FreeStyle Libre Is Multi-Billion Dollar Opportunity for Abbott

In the first quarter, Abbott Laboratories’ (ABT) Diabetes Care franchise reported worldwide sales of $566 million, a YoY rise of 34.4% on a reported basis and 42.0% on an organic basis. $152 million of this came from the US market, which is a YoY rise of 76.5% on a reported and operational basis. International markets contributed the remaining $414 million worth of revenues, a YoY rise of 23.7% on a reported basis and 33.1% on an organic basis.

In the first quarter, Abbott Laboratories’ leading CGM (continuous glucose monitoring) system in both Type 1 and Type 2 diabetes indications, FreeStyle Libre, reported worldwide revenues of $380 million, a YoY rise of 80%. Currently, one million Type 1 diabetes patients use the device, and they account for two-thirds of its user base.

According to its first-quarter earnings conference call, Abbott Laboratories has managed to extend access for this device to half of the commercially covered lives in the US. Additionally, 80% of the sales of FreeStyle Libre in international markets were reimbursed by the end of the first quarter.

Abbott Laboratories is focused on expanding the manufacturing capacity for FreeStyle Libre. The new capacity is expected to start becoming functional by the second half of fiscal 2019. The company plans to add to the manufacturing capacity in subsequent years.

Abbott Laboratories is also awaiting the FDA decision for its FreeStyle Libre 2 CGM device, an ICGM (integrated continuous glucose monitoring) system with blood sugar alarms. On October 1, the company issued a press release announcing receipt of CE Mark for FreeStyle Libre 2.

Plus, the company is also working on the development of FreeStyle Libre 3.