Abbott Laboratories (ABT) 18 Jul 182018 Q2 Earnings call transcript

Good morning and thank you for standing by. Welcome to Abbott's second quarter 2018 earnings conference call. All participants will be able to listen only until the question-and-answer portion of this call. [Operator Instructions]. This call is being recorded by Abbott.

any call, asked is including by of session, the material exception Abbott. entire the the the participant's during questions question-and-answer copyrighted With question-and-answer session, without be express or cannot rebroadcast It written recorded permission. Abbott's to like now would introduce I Mr. Leinenweber, Vice President, Scott Relations. Investor

will joining Executive you Miles of and our Miles detail. Financial Vice discuss and President, and Board me Officer Executive will Chairman With remarks Officer. for Finance morning outlook today us. provide and and Good and in the Chief thank are White, Brian Brian opening performance Yoor, Chief more

your Miles, Following and their comments, Brian I will take questions.

cause basis may get that EPS risks forward-looking to release and any statements Risk Securities operations Abbott forward-looking statements. are Xa, growth forward-looking Securities measures on to Litigation Report and with otherwise well undertakes developments, the line divested on to St. Abbott's exclude sales in as from we financial XX, results in forward-looking that be which sales, by the these for closure for of Commission second call the results website were call, which first On our abbott.com. medical from adjusts indicated commentary and measures items the to today's a today be and obligation refers and will which ended financial release the except and quarter Abbott's performance. Private of for Form prior our are year GAAP XX-K XXXX October of may will filings Miles. as Unless Act may no technological to guidance at Annual results affect Item Factors operations results the events result to X, XXXX. used for to revisions XXXX, understand past, including reconciled non-GAAP that the statements year financial Before was Alere P&L in growth, governmental, statements investors With quarter and turn our I as Exchange exchange acquired December of be for that of publicly law. business subsequent for or today non-GAAP noted, XXXX, which of uncertainties as on financial the started, today, businesses, other optics required regulatory some in actual comparable available to the for current measures XXXX. Reform expected over those as to ongoing the Please note provided on sales organic factors during call the Abbott's These will Economic, news cautions and the purposes Jude's materially and Abbott sales of earnings historical comparison that, differ financial made vascular now discussed are on conference continuing our subject help the are impact competitive, XXXX. only.

ongoing previous Okay. and of we Thanks Today our share good above $X.XX reported earnings guidance Scott per morning. range.

guidance to $X.XX our and to to guidance four growth narrowed contributed X% All growth the which reflects at our adjusted businesses $X.XX, midpoint. raised share our also per sales expectations the year full above earnings and We quarter the exceeded now overall in range XX% previous of range.

are for a this strong in of of have leadership steps achieving customers strategy. results also areas growth Freestyle shaping At we executed Over of the invested our adding The serve our in have direct created makes are organically we healthcare where the positions These we and that same portfolio, in have changing resulted technologies several attractive time very big difference strategy Alinity. consequently pruning. Libre a the past innovation we have areas such years both to deliberate and performance. game a result as and

our opportunities have Over while our organic growth than in same growth, margin fully fund size. growing at acquisitions four the more with And able sales. a a our time faster and earnings to we for the on synergies X% company significantly recent quarters, averaged true past we focus differentiator sales expansion, than are

its we its several long-term fastest grew the sales years business, market drive in EPD, or unique growing job rapid Alinity X.X% full for EPD market, our built X% growing accelerate than We where of be done will of guidance more driven business. faster and the before to strategy that the now call This retention our markets including of evidenced continue we if execute countries, rollout is leader its and have continues systems has quarter to the based we an the growth dollar. integrating India the U.S. second summarize are over quarter by diagnostic, the stabilizing forecast performance win China. pace in growth. fact our strong by the Europe earnings on including is as we and of to in The the the results our sales of pharmaceutical In for guidance, than U.S. despite infectious solely than higher growing testing. turning strategies The management where sustainable bit a a world, our team Brian. global business. for suite quarter. synergies identifying start come sales share additional second quarter, performance of Clearly, in established by I to realizing in raising we priority the XX% of competitive laboratory underlying cardiometabolic across stronger diagnostics, positions strong pharmaceuticals remainder the year as growth in even rates. and of is raising Alinity and leading the disease achieved international excellent In rates in and second with capture strengthening growth were continues already which business, the of and launch to full-year well-positioned implementing including would the driven to will recent I faster and geographies core

nutrition, opportunities depth in enhancing Our these across on our strengthen capabilities the business. product focus long-term strong quarter, position portfolios breadth markets. local international of and by performance led increased the X.X% sales growth our and across continues In to our and

now by adult growth internationally, medical led have cardiac growth growth by world's consecutive several improving insertable by balanced structural In market Asia, as we in electrophysiology, for monitor. saw including leading the Ensure In growth. ablation Greater where our several notably Confirm, pediatric led quarters led Latin was mapping of Glucerna lastly, nutrition, most was cover and portfolio XX% our business. performance And led countries devices, America. as where achieved compatible China cardiac double-digit In performance I this We heart of growth and across was grew and by and double-digit advance only nutrition, strong smartphone strong in diabetes than care. electrophysiology, X% will more first sales well and brands,

generation heart heart. minimally In device of structural for areas during we enable configuration next-generation includes quarter, received we by of detailed for size treated. our a received FDA which to and during in heart, further its create we newest the to maps enhance our In the system, more for the our first in the of approval with strong of And of During strengthened for vascular, stent the leading U.S. quarter in repair approval led month, will our received version of national growth quarter. the across the U.S. which Japan reimbursement MitraClip, XIENCE FDA launch coronary competitiveness Earlier be the this valve. MitraClip, mitral HD of includes was our enhancements patients market. design catheter, an invasive current U.S. our we the portfolio product highly which our several market-leading to Advisor Sierra, additional portfolio clip Sierra also XIENCE

opportunity over of XXX,XXX offers driven globally. sales with of and accessibility by industry of grew that's care, in third Libre, with users XX% diabetes and patient system. level Freestyle achieving than the highly true quarter monitoring differentiated its in unique combination a unprecedented it's a ease Libre adoption sensor-based current more the for affordability, use Lastly, our glucose consecutive mass-market

quarter shifts, strong execute overall. the with as our lastly, we for guidance was So our contributed expectations in strategic strong growth exceeded we on priorities. started and summary, very businesses year quarter and four EPS All double-digit to this raising of performance. another currency of And over detail. good based for to to Brian even our on Brian? underlying the outlook will more the outlook we recent our strength higher our discuss the and call despite results today turn are I in year now

Thanks Miles.

noted, basis, otherwise please that growth unless earlier, consistent organic which previous with an references mentioned our are rates, Scott As on to all guidance. sales note is

organic an quarter had Sales and of second growth late Diagnostics, sales. year-over-year our quarter results. the organic the guidance is a which range. for an above favorable previous of million. acquired Turning on basis, Exchange increased year X% achieved results, last on second X.X% not impact $XXX Sales therefore in included Rapid our was sales to sales

During saw April. sales versus the time the on quarter favorable our U.S. impact this a expectations our strengthened less we quarter, steady had since currencies call to several rates resulted compared of dollar the held exchange earnings in in

aspects and XX.X% gross margin expense P&L, adjusted Regarding was the adjusted ratio R&D of other the SG&A of XX.X% adjusted of X.X% was sales sales. was investment of sales,

reported full-year current XXXX, sales momentum, Turning and favorable which the exchange a rates to X.X% our impact growth expect be April. sales are basis of to organic our lower based we around around outlook would XX forecast in increasing points would year on At our based have than points on exchange X.X%. full XXX for performance we strong basis on rates, to exchange expectations to

of In addition, sales than we a $X continue to more to Diagnostics contribute little Rapid expect billion.

X.X% margin underlying businesses. improvement forecast We of R&D around an which to below continue XX.X% sales. of of across sales, XX% investment includes adjusted sales expense somewhat somewhat of forecast ratio We and margin our of adjusted above SG&A gross adjusted gross

mid-to third addition, adjusted contribute sales. an we single outlook around of of sales margin X.X% third on organic We of around in approximately ratio to Turning adjusted $X.XX EPS negative of sales. for X% Diagnostics of around forecast to of sales expect Rapid and XXXX. And forecast XX.X% at we growth expect gross to rates, We R&D And expense a of forecast exchange of of $XXX reported investment sales XX% sales, million in approximately the SG&A current adjusted impact of adjusted quarter. of an our the digits. high We have $X.XX. to quarter

will third Before I we for our questions, by outlook open quarter call now overview growth provide organic an sales the business. of

we in digits areas consideration forecast and And sales growth quarter growth. are as devices, high results increasing growth digits sales high for XXXX medical In we strong in for by which diagnostics, high well. increasing we our nutrition, quarter the earlier the growth, forecast of new India into mid-to sales will continued growth single-digit which and implementation impacted as pharmaceuticals, mid-single of now the third third country. double-digit clearly well, single in earlier established sales takes call we quarter mid-to XXXX to mid-single several forecast to that third were In last when high business. in are year For questions. reflects that, forecast the the With we the tax system for for patterns forecast single-digit single-digit digits open for forecast

Morgan [Operator from Lewis Instructions]. our And first question from David comes Stanley.

is line Your open.

congrats morning quarter the and number, on in out nutrition the organic dynamics international stand had addition stronger and quarter. two obviously to recovery Libre progression. to Miles, are this that just you obviously Good the us really

the in had the it the you sustainability number your with can acceleration, relative sort I and your And on back this details the in year? of nutrition year? Libre, some just where to is U.S. us quick plan comfort Libre a drivers And million $XXX So the of follow-up. give half in

we all plans really area so not forth. terms talking geographic through the It's In say, that all I of views in. business, case, we in about we it's times, of way. China. and nutrition U.S. and are board. of and countries Okay. detailed success the board lot across actually in in It's performance. nutrition this any place. In the the are pretty We with or concentrated would It's either A are not one the the first pleased across been by

a to am and job blocking with so and and increase lot uniform pretty working small our in better positioning them pleased see a products it's performance and So tackling just lot and plans and in things, like lot a of of of marketing, doing things taking I a forth. coordination, of our And countries hold in internationally.

in in, on stay sustainability to we that's depending about as sustainable pretty goes, this on in business far perform see able can to put down, maintain to and on we like sustainable ought doesn't pretty U.S. in to much and a the range areas are change like continue long-term the it mid from So promotion even it something up number market case. way. and and a And a, feel But a as will that time heavy I be cases. share given The in it, call our in promotions basis time, single-digit good we geographic of feel growth low it's good. as a we to if position that. advance the nutrition range and in adult competitor here, fairly I goes

at, It's solid extremely So be but anything to level. feel call pretty and expand I it, a single-digit like can't With forward mid it's regard pleased. Libre, look to well. we going

want terms we We growth, to are be with track patient of and acquisition cetera. in et on where

this very device of to as product of so dynamics we out unprecedented people there unseen. year with mass-market patients, ourselves insulin-dependent. patients sort acquisition because product or be market that real No over other opposed to. medical the a which a us is compare many to nothing and than go insulin-dependent are niche compare a and We to the of is trying expect think not have million are type either We to

here I enormous. think the remains opportunity So

been I to the offering, We the growth forth, lot quite we patients is like quite market There product, more getting. like geographic like the we reimbursements think sustainable. this of are so only We to mix. good. The not is enhancing, advancements. keep the mix geographic a the the very has do

planned. this about Just than about going better is everything

this family the key system think sustainable of area. is big along in of company the one with Alinity the drivers I the diagnostic growth So

devices but volatility a innovative niches of nutrition it, market makes niche like to or underlying we probably, got and have call where small our strong market have either currencies it, collection the describe business, We very medical you drivers products number in of, that of big affect a got then of places innovation and difference here, in innovative growth lot growth got of the in spite or like too had bit smaller this is have still a a pharmaceutical and growth.

our the think drivers term. reliable look so growth And I all very long for of

Miles. from Very for Thanks just right. All focus a And the was clear. focus quick me quarter. the neuromod, another

change And are you drivers of You do some this explosive Thanks are of growth so the discuss anniversarying in it? quarter, business. address neuromod much. can kind just fairly this you to growth that doing in get the portfolio believe relative you back What growth? But it? can to market

Yes. Good question.

things which going got part the a last have of Explosive of actually interestingly is observed. You of couple which on here, you a growth one problem. year,

did disruptive of our the cetera, the our in of the concert do it way pretty additions very also we did a And was explosive et to dependent sales force the finally of new for our created where we would we this force I with was so when we growth is did disruption patients. that and turned say, sales field salespeople out with And recently, the to in self-inflicted think on sales sales representative, issue the it. rate service This a new and in And of forth. is not business own with people wound. experienced. but I bit physician the here ourselves in expand the the representative, business not expand involvement the only a with we

re-cut territories. You

lot a have forth. You so of and training

I our issue added So comp we have think to here.

it to growth? absolutely. back Yes, think I do So market gets

it, smoother ourselves. by will did successively We let's us. concert to force created our It a I out the just in think figure call us. in our will is a we sales future. fashion growth expand this this And in, with to by fixed temporary condition how

Okay. much, Thanks Miles. so

you. comes our Thank Biegelsen question And next Larry Wells Fargo. from from

line is open. Your

on Good a for taking quarter. the Thanks morning. question again congrats and good

So in that on we GST it second you benefit once growth based Indian in saw the like, half. the forecasting similar looks adjusting first the are in the for half, EPD guidance,

Miles, in sustain tougher half? similar significantly you growth So you the half, a is, do second that I in is the my given feel confident I had the why And question can follow-up. comp guess second underlying

of are all, underlying our of underlying strong. dynamics first Well, pretty markets the

currency. Our from not to think hear is forecastable single concern lot biggest, you I or a And going of companies. forecastable that guess, are I

case, like think currencies currencies, volatile I we dynamics and speak our and they et all the our cetera. will with us, currency from high of And a and are unhedgeable dollar the those most think but we robust time. markets, volatility time also pretty in emerging markets. and have underlying have trends we of are And of markets, portion like growth beneficial of we unpredictable I seeing which stronger for business in are we to the proven those to come significant be growth and

you opening you raising here, currency So headwinds through year of cautious the the remainder but remarks, the second further I far said are and a to going first is change out. always as currency really think times, clearly what of to the doing we it's year can't get that in first because big cycle since this now for number probably would having been the know you a of quarter. about predict made the you It's my half that guidance year, even of we do what see and but the until you see half for

pretty end good. fair good think the half handle dynamics pretty we negative the are more second got So And of all underlying bit of business we observing a what probably currency the on observed But headwind in up already. a that have but real face. will here we we have we

exactly And business, take lumpy. expect Now, our you to it's business things a like said, pharmaceutical go. that you like them never go

comparables quarters you that later or to year GST year year If so lumpy you be oddball have a and going creates following got from again. are automatically factors other with forth, the

markets, in good high. up-down, business up-down, down, the up-down. news The has that So a is, almost mix of growth emerging is always a it's rate when pretty still it's even

rate good volatile. dynamics comparables rate, we quarter growth a a it's back from some growth it's a growth great quarter, good Russia, GST. in this was forth to So bit rate to it Last go to and because a

creates because will issue probably the the that sequential EPD thing, year. have comparable in really last business you quarter We same a

in or performance and volatility dynamics dynamics the the way just of of about fundamental EPD growth businesses to downs underlying rates So business, remain so going the these got market question you of we there collection or performance see in is, The have first guys, are is something that of and markets. emerging ups some we forth? timing the our across very our strong and like

to we look at address way. I So that we We think see. tend everything it

slower see That we of next are downs think But well comparable I Do market do I think Yes, this Look, ups we think And in I do to forth. growth this a neuromod David attractive. we it. at businesses. in as remains really unattractive? year, so will in here underlying standpoint out. we the do back that going somehow a quarter to well pointed Absolutely rate are from it? will we just be and of market not. lot these referring and see will a quarter dynamics

acceleration I only in better diagnostics. I very businesses in steady nutrition. big, those board. better Alinity, is I So am and pleased of with the big I Libre. the am these are good. drivers confident of trends growth that quite across with am pleased which I very the with see am the pleased And with gets underlying ramp pretty each what in

the earlier, down guidance And couple strong. here they raised points rate So overall is would up but and like about while a there, of for growth said concern underlying further we probably percentage I may the exchange. have pretty and go

couple but MedTech, And like diabetes of were then some for there there a your pockets That's on up spots follow follow-up soft to helpful. my CRM. strength and question. David's With like electrophysiology, were

failure. You have addressed neuromodulation already and heart

the and on color second the heart be How for CRM those in So failure? should half about taking any the year. of segments Thanks questions. thinking we more

of going couple my attention, dynamics you. CRM and that one a tell gets amount with Yes. of I on There's a fair would

underlying replacements in First XXXX battery to an year so voltage timing all, tough prior a of forth. But bit here issues, got XXXX, to of had replace sort stocking the of MRI obviously we last pulled we replacement low because to batteries. St. when have comparison Jude, those of because dynamics had us, going and also compatible is products a beyond thing forward second and launched on a there it it's in quarter little battery lot that,

replacements now because fewer we doing see are they whereas novo forward, you we new segment, were the So well. extremely patients, got in pulled have de

right it our this well, when kind we of to we take with in see replacement look you up we future analysis should this get a and So once say, phenomenon it pick a about apart, relative at here, the tailwind XXXX. you bit diagnosis and are of if past

looked we have at that. So

not rest but for think the not I that's us. position satisfactory in we this flat a probably of year, are for CRM

So is, growth the improving my we keep here. rate expectation

not a happy electrophysiology are we I rate others, therapy to like, are need Heart we we these out. regard what we great, be and and are to going destination claim you failure, the but understand point with as doing shape. We think think great looks With why. growth

it's simple. think that I

the for Thanks taking questions.

Yes.

from our Thank from question next Hopkins comes you. Bank America. And of Bob

Your open. line is

have picture growth Thanks have perspective, durable the have And clear for of level. on earnings I you divisional big growth. question I your well that growth. targets. running been ask topic above kind is the revenue the on I very one a your reason earnings big obviously one durable the a question of two, been From questions. taking just and picture guys on

the can than this go in Just share. growth successful revenue for topic on drive the growth can durable what XX%? thoughts kind like are outlook you that you driving look to if As XX% business, of closer you the you we earnings any does forward, in Is company? think it

And say, of growth. might is to think than start call, we sort some fact somebody and and a we me I goal, tries that growth well long-term future XX% but in darn lot more pretty even every necessarily earnings it whatever. to that these it don't hit X.XXX% with every you year or in single year or double-digit year, backs into get close forecast that. a of And earnings times Many

So you to I is, overall grow tell otherwise growth that our a would want double-digit strategy we to a difficult call yourself rate at company.

have lot in got a We pieces of company. this

us position We kind growth tried growth that And growth and grow are growth delivery sales the have the the products, growth innovative above some not segments, has that we shaped double-digit in they target of incremental have years slower to overall have over the last to and may And markets, why and that's look is also still long-term. some fit those have areas to that six company businesses extremely it for so generating that forth legacy away the we for growth deliver we which prune us, over things and of we mix cash growth. as but profit rate. add profitable do businesses,

spaces, We right right markets, in have so to right growing and the the put forth. areas tried geographic innovative ourselves healthcare the

leverage gross and forth. our You know margin, And the margin, efficiency on always look we about have by improvements line bottom it. so we talked in for even spending

mix the that's that's the never quite to presumption, am build And approvals our lot can is markets, predict, that's Even businesses, I identity, that business know don't the it's eliminating that's start But it our mix may here. that. dynamics can it year I There with the strategies of for the be, that our exchange XX%, minute I and of we a new of it's our trade, or And XX%, product you product whatever XX%, of I the year et to like ways, expect year. change, things tell the deliver cetera. XX%, XX%. over goes you a go. course our as strategies know, whether every XX%, we products. And hallmark, you So of just

strong, a got have of businesses. lot that we of and moving as parts really profitable a So have powerful of a think innovative businesses I robust, mix got we mix

cycles sustainable really of Every it of it you businesses, the long-term nice ahead a of new piece are We evidence can of has launches. great a product growing. here this see and

am more I drivers be not predict accurately to you it's that, have of growth can a I other than for beyond lot going So sure put here. we what

getting lot selling this of haven't organically of Alere that our a pleased coming deliver but It's are are growth performance. we to going am because of the in as for to with and we out year, see even business above know, you its that's how We begun in, I expectations years. not the really us

on I So were of would shots here the lot at and just look the always lot goal various pieces products delivery the managing a of of we got way a we business, our of to expand.

ready is beyond many double-digits that how you and always I to tell So tell year. for double not am goal our you, I next digits would

really the it's maybe that the the of year, touch I quickly businesses at I is the one you And on it's Fair really seems just, was appreciate than thing thought there one beginning if done better enough. answer. to other But detailed nutritional. want like

the you. how I you and about just if is? Thank improvement driven talk wondering that could was what's So sustainable

thing. know, I you think, I no go to, back Well, there's one

Our all markets are little a different.

always be different. East markets well. to That's a competitor areas. dynamics there very You would we in lot in ways, level a of and every are local most same at strong And complicated, other strategies think they execute to Vinamilk, or very little Vietnam. They infant that be Ensure in have actually we a market is but formula that's it in in really each rural In different. dynamics same of state company like the that the Vietnam, wouldn't some there's a or in then in happen products they be and The the are or a strong same competitors a geographies, have And really got country of happen but fine even market. big competitors. dynamic multinational in Middle face don't regional Asia even We our some the unique strong cities. to

is consultant are these and So that, afraid. can it's different. several of upper that's of like Each matrices no but country to to artifice. box try those say so of put thing, little our overall, say, one corner the things. all all sort We a focus this even and left-hand countries am improve I four-box The in them on, products. doing we I needed would

can too many. You have

you But You to can have too few. ones. got have certain have

innovations. You got certain have have to

to a You market. forth. to. It's XX physicians analysis it have and to to call And and/or appeals little went countries and each you got by or tailored have ingredients. that to marketing to detailed country, have went We consumers new got top the appeal and are hospitals strategies you through trying certain literally so country have that

You lot say, well, shows. it not up not. In but many. that It and us management change? took and a places, and It's yes, of really shows. Actually there our was execution that we few a bar

We a strong have got there. pretty business

a is that, got of pretty think it better. bit I the for little new, direction gets which a now the to major slipped established rail management, I and to lot that execute some we has little you be have and a top each pleased geographies off see the for while good details to that am of beyond of

a seen of have channel change. We lot

shipment, have online We marketing, impact of digital huge or digital a seen cetera. et

channels, have evolve, seen we and forth. stores baby As specialized channels so

slow I we were to adjust to So that. adapt and think

we it makes done or it it needed either and We missed. now did faster we got understand what a left than behind. I understand we have it think and we and what shows difference. about and to we it clearly We others do doing did are we

are now to about or we with missed be running correcting we So vengeance had we that with made here. pretty and I a ourselves hard think mistakes had and had we things honest

the a I So better. is lot execution think

Thank you.

question our And Capital from you. Markets. from Novarro comes next Thank Glenn RBC

is line Your open.

morning. Good two on Hi. questions Miles, Hi Libre.

First, give think, are in and can which little your with the I coverage? Libre a you where I million? bit $XXX the had on you more commercial $XX U.S. then, a us you color And to for comfortable guidance is the are still year with follow-up. And million rollout U.S.,

the for we with a Yes. to comfortable I are answer year. absolutely Yes, have quick guidance real the that.

like are I on Glenn. even track, We to go faster. would

in growth As really compare to investing future even before, there's to. even and expansion and we forth I to have so anticipate capacity the heavily said it in nothing greater are

is economic for that's very which value the getting but accessible I with consumer it, point whole have, product. in very, or or I here price and a have has let's call found extremely we think the patient space made bodies the know, we even attention attractive. by out think are the profitable carved And you reception pretty increasing and a proposition the real position reimbursing a the us, we as economically point uptake

about a Our in not manufacturing excited so And to it product. not to do yet, hard and pharmaceutical, recovery of us be a be commit it, it's extremely way working that including out automated. be accessible, and cetera. insulin-dependent pretty I hits times, people is so whether to there's of I to for it's product, mass-market a and the a forth. because affordable and here. millions me. lot are in great. don't use a be got it's It's be sweet numbers well want cost. product a for be system that big costs diabetics insulin-dependent, think of so of for it's advantage expensive It And because got cetera, what and potential can find everything that the millions that this got lot spot to they to gives et be affordable it to medical terms in world, am them a healthcare and This it's And kind et there's may is in much of of can patients device, the the forth got

going Type would all split say the that's like versus super. We of Xs. we seeing are Xs So I Type

We probably are Type a Xs globally two-thirds third Xs. about Type and

pretty to the I think And the speaks that the good benefits different mix. users clinical and it. products efficacy and the two from of of types that's it a benefit

this than And run? more this uptake patients all about significant it's the to number the I with a end data U.S. well. we consumers, year the fast in of repeat, the can think out that, I indicated And you, as at the by is million all will worldwide, retention, at our of point, go So a the we going says all how

to share. are global look no well, far way the be, we this it's so will now, I think almost, away we of space there's probably kind at and in leader

We call, sensor days. at, have looked what you

testing the and days how to take globally there's whatever of compare and you to market. patients, a If many huge above sensors, that, we nothing numbers are of out and of you get already it's XX% well

us one tell that I here, exciting the of And kind see can fast that are that's just product, nice think we and a how and that really I this to fun. It's It's we you. So just run product fun. an comparing impact. has just will to is opportunity

one follow-up. Libre have of you for terms timing? and me features let next discuss And what's just Thanks. Can in quick

I product, things points of number know, work, some not available done or guys enhancements already that don't around a catalysts, to could, FDA use. any et the or little for I in the There set overseas. am terms place, in all talking working a going the challenge we the are expectations country. cetera, points want are obvious of different It's this planned, ones, create which you because whatever here through but I trigger to probably I that like to to have

get I So enhancements and we the for got space the Glenn. here the want but have don't of thoughts advancing or further, to still discussion, plenty Xproduct into

Okay. Thanks Miles.

Rick next And from from Wise our you. Stifel. Thank question comes

open. is line Your

Good Miles. morning

Rick. morning Good

question. this, ways, right and your growth is big lightly should you your a at enhanced about the and on inorganic Or are you more portfolio Both picture are with be adding exists? you you be when not net the you interested largely the hearing you interest in on about along, have? we portfolio, to you we humming In M&A with existing pieces course, off I starting some your thinking and/or good am looking just priorities with are imagine have it as focused, be but might do earlier focused always aggressively of more but margins? in execution technology your think of in comments actively you everything's out. portfolio Or touched that out, which think growth, now about Maybe expect thinking in thinking or would shape benefit that opportunistically of now, we trading continued just the now and should about you

I know, always let's is, very and the shaping in did the I I since form think, it's or as some every run another At honest years. say, too one six or deliberate got been opportunistic. and this It's fun, forth. question to You last to well. investors little accidental a company, point, and a forth the of answer you get have been Everything's intent speculative that's And so the plan transaction to we also can not transactionally question. AbbVie over on so with run look every think and companies oriented. it get this But a reactive or visit opposed it a call and split and

company versus lot to what have first expect been productive a So do philosophically, as a make the our operating their internal growth word productive with investment its we as of here's innovation, make them us today, grow I And one well way is, and with our goal the establish a things well investors we know and positioning right the and ongoing has drivers, organically execute because the operate R&D, it's the distinction the to how company. whole have we operate: markets, between used got own money I or baseline the of Our segments, we do other. in company right transactions, productive part right to to growth company. a want but the

intentionally I ourselves don't you that board. you shouldn't, know kinds feel have ever think that comfortable, we but that are positioned spaces pretty I are across you and of know we a way. don't in good and those So pretty place the deliberately totally I in ever done

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Just last for me.

-- had You

I Right, talk much. Rick? means too That

I No, would Miles. really, very was it never say that, helpful.

the accelerated. this coming a business quarter is MitraClip couple strong, is that worse had You first of the XIENCE incredibly Structural approvals Sierra next-gen quarter. vascular this obviously Sierra. product notable in context quarter, new and XIENCE heart, the of slightly a than

get MitraClip? the will vascular? it maybe accelerate in back from bigger stop XIENCE on I on there. again. growth? should Sierra more we Does track think So you open little Thanks reach color what procedures? Does up a Does

Thanks definitely you competitiveness, further, And reach, changes patients because the Yes, life, MitraClip Rick. their flexibility them of of improvements forth for incremental the are I opens Sure. can just time got think et you product. size with cetera. and extending we their extending that the and have to question, products more Okay. that up more do so enhance any

business then that's have returns The more I coming. Sierra, all structural things think pipeline excellent. excellent and XIENCE in you, and in our we is heart performance for got I our early So Europe good will tell

Japan. with same the think I

is feedback. close. The Europe, just States, are I not the and all launched they Japan have anecdotal United have got but so U.S. same, We are and in they the

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about We competitors here. that. pretty three talked strong four or There's have

space. the improvements of make, but magnitude a has look, all innovation said, the very incremental biggest had. I think There's has or it's the been can competitive market we magnitude

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are Japan. in We seeing it

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again. Thanks

Markets. Thank next comes from Capital BMO And Joanne from you. Wuensch our question

open. is line Your

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of Joanne, business. business, but lab core Well, diagnostics not with the part it's integrated is Alere the

is businesses kind of a So what of major by we collection have got here segment.

part So me I that take think just last and let first.

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really business. are with that we So pleased

really with it the in are We pleased portfolio.

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that So getting past we or are now. through that

has several rates. tracking, are quarters prospects quintupled competitive the We capital which are a and already in If are we our where is in closed than, think rate situation would any here more I in think last about win I are we business, you XX%. gosh, tracking we in like there,

from keeping everything already In win everything that's have initial strong. win they to XX%.And to have and have a really and years are standpoint that. beyond is to We trying systems, that make places actually is of got rate of competitive expanding have are to well rate kind that swap they replace above of then a here those our out good where that we are decision had accounts number the pretty going that for we

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we and our is can in in lot organizations better did very That and we sales as I fast, neuromod, speak. expanding a you are well than We Europe tell going hiring service very that.

a will We there. lesson take

and is moving ramp up now. faster the so And faster

well We gotten what plan how for on every cetera, ahead many, about pace, we years account very have every how a cetera. and mapped, country have detailed got et mapped, gosh, pretty et specifically here fast,

So execute and doing we of really and that's now question fast how it's execution can well. just a

path the the on pretty here I in So fronts. ahead business am diagnostics all excited about

And, on my MitraClip question you. franchise. your follow-up is Thank

out We Can just just approved in in have an a that is? trial September. where FDA the reading coop update next-generation you. business product, on you was which give us Thank

going that, am with Yes. help to me I Joanne. Scott ask to

to there doing you the well. the structural MitraClip, is respect heart in see performance quite With can numbers and Yes.

likely will at get the data trial U.S. We on year, readout conference September. in a this coop very TCT the later

will for So a that event us. be big

expansion us received in a too. That national We a reimbursement to in is are bit geographic opportunity quite for respect Japan with as We second also doing market quite here sizable. well. nice quarter. the That's

in of cylinders it. all of growth on front lot hitting with is MitraClip So

Thank you.

liked up. Obviously, way on all a wrapped I wrap-up. hit for the Joanne, the doesn't I but on So, size cylinders. that think now, It's company diversity, I right of I tell cylinders everything will would you all feel let's Scott and think I is good pretty and hitting and the so in it volatility all our the about all and exceptionally markets on, well currency got out we and there going performing the the company we all forward the have exchange underlying have time, and call performance strength I here.

will So operator, one more question. we take

Pasquale from Chris Guggenheim. from final question Thank And, our you. comes

Your line is open.

business me. and the One couple in ones Russia. quick EPD just a here Miles, on for Thanks. situation

a just you business said care that the And the XQ. that few integration previously function quarters. than in I there? last something be had has expected Or expected? Is bit quickly think slowed of happening? still on earlier diagnostics, is over of Abbott that a then point else done Did a there work you legacy to come little headwind back the being

point the will care I of take Well, first.

management new couple the would going had say of number on were Rapid a of Diagnostics little because there and integration. a bit there's a know, we You I changes populating business. things We

And new accounts and forth been the challenges a So touch new a had addressed. that in little we may ourselves new so some over yes, where there customer transition. with bit have have big a since lost there's couple and of dynamics, lot we over had we

am So that I to a that don't let's expect call just here from improve. but it's be that's Scott had long-term a we couple help generally of healthier Russia I growth and and of, rate much will come think EPD, slowed With Brian I to we yes, and say, to would going think I growth as here a slip-ups But bit our that have rate. regard condition. to get little seeing back I it, predicted.

in don't we here or the we is through think of quarter. that has. would the but I play know pass cycle everything second done seeing I out are kind it's completely thought

seeing And that so to, we it, back a are let's come call better position.

I our would our customer expectations. with end add, just line demand remains in

say had We are this has in we returned which that. based a sign destocking tracking how the on quarter, and progressed good And is to seeing we I would stabilization the are actually we planned as thus far. Russia, growth

predict to and right be thought. and we kind things these it out close. of turned actually than Usually it's try got am right that more to you are you I we never surprised actually

Thanks. on the congrats That's and strong helpful results.

Thank you.

all and Abbott thank you, joining thank today. will at questions. of you. abbottinvestor.com. available us A Relations Thank This on time now Investor the conference Abbott's Well, after call. webcast be call for replay you your website concludes XX:XX Thank you for today of operator A.M. Central

thank conclude gentlemen, in the conference. does participating This today's you program. for and Ladies

You day. wonderful a disconnect. have Everyone may all