Abbott Laboratories (ABT) 18 Jul 242024 Q2 Earnings call transcript

Good morning, and thank you for standing by. Welcome to Abbott's Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

This call is being recorded by Abbott.

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

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

Following their comments, we'll take your questions.

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

may Item on December discussed any affect Abbott's result or Economic, developments, forward-looking obligation governmental, year except for undertakes competitive, operations subsequent no statements XA, events as annual release report Factors, to required that in law. to Form our by XX-K XXXX. Abbott as ended the publicly technological and XX, factors of to Risk are revisions a other

call, with conference measures our will performance. at investors from filings earnings available our non-GAAP non-GAAP release are business on financial are Abbott's today's used financial website to abbott.com. On in help the be understand measures financial regulatory and These comparable ongoing as GAAP reconciled past, measures news in today, which

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

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

COVID for you we Mike. than excluding organic X%, of us. thank Today, morning, and everyone, sales. reported testing sales Thanks, growth joining more Good

increase estimates We XX% and of also quarter. consensus analyst which $X.XX, sequential represents from share reported the per a exceeded adjusted first earnings

our year, on excluding performance sales, of X.X% to and to in a be per organic now confidence in $X.XX. of outlook COVID quarter raised the in guidance we year the and range and our earnings remainder share $X.XX adjusted growth, to full Based our sales testing for the XX% forecast

Our be portfolio, growth double-digit by growth and across broad-based and performance in continues high this with single-digit Nutrition. Established to in Medical led driven the growth growth Devices by quarter Pharmaceuticals

we results commodity supply margin now from In from addition to on costs are lower from second growth Strong contribution coming before benefiting Nutrition, the by and growth call in detail quarter in line, X.X% chain favorable with seeing teams, where Phil, expansion sales start and outperforming increased our from U.S. Nutrition execution gross positive Adult Pediatric Nutrition. international in over and was in our more expectations sales double-digit the mix. I'll I'll to the top also quarter the continued summarize turning led quarter.

commercial business trends. execution, which, and Nutrition impact International X-year XX%, to perform The from positive continue to the reflects annual well a Glucerna capitalize our level. demand high the more drive growth very Adult to than market-leading we've our addition these rate demographic this of investments to in and at for on to continues is compound are position positioned capacity, trends increasing secular Ensure that we expand brands. made demand Through

is Abbott NEC, enterocolitis, devastating a litigation the who for human or have families. and our and milk preterm fortifier, by gastrointestinal premature disease information regarding to neonatologist formula Necrotizing of stands On infant decades. used that is provided specialists the to products the infants, terrible them primarily topic and affects it

experienced regimen, scientific the preterm is specialists along hospital and without into which use, milk an are a sold of are are support. lawyers advancing incorporated feeding part for theory by infants. care of for These of the plaintiff standard that are merit majority a However, or with important products, human

in by the and and supported who reviewed for ingredients use also medical countries are other is their use been United deemed Their by The around States safe have regulators, reviewed associations products their have the and labels. world.

no to been a in TV cases has or attempt seeing investing to of increase decisions the rates the information. There new meaning any physician in in emerged NEC, plaintiff's response lawyers an move of in advertising the millions not misleading courtroom. have from we're hospital to these trend dollars Yet,

were would products in at the level physicians food the $X about million these past of have If vital and for are that that no products annually for revenues NICU. be remained available, deprived Total longer needed years. these the would several public believe the across action it's a have important preterm interest and this need crisis these infants create recognize we every accordingly. in who all state health country, health products to for of This and an take affecting to for is

quarter was Laboratory driven Core in in Moving X%, double-digit single-digit Growth high sales. to sales testing Diagnostics, Care Diagnostics where by the excluding increased growth Point in of growth Diagnostics. COVID and

of testing and Lab areas and Diagnostics, across Core our increased menus growth drive to In global the we of clinical immunoassay, demand blood systems utilization hematology market-leading for through and chemistry, continue adoption screening. our extensive

renewal growth ago, see given to Alinity expected with While competitive several contract we industry, the our common a recent diagnostics year. long more to benefit in continue half diagnostic contract our in rates, to second of in win X large systems of and the first family account contribute increasingly the than launched the cycles wins years

strategy growth including trends, X% expanding access EPD, executes branded to EPD high supported classes the increasing and markets, is on increasing focus care. demographic a health to sales generic this Turning unique where business where by in deliver as emerging at middle populations, growing favorable to quarter. increased in continues its level

business. access a emerging we life-changing emerging to to new growth have presence With bring can identified we As medicines markets. you a this that to recall, people opportunity our biosimilars model of a capital extensive is efficient these in strategic and in licensing pillar markets, unique for scale as millions

strategy the expected these implementing an announced year several to We women's XXXX. of launch commercialize agreement last in in of the biosimilars areas we the first when health, began oncology and to with

Abbott We recently the autoimmune most generic we represents that additional disease and growth forward portfolios of Biosimilars continue access to complete the completed pharmaceutical and to market-leading market, to segment biosimilar one branded in the look agreements GLP-X highest in industry. versions medications. the of build provide

now sales up wrap than we around X we technology XX%. in Devices, and Libre received I'll announced and systems approval the $X.X with for over-the-counter grew FDA And million by billion in Lingo quarter called Libre on Diabetes June FreeStyle sales grew that Medical In are XX%. where which used Care, world. the were X more people is continuous monitoring based glucose Rio, Libre's new glucose that

United in option in markets over-the-counter selling is since While new States, international we've Libre launched XX availability over-the-counter a been years the ago.

communication Given markets, users our approach our tailor and types these base. compose demonstrated who of position to have we ability the the clear solutions, leadership to various in customer CGM

manage consumers do habits. help to through Lingo maintain is wellness. app willing diabetes and create sensor who diabetes type lifestyle is for who health not The coaching in insights provide modifications. adults wearable their healthy with overall and designed typically designed Libre their for will and Rio to Lingo improve insulin personalized glucose, and are use X data, track

to in U.S. all of geographic first major In growth which XX% growth portfolio in Electrophysiology, acceleration and the quarter. compared an growth growth regions, was broad-based including double-digit was in ablation the Growth represents XX% in catheters. driven across XX% the included the by growth

adoption quarter acceleration first growth was and including LAA Structural Heart, several reflects compared share and by attractive to XX% TAVR, the products driving an repair. in In new growth high-growth in and than recently tricuspid capture launched of are more led areas, that

TriClip, United global and trend This TAVR of capturing our share we in continued quarter, market. in our market repair launched tricuspid the States the device,

In that segment And in Rhythm be Aveir, Management, largest chamber the led X% for which pacemaker. of market. pacing Aveir in we mark to CE leadless the we innovative pacing of in Europe procedures, highly growth received announced used dual is June, by our was

both assist and was offer In portfolio our chronic growth X% heart conditions. temporary Heart by Failure, of that of treatment devices driven for market-leading

of in growth last was our international X% spinal for device, cord driven stimulation in by demand Europe Eterna rechargeable which year. mark CE Neuromodulation, In strong markets obtained

FDA located dissolving arteries open, the received a suffer people dissolvable our who blocked drug Esprit breakthrough for to to stent, approval a over below April late the completely arteries knee. vessel we support keep Vascular, designed prior In for deliver The from innovation in to is Esprit healing time.

and growth outlook products that Esprit, increase presence for with the business, our areas have made New organically inorganically, this both our expanded in in business. and future combined the investments faster-growing Vascular we like

our the in a on and financial top result, year. for we bottom raised outlook expectations exceeded the So the both lines. as And summary, we've

well of initiatives. year. margin be gross strong continue productive. continues make to positioned highly good importantly, thus, And our the on progress our We more for results we're pipeline the remainder to to deliver And

turn Phil. I'll now the over call to

Thanks, Robert.

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

organic our X.X% to when Turning and increased an testing quarter basis X.X% on COVID Sales sales. second increased excluding results.

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

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

SG&A of other sales, the of sales the P&L. XX% XX.X% of margin second sales. X.X% was Adjusted in adjusted gross ratio quarter. Regarding The was aspects of adjusted R&D and was

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

outlook the represents full to to which April. our we We forecast per full $X.XX, for increase the share compared year an guidance range adjusted Turning of now in provided year. $X.XX earnings to

full now Based expect impact sales the growth, year X.X% an than midpoint the rates, impact to quarter approximately expected unfavorable exchange We X% testing of of of of on also more have which unfavorable on be We guidance raised sales, current third organic to X.X% for sales XX%. to we excluding reported forecast reported includes range an sales. organic on growth. COVID our in sales,

we earnings of forecast $X.XX Lastly, $X.XX. share per for third adjusted the quarter, to

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

Instructions] come will Fargo. [Operator Larry first And Wells from from Biegelsen our question

a you thanks I'm that, I had And Robert, follow-up the NEC comments on nice litigation. and have to anything question. if for and your quarter, one add on Robert, on congratulations wondering

Larry, defend the all progresses. and my of the of we're is I I situation that think its comments. I it impact, the terms obviously as the prepared way No. and in of with during situation is only so stakeholders, I I working and think overblown aware they this are to said everything the position our gravity different working said add here guess,

of had prepared So further to I kind I've now all -- my in but if to there's give updates, say And said need a right will. we comments.

the about in are What geographies? you second that? of What And seeing growth EP nicely launches? both how right. drove PFA are you the And Robert, U.S. thinking the quarter, XX% the grew business with All sustainability different your in and international. in that Volt before separately,

I been to you It Sure. But to in I I'm a going what from seeing were Well, thought little you seeing see. what market. what some we've going was different see. thought might obviously the is an increase of be

above now, to the right It So has seems XX%. be market accelerated. growing

So than lower but than when it's the what was growing at the growing our actually pre-pandemic we faster just done XX%, market, had it you after look it's acquisition. or

is -- we'll in in growth So that the see growth if We'll actually we'll value. procedures see if the translates. -- obviously

bit teams. is in of to are a the significantly in were and number if procedures say given our little it's early what actually going I increase. more we think But to our the procedures We than actual mapping past too

price accelerated. has introduction right, all in market It's think, procedures, with being procedures, used about procedures, think right predominantly So But ablation and that's de this it's product. of atrial now X/X predominantly, I of Larry. new novo the the we

whether better really it's over VT, pretty But other around OUS, how that's redos, see, that see the is as stable. case, to option RF to The for procedures. In penetration viewed We'll translate we and ablations. going continue the X/X, XX%, XX%, those SVT, continue been we to it's see time. being

mapping, of what couple real the point we last launch the saw of change From think first we months during those I a of big of call. view of haven't seen in

market the in cases. mapping don't those as U.S. share. got different share So of still of mapping. being get to over used a types denominators XX XX% and look are here cases that of We've to at try I

I XX%. it's team basically make the my seeing, best sure from we're And has just So about what access.

what to the in of in last cases. still used about XX% we catheters, PFA RF the being call, similar saw

continue we see So that. to

the of a the market We've It's So I think effect strong is net this accelerating. position. growing. of all is got

our is the a that it role. talked faster business role, in is past Everything is about still than about the opportunity plays still growing all other we've the there. actually our RF what mapping important with And an consumables was before. and growing

at XX%. was 'XX, XX%. about look about we're 'XX you If

So we're doing better actually now.

which we've time you'll the see positive say, invested to this PFA the I definitely year. our market of going heavily is market, So next that in start the, -- which I'd for is I'm the to quarter not think in try but kind here, will next year. portfolio, why and hit

this done out. at I and the So think laid the executing good, have is we an that job incredible teams strategy

them. kudos So to

come Securities. Steed question next BofA Our will from Travis from

a on to Congrats Structural from really quarter. stood It good this quarter, last ask Heart. I out wanted about quarter. accelerated

on MitraClip recovery. Just curious how much of that's

TriClip of and other you're side? seeing from in from is much products coming And Amulet Navitor? how got approved like some early. TriClip You've How much the the newer

but I it's TriClip was launch Obviously, broad-based an the and Travis, Sure. helped rate, here. think pretty accelerate growth important

were advantages the we because right? scale. had We manufacturing the area, force, sales ready go this We at TriClip, certain you If in had to capacity. had built-in we the look

So go. we ready to were

think quarter as with system, here, launched our I accounts I system. as in from their replacement many even already though the estimates devices after we is twice our the a repair competitor think

market. of natural positive. to So advantage it's really as went well. very The cases the are kind feedback has here. doing broad-based here the built-in very think And we had been a I But we

some great the in markets. traction, very a for is our Japan done great and gain from U.S. driving shared and U.S. in from markets We of in hemodynamics, that's profile, more well, excellent the proposition registry and safety our lot data has and value Navitor clinical starting us registry -- international opportunity international both also. And to

So that's doing very well.

nice saw growth really Amulet. we U.S. Amulet, in for the

This XX%. quarter, it was about

continued, here would in product call, So I that sales. focusing on we're penetration well, is doing very and what same-store

we're about here we're the accounts market So close half in of in. U.S. about the the to We're XX% that in in

the opportunity sales here go expand and to accounts. newer force is So our continue to to

So very that's well, done too.

with MitraClip, growth TriClip provide little with now both competitive In a kind and internationally. continued into I slowed across able U.S., the think that's But growth. and we traction, be some a down drive repair think the of continue to value of see proposition gaining coming there. activity, to systems bit market the we'll I

product from to So Structural really it's well. or portfolio Heart, technology. single out very the doing accelerated growth rate one say And full approach has across really trying QX, a I'd just versus one

other internationally, clear. in have it's that's There's well. But to talked that work I've MitraClip, we do share products in are gaining done very In very the about the all and U.S., doing well gaining market adoption.

growth to you and So rest this the that's actually accelerate, Structural going I into definitely for be Heart's that's next of and year. why that, saw see to rate continue year going

out? when kind to you call Rio? kind your And markets thinking Libre international do helpful. just you the versus are U.S. anything dynamics? market about Any And segmenting going And how on That's with super then business, business, time? sensor Lingo versus market changes core develop think over of at how those your you to are in look of

to of that ground with lot question. cover a you're trying there Well,

probably could call through whole going that. a You of spend all

There's a opportunity of I there. at great to a growth level, Libre think the do well. highest Obviously, biggest is one, we're continues basal still over and the lot doing opportunity. progress having -- very

But penetration still MDI even the of there's a segment, lot to in occur segment. in the MDI

X/X that it's of using markets multiple about and U.S., aren't international developed CGM, still I think XX%. the in there's daily injectors around

of growth Libre. plenty there's So in

technology we market, also here full which Lingo the that of is use as platform just and probably populations, of have at portfolio the right? what the can expand don't diabetes and is people have strategy a but different Libre types is diabetes, larger Our with really sensor across look Rio this where a

we're habits, -- win I do know, is time And there. tools do I I if the a that -- and population takes right launch looks expanding But here and time use. in to you going that, the if say, think U.K. excited now, some and communicate drive while need how new to we'll And what it takes patient about healthier to take globally. understand with it going its educate to they see like start you to some would to it what based it having we're U.S., experience, on

big into one I invested us pretty for think get we've a able this position. to it's and opportunity disproportionately But to that be

I think million if at you markets. those U.S. Europe, got take population Lingo adult you the there, and look in you and XXX Western people about

you're rate, in single-digit opportunity a a penetration year you multibillion it, sensors at a there. If take few looking a

And we're yet. not there

just work, But level at total I that's I'd is it opportunity. think understanding population modest high and a this and a relatively, big be it. say, pretty of better adult forecasting we'll once how from to a rate, at we've at better going looking got penetration

for lot, here So we've -- while my to said launched And like since U.S. and internationally. the experience in bring we've going in done this and comments, we've I a learning that a learned we're

So it's opportunity us. an for exciting

And Robbie question JPMorgan. from from Marcus come next will our

good quarter. you to generating add mouth Robert, Two advertising diabetes versus of these holistic how and I'll just data? question. products, on as drive up be congratulations Libre especially two how OTC word about questions. for a the we the thinking And for me, Maybe my will product much move on into of are of sort necessary? new follow a

or way have insurance think about CGM forecast. I not probably are non-insurance Because X where showing is, markets of the in do And coverage? nondiabetics how in so beneficial I years amount just that not with how data, the we we thinking versus and people's data other? look versus most coverage are -- how And ago was today one data you the

-- you're going to be specifically for I non-diabetes, that's so something don't from think coverage it's that, don't be insurance we're building data Yes. perspective, coverage referring think behavior Lingo assuming benefit that if this, a though going to Even over from think nice an Robbie, agree I I sustain forecast, right? don't to that diabetes have you, that there's shows I modification, it. can reimbursement helps people that it -- with and

is, that using and Ultimately, that refine or data healthy, It's more can right? people able kind -- it want give to stay change their habits. that this what habits ensure is help information them to be of they to

really I the core there. It's So that, think is with consumers. directly that at communicating

you with how physician. communication If diabetes you space a obviously, patient, needed about with uptake, a needed, and the communication the both think CGM and you the

that's the non-diabetes. important for that, think still I

that think want to recognition care will be good to do some professional people right? I the health a some have might of sort that from investment this in,

be And the year. utilization, it right? people a this year, a see on to -- diabetes said, I going if the here times But still you're key time. over that have using couple of and a they're thing sensor we'll don't is XXX don't this generating like I just days data think benefit, use there's a a

communicate even a communicate direct the to think consumers data, to it's to to value the that going the to if care important be there's primary get payers I it's if here reimbursement, generate even doing physicians, and that's the but not that. to of

think coaching. key personalize do information the thing and is the here I data the personalization you and how the and

it marketing, sustain be have and you're big its use. open have the I call able going some and is, think, then So let's that, you'll go with market get blast our yes, advertising, to on TV here TV TV on-the-ground the you And be of and and strategy communicate. like just able together right, to to can to really to up given that don't TV guerilla this sustain But going here, you're experience it, uptake. to use kind advertising to to do

team separate the we're why completely to diabetes a how they're this how thinking that's and on focusing And it. removed that's team from Libre have we about that So execute the strategy.

of gates. more a S-curve kind it's of think growth kind versus out of the of I an

whether competitor. the me half I know what or it's the on sales that are the everybody is focused and in second

than here. here will will standard. flash a big that the be picture in sustain opportunity frying we an just -- it more think become a if itself, could And there's bigger will it's right, it it like, It I the is, fan. hey, do really and opportunity

So...

minute Great so color. the underappreciated coverage, this dual Aveir and And on leadless chamber One me. the spend opportunity. don't think feedback with particularly an for launch I now the a mind, see Maybe, there how you more early if is market far? what's you the pacing, evolving.

with to CRM, Yes. this year. I leadless It's last half flat business, think whole X% If been procedure, at CRM on and comfortable say, it's wouldn't doing that, because we've the things is going grown the it change of training, with our is full that previously growth And grew right? we're year. would doing the that that we're a yet good first success I this the of right? It's business, I X% one dual, on but at Ultimately, ensuring the right? cycle trajectory say look getting of you we're physicians working

chest. different versus mapping. to. into completely the a versus the pockets using entire been It's industry above groin We're accustomed procedure We're the has doing what going

it we're So different, a that. focusing is little on and

been that we've chamber. just the accelerate said, being rate with to single But a growth able

after several experience are about, I we with under talking the into and the think point, we more about once XX and opportunity bigger several to their drive And of right share. X great. in okay, to physicians this get -- patients do going probably an your accelerate how dual, is But they're procedures captured them, opportunity years, now, it.

of sure across got we well-trained, base States. is a want innovation And Listen, outcomes billion great hasn't segment, we've here, unique in make there really been But $X it. and United pretty a much you large and something differentiated. this the global truly that's have to physicians

bit them. communications is gotten see we've of exists, that the a physician proposition it a about this the of can definitely capabilities value because I amount point to and and and that And more little I'd where we direct-to-consumer training we a good affords the a feel product once the that going say feel mainstream, more coverage having

might can the is great point It opportunity it device it working to me underappreciated appreciated get to we and really definitely hard let we're the with the team a but where for is this market, think team, us. strong. amongst go and CRM be and I So that

So...

And our from TD question will Josh from Cowen. come next Jennings

for asking kind this multiyear Robert, I start just Abbott. about wanted of just to trajectory

X You've and double-digit a organic comp last growth have been the potentially delivering X-year stack year. years top-tier revenue next performances over

But I think the which stating could potentially, has team that, publicly levels, that prepandemic in to range. been outpace business X% X% the

this during just supports put think trajectory, I you've maybe your lot of reiterate call, that but type a that forward confidence level there.

And over of development that's prepandemic M&A? outpacing is term the over the dependent this kind with this business the is this growth levels Or really the drive couple on next programs of to medium years? core top-tier internal out going

the to it attempt accelerate the question? listen, to we've been COVID so of say, stronger, build our we the I'd investments kind made that portfolio, the right? accelerate during saying Was we growth, that make get company, to XXXX can

on single-digit, double-digit is at top-tier, revenue. high If delivering $XX-plus we've X and last of company that's growth, quarters, this look been you a billion the doing

think impressive. that's So I pretty

top-tier you at continue quarter fastest-growing this the the We'll think to deliver happens And look the able into But this growing we this this to last it and second year, first the I was next do quarter. company of this. year. we've If positioned in to be medtech fastest deliver year can portfolio throughout year? see our performance what that medtech portfolio,

to that. and just evidence the deliver that points then the Yes, and of, do able built sustainably we've been proof I absolutely what reliably because and we've one,

markets ability. that attractive, about market good we're gain, there we are plenty that are markets we're attractive attractive feel of markets are entering, that benefits. so our So There those and we there are The our for participating markets that grow, are are there's and when opportunity markets that share we're And lead. that yes, building. in leadership

And developing there's clinical there. real products there's for our clinical or come we're to opportunity that no in opportunity a --

opportunities So that units markets, position applies business and that gets as across And our build X of all they our of -- solidified. -- those we those to X framework attractive, I have all think frameworks. become

we've makes strategically be front, able find makes On to further if asset growth, to to an the sense yes, that even then M&A sense balance the add we're that sheet us, that that. able do could financially, to to got

So but not it's -- dependent.

told deliver top-tier focused organic I've As able side growth. the be on this to it's you, really to

considering year, the fit maybe the And on another probably understanding received year, at your to And X an and your Board, every on get line. spins a a but maybe our just the regularly, and combinations high-level Understood. kind of least well wanted update units you question multiple once as it's year, that strategic the team times just potential business of the down then major business for just the Abbott. for thoughts --

we at do don't I look ongoing we the think in basis. one doing this our that on an Well, moment it it. portfolio ongoing We're year like the there's on an basis. value delivering that and value health ensuring governments also the only assembled our shareholders. to and is company not but care history that to is of it's patients has systems, a delivering And portfolio

that historically company then create And haven't there's that. ready away those if questions. to and asking value ourselves shied from answering the it's shown subtraction, do has or through we addition to through And the questions opportunity an

performing two and is shareholders is that doing questions create somebody the think there the an do we're at highest of is, with there I at fundamental value about businesses, what look businesses. opportunity better for now, X all level that our to And the you segments. across with right could we're our

there is areas and team that what we have growth, market-leading better, healthier the delivering they're We'll purpose and growth about But feel Obviously, focus fulfilling our and, been and but of our can are this our highest here, outstanding live doing. all innovating lives. we good what very at X quite during people earnings see do I help and season always the happens on to sectors level, mission, frankly, that. which

then provides diversity at managing as long spend managing their think I and you're allocating both of The we of their job and segments, growth one within them diversity. a defense the is and as each proportionate And capabilities. running lot all industry, like good segments, I So doing a them. time that offense X we're to their capital

So yes.

next Roman will question Sachs. our from Goldman come David from And

was P&L capital half year. I I I'll the on one with question start ask for here. and on back the to of hoping the the here kind allocation one side. at P&L guidance the look the Maybe side of

implies math growth the basis operating EPS points year-over-year at XXX Our margin of something X% the plus expansion of about it's and range. midpoint like

Can versus us turn that QX. you in a year. growth maybe some expansion Obviously, earnings But QX that a half some back the get drivers margin that underpin here what of basis? saw the and the through talk walk drivers of maybe that performance in year-over-year in the on of to we through we improved margin saw

Sure, Phil that. take I'll let

to prepandemic comp Yes, talked this spend of Robert did touched impacts big QX that of profile last that terms some ups on peers expansion pretty levels. in of testing little margin on year, through and earlier as really we And we're relative managing sort a a sales unique opening to the on our bit strategically the through And comments already was the op we're of we in downs and testing. COVID profiles. COVID some already this his position back that year. David. And of here on our

as that of performance, here great particular, particularly gross we respect margin you this in from on we on. And sales, portfolio here more the contribution the a particular, the With and to there. progress expand margin, things the is control businesses is but the to accretive anticipate continue for will can is in trajectory the in guidance and points to one throughout contributor that line our top and some year. some basis execute around focused year XX expansion We're go, highlight and here

teams the brings cost accretion each productivity, gross dedicated businesses that one improvements, yield margin of in solely reductions, We on focused have our innovation improvement, to portfolio.

those quarter and contributors of contribute elements quarter All continue are here in the of the through out year. rest and to

be the profiles we elements. of be of of tailwinds are some some markets the also more talked that sort few of have that we years stabilize and commodities cycles and to starting then normalize. it in about in and to And opposed the seeing normalize as We're through, go freight like, distribution and headwinds. last We've the start to inflation

coming commodity well and to And things but well. as margin only here also tailwinds to in contributing we've that also and as gross stabilizing, not to persist down anticipate seen markets

combination top-tier expand performance, year. to the of here throughout the but all margins continuing those So to also contribute the and drive confidence sales of the

All you the maybe about look just right. helpful. And M&A side, -- bit other a sector little pick allocation Super the the across the if capital on then side of maybe we've question, in second seen Josh's here, up thinking quarter. the

the announced, historical of lower $X there starting think transactions toward sort I transaction levels. billion-plus multiple end trend to were of

But you're as here? your can on how us to thinking environment you cash maybe perspective M&A the about continues latest nicely build give and balance your capital allocation

call been right? approach, listen, broadly, cover you the on companies more guys balanced lot every we know allocation I clear capital pretty -- different you approaches. a I've Well, a of have -- about that cover have

balanced. is approach that we the approach Our balanced that, shareholder, right? believe And benefits long-term

deployment over capital evaluating you X peers averaged good often to. on is ROIC and -- the that's if a metrics One last of believe, kind higher David, teens, high end measure the that the of around years, get of ROIC. we've medtech effectiveness compared we our And is the at that look I of

a good right? that we at believe deploying of is we're a ROIC balanced we the effectively how and capital, look measure approach, So

-- didn't year we investment definitely want to is identity, grow growth. want been some dividends. buybacks we're we opportunities we care our great of last dividend much -- returns. So them. to other we've our intend these them obviously talking to funding and have that about investments we are took didn't refinance this towers year, great capital to And have, core Debt continue pay they're down, we and don't internal all because and drive the and but Dividend we future

that So that time opportunity from line of we've is selective. M&A to a all deploy And that top also, balanced approach. a as a been about And sheet developed. balance even with perspective. and allows And to more that you from spending perspective we've little an strong have the pipeline talking us our be we probably see, we that,

got that you you're have to If driving in transactions that's happened then of right? you can at ask, sustain see what's you're strategy acquisitions, of part And look growth behind and your having the You okay, top lot the rates, to model. to a other through line your business times, you that? of -- the

that, wrong going are right. to the whether keep valuations have right or doing not to or You're

and when them But generate to them strategic we we've we It value that to shown than better nice make business some Can do, And don't in holding. want the do when generate Can were we that We acquiring? they I fits fit. look framework. that's we return? at just this operate tend attractive standalone. an that we're or return, acquisitions, strategically, to think the add be they a our

will Antalffy come Our from next question from UBS. Danielle

questions things a historically slower growing on struck and product-specific last the when that we how exposed really you're spoke, when of have sustainability here. the product me growing I -- we one good historically questions, markets. Congrats looking of is X at spoke to Robert, slower areas businesses quarter

I'm obviously, CRM. thinking So

there in the Can a strategy legal you general. is one now that in single-digit there? product And growth sustainable? question. talk just organic been how a the range. little of multiple and follow-up, And just another Obviously, about of pacing then bit mid-plus quarters It's part big

part strategy. was our That of Yes.

at Structural look there you've got Heart with Those Heart, obviously As Failure. Neuro, we flat Care, medtech are portfolio, growth drivers businesses. we and looked high Diabetes And at more CRM EP, Vascular. our

to mid-single to maybe to to combination businesses of And was So the digits, those portfolio a a growing X medtech digits, right? quarter. that get X%, at get needed you add that we X% is double least X%,

products DR teams advance even there. didn't I'd Aveir, we pacemakers. -- continue pipeline the innovate. look programs don't ICD but want that hand of the leadless to have is do And on we and gotten tilt to one do really Aveir opportunities say here, there's CRM and And pacemaking those The can on and leadless a strategy my to stop there. R&D to the our of side, also to to there focus I at market the

that's that if would So market -- and diabetes people needs you market, at slow unmet that's you gee, ago, innovate can market." market, on right? space Well, turn for don't the around. say, needs, I innovation, focus that -- XX know, to "Well, is growth in now on There me a meeting it, years look is important a is

comments, Vascular repositioning trying bit to peripheral we're a From portfolio started areas, -- more growth later we've in the as a we areas, little did than been higher perspective, in CRM. to endovascular I what my said areas. But that we

expect that's to our is. portfolio rate contribute the CRM So our kind growth Vascular least start to that that see XX% And of same bolsters medtech start gets that way just a target. XX%, our also of business us kind rate. I and to higher At to entire growth into

of of hand with Abbott you is behind XX% helpful. And about has your quarter, no think little here it's their talk fighting bit back. question a is market on little one from That's where longer the I in said tied on to now And side follow-up for a Heart that? but Amulet? Amulet Can Okay. know things. bit growth, for you that is I my Structural been the the then impression here, kind the And

Yes.

a quarter. was great it So

its now. I kind stride think hitting the team is of right

were drive adoption that our here of centers at to said, I expansion. kind the in we As was versus focus really

these the doing competitor XXX The half are expanded we're about in market. about it. of implants, probably There's and centers that probably has

right? dynamic market the good, in That here U.S. a that's Now expansion provides

the I'm of right? data where really it fail come think But had encouraged We showed proper so -- I the data I seeing, of after days, achieve using achieved XX% a were closure it think product. that patient some out by Amulet -- a and implant data, competitive starts I'm registry with closure and rate to actually that with for that post rate XX of XX% sustained closure rates success patients

we've that proposition, here value think then I an for to opportunity our invest. got to continue and there's So

on We and are of of our maintain on ease focusing sealing next-generation we LAA. we'll have superiority our the believe use, -- that already we here investing Amulet, the focusing regarding

We're a Amulet anticoagulation investing CATALYST, that public in will about trial clinical treatment. trials. which NOAC, is compare been Obviously, we've to

So we're this exciting continue invest in us, to and is going to for an it. market

comprehensive then, stroke structural interventions heart looking the with at ultimately, down ablations it's electrophysiologist and obviously, on to with And portfolio, treatment. surrounding ICDs, and it preventions pacemakers and comes really most whether the AF

the level, report an here EP fits physician, it's to that's at really to Heart, surround role at Amulet here So important need Even they side playing role. its with advance care. the it a the Structural the though highest that we is important tools

Operator, question, we'll take more one please.

Evercore from question And will ISI. our final come Vijay from Kumar

here. a print on I to on wanted nice congrats touch and Robert, biosimilars.

these you CDMO Is to planning your Abbott products? there? your a the plan be own that can this Are in call. going strategy brought launch up Or manufacture elaborate to space? on -- Is You you on you biosimilars? to do

is more of opportunity you this role brand place? Abbott? contributing in do your should to a that markets? and market Abbott start presence then that distributor is advantage in Abbott? Or of being size for taking And that What emerging Abbott's how When

and prevalence the they're phases the there's this, the disease emerging disease strategy. is different U.S. the in at Vijay, I'd markets core look or no couple The you where markets, one these Europe. than a premise prevalence is This to emerging the exists say if of of in Sure. that

are some at could the et of -- more higher, look You cetera.

for an markets, international But variety opportunity And originators. have has reasons, there's markets. Their bring for Australia, focus U.S., cetera. the not these markets those a emerging developed the Canada, Western to obviously in a main biologics been priority the general, into been Europe, of et in

as size through just we've So we've a a population. what in emerging is of once the growth in -- we launched. patient that deals that to seen really our a this have terms need provides expands. different opportunity what regional patient done we biosimilar know. some we biosimilar molecule seen dynamic And in of some And enters into developed we've category significantly It's the want markets up. penetration of markets, grow But more the that a

uptake developing markets, to we do before to start about think think before want is these right? what a start to understand ahead you these and products once types we in emerging to is concerted to go to what we say, put okay, of wanted manufacturing, we products able be that, of So the effort about to

how relationships and efficient got strategy physicians, we've how where margin you can you relationships with our wheelhouse, kind got doesn't governments, it we've into erode distribution And we that area. the with and question and right business. that the can And relationships gross that's fits execute it it with do capital of with -- is, have of

company company, opportunity the other the in in they give kudos And players these that aren't use team reputable position they've on advantage presence emerging exist because more to one single been be that lot of that really to with to And focusing really in can an markets. these focusing markets. partner to as a to on our They're developed able capacity I markets. markets now able

is So I'd right phase this sustainability there -- we're now to in of, okay, this. say the

we've So give us access. done the that deals

Our see going gross margin is not dilutive. to it goes. And we're how

of the As we'll up. you you big what think about will some pipeline, that at XXXX, start at the got ramp-up the look launching in molecules come but we've of

there. and will For growth very play huge accelerate us, for 'XX, large think some that 'XX, of these a that's what I opportunities us have when we oncology the role

one I'm one That's helpful. deployment. repurchases. And curious it's maybe on know capital last been asked. share on I

see be first Why Street half. in credit. done any share to repurchase the on guys giving not? being Abbott growth. share conservative Why repurchases? is phenomenal seem Didn't doesn't You have

to Yes. in we done little acquisitions did say, we've bit maybe much after and share repurchasing repurchases lot in a doing XXXX XXXX. a over the the as last couple of catching -- Well, of X not let's years, up

we've it's at shareholders. that $XX of to over look free you years, that flow billion And amount years about X $XX last of in over our dividends, a repurchases good for last our billion and cash been and returned couple If the dividends the buybacks. accounts our Vijay,

if able we've got be plenty So we're opportunities to And that. of to we'll is not see over. year -- again, not the opportunities, do

that maintain. done and think back I a couple returning cash will job good over pretty the at I'd shareholders of we've our years, commitment say, here So to last

here. in a second close growth. a was delivered for ranges really our time the our strong pleased where raised just with above-market outlook, This We've before and, us our continued I'll great sales quarter great performance. quarter I'm So quarters quite that, we this connection frankly, with for X EPS year.

but look our obviously away start testing which now, now The toughest to means growth. are to to I is that dwindle behind see -- back comps EPS we'll us, report so COVID not comps you'll start forward COVID our having to those sales, to test then

second the in one we're got there half here And that's our And single digits, back interested think of year of showing I formula, of EPS our momentum high positive heading the of the questions in. double-digit into what kind range about to the exiting getting lot and a year. we've

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

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

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

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