Why Abbott Laboratories’ Product Pipeline Is Expected to Boost 2018
R&D and product pipeline
In fiscal 4Q17, Abbott Laboratories(ABT) invested ~6.9% of its total sales in R&D (research and development). In fiscal 2018, the company plans to invest ~7.5% of its total sales. Abbott Laboratories launched more than 20 new products in fiscal 2017.
Abbott Laboratories now has an attractive product pipeline, boosted by the recent acquisitions—especially its acquisition of St. Jude Medical. While St. Jude had a strong product pipeline, Abbott has also been successful in gaining approval for its products.
Abbott Laboratories has initiated the launch of its Alinity platform, which forms part of the company’s diagnostics portfolio. The launch was initiated in 2017 in Europe and is expected to launch in the US and other geographies going forward. The global launch of the product is expected to take place over the next few years.
Minimally invasive therapies
Abbott Laboratories is focused on improving its minimally invasive therapies portfolio, which falls under the company’s structural heart business portfolio. Abbott is also focused on developing innovative new therapies for mitral and aortic valve replacement, and tricuspid valve repair.
Abbott Laboratories has a strong product pipeline in its Diabetes Care segment. Its Freestyle Libre product is gaining strong momentum around the world. The device has recently received reimbursement coverage in France, Japan, and the United Kingdom.
This device also received Medicare coverage in the United States. Freestyle Libre has established Abbott Laboratories as one of the leading players in diabetes care market among the likes of Medtronic (MDT), Dexcom (DXCM), and Johnson & Johnson (JNJ). For recent related developments, read Market Realist’s “Assessing the Role of Freestyle Libre in Abbott’s Diabetes Segment Growth.”
Notably, ABT stock makes up ~% of the Health Care Select Sector SPDR Fund (XLV).