJN), and Johnson & Johnson (JNJ).
Diagnostic segment sales
Abbott’s Diagnostic segment registered YoY sales growth of around 3.8%. Segment growth was led by its core laboratory and point of care division sales. The key product platform in the segment, the Alinity system, is expected to enter the US market next year. The system portfolio is available in Europe.
Established Pharmaceuticals sales
Sales for Abbott’s Established Pharmaceuticals division rose 4.1% in 2Q17. As we’ve already seen, segment sales were impacted by the implementation of the new GST (Goods and Services Tax) system in India. However, the business witnessed strong growth in China, Russia, and several Latin American markets.
Investors can participate in the growth potential of Abbott Laboratories while diversifying the company-specific risks by investing in the Vanguard Total Stock Market ETF (VTI). Abbott accounts for ~0.47% of VTI’s total holdings.
In the next part, we’ll take a look at Abbott’s fiscal 2017 and 3Q17 guidance.