Abbott’s Diabetes business performance in the second quarter
Abbott Laboratories’ (ABT) Diabetes segment registered second-quarter sales growth of ~40.0%, reaching $470.0 million. On an organic basis, its Diabetes segment’s sales rose ~33.6%. The Diabetes segment’s strong performance was driven by the continued uptake of Abbott’s Freestyle Libre CGM (continuous glucose monitoring) device. The device was approved by the FDA in September 2017.
Abbott Laboratories gained market share in the second quarter in the diabetes market space from competitors such as Medtronic (MDT) and Dexcom (DXCM) due to the strong momentum in its Freestyle Libre adoption. Medtronic offers Guardian Connect, and Dexcom offers its CGM G5/G6 device for diabetes patients.
CGM device market dynamics
Abbott Laboratories noted that it sees Freestyle Libre as a mass-market product. The large number of insulin-dependent patients around the world presents an enormous growth opportunity for the company. Freestyle Libre is expected to be one of the key growth drivers of sustainable growth for the company over the long term.
For 2018, Abbott Laboratories has provided a sales guidance range of $90.0 million–$100.0 million for Libre in the United States. By the end of 2018, Abbott expects to garner over a million patients around the globe through Freestyle Libre. Currently, Freestyle Libre is used by more than 800,000 patients globally.
Freestyle Libre uptake
Abbott Laboratories stated during its second-quarter earnings release that it’s on track for achieving its fiscal 2018 guidance for Libre. The company is witnessing strong uptake of the product through growing new and repeat customer rates. The company believes that the product has a solid value proposition in terms of its price point, which makes it attractive for patients, caregivers, and reimbursing entities.
In the next article, we’ll discuss the updated fiscal 2018 guidance provided by Abbott Laboratories during its second-quarter earnings release.
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