Abbott Laboratories (ABT) 20 Jul 232023 Q2 Earnings call transcript

Good morning and thank you for standing by. Welcome to Abbott’s Second Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded by Abbott.

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

to like now would introduce Mr. I Vice Comilla, President, Investor Relations. Mike

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

take Following will your their comments, questions. we

Risk other cautions technological report XXXX, factors cause subsequent for the for that uncertainties year revisions for Form events Securities or Litigation to the annual competitive, that the we started, a law. statements and some XX-K except Item of statements on required any are results statements publicly get forward-looking of that indicated Economic, to are obligation financial December made to Act these purposes undertakes governmental, materially including no of XA, subject Before forward-looking XXXX. and in expected by from Abbott to as those as statements. Abbott XX, Factors release today XXXX. ended actual maybe forward-looking Abbott’s our risks affect operations differ the may discussed Reform developments, in forward to result results may

which sales sales quarterly refers is unable results commentary the in issued future today. financial otherwise sales basis, a organic the in is as on be are provided non-GAAP understand call, news the foreign which that Abbott and past, could growth, company conference at growth today’s forward-looking measures our not reconciled financial help on growth. in today, measures measures reported Abbott’s changes has measure regulatory defined website from our available Unless will earnings with growth release the On on release organic predict impact press are noted, abbott.com. financial for used to earlier which ongoing GAAP non-GAAP financial business in filings exchange rates These investors to our performance. sales Note to because comparable GAAP

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

quarter Organic morning, per base joining thank of in which Mike. second $X.XX, business. you earnings adjusted underlying everyone reported from acceleration we Thanks share for the contribution an Good and the us. Today, reflects by and in low along in increased growth the medical a led with testing, Nutrition. was excluded double-digits Established second quarter mid-teens row double-digit devices, in and sales, COVID Pharmaceuticals growth for

trends our this of strengthening businesses On continued I couple our last businesses. calls, both highlighted across These demand underlying have quarter. improving in our and earnings institutional trends consumer-facing past

through the healthcare Institutional continue of healthcare world treat overall systems services to capacity Within to and adjust protocols, the increase improve manage supply the the ongoing that available to the patients. to ability around challenges efforts expand businesses, their labor

more detail now led is quarter. more where the consumer-facing will In Nutrition, over and prioritize sales the Bob was increased pediatric products internationally. we of spending turning growth increased the I will to our second demand products, with in than quarter the before U.S., call start growth In XX%. and XX% nutrition by results I our healthcare our driving businesses, in seeing for U.S. more consumers are in which for summarize

recall. now year growth adult last XX% make by increasing as led in approximately grew market that We in have formula X%, the of businesses. continue Internationally, and voluntary to production was a good both the and in of progress result manufacturing lost share sales nutrition the total business infant Nutrition recovered pediatric

and in health including socioeconomic gastroenterology, demographic strong increased capitalize high several favorable quarter. management. women’s at in XX.X% was Established across emerging This and pain continues China by the and CNS performance therapeutic the to This Pharmaceuticals, a execute growth trends areas, and including sales and business India Turning markets, led level markets. on to

Moving Diagnostics. to

routine for recovering and driven COVID-XX of to progress, the sales transfusion blood make organic And where lower by business impact This continues China. our Diagnostics, strong globally. in XX%, Lab good the broad-based U.S., occurred from led pandemic. demand during testing the U.S., the plasma grew diagnostic testing sales donations Europe increased Core testing, that by reflects performance the grew X%, COVID performance Excluding in

wrap grew with will Medical XX% up and basis. and Devices, billion in I Care, growth including organic more And basis, the an XX% grew sales both exceeded than sales organic $X.X an on where in U.S. In Diabetes internationally. double-digit quarter Libre on Freestyle

nationally be available for use insulin. Libre people France a Libre at quarter, fully with that continuous accessible the an all diabetes of only achievement monitoring continuous the system the unique This was glucose became first glucose During reimbursed proposition direct value and offers, featured price. result to who made in a monitor

more Abbott has in order reimbursement of to by glucose than growth in led people electrophysiology, life-changing coverage expanding around led international quarter, world. and devices, monitors more In of the heart. the technology in benefits the electrophysiology performance to Europe sales than double-digit cardiovascular in growth XX% included which strong in XX%, for continuous the by bring overall more high-teens growth and grew was way this led growth in China. structural In

outcomes along quarter, In Heart, U.S. recently performance first from faster launched growth MitraClip was which with ablation to procedure catheter, sensing for flexible catheter for with driven we Structural and approval received world’s several XX%, a the approximately helps FDA tip new growth products. and technology, by the During ablation types. our improved of deliver contact TactiFlex procedure

showed the treatment being in regurgitation, of FDA we valve condition submitted bringing first currently the the that by a safe look forward Earlier is to this tricuspid of year, data approval technology valve repair is kind U.S. in trial we TriClip, helps patients and tricuspid TriClip this invasive reviewed disease. TriClip as significant to patients. The our minimally treat FDA clinical leaky improvement life a for for heart and effective device its here known a quality our a that for submission that supporting highly provides

heart leadless of approval its And pacemaker. we the pacemaker, recently FDA another one invasive Management, in leadless Ribbon those for therapy that unique led potential by rhythms. was to with allows quarter, chamber X% be time. first In body technology devices care the abnormal designed to pacemaker during to treatment launched a received minimally require growth was and people a needs technology specifically in dual offers order changes provide revolutionize inside kind with for over the to our to patient two for pacemaker. evolve of our This retrievable who with upgradable of communicate Aveir Aveir, for millions

not sales grew of driven large for the And rechargeable the recent segment Eterna, launch targets our did lastly, we where device by Neuromodulation, a in management, market which neurostimulation first of XX% pain compete. previously

we have of Eterna innovations, including new for this expansions eligible diabetic launch had label are not for pain indication chronic half painful the first of and introduced for the back year, surgery. or who not neuropathy several those back and During treating

in in So from Growth the and improving we platforms. by sustain bottom driven new be summary, to our exceeded will productive, pipeline future. profile both growth contributions the base lines. growth which our highly on continues And business market legacy accelerated, products expectations top and underlying both the in conditions and strong

I call Bob. Bob? to will turn the now over

Robert. Thanks,

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

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

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

sales. unfavorable had an on second impact quarter of X.X% exchange year-over-year Foreign

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

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

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

now forecast our excluding outlook sales the Turning business to underlying low testing total organic year, COVID for growth, full in base the be to sales double-digits. we

are sales including we for billion lower the of is due testing-related forecast the our around of May. following year demand in April to which We current testing $X.X health forecasting now billion, full of emergency below dynamics, $X.X testing public around in provided that end COVID

million. testing more expect X.X% unfavorable around reported we little quarter, than sales. third forecast $XXX rates, current we a on the to of year impact full an For COVID on have Based exchange sales of

$X.XX the from performance our our strong Compared base our provided more back COVID on unchanged, Lastly, and year business by lower initial full our to reflects now versus a testing January, offsetting earnings raised April, of forecast. we guidance remains offset earnings underlying $X.XX but earnings approximately lower sales contribution $X.XX adjusted from COVID $X.XX by our to forecast base per expectations initial the by have in share guidance in outlook. forecast business based earnings underlying contribution raising testing to than compared we

organic adjusted third be business. the $X.XX, earnings quarter, to double-digits COVID share underlying sales a impact per sales. more on underlying for little outlook growth than our to third have be exchange quarter in forecast sales on low growth, total Turning reflects We X% of the to and base forecast business, the reported testing excluding an unfavorable approximately strong to we base our which

call the will for now we that, With questions. open

question [Operator our TD will Joshua Cowen. you. Jennings And first come Instructions] Thank from from

is open. Your line

the business organic growth views next would the back core of sales as for hear get momentum nice year? the on challenging and another be earnings second, first double-digit power forecast great comps would The revenue low growth in morning the organic on also be to generating congratulations for accelerating, your good half questions. this momentum, is And some building the then thoughts to it assuming for it more sustainability ‘XX drivers creating updated momentum, is ‘XX? Robert, on quarter. Thanks Hi, your of strong business increasing. an great taking

that very do growth. my listen, still team a and was quarter, we think broad-based better – it but I might that also. could Yes, Josh. feel Sure, I strong And know

strong a COVID seeing and what in we back rest we the a what four couple that a and in these And to into years of business, was great acceleration COVID I institutional going was the last an said remarks, out right. year strong I last subside, all And think we in to If go COVID then as saw QX that’s consumer And happening, right growth us, play the you play testing now always think versus very are would excluding the a of of said to share there We sectors, year. it. going little when of when terms and from of is the was for QX growth across bit base throughout XXXX. making out hedge business investments. quarters my have couple would business, piece there opening you QX continue of

positive here right great trending with all and indicators the So, momentum.

the hospital was the that there addressing really new that that Diagnostics, and care, improving Devices also in some trend conditions, continuing, up. it’s of systems, had step attribute they but but I and a whether that also good reopening market bottlenecks markets products. are nice

conditions part contributed I and growth think say, market continues. also the new high a product launches I’d X for the bit of has it, but last sustained, So there. years as low double-digit that EPD single-digit, quite

I best think one in probably emerging we companies markets. the healthcare positioned large are of

We does and team the have good expected. of a of got executing and at lot regionalization lot local a as strategy in The Nutrition job unique a double-digit there, was growth really that. for local

market We are seeing share. in our recovering the business, the recovery pediatric

of sets My comment general segments SKU the we quarters But from information start position. and of already there is the different leadership once three broad-based. of backed segments you market, different looking more the at have types recovery are different certain where there the form, of and

So, in trajectory and right adults countries. several very well that’s all in moving the doing

couple because had saw dollars, bring a of a hundred bit decided testing declined We as to COVID down health we we million our decline of the ended, there. we COVID public forecasted. in So, are as emergency seeing little number

QX. to in respiratory going Josh, So quarter the first season. probably like of It’s will will that’s how an endemic we we see see, play out

only our China with I Europe, reopening going see it well. geographic business rate also was growth Asia, XX.X%. our will really And this X rate, across of pretty positive if mean we added obviously, I’d that’s wasn’t doing that too. at So play a out. it say over-indexing But from – to U.S., big was growth China point in about geographies, is really all China, how it perspective, excluding But the broad-based like it you growth opening. look was

it’s market. So, broad-based pretty the across

increased we with bit going high specific that’s XXXX. approvals top it’s another lot guidance productivity probably in and kind the early pleased quarter, through it. line, from of a little key It’s and why rate. aspect sustainable, double-digit to believe kind low we a And think very to go of for So our I drive product of growth is the single least at pipeline is which to the

think at this of and if But business. kind we I the are in down this and decline, in to comes business. that starting the overshadowed had little decline you number this the anticipated you think strength are strong strength bit performance to starting look that COVID I And see really about the the it’s the base COVID, as year, COVID see of you a base

that’s So look higher business, if it’s And that’s growth back even And $X.XX to for been really January. think year guided driven of year. top That’s on I about the you originally line. significant at base by the the $X.XX contributing in at full about what $X.XX business. earnings we this base pretty

to investments there. lot made the able in P&L, drive So COVID during you a the leverage look growth were the of at we

delivering And that, top I is believe going is into significantly. that So that pipeline XXXX sustainability line. pretty the

gross constant FX four course, for profiles last of But us, a the is businesses it gross here margin I’m major improved out impact of versus focus inflation. the showing three or of the end area year. was impact Of of our margin already whether seeing of

So momentum over we’re seeing there. good

all this product top achieving opportunity account, new gross margin pipeline we put think we’re I bottom the growth, that a line, the expansion. for strong of then if and I into So have will contributions, lot and

well into into half we this I So second the year set we’re think as up as go we and go XXXX. of

much. so Excellent. Thanks

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

is open. line Your

thanks the taking Good here. congrats question. And nice on quarter the for morning,

saw chamber so hear Just to Neuromod Thanks one the thoughts and TriClip you and on of dual your for quarter? cardio approval you’re Fab X specifically how earlier, Robert, I’d the about thinking we like me. and much. that just XX% med-tech mentioned the pipeline, growth Aveir and sustainability this the

the quarter. I they expect that and as pretty products, the it’s rate progress. you well annualizing Sure. Larry, it, a quarters annualize Well, of over in QX that XX%, million. those if little did they in take do next group about products, the the $XXX Combined than to grew about year better to run

question on here products, through of saw can some lot in go them We of the this these for Regarding leadless. a all positive I your quarter side. developments Aveir

some be we’re year. the claims the able about And we remember, if claims chamber FDA single at we’d approval that you you If look received at to showing data, for at, the least that third last capture that market. looking of data of

segment right, $X especially all So And that’s doing really KOLs spoken makes a well. where the But what’s really exciting with chamber, for worldwide year, us, for that market. and got other. XX% that of the to, quite is approval was HRS each devices dual which this implanted frankly, communicating at you’ve the that up technology, I’ve much it’s at PACE of larger two billion first ever least the

different bit opportunity leads. huge paradigm a of it’s us, little accustomed a have So a EPs a have pacemakers been It’s to to with think, than for that implant doing really here. I change what

training think, we here physicians. I So lot at and strong technique real-world well will of sure training the and a the the look at focus at a so clinical job implant that making gets really really on make is we our do part kind focus results, a and good sure creating to market the bigger understood, of that beginning,

in and I a conversion on We just going right the we we’ve larger larger conversion making huge will that but out the think be that’s this we’re that the over for opening that bucket, new a go so of to sure bigger the because centers of gate at of market eye there. opportunity the – course, got tempo falls Larry,

position. here. a quarter, and a very strong, on real-world is And open there, team how great focusing It’s a build So thoughtful grew XX% launch again, already sustainable being market. rate. excited starting for growth is the opportunity plan us. their I’m Amulet great about generating accounts, this which we results is there, clinical a great about the also fast-growing This we’re

other And quarterly we’re our have in done quarterly this XX sales, Navitor, the day, last the roughly looking that’s sales again, And at with so well. months. TAVR our doubled

base, Navitor seeing implanters the now granted regarding a but I just implant outcomes. the good smaller is yes, technique, Now feedback really once regarding out, I’m it’s the from

really new position but product. we’re open think whether launch the gains I following obviously, U.S. accounts So or now internationally the building real good here, ability a our this strong performance, market with share new in to seen it’s

enthusiasm TR. are option that relative treat here to similar And international I’d from build much seeing suffering they a to got say, now Physician then patients performance. TriClip here have we’re this continues better, as is,

So the out data, year really, terms data a markets. but that earlier think, in really I this I what of publishing can post you international to clinical this gave in seeing had those data of implants the – boost we of publishing and think TRILUMINATE I see the data. TRILUMINATE there correlation mean, there, terms we’re

I it We the U.S. it the in in The as to data opening said in admission. comments, I’m to submission, this submitted U.S. FDA really mean, we great the the I I clinical enthusiastic submitted quality improvement. opportunity mean, January. a life excited key it’s earlier of here my supported to is So am bring year. about the I strong, that

contributor in for significant kind we us necessarily this but sales any bake So didn’t next of year, great year.

and and market opportunity the this a – is more in say, then quite and business, X come in to on I bit introduced with lot months would moves of on So also that, innovation, a great is over neuro, to too. execute There there I market. mean we this innovation last a that

this with innings. billion mentioned segments we’re that just products of business cardioneuro that products here, we the that and recently So $X I in early look these at group launched, the we’ve

a there got it, on momentum I So of think lot and our Larry. business, about I’m and cardioneuro is sustainability excited

Alright. Thanks so much.

you. Thank

Our comes UBS. Antalffy next question from from Danielle

open. Your line is

question. good questions, But specifically have so everyone. follow-up do for on could I thunder with did two U.S. quarter but product-specific so Libre. Thanks if Hi, morning, MitraClip, you Robert, for taking a and the the thorough I much my very deceleration all Libre there. answer And took see in

Just seeing out you’re there. wondering what

new is have the X the how you do basal And for and That’s launching coverage product You Medicare but now, then basal guys that you see first are second a ramping? launching question you have competitor product question. a the on MitraClip. Libre

Another that double digits a fine, but quarter growing pre-COVID. – market has was the this been I is think

curious you a patient population basis, once air high where the given so about COVID? those on mortality through like feels once we’re rates pocket the falls are in market Just through product get much. we my Thank you think this little two out of staffing normalized an through bit what constraints, questions. a So

Okay. Thanks.

your a really question, the had there, Danielle. XX%, quarter on grew yes, in Libre So strong U.S. we XX% We

internationally, And I up pretty growth still. think we’re XX%. strong

we’ve it year, of opportunity, So comments, positive some that’s basal data. that market. the put just The got very great you’re authorities I a so towards like at product. France. activities referenced the wasn’t is users my last kind at XX% we second the in from now seeing data a that Yes, that upgrading claims tender half the share doing basal impact behind over using a of of us of there. about looked are award, looked We’ve They French

say, it an is impact. really at and having So looked they this

momentum. It provides great good. that’s So us

I those at of top world, three mean U.S., we’re began U.S. five France now in for well in reimbursing are the there. coverage Japan You the markets you’ve look basal. and April. got positioned and

nicely So, that’s out playing also.

got great we here. I momentum So think

of launch the will say I’d and we second this that lot the is pipeline exciting have a in year. of activity really what’s upcoming half activity

understanding half, and that integration that integration If you system my with be it’s pumps, second tandem the this see at here our we in sometime will our CGM here look exciting. in with will U.S.,

full out of as the LX remember, approval, One But that a together things and got with we we you we’ve is, claim. ICGM. approved that XX-day rolled also also got might got planning

year. our launching be half second U.S. XX-day here will – the sensor we of half the this in second in So

and too. So team initiate QX sense the that’s glucose here. to on exciting, sometime target trial is start our dual ketone And here in

actually activity lot the probably streaming. So about, half, a Libre of is pipeline most the X excited that in second Danielle one I’m

has is incredible what think to opportunity I an this the able and do. been team

our base the it’s most year, exciting that real-time I to scanning the have Libre convert an is streaming second think to X to our ability through be app have in launch we entire which update. from able really half

over We converted. as social some Monday, just think ran of we worked the our it user – post that end were Team XX% And as over I challenges weekend. there day, first UK conversion the of of There seeing rolled media as was been But I incredibly the out. the in positive. are of the base weekend. have

we ability about think base small slightly with here LX across into to our manufacturing convert just the version our of the LX So have. all a entire capacity world

really So about that. excited I’m

So I And think I continue. think Libre is to on going a great that’s trajectory, great momentum.

on was I the strong, your question International was think MitraClip, yes, think it growth. performance – XX%. Regarding XX% was up pretty I

So mean to was pointed challenges of Danielle. think year. seeing. so not staffing probably are I was modest. And now, that of second in portion I’m half more you the think the it’s sure last I U.S. much it the we some I

the parts in other We’re that of the business. seeing not

time, of of a is you have don’t it U.S., the looking And in cardiologists accelerate an to some continues clinical the is here the where it’s to which the really the area. from key here the and was impacted that to hospitals. think a restart we’re attractive here U.S. the but to commercial look referral commercial really by of pandemic. team growth our in U.S. take can going area out. team internationally these see a focus balance a those really here as a is think little key to And restart piece it’s the I referral – bit ability issues be process of kind that reignite to – is of this the here I to into that U.S., way This funnel and we

We’re seeing here. internationally great growth

attractive. market is very the still So

success lot to think a here, referral having We’re focus funnel we start And kind the in patient in this of on going the numbers. of U.S., internationally. see we’re will to improvements and I

you much. so Thank

you. Thank

Our next Vijay question Kumar will from Evercore come from ISI.

open. is line Your

Thanks And organic mention question. One, congrats of did two-part solid Is double-digit my I – for guys. a taking like question. you should Hey, sort here. a print base. on Robert, that had we about worry about the ‘XX? think to just I’m I comp launching, the Because some seeing. thinking fiscal that issue Lingo, sort of maintain strength we’re which for of is is enough

$X So any comment that Lingo be we’re down on looks And overall margins is gross if in on looking EPS it margin looking for Lingo year guidance, Thank of expansion back launch, half you helpful? on year, should think of How billion benefit you. of bottom sequentially, at update I’m half part in mentioned XX% would had like we I know second probably that impact. of my inflation at the ‘XX? the

fill in margin. take Bob to So ask then question, the Lingo on and gross I’ll I’ll yes, the

But this to we health, to do, data got a look thoughtful to are more as in fully if in intentional months a a more that at opportunity this I’ve – The etcetera, listen ago. with that’s something And a are it we of the right? during be was them to the separate a been to healthcare in the Lingo this, really thoughtful you consumer piece, afterthought invest team, we about well-established backgrounds this. population engineers, it. part was We’ve Vijay. digital situation they team, lot they create our necessarily the heavily create dedicated past, that platform, with it health do this group, the were group. diabetes, I and about marketing companies very healthy. as population scientists, it’s COVID opportunity. had have Lingo was very a healthy experts, on wasn’t wants said companies, building and And where be not interesting to targeting product the would an strategy, On about just it stay beyond It of can a is has been is which focused few expand their the healthy the here and our target, diabetes. knew They aren’t the which we

product for And was is kudos team and the in through. the simple. that value UK, So proposition getting to launched the pretty the Les yesterday

is And I needed really about improvement the spikes to think for for way consumer it like that, that to to we it’s metabolic reacts deliver minimize here And reacts this it’s and the about And it think teaching personalized your how metabolic it is body to And reacts this it segment, that’s Vijay, segment health. how does you patient the to It’s about to how goal the how glucose teaching exercise. sleep, consumer throughout spikes. day. food, those sorry.

the we’re then or right? – Lingo then And going Coach, it and the metabolism, is a learns this allowed call So it to target, count. to assigns sensor, the that to number assigned don’t we that amount key to data, a a this great daily spikes your believe learns is modification metabolism daily after simplicity of first, Lingo And there those about it kind learned that, And you charts, and basically it behavior that’s about modifying we’re day. this your to you’re all that by that during the target. the you of but diabetes. behavior. is is going that have we the that there for to really Lingo of track count app, tool have And progress in believe track is wearing that the Their

to a it’s based It’s consumer. direct subscription-based – model. It’s subscription a

is what cash to of – our about is website, partnership, Libre aspect the key think the for I a how with provide AI for personalization. here with it’s for capitalize shop constantly in for content I And app, here AI Abbott, one would opportunities And is put line that’s for biggest as have do open. new the in we can and the price Libre. about information, opportunity pay a think I have web that at looking the And pricing think direct-to-consumer constantly it world are but data. to I new We if opportunities. much on AI, about the our to going together is this I think app and of this everything lot we pretty on

in So It’s UK. launched it’s the yesterday. out

We will study.

the of it U.S.? then like we question, file always to from over this will UK but which intend me, a team out markets. end in on. learn will the for the We expect surprise preempt financial to don’t at time I I’ll Yes, contributor it to Maybe will. from U.S. the I going perspective come expect We contribution and the your be absolutely to us. roll my is it is right big year. early significant to now a other will

of so the do. And for what part we’re third stool here excited out growth see the can platform we of gates, is and to that that

Okay.

on So question. margin gross the Vijay,

So with first gross back of And for base we a full COVID through testing, sales margin in January, the so business, that. of the the excluding year. the half profile in XX% guided line is right of year,

assumptions are, on beginning seen volumes of do our our compared decline seeing the however, the we’ve in We lower to due gross the at significant margin COVID year. to really that test

would to balance that. margin being what’s in margins range And reflected that roughly a XX%, for steady you’ve really think of see look the bit we seen. that’s little in the after we for year, then so would of and expect And the lower I gross improvement gross

to improvement As are so overall with that Robert gross us. for effort. XXXX, in area into see – margin of our businesses have would that to we place as work focus a in talked Each we margins. improvement dedicated our gross expect And about, programs as teams some key it’s

Thanks Understood. guys.

Thank you.

come will from question Joanne next Wuensch from Our Citi.

open. Your line is

Briefly, apart is OUS? of you do then rate where will electrophysiology less is U.S.? in to? How the you my much can that I sort to that thank you or that? which can if much have you get you XX% growth for tear are nutritional you XX%. business, you. and How morning And Thank do Good And you XXX%, about with of the of you is of what in pediatric questions. or of the the taking jump reclaimed think more just question, get is driving second can think

Sure.

about so Total X you Joanne, up XX%. at about that Europe about EP, of we so growth So, real there internationally X%. U.S. you of X it Again, rate XX%. up XX%, about In digits, XX%. points was strong just on was probably that is of growth really around International high-single kind the points good are China or under specifically, if if outside recovery, at was XX%, look look China growth. was

the the So, five for U.S. it’s really quarters at out got TactiFlex countries the now, that’s countries towards right well in of Europe those the been even approval did there end a if look big there. pretty you broad-based. quarter. in of we only couple And in

that’s the We really good doing it’s really got well, helping. and really So, catheter. feedback on

growth So, of by is impacted The capital is very the kind cycle. bit U.S. probably doing little a well.

the from open large last year you very If are an placements like lot bolus the was feedback kind system, from good of fact system. we of and it’s that especially of the a launched on remember, when get administration, a users upgrading it we X, capital and that EnSite making. and both We the

very So, that’s done well.

the part at of look it mid-teens. was the you up U.S. growth, If consumable

EP rate. guess used tear So, growth great a the again, it’s that apart market. But the I was term

We I have good position recovery, continuing and and got this year. to a throughout this see great expect

your other question? sorry, was And what

to with there or to nutrition. had question of Is best other The sort the your recovery that in XX% do more is case go?

manufacturing – said driver the the year. for of manufacturing kind the to of specialty September manufacturing our of also non-specialty. July end started that is is reopened I and up I market A for year in made and might the kind last of that the big the publicly of ramp in of process my made kind August team we manufacturing – and and kind to get No, of share here of target back XXX% our I by

So, that manufacturing provided has to demand. we us the the need supply fulfill

We got seeing that. are very brand have in SIMILAC a and you strong

the So have the as Josh’s beginning. – question I I said, maybe think and at

because to first QX, leadership in If WIC back a or the in segment. was at to you we of that the before if position and that had start lot on WIC you the our with we are that back different look segments, segment, position and all, we recall QX focus non-WIC, time

that mean of be guess on share. able I I say, are for get market the our the to long-winded to target pre-recall yes, with to still to year end we So,

if break formulas of a formulas. you of said, of you the have because different I like and use is pull there lot and if – So different – out different sets some types

where of them And recall. some back were we to before already we have

team the So, is am working not at really this, I and hard target. changing that

Excellent. Thank you.

Thank you.

Thibault Our next Marie BTIG. from from comes question

Your line open. is

high-level update now Core a sort COVID the strong The should taking I was or morning fairly thanks that’s terms of to for tests quarter. want rollout, is paying testing diagnostics I the investment of business and of just Good attention in diagnostics? kind testing today. here of on an Lab really on one the diagnostics growth that progressing and else we and be behind trends us. to get questions. areas wanted this now ask in Hi. whatever in to Alinity how

Sure.

good the opening I a recovery are here up. systems health had think really as we really,

I come Asia, it back. mean said, broad-based without U.S., China. You I America. was have pretty pretty are And testing seeing like that routine Europe, it broad-based, Asia was Latin

well. multiyear the that’s it’s have Alinity working I of cycle. a So, kind said

look you they X years are at If XX years. these to contracts

margin between So, coming this renewal. top for are strike up think every trying and to balance you have but is right is I with margin margin you your and you probably instruments got the we the also And that. capital, gross line that XX% that’s said gross expansion. friction year and I growth on that range accelerate of more gross feel more the we as We more do range. placements can some have

opening we the recovered So, I of comments placements these how areas being we was that blood banks. the one thought talked The how really expand. and make – on about about nicely we and in are

market we know, over here. are you As a leader

to blood only not and So, around doing the benefit and people back in as business as that, world. the here come plasma the bank U.S. blood we disproportionately donations, and from donations

that able to areas the receiving and instrument, higher it’s got that And other the really new develop on to be one be for to during we you a much of the focus us R&D the capital very to layer assays driver – working So, with focus strategic assays we the add profile. menus testing, to able margin the business comes was on. a look have And that spend is more those in is missing investment extremely was gaps. the at are was our out big that so to tests the diagnostic the assays the Marie and portion COVID placed on COVID that important here while because be of did able could one close group is that’s to been

key our area of that’s is Molecular an So, focus. focus. area of

point has expanding then in We testing. And been care, most point team have also. assays menu one for the for exciting care so traumatic test for is rapid concussion a that of the molecular on of developed working the brain of injury,

We have got it on sample. approved plasma a

this can of rule the We sample, kind on could are a to be concussion that of a which through doing able be go but – now country. you have be waiver a XX-minute got imagine world, specifically blood out whole able all around terms work applications of test, a in it to clear you then to that to And lot test then ultimately, can the get blood a test test. handheld the

in lot of our focus a that’s So, diagnostics.

That’s great. the quarter. Congrats on great

Thanks.

you. Thank

question from comes Matt Barclays. from Miksic next Our

Your line open. is

for of hopefully kind came and that up of just questions. Thanks earlier, topics question. Hi. I much have one one taking the the so some of pipeline clarification the on then

lot – on things of maybe Lingo on wearables, of about, next and XX out to of XX separate kind Libre and talked you months, so this these exactly Robert, the that months, over CGM just how and we as sort together can going understand and and play will X, So, ketone.

if if a the that ketones, ketones and Libre I CGM kind pipeline filing just path end there year. then mentioned quick includes lactates question, So Wondering I And one then could. of core product? the is that for Lingo still forward if And X? that’s of you for have

is be we product with to the We say, lot a Yes, glucose really Matt. is ketones yesterday. market of launched wanted to start ago of have mix, as come will analytes that a the we only debate see learning that component that will opportunity to going Lingo to to a But have add laid is as pipeline lot I There to going of be of there and Sure. population, had was different a out learnings into monitoring. lactate idea, that that years an consumer healthy is menu to that. definitely this. the it. off about lot of a and team for a as for about us in It simple has couple for but a the out. is that the The There application in was in lactate market Lactate a is also like this, figured also. we, I off starting interesting both on here continuous market, institutional the the product

the for sensor strong I be I said also line, be adding But we it actually learning those diabetes strong that all is for analytes think there. will have is sure. Lingo is very ketones with a to as population, also. all I we glucose, bottom starts as And on opportunity, through are dual So population specific be And go going with and different non-diabetes that. opportunities then it a with think of that for diabetes in ketones an space, glucose could but there

expectations then – the on hear much Great. there if acquisition, obviously, their post we with of that about or platforms progress Thanks are important more around fit hadn’t where about program they was IVL the when pipeline, process. the is am on just start ready the in wondering was this we just might but you happening and Thanks. and heard have or add to comment for that? strategic did so your And that kind and peripheral to much. what I there, CSI

quarter. closed this it CSI, that. the Listen, Yes. you for Thank asking

really the growth have focus at on as going impact business really and we strong peripheral. a to the look it’s in I think our vascular

that that we our on see been been either working moves then inorganic below-the-knee are with that the can adding trial we You have we and have strategically making. that’s organically all currently in stent

of we thinking us would one as and a highlighted as you CSI R&D the we super it, attention have as probably we and this with amount at and we as of and etcetera. at the a that ones looking do program lot. part Jude, portfolio integration were and would clear, And have and mind that St. look product, in about lot are the Abbott. about a and from from I integration and the are it portfolio disproportionate lot way, we of the will very having were that the I and of super share resources one that looking of excited about. we a we gets IVL put that’s efforts, Yes, So, doing excited are we did say that, perspective at benefit exercise, that’s of as learned program an integration additional the

on I prepared right are of high that is to not as quarters list rest now, comment here So, on this kind here that priority of we Matt, integration. these but one am next my going assured through

Thanks. Excellent.

more one take Operator, please. question, we will

Jayson James. from Bedford Thank will our And you. final Raymond question come from

open. is Your line

wondering, the is there related business bit the related And for am this I margin. question. Good or base to other morning in just lift up and was to of And it factors improvement nutrition that thanks all there then maybe work? are question. margins, Maybe as taking looked just a like nice infant a on just a

impacts on inflationary the about talked margin. gross You

to input I But And come I costs if actually that. we start think see that understand when now? we the if P&L? seeing so, start will you down are to wondering impact am all

Sure.

are Regarding to the profile. pre-pandemic we op op back actually margin our margin profile,

we them seeing low-double of that little – investments to Obviously, of profile to digit would are gross different. mix margin investments, SG&A from talked couple the lot little there seeing be got you top leverage kind accelerated less investments So, of some make that’s line Bob of last two outlined how margin able we I I lot the them. a the really the year, a over have those We of COVID. a years. the this of of had into we because R&D I say line, And we XX.X% really about a are that’s op get this P&L or drive is or here. that combination We during in has to this of made points as things. bit go is think haven’t rate. growth a But positive. raised top

up one drivers product of that big it’s right. as all areas, on manufacturing the the again. ramping a obviously But combination there. question your we Yes, the – really as that’s So, recovering share are the is infant, contributes the of of and

this gross have. we question I growth of that gross higher gross maintaining businesses. and To is of on all of your business grows biggest say, device margin, that the profile improve And a would our focus margins. the it’s really margin grows rate the on can board we As where then say this our has opportunity, too, I disproportionately this across at so kind and looking is would an area areas

true, And we will see throughout costs continue seeing on certain into I input if that opportunity great have certain down. going point think are a endpoint we year, next come costs we commodities down, are Your there. come

impact an top had chain line be needed wanted those perspective. capitalize on have to focused challenged, we sure was And supply going half to able top of things had that and some had this One if from line. you is to – year of we make we the supply we I the remember, into challenges, really we last right. the opportunities second our year, inventory Jayson, chain that And that challenges the on on

this inventory opportunities. do need supply, the in you got have we have to lock one on team, to capitalize you got these your is lock volume, to in you your told let’s got the have that lock of And So, to all we going ways we have into got make you year, in your the sure price.

will through down for come and our for us a that we we commodities it. at So, as contracts look I opportunity next go as year, to great think be start

We here the sales with achieved very We I first a business. So, on that half being strong had start of wrap the just comments. growth the closing year. up few underlying said, for a will double-digit organic

one I are of is our make strategy the needs highly It’s areas for and entire that’s one row meet area geographic across The key top We patients. that that we portfolio to to all And it’s the delivered broad-based. performance. line unmet market now. in have sure innovations been has new it for productive. two or quarters the not focused think on of our a have was done for pipeline bringing kind for us sustain and specific can the growth The area, great and

the $X.XX I EPS guidance business be the said on base in EPS raised forecast the in is, business. on have guidance the the We back is growth guidance than our and the original now as have beginning, sales higher January. about And base to organic

So, building. momentum is

the of heading well are for year. into and We positioned next second year half the

thank So for you us. with that, joining

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

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

may You disconnect. now Everyone, wonderful have day. a