Abbott Laboratories (ABT) 19 Apr 232023 Q1 Earnings call transcript

Good morning and thank you for standing by. Welcome to Abbott's First Quarter 2023 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.

With the exception of any participants' questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. or Abbott's recorded written be cannot rebroadcast expressed without permission. It

Mr. now Acquisitions. Vice like would Scott to and I Licensing introduce Leinenweber, Relations, President, Investor

morning Robert Bob Funck, me Vice us. President, Chairman for Chief thank will Executive Chief are Financial provide and Officer. remarks. and and Robert Ford, Bob Good With Officer; Executive Finance and and you today joining opening

your comments, we'll take questions. their Following

XXXX, forward-looking statements Litigation that get we started, of the Before results Reform materially those purposes Securities uncertainties the Private these to to made results maybe some financial from actual and of indicated for today cautions Act may statements. for are including expected Abbott the cause in that differ risks statements XXXX. subject forward-looking forward-looking

that factors may Risk for XXXX. other and affect Item operations the XXst, discussed on technological governmental, to year competitive, Factors Form are XA, annual in our report XX-K December Abbott's ended Economic,

any or measures to Abbott as call, used statements events subsequent today's financial the On publicly undertakes as as be obligation of conference in revisions past, no developments, by to law. non-GAAP result forward-looking will release required except a GAAP help news measures on to Abbott's performance. comparable business non-GAAP in measures at abbott.com. which website understand our are filings the with our ongoing financial earnings from regulatory release reconciled available and These today, investors financial are

defined predict refers quarterly issued our is to growth, for otherwise growth. On could Unless today. on results organic sales unable organic a commentary release which reported changes Abbott that the is measure earlier exchange sales because the not growth. sales press has the basis, financial Note growth which sales impact in noted, rates, company in GAAP provided forward-looking to foreign future

turn over now will the call I that, Robert. to With

results everyone, morning, year. start the strong to Scott. joining Thanks, reported and thank Today, for we us. you Good

by driven excluding First quarter consensus was COVID testing. share base entirely earnings were per performance which underlying strong estimates, $X.XX, above adjusted business

in Medical double-digit Devices, increased testing Nutrition. led Established excluding growth sales and XX%, Organic Pharmaceuticals growth by COVID

you'll companies that a expressed January, back peak, years some and Abbott bit. other over recall, ease faced last some to in few optimism As cases, in starting I the and the headwinds were

As to part first year, we the see. move of that's exactly continue what we through the

impact of significantly notably, and lessened. the has COVID rapidly Most

this As all have simple or a illustrative society. of about transition, tourism certain part evident seen, and significant across heard we've shifts has been in behavioral example travel experienced One increase first-hand. been

medical much healthcare are this been diagnostic increased and the for And more our important quarter getting priority healthy. in been volumes, products. and staying people globally portfolio. and routine The A the impacts health demand businesses, testing consumer shift past putting relevant net that improved have strong behavioral growth increased seeing broad-based result across we're our strong device for on was procedure has trends healthy based

new and adds of growing older this to world. and growing focus strong pipeline going for sustainable that's along Importantly, as foundation population top-tier health demographic increasing favourable strength market the dynamics, enhances and and longer the provides these to with growth healthcare product other trends access global favourable combination our of The platforms forward. around growth such on a living a

areas, gastroenterology, consistent or summarize including continues and EPD's before over This start stretch quarter. including detail Growth this by performance, sales more cardiometabolic, call to now the quarter EPD I'll in Bob. Established each led quarter two several and the results XX% management. first therapeutic turning and with Southeast last our I'll increased was Brazil, Pharmaceuticals performance in of years. the CNS impressive Asia across growth in past strong of pain where double-digit strong China,

quarter of in products. increased pediatric than nutrition of the included US, growth due of the last sales Turning more impact first year Nutrition a formula than XX% infant voluntary quarter. recall certain more of sales the where the XX% to In to in lower

We continue nutrition our manufacturing Internationally, also total digits this and driven by grew production market performance digits mid-single brand. make nutrition business. adult share sales strong sales in market recovering overall leading good increasing of global and progress, Ensure in to grew mid-single

Moving where, impacted in sales was year. as decrease quarter by to COVID a to significant Diagnostics growth testing forecasted, sales compared last first the negatively of

mid Diagnostics. was organic Excluding COVID growth sales of Care and testing, Core in single-digit growth Point by led to Rapid Lab, high

and partially Lab China early by Core led several performance offset last market by Europe, improving the Diagnostics, In market US was soft demand in year strong conditions in growth the in over we're weeks. seeing was the which where

sales Core Laboratory X% globally. nearly grew Diagnostics China, Excluding

sales wrap growth up growth an organic I'll growth basis, sales Care, more in And US Libre organic than an Diabetes on In on the double-digit XX% in grew with and mid-teens FreeStyle where globally Medical XX% approximately internationally. internationally. XX.X% in of mid-teens US grew quarter, Devices, and including basis including the

connectivity insulin their We're automated leading delivery and with with Libre X systems. as manufacturers possible. X with the Libre as US for clearance soon to pump During insulin working both received Libre quarter, integrate systems FDA

was sales Heart. than overall growth compared sequentially growth Device by in Cardiovascular quarter X% one the Devices, and businesses. improved and strong grew Heart to prior the double-digit of Cardiovascular rates our In Structural sales This in broad-based Failure quarter in led more impressively, organic strength every

mapping which catheters performance that represents Failure, row than by high a XX%, led grew have quarter sales driven a than including Heart which systems. in CardioMEMS in teens big third European five growth Europe, sales Electrophysiology, In In XX%. more broad-based was strong across cardiac was performance grown of countries, CardioMEMS and ablation more by

along growth Amulet, MitraClip And to in quarter. products pain TriClip segment launch lastly, and Heart, grow nearly XX% didn't strong launched in was grew the which where Navitor, Neuromodulation, recently growth three which of sales the first market targets contributions by a rechargeable we previously double-digit our large compete. recent management, driven XX% for of from of neurostimulation combined device Eterna, Structural with led In by

expectations bottom foundational lines. and conditions achieving we're exceeding by fueled us and products results, new top strong and well growth performance top-tier on platforms strong is momentum exceptional are off positioning have start very growth broad-based for The in summary, our a good So, we're achieving core and the market going execution, and both improving to to forward. strong year financial

Bob. turn call over now the Bob? to I'll

Robert. Thanks,

note mentioned an that references earlier, otherwise growth Scott on As to sales basis. please organic are all rates unless noted

organic in our year-over-year decreased to first Turning related as expected, quarter sales. COVID results. XX.X% an on a Sales due basis decline to, testing

business base testing sales related the underlying in growth COVID Excluding sales, quarter. XX% was organic

exchange unfavourable an on X.X% Foreign of impact had year-over-year quarter sales. first

sales rates of at unfavourable US several our call versus dollar in During the to somewhat the January. which a impact resulted compared earnings the exchange time on we currencies, in strengthen quarter, slightly saw more

impacts the sales Regarding from P&L, sales, the experienced exchange. elevated the adjusted Adjusted we other gross unfavourable first on of ratio XX.X% quarter. as adjusted inflation in R&D foreign from SG&A aspects year sales last an of certain margin of well and was and impact reflects the X.X% flow-through distribution manufacturing as which XX.X% of costs was was

our adjusted XX%. tax was rate quarter first Lastly,

testing billion, We're testing provided to of full-year in the forecast be testing related our total for sales sales January around year, we sales $X.X forecasting underlying COVID current excluding $X the market. dynamics we're approximately high the outlook least organic Turning full to which in base seeing due single-digits. now growth billion we at forecast business of COVID below to is now

$XXX quarter, second of forecast we the COVID testing sales million. around For

reported expect quarter which rates, X% current more exchange than on on little full-year impact unfavourable sales. more reported have of than Based little sales, an second expected on to a an a unfavourable we X% impact includes of

Lastly, lower forecast than our full-year adjusted testing of performance earnings guidance reflects strong our our outlook. $X.XX more sales contribution a earnings from COVID earnings by per raising remains a expectations compared little January, based $X.XX to to and by business now $X.XX base share in but underlying unchanged, on offset

open for that With questions. we'll now call the

Instructions] we you. question-and-answer conduct from our question Biegelsen this Thank come Fargo. will [Operator Wells time, Larry At from first And a will session.

line open. Your is

Good the nice a and Thanks on for to morning. year. taking question the start congratulations

raised and you forward. have across the business lower COVID EPS EPS? the you seeing you're sounds does trends geographies It color to I organic you about businesses like one business flat that provide maintain sales. follow-up. more on going the base held more how into And and base XXXX? that your ex-testing Robert, And Can feed allowed you're thinking please growth despite expected testing So,

COVID Sure, our seeing now Larry. about $X.X We previous base I mean, base guidance $X a I our our in underlying to billion that there. forecast think we're you've reduced right it and was pretty better -- result summarized maintained performance but well the business. of a in that from billion,

a decline that's to actually great have over in $X.XX pretty business raise just testing. I base a have our trade-off here, offsetting this of COVID think

handle From not of shortages. already some Specifically on an we're of little see hospitals my start talked perspective, to to them, in Larry, staffing the already bit, back January, better get inflation in we seeing to said commodity some some to the environment, I turn. in a beginning, but about them of all comments As the turn were and starting a starting of in Devices, the systems starting the right? we signs

that's testing, business, So better I'd procedures. base more really translated, diagnostic line top say, improving on in the

the you exited at and you you March, in if cardio of were at we X%, specifically trends look double-digits quarter, the at February say procedure I'd way the throughout specifically look there if look March. around

beginning say, Devices. the of China broad-based Diagnostics in quarter. reopening the Asia, That little impact of in created systems in real in I'd performance good So across bit the it saw US, Japan the Europe, friction, we January, the a also. there a of was pretty but was, and

us trajectory we're the of been profits base some that's these last of forecasting And high couple gave growth say that about business. which the reinvesting for least So is a confidence And and of COVID of into right revenues on years, we're at we've I'd those what that talking single-digit business. base because lot these the over here.

having So to accelerated growth call way drive to provide able here let's that funding, extra without to that growth. it we're

So continue see I our recovery there. Devices, think is strong real this we in to Nutrition, start year to the EPD, double-digits a

So good year. it's to a the real strong start

sustainable. think I it's very

keep good more, we're point. starting it's and wanting a pushing course, Of but think I going to

your of because to I XXXX what's of Larry, usually COVID. year years, happen Regarding next couple always first These about question, the going last it. our get calls, it's in

if business, you little specific going underlying for $X but at question. I So I'm this a EPS. look forecasting our give get now over right base we're I'd say any little year, we're right that of over, not guidance, now, a to

as And invest growth. always to here having process making This get the through growth like about, because talked not like to leverage P&L, those -- our we've start really the earnings year, we investments, additional we're getting forecasting planning double-digits. double-digit that I strong

strong a as about starting execution. go driving point top we them growth. And into top strong think year, And the very I'm of EPS the get next them our if double-digit line. the which starts I feel that's all drivers it and line, that sustainability sure growth And we investment good maintain and the we'll and the targeting into I here, with

we on the margin going So do of top we us. obviously There's to margin and keep big growth for that elements targeting that's XXXX margin that strong top to are on a expansion. focus the work that got area and double-digit strong really line line with into But base and line. and business continue those here, that top expansion,

super helpful. That's

community business cardio-neuro Can of Thank about investment there X.X% was about organic. that? trends Robert, quarter strong There's follow-up, my sustainability in EP for competition the at about coming. this you. still PFA the talk the with concerns and your you Just

trends like the Well, said, quarter the were very I in positive. Sure. think I

think improving think I it's combination conditions. of like said, I I a

good the staffing our really a shortages and execution we're launches systems product done right impact think starting hospital then the job at I of through there combination launches. of now and to those managing see and the the product have

geographies. pretty in the we're I was lot to January that Like we only challenge think really too. of the in And said, was it think China, see growth market but starting had I I in broad-based a across again

very it's sustainable. think I So

we'll now, on done. it my question yeah, of I about PFA, interesting what share We've everything That's several an years at more been direction technology. driven think Larry, public we're think as for about your year for and it terms working I we've in team, but HRS haven't been the Regarding probably mean, it's this doing. on I by

we benefits a to base the As I a large to tool, say the see I open used having real of markets, it's development that, being to systems mapping very you. a installed in of backdrop great guess, quite system with product one get be would world. on honest actually And these

systems really looking at in the catheter first in program, these focus those. Larry, of really our and some looking of of is addressing of we're at gaps generation the lot some a our So and development challenges seeing the

the differentiated. what I working on is So been and think unique team really has

the rule So I be think will don't to tool that one PFA all tools.

that it our tool be obviously system. will that I important. think will We're a working be on

I the with space that work those this same that in and be winning to work time RF. at that to with think be companies are are going the PFA, can going effectively

So think of questions a that over going XX still I to to to there are XX months, Larry. are answered couple be the need next

think one I certain safety signals that markets. efficacy certain know, to see be, and is needs still in we you

of used I of work think, cases, with need those, So going product. the of that their kind through this type type be to to way patients are

it can I real actually PFA big question times. kind world improve of the procedure think one on is

I what pressures question RF of been given And all systems health have actually the is that have terms teams that Xx seeing. on the to a Xx I been big think our I've in sustainable. have is the seeing, premium what then that's

line, product. cardio be bottom I as to I PFA So to technology well think going more we've developed important growth generation on and have. market an is the think that different across second of we been working that areas our that and And device opportunities portfolio a all is looking to bring investing device,

so Thanks Perfect. much.

Thank you.

question next comes from Joshua Cowen. Jennings Our from

Your line is open.

the points Rob, about operating the Hi. start trajectories gross and love I'd in were strong just -- years, pop the help through morning. What last hear one of also any operating can down think volumes up Congrats of thinking expansion pull or through support operating I some ask to that us the and just margin question if the trajectories, think to business Good margin I of a plausible have some XXXX, core to double-digit maybe of just business. basis follow-up. to hoping up. points pre-COVID, gross core related basis coming trajectory the there's but was the for In the of follow-up. help on historic growth COVID EPS your levers we related was and with headwinds margin you drivers in one did, and expansion. margin margin contribution to testing XX couple to but unpredictable XX And just year.

line, are I portfolio, as with top starts I obviously I that Larry, able margins and mean, the Sure. right, to to to our it being coming the and I top think, especially which line drive mean, I said overall that think from the company. accretive top line device med has

I looking growth these areas important in portfolio, growth the Heart to So I in it's Libre mean, that our drive the will Structural a at EP drivers recovery top portfolio, whether the think all of Nutrition, diabetes, accretion line are there, margins.

challenges the the input inflation of faced all been costs. One that our on has we impact of

said, think I as little And normalizing those of a bit. I some are

to had access those to the that that focus year ensure we a I with in to And of we I This improvement. of of a fix, a these in but not that the quick steady over it's we're is time. will definitely going don't an here to of couple this next think unwind last prices. was I elevated materials, situations, right. all And think raw just think improvement some ultimately see terms the think I deal area lot years over had -- is

the to drives of our able take those portfolio every which in input to focusing month the programs, and have we inputs, the line on businesses gross our think meeting. with where it's the margin really some all then focus device but on price attention then top and accretion our focus can been then get operating cost and We've I those of combined the that increases, we offset across with improvement

expansion. So the are two us margin combination factors confidence gives of what those for that

please Jennings, is not on mute. Mr. sure your make line

turning taking would you Thank on on tailwind touched really other Thanks And Thanks a how shaping follow-up, would questions. your in that you price to any Apologize. was the XXXX, businesses device -- be great love to Rob. to into mostly much. business is you for mute. the up want very related on for also just is pricing where taking on could hear, hear. business, I And but for answer. if touch that price,

Yeah.

I'd as last price, expanding our by device it's I'd I it XX whether been months, XX we've volume, historically single-digit for on high markets growth to historically, think say the taking company, the driven market headwind share. a on hasn't really or pricing been one. us. side, a say over has

but say increases, able pricing. we've pricing, So least been hold to least out pricing kind at big gone been of wouldn't at to did and I hold able

more side where kind is Josh, business, the to been say able of of I'd we've the on consumer price. take

we been at been look portfolio. Nutrition globally but able commodity increases some of you price our If we've to the XXX% increase, to apply the able haven't business, offset across

In of where our market implement more Established the of Pharmaceutical able in to business, cash increase pricing and there. we've there are been pay, it segments is kind

has done those think our a share I implement across in still team positions job therapeutic how EPD good pretty good to the at have areas. and

probably more think there I kind whether brands, the the we've if implement have in point of of tailwinds, is start are areas and come been our there the input based in to businesses, EPD, consumer to that strength your of some Nutrition it's the especially costs increases. able an down, on those So or tailwind. to And these that opportunity see commodities to we pricing in

Great. Thanks again.

Thank you.

Marcus JPMorgan. Robbie comes Our next from question from

line open. Your is

X. in opportunity, Libre earlier love insulin would the business? saw nice get over evolving you Abbott reimbursement broader on, first, Libre world US around X Robert, thoughts the basal impacts a how Clearly, a big could just improving patients Type for reimbursement approval that this week Medicare next and Congrats start, Great. but then it quarter you for see your years the on to use for we both get really benefit add here. few and the the to this to Maybe how

I as talked generating able important how is an part about opportunity a We've Robbie. support be and market investing for of this. an clinical kind of to CGMs to the part of strategy Sure, this the data been in growth important the whole.

So here on this million about users them insulin a us. I'd US. for I is about, are a X talked there's great Type third basal X the say Medicare. in of About opportunity

start it there. So will

robust a segment built we produced, more think the that building only that's this I of not focused clinical sales on data we the but that patient includes in and kind side. position primary a care force

product think I to lends patient itself well this also. the very population

So I think we're about excited opportunity. the

own terms out, I've the because years nice a provides will determinations, in its in that think each onto US. term will we play this about sized it and population think I It's the here the to short And starts its reimbursement a billion of as there look in that franchise. plus difficult tailwind to make that for payers forecast of be eventually at over own at private spill-on but $X opportunity couple of next the know plan CMS I growth here. here

premium, supports patients without And benefits I'd it's on around combination proposition the have over think both having support to of We're expand world clinical also a US that in reimbursement. this I that. group FreeStyle other it the for a of and And countries of guess, also able I call a start don't patient group CGMs have the the of just use specifically, larger necessarily terms situation. say, it's data a the seeing the being significant to Libre, value to

results kind its terms seeing already US outside good do that we're markets and of seen we've of in implementation. So

Libre. great opportunity more So for a for I category and it's the think specifically

throughout pandemic quarter you with Great. Heart challenged And the to Structural a we to growth speak here. double-digit good ACC start this this quick strong recovery in my TriClip had had also, Anything that at and a Can year. from here? you. is been here the nice some, maybe of are earlier a follow-up then opinion, data feels durable And the quarter you in -- you?

over as Your year well. that Thanks. how on thoughts might evolve the

last at all investments of building looked always the we've the over three, think our portfolio building I infrastructure mean, a Heart made four at I in and least market. Structural years pipeline, globally terms in product the Yeah. commercial

of area an definitely is growth. this So

position entire area. seeing the our with there sustainable, strong think Robbie, the durable our good also. entering We're it's really Navitor, looks I of and position portfolio really there in area mitral, whether tricuspid building momentum aortic really in our and over the

launch the Amulet Amulet, of also.

here. So I we've strong pipeline of a really products think footprint built and commercial

it's always growth to think this doing do, I it to top-tier quarter, envisioned what contributor So to Abbott. be is which -- a what we've

question the with I you with too. with I outcome. I your Regarding agree, was results. Yeah, TriClip. was on pleased pleased the

think in said it's I that's and study it. I the don't As a past, one

to think of data. with you But think terms MitraClip. I have a I to fast enrolled and the trial in did sign the enrollment. what clinical good always invest really in that's speed of continue generating It's we

its for acceptance a of that's options and good treatment terms In not excitement of physicians. from because And the these lot there's patients.

diuretics don't know you rate high over and As mortality got here well. has work surgery really a traditional

So think saw improvement they TR quality heart measures of of trial. in terms we've the the a reduction, ever I life are that some failure seen the best scores, the we in probably of think I

the in think, physicians know shape and I this. patients So the these I think bottom are rough line,

the So we good data. about feel

submitted it We've to the already FDA.

good So review data data clip first believe They've based also. devices be and safety that's in option. here probably to will this the CMS and know been submitted. a going I parallel strong very I that are efficacy the got

think So optimistic good cautiously and data, bringing here it's I good data it's of product. you too, this -- think think I I'm

We're seeing Europe. great momentum in

point here you can that a is tell great growth that's there lot in a Europe. I we're So of that seeing proof

So --

Thanks a lot.

Thank you.

Stifel. from Wise Rick from come will question next Our

is line open. Your

voice. to Good hear Robert. morning, Good your

a we bit. hoping diagnostic, was I Sorry could voice about talk ex-COVID. scratchy broadly for my little

that Robert. much go? other perspectives do multi-year for while. an more we COVID thinking have rollout we share? to diagnostic are specifically, any are update had wanes, process. we process? but broadly And franchise Where You as a want in the haven't next, about How you'd Thanks, more a know is multi-platform, to in Alinity I what's this

I Thanks, If Rick. it year. you're years, that's Alinity Yeah, I renewal looking rollout, thinking multi-year up really enter every for between right? was look seven XX% that contracts the and so multi-platform, XX at XX%, Alinity about you we think in at the mean, there you rollout, market way to of were these a

at we multi-year. hospital just would COVID. looked focusing as on So bit, always lot the I a the diagnostic, focused a this during their back tests take did It seat and weren't really a doing to COVID systems necessarily RFPing as say, little of on treating patients related

began RFPs see, I'd say, and this what of we definitely the last probably QX year, is up restarting that last end last middle definitely going So quarter the back again. are into to those of -- process into in into of year

So a bit growth here, on our and this we excluding rate COVID. little saw I think again,

little we at which our X%, look the a take predominant roughly is you Lab target China, the bit business business, you base off Core that which And in started diagnostic range Rick. tend which is X% of if out to our the growing here,

So restarting and we're I the reaccelerating process it. think

I think going it's well.

growth the that's and in think growth we good a good US saw I Europe good. and in

the of during also One COVID got that areas transfusion. was impacted

COVID. saw in we donations drop a during So

to see to glad starting of So the inventory was but up to to again rebuilding with the ramp and able blood the donations. up picking and inventories deal there we're I'm donations start of that, be banks now in

something with a blood And positive lot advantage requires specifically think blood there. less we're the System, banks are the ability to that in really seeing side, increased lot I take Alinity our also another from automation of manual of sign. s The labor. a ramping that's system, that as it on that the So lot that's up demand There's our And a I think bank donations system. again,

lot would margin probably able a say faster going I come but So get I have that grow it because erosion some of boxes we would to double-digit to at be to the growth. you're that, to to think could than place

X%, time, we've X%, the rate is line rate drive can this growth think So line X.X% the here at that we right growth bottom I top growth actually that same profitability. drive where and established

profile is I the industry. probably margin our of think one amongst this business the in highest

done team a balance. right that the has good think I really So at job finding

think restarted now, So that's and the bit all-in-all, we I I but the place. break the and position a COVID, of we right commercial have, execution during took systems little it in it's like have,

Thank you. thorough. very It's Okay.

I'm your a to focus as normal to CardioMEMS superb making that And quick happening? you. I recovery. you're back do So with special just Nutritional, where do it -- go I It the also the but strong next? follow-up, get in we in over CardioMEMS, Thank driving we Abbott's performance? wanted for the And And you're here to to well. going days. such jeez, XX% the What's Jude is like normal from a CardioMEMS it's I've sauce sneak solid to sneak been back US growth? on Robert, As to decade, What's why watching performance, progress. a the St. story, what And technology. Nutritional, always CardioMEMS? what's great view? sounds When a see in is new thought was great

side, Nutrition work the has the on I a lot of hard made incredibly this. guess progress. They team I think at

-- in range. recovery ultimately, in. Our comps. terms that I this the when are be expectations. to maybe you upper everything normalizes in our talked expect of these don't line have And what X% about end business to That's manufacturing and kind some and that's with market range, towards target we've business of being of of our the I've X% growth about this between talked

this CardioMEMS, little been a of bit has Regarding a journey for us.

And and generating most on biggest execution in and the and ground I the in the investments commercial been year, obviously part we're I upgrade. call then the in workflow -- that I the clinical we would the here the working hospitals of found has invest expansion making We've this had. right hospital data clinical make had think biggest probably combination an team label our needed trial. and and impact the the that that systems, clinical workflow on address that here last more happened thinking we managing is to about the has what the think to continue clinical to product to right, but data addressing with going that and important

So I feel great about this product.

Thank much. Great. you so

Thank you.

Our Kumar next question from Evercore ISI. from Vijay comes

is line Your open.

Congrats and base Robert, had EPS print on this morning Hey on the I back, guys. one question. this

EPS think numbers disclosed, you I the COVID earnings $X.XX some like it the fiscal 'XX, testing. about looks on based of excluding in base is

run $XXX inflation a variables right deployment what testing? if Assuming that for looking $XXX for in Abbott historical The coming what capital pre-pandemic? $X.XXish algorithm, you or we're down is EPS testing there And part endemic on and like that down versus something total could your parse inflation, is base just assumptions, So million, here pricing inflation 'XX. taken cap double-digits, fiscal rate, grows are at out, deployment? of COVID right? if is endemic what hit Abbott inflation current And million a like coming has be gross COVID offsets could number of some

Sure.

the there, is kind base I And all of business if the got I direction that the of that going to as So think I the be I numbers would said, Vijay, of driving driver that followed growth. in that. you've right performance say, primary

public I the what a say I'm listen, see forecast little the XXXX, there on this very year seeing. to little for COVID how in need environment down going say, investment, is would I'd brought testing evolves. Regarding We bit testing. for based to we're

mostly a private it's market. now So

that in overseas well the with but very we've just brand do also. here built, we US, in segment think that the not I

early dollars I maybe to million a how -- forecast may again, good you year. might but But is starting to few a hundred have to and year, think So evolves of number what see be point. is to threw be going but out a try COVID there next going we're the the it little be during bit that

inflation your going ask Regarding address to I'm question, to it. Bob

some inflation We Vijay, billion. more hitting taking Yeah. the as about a Robert some but and again, it the on through saw was few we of some into offset last that year, the -- in the gross essentially some the this more as $X inflation, have calls, we've talked businesses, on so price around been to areas which facing programs saw us tuned across which year, able probably consumer carryover we lot businesses. with there last business, the we really of our of talked of margin well

inflation So probably call we that we've points have $X XXX XXX of basis really about margin. sitting year, to of basis this headwind been but billion, points, still mute it, able our carryover kind worth gross in currently

Robert, going deployment, a on you number. US side. cap the capital market thinking on are I acquisition, perspective How competitive XX% on? sorry, there from Libre one the was then people gaining thought, underlying about Is smaller this growth? deployment? product is share a big on And think number, Is anything CSI side. And that's was or The Understood. Abbott

mean growth this at us. couple a I the now. about been talk I for rate think XX% of We've quarters is I'll there strong. pretty

I think it's a and combination execution launch of our and market. product our of expansion the

I'd here but and say seeing, going doing I don't it's the is the that manufacturers think well. so our I that's are XX%, know are rate, like XX% to I -- said very I think So growth what other

what your question? Sorry, was first

deployment. cap Cap On deployment.

want the have like we I I mean, think best only for to of model at of the you model that the model, some sort our what's feel best almost from us like terms guess I here. how this. we're shareholders looking is you Yeah. in do return guys

the found where a approach we're kind -- having So and committed of is balanced what to dividend. having this and growing strong we

-- Diagnostics, to there investments to We in in exactly Nutrition. build those criteria organic Vijay, -- in is organic M&A growth wanted great that. fit which we'll strategic we've and Device, -- And the the been it's in a is to do think our then And the opportunity drive and fit, our the opportunities I peripheral here, CSI make if doing was add portfolio, announced for able our to side. to more it position an Med to acquire a intention we of in

with been CSI. You've what half ago, about doing. acquired a thrombectomy a been now at company atherectomy seeing year and we've We looking a

we good growth felt the They have sense we and strategic believe can the fit. company. position deal like add made a financially value it's So and strong that in we area for a that a

about M&A kind into we talked our of framework how look how that it. and fits I've So of at

best for and look what's allocation the we'll the as at capital. is return we shareholders allocate So the our balanced

guys. Thanks Fantastic.

you. Thank

comes question from Citi. Joanne Our next Wuensch from

open. line Your is

your morning potentially thoughts I'll And year? couple environment? questions. the expense for toss And that of sustainable that? double-digit recessionary Good purchases my and you in. real in interest and how Can where view, is quarter in EPD, catch and is another Thanks. guidance on quarter question share in growth, up nice what your on of update a driving and plans you quarter. A the are

take for doing we've think here. Okay. I I is say. been the would question a this here EPD that I'll years this many Listen, --

market, with operate way with pharma talked I think generic generics. nice in a out I'd growing this, it's us would operating pharma a emerging in space It's you different from the the focus. carved not way of markets pure operating in global we've call, branded and is to this There which is, about operate for fast proprietary how this. little

now kind the organization has of on those on I out execute couple of markets And are local. having think we tend We seeing you're that on really this relevant figured right results markets and really develop the the what specific to the manufacturing. to sweet an is seeing strategy last how you're that pick that over and R&D, by focus for for local local portfolios years. local We right spot

at profitability. has very So good done job And a I for think well driving really that's team done us. the

line, So not line. just also the top bottom the but

-- group is Joanne, One actually driven have business. dollar here, the of they've this the obviously growth but FX, challenges absolute actually in profit

and think this portfolios, has at a really well, channels a how I really and understanding also figured So that. team job done but model, have it. with very the -- out It not do I they've good just is unique integrating to think

India mean, in of lot in I Southeast great perspective, America growth and geography a of a From growth us for Latin in too. my a growth comments, opening Asia, in lot

there we've in got know, India business too. you a As large

the well. given I sustainable And very think too, very So it's I working it's think dynamics of these markets.

on interest? your Regarding question

Yeah.

million terms year, net in on for forecasting you Joanne, So, buybacks. hundred we're interest kind a there. had the And of few of dollars then share question a expense

do we buybacks. again, a quarter, historically, the worth in know, buybacks hundred we did offset and few buybacks dilution first of to so million you some As dollars

very you Thank much.

Operator, we'll ahead. take one, go

Thank you.

will from come Antalffy from question Our Danielle UBS. next

is open. line Your

Thanks guys. Good taking much so morning, question. the for

two that impacted staffing about a and both just components COVID in Just hospital on the was question constraints. of That Structural specifically being curious market. you're severely MitraClip. was what that mortality a Heart by business, Robert, market the first seeing

are we specifically the that recovery where in about think curious Just you in market.

seem another quarter on have I did put to this up You And follow-up decent growth Amulet. then quarter. one

Sure.

I double-digit growth think it was in quarter. the

think international I continued able was technology great the that's and momentum to to we think internationally. opportunity for be I there what saw expand just us a

manufacturing us new to running I invested in and this have the opportunity We think internationally. be a we up and will site that's more able to that that give expand

I So us. for a that's great driver think growth

And then the recovery in US.

manage I said, out some have think I the systems figured As the of shortage. how to staffing

teams play in also. Our important that role an

addressed. up MitraClip been of the I cautiously I'm optimistic that, has listen, So ramping of part that this think here

build. probably that patient side, the were referral that starting we down funnel. on continue our From of shut driving to was we one that mean got areas to focus the I

funnels. momentum building I'm to So patient referral those see there starting on good

So --

question So there in Amulet, the Okay. growth a that think you launched, Thanks so you That's product launch of mean, where during characterize much. have you on you where then are right? honest, launch. curious product be I great. I that's that just really I high would market, you And in about the Amulet. is let's about very are how think, but the Omicron,

a the guess product in But said, say a going that you We're challenges say of would difficult Yeah. think into wanted we like bit products also. that here it's launch a market. right has couple thoughtful about to I market. really nice and We the vertical. to one ramp. sustainable the the strong to there a I exactly being it's done that team I is position entire well. I face We've a in ramp with be a would got kind I build little more Listen, how of saw not pandemic. job of good of the

but the have into and those seeing we a market into, the accounts, We roughly about launched all accounts into that we're XX% out haven't Danielle, gone launched share accounts. actually

to accounts. of start So up right and then that's new ensuring to to ramp see starting as continued of I the think we start see usage, start expanded go more we're accounts usage, in, that kind base to off repeat from, we're work to that And the that usage. to we'll

area is this exciting think an for I So us.

of I'm team, we the want would product, more in. I about launch, a little to terms Yeah, vertical that built about the it optimistic position but in bit about be very its the

we're We've got investing right? and here too, comparing that's to our well So CATALYST pretty trial in it, enrolling NOACs. Amulet

us. a great a investment great of So area think I is this and for opportunity, growth

you. Thank

Operator, we'll question. take one more

will Thank Miksic Matt come you. last And our from question from Barclays.

Your open. line is

so much for thanks me Hey, squeezing in.

here. obviously, out covered lot a of of ground, So

like more expectations could And QX. also in just you morning, investor folks in would your one QX just risen may now you're what throughout have Thanks. used you're and volume more environment most something year? to have ask as saw terms maybe a just which is sustainable? think, a noticeably came during came I something bit checks recognizing seeing companies bullish comments So lifting or if across, ease and you quarter, on backlog this -- that but what some maybe, be as the and follow-up something Robert, I concept encouraged by everything this more as and whenever what describe maybe in might in or the that later -- Or strong other volumes in that recovery of general productivity is could seeing the

to talking a and to this, and that quarter way I to the to seeing way consumers, statement quite of, in world during the talking this my us, I'm made Yeah. want the I and and there. I focus again, the I remarks. -- in I've I there sense bit systems guess this but the not is but first just I travelled is to in now around want behind want healthy, get stay US, to healthy, opening stay COVID okay,

years. of because a off to the not I'm on people sort this a products, to some I've products. products, on disposable couple or lot relates because COVID, been but seeing putting EPD this been want more of putting go listen, of I've off these Nutrition, there's not So my I'm for okay, health this on say, I spend focus it whether backlog, income seeing, of what going and as some is side consumer on, we're or it's these address again, our of procedures, to

backlog to areas here we that So through. tend have this to I bit the play of systems way is we geographies we preplanning a on procedure. procedure and that, Maybe aspect as or some see work a don't work role the with that tend side, little we're like there but in this might our going to, you a

So because And funnel we see have a because a sense funnel just wanting here to of is I is. funnel don't more invest of see people are over in this what the backlog. What do oversized their I health. like

be in are cardio whether to out, don't I that will diagnostics out to And normal. they back I it's of issues that side systems have these some with think how on -- of in whether is the figured the to figured flip think have staffing it's deal or ever procedures,

are of what not just think labor offset hiring, some that I some the but shortage. delta out shortfalls, working obviously you're that but addressing -- of technology, also seeing to using with by in companies So figure systems to how

I think you're report that yesterday, are think companies is in saw we seeing reporting, procedure the very companies talk this of And growth I I trend. think some sustainable. So some about

products. it I that's least we're of backlog, think think seeing at bolus least is sustainable. our how I it's don't So it, on a at so

great. That's much. Thanks so

wrap then. just I'll up here

accelerated, in has think I strong the platforms like whether or here. underlying different definitely I across comments, very product our it's we're strong, to the groups, the off off a it's Growth to -- geographies. business my base board, year and we're think start and it's said in to I

productive. And single-digit underlying of part I high is of product continues improving, also our differentiated new highly is this pretty that but our least think and it in profile. a unique pipeline at be conditions think growth Part forecasting business now base We're here. market is I to growth it

with So we're And up, wrap with for we'll thank and we pleased really how the joining that, us. year. started off you

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

conference you. your for concludes you Thank today's Thank This participation. call.

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