Abbott Laboratories (ABT) registered sales growth of ~5% in its Diagnostics business in 3Q17. The segment’s sales were driven by a strong performance outside the US.
Abbott expected this segment to register mid-to-high single-digit sales growth in 3Q17. The segment consists of three divisions: core laboratory, molecular, and point-of-care.
Some of the key developments in 3Q17 included the Alinity systems launch in Europe and the completion of the acquisition of Alere. With the acquisition of Alere, Abbott has established itself as the leader in the point-of-care testing market, as the company now has a comprehensive portfolio of point-of-care testing solutions across metabolic testing, cardio, toxicology, and infectious disease testing.
Alinity launch in Europe
The Allinity family of systems forms part of the company’s core laboratory business under the Diagnostics segment. These systems are undergoing an initial launch in Europe. The Alinity family includes five recently launched instruments used in the areas of clinical chemistry, immunoassay, blood and plasma screening, point-of-care testing, and hematology.
The Alinity molecular diagnostic system is one of the other product platforms in the Alinity family that’s expected to get a CE Mark in the next few months. The company is focused on converting its long-term Abbott customers into Alinity systems customers. The Alinity family of systems is expected to be launched in the US in 2018.
The Alinity family is expected to provide efficiency across laboratory workflows and will help generate quality results. This exceptional system is expected to help Abbott compete efficiently with some of the other major players in the diagnostic arena, including Medtronic (MDT), Thermo Fisher Scientific (TMO), and Boston Scientific (BSX).
Notably, the iShares Russell 1000 Value ETF (IWD) has ~0.78% of its total portfolio holdings in ABT.