Abbott Laboratories (ABT) 18 Oct 232023 Q3 Earnings call transcript

Good morning, and thank you for standing by. Welcome to Abbott's Third 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

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

we'll questions. comments their Following take your

XA, expected XXXX. we started, some Act forward-looking cautions the of purposes materially results Litigation forward-looking Factors, report get subject statements Reform be annual Form factors statements differ Economic, may to competitive, XX-K for cause Before in to uncertainties technological on Private year ended for XXXX, from of financial that these to the Item the risks including for Abbott XXXX. that that forward-looking made today are results actual statements. December Securities Risk are those indicated may operations XX, affect may our other and Abbott's and the governmental, in discussed

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

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

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

to per adjusted reported year share on our Today, we the and X our Mike. performance you Thanks, raised of increased us. consecutive per the first the quarter year, testing, double-digit for share through adjusted guidance Organic double the Good to for Based COVID thank third base of narrowed X the joining sales and on digits the earnings growth midpoint we morning, everyone, which of $X.XX. business, was earnings excludes months led of full third $X.XX. range major growth all quarter in our by businesses. and $X.XX

the our growth acceleration This with of the strong growth In during company attractive across pandemic. markets. a in sales in additional conjunction is result the made we position investments

positive deliver the a well set portfolio, across performance, for to the addition growth strong top With are line year. commitments year our track to accelerating on to finish In the continue we're businesses financial on deliver a the we we base at outlook and the strong momentum we the on and building to earnings for business, power heading remain the of the and positioned XXXX. into beginning

formula In in over continued coming by the now U.S. Internationally, taller to Pediatric deliver continue position. start brand. of review our market was formula business, Phil. where sales quarter. XX% in with capture both the well-balanced reclaimed share where leadership we from have we infant PediaSure and infant growth our products more performance before increased Nutrition, will Nutrition, to call led now the turning I I'll the detail in growth XX%

Nutrition, for Abbott's brands Adult XX% Glucerna Ensure strong markets. by and and the U.S. was demand driven of market-leading In growth across international

pain led was Pharmaceuticals. broad-based to This quarter. growth health and strong markets XX% areas, therapeutic Turning cardiometabolic, performance management. Sales the Established women's and in CNS double-digit by several increased including in and

diseases, of science with options. help biosimilars areas in these collaboration and oncology, introduce This cutting-edge countries in biotech to leader, will lacked have agreement access In treatment respiratory to September, medicines several historically mAb we the that people markets. commercialize in the women's global an health announced emerging

Moving to Diagnostics.

COVID organic driven double led strong by COVID-XX digits, testing for increase the sales in diagnostic by a XX%, following of continued in driven testing recovery Diagnostics, was plasma of during grew Core by and where blood global lower Lab sales donations the grew U.S. demand Growth transfusion pandemic. business testing, occurred and internationally. a routine period Excluding above-market a our performance that

the Rapid base and the Northern in And the in growth demand both XX%, in In of including earlier-than-normal up tests from double-digit internationally. start grew on where Diagnostics, respiratory Medical sales with for Hemisphere. wrap increased U.S. the double-digit nearly I'll growth to business benefited flu an organic Devices, sales anticipation season

with Care, sales Diabetes base base companion The base doubled the FreeStyle user people U.S. of global million years. where in now exceeds Libre combination the XX%. recent has the the X user X number grew that nearly million and quarter, diabetes. last of Libre X GLP-X in user part a in of In as using were for therapy Libre managing medications A showed their with billion those our U.S. of $X.X in Libre growing nearly Libre users are analysis approach a

traditionally exhibited sign users. using both use use role of to good or wearing users average, relationship a active complementary their And the to compared that and products for in of example of treatment think one often a optimize increase higher even On of that this as against those these diabetes. frequently compliance products, more GLP-X both compete Libre we is This more between X while a an a choices help and taking positive diabetes. Libre therapy both better another, are having other managing is sensors medication taking GLP-X rate more in

Navitor, products, driven latest Electrophysiology growth and in by XX% of growth Heart. of quarter, growth double-digit launched catheters international In and notably our of was teens TAVR in Structural sales devices, and Electrophysiology, from performance most double-digit Structural In valve. geographic U.S. growth Heart, recently major high strong ablation the several growth led MitraClip overall generation In the by double-digit new XX% regions driven grew all growth was by sales cardiovascular in across

growth for and that used lastly, both Rhythm by pacemaker launched double-digit pacing. was chamber And by In Management, growth be recently leadless led in can single our sales led in Aveir, pacemaker dual-chamber recent previously neurostimulation market Neuromodulation, sales device rechargeable grew which a driven of the did management we targets where by the not compete. for pain Eterna, launch of segment our XX%, large first

quarter in year base XXXX. lines. growth, both to a heading summary, and the major double-digit sales. quarter. are positions year So Growth the have sales well X building this COVID a rates into top improved for us very With and strong organic testing-related on momentum And all was businesses the in delivering the we every finish bottom this business strong excluding

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

Robert. Thanks,

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

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

growth business XX.X% sales quarter. Excluded COVID-tested base the sales, in was underlying organic

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

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

Regarding XX% gross ratio was other margin P&L, of aspects the of sales. adjusted the

January. a the of due impact difference predictable. price of of forecast to inventory margin assumptions is below a approximately to higher original as chains pandemic maintaining basis, and and the product levels to less compared volumes result when global obsolescence help supply lower inventory supply our ensure during higher ratio throughout time year-to-date which in The gross primarily were was original guidance margins of is to provided sales back a year due our XX% full gross COVID our that tests lower we XX.X% On adjusted on

align with As the quarter. sales global was we're chain supply inventory X.X% trend. levels that was Adjusted R&D continues of and to SG&A sales XX.X% improve, of environment adjusting adjusted the third to in our

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

XXXX outlook. Turning to our

of year, the ongoing $X.XX, now quarter. $X.XX results comprised earnings of $X.XX per earnings ongoing full of we share our the forecast to $X.XX for For share plus which fourth is year-to-date per to guidance

quarter fourth of quarter, have sales. the excluding we and to fourth on total reported low sales double growth, underlying than For impact COVID digits to in unfavorable exchange base an X% business sales more organic little the a be testing forecast

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

our Instructions] Jennings [Operator TD first come And from Josh question from will Cowen.

on realize organic hear think would like in level growth for the core off nearly about and single-digit to of XXXX margin year. of Congratulations about sustainability this in the your organic the Robert, retire the revenue year. touched solid the strong and confidence generated investors talked business growth I But recently expansion that's another revenue high over momentum this quarter. XQ, we've business, only core the in mid-teens range course comp delivering the XXXX

has really tend is head type environment But environment. this especially pretty I of high, built seeing. momentum of withstand challenges going XXXX. to type to the of very do and this Josh. companies well there's Sure, we our that confidence kind to say I'd portfolio mean environment, into we're be some macro level Clearly, as this been with in

a that, And in as rate base investments further I positive to lead year. and as with pandemic, we that a through lot sequentially it's in the power to step comments as position that comments, quarter. row, the business had coming during contribution, gotten my the we X expect impact every doing EPS really that's here a this also, that digits, base you up having strengthened And said our the made and again portfolio continue business in helped and I quarters at and said double we've I to a the in QX. the be growth the it's has if in The grow we and better grown of look on

So we're quarter. forecasting the other up fourth in step

that $X.XX all the to quarter at here fourth look about base we've EPS and of year. EPS twice business contribute for that the it is this and raised you if So going put together, to

XXXX. here going top as lines. I we building sustain that's on momentum believe the to the momentum bottom And go that is clearly there's into So and both and continue

building with line. growth around top growth, can I think that's think drive block. a at the our always starts, of let's growing our Josh, And look line the you here, formula if pre-pandemic higher if -- kind really I you we X%. it say, And top were

I'm accelerate a without contributions that we'll seeing of the expect larger increased much drivers that's that and And that we'll sure sales we we're be pre-pandemic. momentum a next about be said, year based off growth that's off in were talking our the throughout I lot So from a And like base doubt. seeing, when call. that than to I

EPS to we're expansion. the good go right feel Obviously, going that. momentum into to models to I now, And think margin and gross The of and is focus ability lot about margin as here deliver a gross Street our going base got tailwind business and I we've real from XXXX. double-digit on come

of January, go in be you of to So able give call all I'll our better and to when on we that kind that. ranges quantify

about our reiterating growth, really it's balanced and reinforcing say allocation strong growth, bottom model, double-digit But which revenue is our framework, and high a flow expansion, free I'd cash single-digit strategy. growth growth line capital generation margin

this So feel year. I going very good about sustaining momentum into again, next

And ]. JPMorgan our next Larry (sic) Biegelsen come from will question [ Well Fargo from

Wells Just to be it's Fargo. clear,

Robert, lot. in a hear you're China news hearing anticorruption Love thinking the there. China, impact on been you big in and initiatives about we've from thoughts picture. And how business is are the been to what about VBP So the QX? EP from has your expecting the How

Sure. for us. China an continue market will to has Well, important been be and

in see applicable As it discussion QX. XX all this meet and impact. there Listen, see our follow operating laws. and actually years. with any kind impact this go We I meaningful a Devices the quarter. through we've think, there. theme and in to been didn't standards had for in chance the anticorruption I compliance businesses teams week China didn't I XX% really last on of the grew follow meaningful relates to, Larry, any I points was

real So keep didn't have situation, on we'll quarter. that's that I I any -- the impact in but just think monitoring to see

to but provide world it care to and relates term the manage a VBP, for a it's theme the trying budgets. populations this just with As I we their their to that's see governments common across China, think listen, is used that

we've the is completely this EP extraordinary think on don't VBP I business. seen. than There So was what a anything

we're earlier that the April, has market in now started process little by remainder be a for because XX% That of pick a impact pick up felt. this I'd that EP implemented it say year-end. in been bit and our we was China net-net, up of a But business to share positive year implemented Yes, about and to of the there's able price expect volume.

I there. that's So the think status

I think VBP as diagnostics. either. unexpected not a announced on That's

it the I list think start business. about bit consumables. year. seen capital involves will rollout from we've Core different we've to in of the Lab And is first service the that I little now, of on the rollout that would tied it, see process as sometime then seen, Right from what that you a call pure and products our XX% have next the businesses more half of with

So province implementation. will phased EP. a kind go approach of it's like more Each do in of saw their we and

take will a implement quarters it So to here. few

other like just manage Pharma balance But different in in the and said, Adult are of how of in China say I'd still in think we But terms but technology opportunity see and Diagnostics, markets I don't access. Devices we our not growth, I our of business. a than these what our in big is Nutrition

really us, job important an it's So doing market at a for good there. the team operating is and

Our next come from question will Marcus from JPMorgan. Robbie

the you overwhelming few to the growth. impact possible want I in Robert, topic tech has and months quarter. future GLP-Xs market been nice med discussion really a on past on ask of Congrats the the

You your a to to basis over years? do see GLP-Xs? respect next to different diabetes, participate on end love neutral your you it just on the I'd you markets negative, And XX thoughts with X, it but talked or about positive in as broader a get

this last the hot with Sure, off of in months. couple over been start topic years has just And experience let Robbie. diabetes. Obviously, XX-plus a by of me saying

therapies, very come these this to medications think every about There's are -- new the to impact and technologies great I this all have time going diabetes. think great. industries of disease to to new new it's in happen drugs investor I that a thanks of population, are And positive going lot these of Robbie, different treatment what's the potential to different and companies. on effect obviously address

a study or those it's a probably study I Medtech, is little feel moving with or publishment more that driven I of lot there to angst cetera. or by be headlines, new seem that the less say, any et like headlines investor would bit in domain of have publishing knowledge kind any

be we've happen few going it's these whether you So like naturally seen is from Medtech about in reduction going said, fear, valuations And decades significantly by sizes, technologies years to next differently it's guess the about the or impacted view in the market to in to my will cause that future. I new the I that understand now. happen in us there think

you're more now relates think I by about than And the future I GLP-X to generally Medtech think seeing data. initial those facts right are it today markets. and early and thoughts on, motion And impacted as that's what

the I mismatch we're and it versus impact fundamental think think there's and I bigger a -- a that if revenue you to patient patient picture, potential there's about on revenue long term here forecast here on think TAMs. seeing

the least bases to and people it's that looking U.S. public you which to at then they It's categories, I've here, range, seem one we've pricing, consensus largest you whether out seen. significant X mean, of into convert be But the X of I class to ever $XX be billion take and to pricing to at for numbers, the the the the that looking I forecast if into this the category. looked XX or lower X we're a years $XX pricing billion that drugs drug. X seen, in is user this think in international as pretty the next years probably on pricing, will XX at that million back million we've

maybe billion disease markets of diabetes, the that overlap of X small There's still, cardiovascular there's another diabetes X.X That's billion talking cardiovascular, of people. these that billion a and people fraction you're we're maybe real X.X people right? tens people billion people size or about medical with an X under and of of but maybe millions about, device talking got with with

how a So the the in to a I of think there equating of there's terms bit the revenue mismatch and seeing little of we're revenue growth pool TAM. patient impact this with potential

I that's big area, So one say. would

going have obviously, outcomes appropriate lot payers chains. that great I of do companies coverage. what's new seen and of the about payers. to these here is, achieve And the and outcome. great PBMs impact. just and drugs question And cost and Those there's the are I've payers a aren't think stories another about of to the question what pharmacy and then outcomes and discussions insurance question

and and for real think that employers companies payers companies And the look higher medical as are pay the costs, I The at inflation. these. you expense

I think to go going as year that's be into we a factor also. next

the I long I'd term. aspect think are, the bigger So here that's on -- those say,

diabetes side, seen you On mentioned, as business. as impact the positive the the on short on though, diabetes actually a term,

of the completed on both those those opening more number As I users. of were And are in are analysis products them users that recently showed the that compare showed other an these to significant Libre actually you we that both mentioned using a remarks, products data when using drugs.

more different, to procedures patients see in and medication And to long-acting procedure. I to my diabetes, meds, see compliance that you in that. use higher complementary common uncommon multiple because taking XX often, very GLP-X tend wear Robbie, seen was ultimately outcomes. tools to I insulin. fast-acting whether this either and They their not that's and oral said, therapy it and think Libre health you improve years, And great Medical have medications are it's this very And combination, not it's after where Device whether tend they in is like going Medtech I've before it insulin insulin relationship, sensors take their to It's that's more thing, a well. frequently.

And good so is for options I thing patients. here think more a treatment

drugs the real are addition mix. think to these I nice And a

this other areas some you some think that of but think interest though, forward, as I go are exploring. to related we're definitely topic -- I there

use this a launch to little gone we've Since de-identified as go world. we our to say we've thing us most collected that probably set advantage. the really bit is of far as to as Libre, through to the from one data think the base. more glucose I process user have data the data in robust I'd the is clear that probably the

I XX close to last billion monitoring think we've looked the I of at time got it, hours glucose data.

other. So is setting. just of more the evaluate a we here different ways a there's trial I outside of work many drug does time look at at work the they drugs terms do a look actually in controlled perfect profile Libre a over in so look terms job at real-world platform and And the more range. the in data, how it effectiveness to kind X than better of time, can think What

I we can a do again, So individual this do on population an level. this think on We level. can

say say, be So spectrum I'd -- with just health I portfolio portfolio kind that where diverse to to able to explore be, important that think And of us with has, full we from across to thing that's at I'd data finally going a care, the for going that. nutrition the here set forward treatment. then is an to diagnostics look use to Abbott

have the -- one it of ratio is problematic. say, muscle amount losing being with then think And drugs. are of as as the patients bring a there an provides using company explore to think drugs. area mass. these most we in opportunity increased that can this I loss be that we of side effects with there of and I And those here effects, are that nutrition, where further side can experience to mass muscle here value common I'd are that knowledge it's

is of effects, got other address mass muscle product to one it's be So or a an opportunity able that to can help develop, which we've here products side loss. these whether nutritional

also for So the for -- portfolio. there there's opportunities good us in

public science. it's So biology. short for in bottom term. fantastic think fantastic is line, health the This It's I great

raised, we there, think out term, overblown. some still And think marks I of I look long it's the a I think question there's are concerns I XX mean, lot so. in XX, want the facts the to think years, I that if -- I've of given

gotten I more really X type noise X you've has I Really basal radar in the recently sneak something Robert. under CGM, think Maybe is with if could the appreciate in coverage that, France. flown that on GLP-X,

the and in U.S. well. as You Japan have it

in expand opportunity could And about thinking opportunity approve opportunities Just countries that? how future X which years you coverage do few basal, to size should How about over we that type your think for the reimbursed world. around next Abbott. materially the

really to in coverage, we plus XX%. the Sure. U.S., a Well, pretty continue your quarter, International there. accelerate had nice well from to up impact we And the saw good a XX% growth international in XX%. And do basal markets, range up it's nice the point, see to international we again. that right? especially was

question year, X. last upgrade strategy and remember lot a international our mark about the was Libre our for growth focus I our of on

generation. basal right? So we're getting is, growth as reimbursement seeing reworking the Japan, that and And nice pointed of differentiated in demand team the we now segment, lot where out, sales from especially got reimbursement, a -- you France growth that

We've about XXX,XXX. added

was And portion day the last onto that half look that. base. larger think a towards over user $XXX,XXX I the that XX the that that the users basal last of second happening months, we XX of was at of if months, reviewed you

there's definitely there. ongoing actually the coverage. at surprised the I was see speed U.S. to acceleration So

commercial So coverage. of payers about, basal of right level I'd now, have now some adopted say,

So that's very positive.

French terms coverage of X and France providing again, growth. well, markets, that those U.S., to to basal are there's support of data. in and doing data the that very good a also and And that of types we and both these of basal data tailwind while of So claims able Japan it saw kind presented with that patients lot benefits the be in

great So opportunity. something I'd a say, not It's yes, that's happened. it's

we're an allowed evidence, of to care I'd important momentum growth a Robbie. growth key focusing here $XX been driver, driver sales direct-to-consumer it's lot important XXXX. good of an got that's we to reach growth say not target, building this the advertising It's And driver. and do the clinical have generating but billion We've there, driver, only by to that. that's we've be growth the investing a forces reach this, able a to in team, where primary on

from UBS. next Antalffy will question from come Our Danielle

momentum I you're takes a Phil and and puts just follow level, Josh's high few the I to appreciate But I the that which a a Robert, and give on to but sustainable will you earlier, XXXX think looking strong wanted is up in grower has of EP question quarter appreciate great the underlying and coming can growth, was to at see, have MitraClip going just not double-digit guidance. been like business, on side, a of, double-digit competition at Robert how there's that?

are tougher. potentially comps And inherently little a bit just

if could a So little in maybe through you walk bit more detail.

Some of the would high that as puts should awesome. consider comps should think a XXXX, and takes we there, we at about tough be level nutrition, consider that

touch in of forward mean X and to to but line line because Yes. able some back lot high bottom single-digit bottom and a and I'd sure XXXX. that a I there's that's COVID -- we a year, ups we've we the you're double-digit doing there. I'd in But testing, growth being double-digit downs forecast years model we'll been -- mean here. growth and review go mean not masked COVID a this topics pretty I there. significant I of a just have little I'll do try been the the by sustain during bit a back the planned growth invested last growth, has on say, what

year. now, top we but to growth, of look growth you to build this much as had line right support at our put if haven't to that SG&A So kind

come more model with as that throughout and is And pandemic high get growth down, growth line of now. little double-digit testing. COVID the this you but happening the bottom COVID bit a single-digit see to growth that testing -- So numbers

out So feel a I there's about delivering macro that that's XXXX. good environment in there. Yes,

I that it. all But our good control, to about very directly the elements it relates are as in feel

Electrophysiology, yes, competition. we'll on comment have Your

We that mid-teens referred have been the in growing competition the months -- with mid-teens Europe, first to. we you X grew today. We competition for grew and we've

we're X% was we international, we've to of double-digit growth see this feel in a of in our good On quarters, and a big international been X little seen last rebound growth position. now U.S. starting MitraClip that in quarter. So there. MitraClip the for and U.S. about has MitraClip, bit up driver

better quarter that's from that. and sequentially again, better And sequentially one the previous before from the

in had that we've too. and U.S., internationally we've competition the in competition also and -- had space So had we've competition

listen, year, company to So year. comps. there's there's comps, And see say some if going comps. remove got QX deny Every has again, comps. every biggest nutrition digits this you I'd there I'm comps still growing a those Obviously, probably -- yes, is also. there's not some would from year, our referred one double But you the to be of

So good got growth. our about single-digit about good I our forecast. feel feel growth lot high EPS again, I We've double-digit work a to with.

also. that Yes, there's launched, a with. -- not we're got to great lot launching We've going we've have products challenges, we're but only a to be be we of work pipeline that just that but to going

aggregate, aggregate in the think and position. look So markets, Danielle. the if a in we're of our you I But positions in at strong yes, these there's takes, puts think I always real

next come question Wuensch will from Citibank. Our from Joanne

a lagging And game? them humming valuations. particularly maybe that along? the in I'm Are correctly, the if lot pullbacks are you there's you thoughts comments, like in remember given your you you at feel anything or of a that's Nutrition Are business. leadership Nutrition, I on position back going XXX%? M&A, in back to in Do squeeze ahead your of are current

to share kind is and were we've of never going out it believe So in the quarter, kind market share. showing works the sequential way increases we'll that month-by-month way we modeled the in of that We market this right? all recover our Sure. a

back that now position So the I the if were of look XXX% crossed but party, at would we of over year. before volume you We're September. third not that leadership right recall, in by where now said be we the towards there the measured always a we've is the end month to

about market to share. pre-recall -- XX% at that probably that to back we're So initial

nice it's the growth the even of IMS. different to But here, you And in across segments real when at share. if all look market segments see nice sustained our

the since focused and of we've the at and in look beginning channels, strategy second year our year, underserved of you WIC last result if to the that been stay non-WIC, that a was half population. leader WIC market So a of the on

channel, month-by-month I market gains the And seeing of non-WIC real good the And share. team job. nice we're think doing continuous a is

right what we I are And that generation. the it's and our pretty about recovering that team well is see on continuing think can And to doing just feel about replenished good demand market now I all share. now. execute the shelves

what plan So pretty gone your question? then was much that's other to And there.

pullbacks on valuations? given M&A, particularly

Yes. in Well, We business. integrating and listen, the CSI that we've the last months. completed X process transactions acquired X of over

think it's start business a nice markets. that business to kind I to going vascular our growth of to addition be higher to more reposition and

This announced Bigfoot to then the the nice and offerings Libre provide allow acquisition and able to expand we access going us to opportunity also EPD side broaden and this from a to with perspective, our global a on just biosimilars. quarter, to of be an is announcement

something XXXX continue is Like add let's a So there's valuations in position I be It's same be which if fundamental to short down. in companies asset. active. we the or in on we've I've but pandemic and M&A a we're they more valuation, to have on it's if good we came way strategy, focused great our execute been that understand that to Yes, able need to a to strategic can really value term said, opportunity. time down, sometimes The post frame. active, I say, think come think

invest and it the we highlighted and to in areas framework value here fall can I a that our that of ones add strategic in we growth into does strategic, to want And we lot believe that are them. of

we'll this of opportunity that in the be engage. plenty capacity ready. along So we've comes to And if there's period, got right

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

price Robert, could is, my and X one impacted China or fiscal guys those the I print in had My at do just of Core Lab XX% headwinds? congrats is China impacted here. contracts on would VBP first Lab think up? on in see this questions. Diagnostics. Core point good 'XX, Because asset the or heard for time? volumes next these rest you be be Is volume you big gains year? I assumption flow for this I how you will And elaborate understanding How is the like in would

Yes.

this announced right? in think the proposals is that like was provinces I'd bidding, XX out, to are there's the days, XX And So all within to this working are of XX then due next another proposals. to Vijay, I the days going right, days, way kind say, recently, the be XX evaluate

going So XX% that VBP the now, to QX are assays start, I'd probably of late about is and into the on equate of I Right that think QX. list to this market. say,

billion. are are our So $X about sales annual in China

you if it's specific then some cetera. fertility assays the and there's at -- there, disease, assays, look infectious So et

where where the that's of -- is So that's the on. VBP kind focused

areas other haven't expanding team other that. or of areas and or testing, about heard like areas other that hormones to hasn't of as I heard such oncology

in have some now, there an going right good market focus upside and say, others, have to So begin, be I share these it share, volume yes, be lower there's mean is I'd this opportunity. If be to of so we in do market volume presents could we us XXXX. our segments upside gained. to

more lower got you've price feel volume areas think share. higher you've market can segments if then gaining where So offset you'll And I in price. that that got you share, in by

don't that's But gone certain see it had business, China. that with there, in I through just We've with We've gone of science our all So also. gone plays we'll VBP parts have think it pharma parts to in certain and how EP we've stents. out. through rocket CRM experience

kind know They this. structure a do We cost about result to it as of it -- how our think our also knows some that. of well. pretty manage is team of and adjust So to

here So this the a out. And plays of to manage kind has it. how to just we'll think how have see good formula team I got

my That's I PFA. second helpful, upon And Robert. one, know touched you

frame? there of And procedures touched loss I right? at we think haven't it, are offsets the Abbott's had to for launching about medium-term in pretty own Lingo. time right? interim, when in your their Is would upon about percentage you How PFA. should I think fiscal 'XX, peer some be Abbott share robust PFA what you 'XX. When assumptions think that concerned think point

could think where as launch? Lingo had I previously you be on will be as big said Libre, Lingo

Yes.

the got to have with as still has RF losing I'd if grow really AF we're and and double I'd That's towards ablations, side. be business, which that's we are So to share companies geared be those growth. talk go and over have you say do good, -- mapping see good gaining to SVT what we have how in our And good report a of say other there. VT we product been But about sales us diagnostics see We've on portion going still the rolling we'll to as generally and or I'd now. right have also we the side mapping market, positions we've on innovation good to that's historically to look spoken EP consumables. the expect about line PFA. digits. got into A XXXX, where out some going ablations, our robust

see also. those impacted I less So being

market. good So have be high single-digit we've I'd yes, touch now we've previous for portfolio, able to is a be with and growing rates. our to the our Yes, that Lingo it line we've question, of opportunity XXXX, us. And EP plenty very you got there portfolio asked, got a opportunity to it to say with in shots wasn't but the on in it great didn't different here got on asked, yes, deliver And rich exciting a markets. I goal growth for growth because we're think

fantastic, messaging, full-on about of we've marketing excited I'm to bring the also. think next for able U.S. another our file year. then opportunity to Lingo be here going the U.S. provide I've starting got it I'd say, public are launch, launching to that to the in I'd the a the that's mix, Vijay, launch the intention and opportunity more U.K., a And it been kind and positioning, in great call positioning here understand the year. the about inner the with in I U.K. of learnings marketing us growth the And We're controlled Libre the for to the of to end by

come Miksic Matt Our from next question from Barclays. will

pathway and being know then U.S. and and the So sort us follow of for you of commercialization couple opportunities one on maybe pipeline expected in could growth up that on the TriClip, TRILUMINATE maybe if through walk QX. out a rolling to dominated GLP-Xs I discussion here the integration kind of of diabetes, with availability pump wider to the there, Tandem in And their back but integration making closed-loop front? with drivers,

thoughts next on to your expect we what end? to there that XX And over it Just required what additional be great would patients. like, can looks be that's and out on will or months, efforts just hear support XX, the your you expect what ramp available

going that On to review Sure. FDA TriClip, question year. in the is this It's my yes, on understanding your for also. to submitted so we review CMS earlier parallel this

panel with we'll of a and I a advisory to through unexpected lot it's don't comment you. with review with novel likely made think see saw think process I therapies to quite the an I time, here, A last TAVR, MitraClip. go this be panel honest

but now how think January I be for have right said that that we is to of I panel that that the expect here we we'll to TriClip. So is the the now, case Right see expectation occurs. have date

of that very it's TriClip. fact our are these is shown And this the reduce our important, But feel reduction confident and that lot enthusiastic a that about through be go study TR and belief we that Not probably options. and understanding with shape that. and I opportunity we'll have is and -- rough real we've the -- not can a patients in is going only that panel, TRILUMINATE TR again, still I of are the in we'll treatment through we don't

to of important million say that think X And building suffered area, for a I'd category billion-plus got we're innovation position evidence question, is the you've people is Matt, clinical the TR I a a about globally. and the other it. here very this from safety new real and was committed you strong building profile TriClip sorry? strong as product new but on then and product opportunity believe What a here, support with to your sure, X on

with integration or Tandem the Closed-loop for and Sure. expectations that ramp process? maybe

pump my this users to end XXX,XXX new understanding it's And see we're about globally. with we'll that. year by a the XXX,XXX of here There's about sometime that Yes, launch excited Tandem.

and this the is an in. So the into player now of we we've I year, be of the team. system last that I and historically haven't results think will a AID let's in Europe, a area end launched this more reviewing say, an year player towards been We've in, was

us. with tremendous I company mean kind pump that has had growth of partnering

value that Libre. put and option with a with there the proof to and when bring connecting it there's the proposition you a Libre strong together pump you point real that the so in And that's choice

as want competitor. then be be a not space, And just to this a said, I've we leader in

the richer and able value delivery pair pump have of applications the there's So dual now Matt, but we which I and in ongoing to lot right glucose more think clear is applications believe a to algorithm work with propositions of system. there's insulin safety a analyte an one sensor, much kind be algorithm our ketone insulin that lot of with a of there, and

we So about feel good that.

Operator, we will take one more question, please.

Bedford last James. from Raymond our Jayson from And will question come

ones. a of quick Just couple

in margin? alluded And into I gross testing you of driver there you 'XX. there. then levels. margin visibility just Can is assume COVID everyone And the revenue that a clawing to Robert, for I frame expansion is these and appreciate the 'XX? expectation one, bigger just what industry gross First, back key gross is to then challenges. sources here the second facing pre-COVID updated nutrition is picture, in maybe But margin in

those you kind expansion. visibility. say there's in here drive say, Yes, that and in have Jayson, gross it for us. I'd a headwinds at gross then the to will no, there's And were Sure. lower XXXX, XXXX us of look next be big and mean, I'd pretty able to I'd do into plan a margin is couple the of margin say I costs, as we really sure. say XXXX. be of half I'd for year, in, that elements commodity visibility tailwinds first but for

start commodity and a nutrition, you've is costs to the but seen those this one are got commodity you impacting and costs down got also have we hand, commodity way. bend what think entire And other the in I lot costs companies of that have move On company. other seen,

is So of -- and about which us dependent important commodity a and inputs. particularly that will number as large think we highly commodity for be on nutrition,

more the time. seeing companies rates we're chains, but lot of think of seeing distribution. lower different with and but just supply Seeing freight air modalities a only again, use terms also that, not not and can lower all cost can are also in And normalized of using I we a that freight that

in that's I plans place deliver So and XX been pretty I'd cost a, favorable deliver got very right? to months, to on XX, on work then strategies have continue and a help. that the to going expect robust over improvement their to mix, teams teams those say, process gross We've busy, and think, product portfolio and last I margin margin gross reductions,

and new faster-growing, of mix. higher-margin So a sales overall businesses as and products portion sales our our become large

I think that. to also that contributes

work we we're So more And that teams margin this to gross yes, double-digit understand be better to year. deliver environment we And a got on. on I think -- is line every for that work we've our is key to of EPS growth. a something able bottom that bit little on

question, you COVID give details Phil your the I'll there. ask to So on

to here. sales forecast full is $X.X billion relative COVID Jayson, about year XXXX testing

Okay.

just comments. wrap the I'll a few here up clear that we're seeing broad-based entire It's So with across growth company.

big set reimbursement be the that indications is again delivered and now we our quarter here increased quarters comments, every for productive new XXXX in year. The of us there. the this growth a several opportunity product the X I my approvals, of and into double-digit to and next continues going for we've the that kind were initial we've it type EPS made the expansions the in contributions guidance forecasting sales As organic of some past there, for and exceeded to and pipeline, of base with pipeline expectations geographic the has said quarter, growth growth business points

year well strong building a into and for So going positioned clearly of momentum end is the XXXX. and

up I'll with you for So wrap thank us. that, and joining

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

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

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