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What Were Abbott’s Key Growth Drivers for 2Q17?

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Acquisitions

Abbott Laboratories (ABT) has been on an acquisition spree over the past few years and has added a number of market-leading products to its product portfolio. The company has also expanded across various new markets and geographies through its strategic acquisitions. Abbott completed the big ticket acquisition of St. Jude Medical in January 2017. The deal positioned Abbott as one of the leading players in the cardiovascular space and contributed significantly to its 2Q17 sales. Abbott is also expected to close another significant acquisition—Alere (ALR)—by the end of the third quarter of 2017. For more on the Alere deal, be sure to read How Will Abbott Laboratories Benefit from Its Alere Acquisition?

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New product launches

Abbott Laboratories has leading market positions for most of its businesses, led by its strong product portfolio. During the first half of 2017, Abbott received FDA (U.S. Food & Drug Administration) approval for its MRI (magnetic resonance imaging) compatible pacemakers and is undergoing the regulatory review for its MRI compatible defibrillator devices. The company faces competition from the likes of Boston Scientific (BSX) and Medtronic (MDT) in this market space.

In May 2017, Abbott received CE (European Conformity) Marking for its sensor-enabled TactiCath contact force ablation catheter. For brief details of the device approval, read Abbott Gets CE Marking: TactiCath Contact Force Ablation Catheter.

During 2Q17, Abbott received CE Marking for Alinity hq, expanding the company’s hematology platform. This is the fifth system in the company’s Alinity system suite to be introduced in Europe. The products will be introduced in the United States by next year.

In its Medical Devices segment, Abbott expects approval of its Confirm ICM (implantable cardiac monitor) and HeartMate 3 in the second half of 2017. For more, read Technological Advancements Drive Abbott’s New Product Approvals.

You can invest in the Health Care Select Sector SPDR ETF (XLV) for industry-specific exposure to Abbott Laboratories. ABT accounts for ~2.4% of the total holdings of XLV.

Next, let’s look at Abbot Laboratories’ updated fiscal 2017 guidance.

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