ABT Abbott Laboratories

Robert Ford CEO
Scott Leinenweber Vice President
Bob Funck Executive Vice President
Robbie Marcus JPMorgan
Bob Hopkins Bank of America
Josh Jennings Cowen
Larry Biegelsen Wells Fargo
Cecilia Furlong Morgan Stanley
Vijay Kumar Evercore ISI
Matt Miksic Credit Suisse
Call transcript
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Good morning and thank you for standing by. Welcome to Abbott 's Third Quarter 2021 Earnings Conference Call. All participants will be able to listen-only until the question-and-answer portion of this call.

During the question-and-answer session, you will be able to ask your question by pressing the star one on your touch tone phone. Should you become disconnected throughout this conference call, please redial the number provided to you and reference to Abbott Earnings Call. recorded being is call by Abbott. This

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

Scott Leinenweber

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

Following questions. their your comments, take we'll

that, we forward-looking Before may for cause cautions risks materially that Securities some revisions Abbott's sales indicated otherwise on discussed to will Private statements. from Litigation to that now the excludes over the Robert. filings may affect sales today Reform growth are to our used growth, XX-K differ with measures measures publicly be from year On may and Economic, the measures are by these Act forward-looking impact technological, exchange. financial uncertainties forward-looking XXXX. call, statements will for GAAP noted, and XA turn as business our ended factors Report the that governmental, in be Abbott competitive, a help as non-GAAP result performance. Risk statements including website made our on comparable our financial or Factors operations Abbott's news XX, developments, release, subject any results forward-looking today's on get of ongoing With no Abbott Form to those obligation actual conference undertakes law. today Annual financial foreign in non-GAAP the of which as required investors purposes financial release of to earnings are the XXXX. which the started, I subsequent organic for to of reconciled except XXXX, call and These to refers are results commentary December available statements expected events Item in Unless in understand past, other to at regulatory

Robert Ford

everyone. versus results another $X.X us. - sales for Good very XX% earnings increased joining sales strong Ongoing And last of billion year. nearly compared year, sales, thanks organic were per COVID $X.XX, we increased in testing reported to than morning, organic and quarter. Today, Excluded basis. which Scott. more Thanks, XX% growth XX% quarter, totaled on an last reflecting related the share

the seen to of pandemic, we've since the As start of our resilient. continues highly mix healthcare diversified prove businesses

modest as the our on the our hospital-based theme last XXXX year. COVID easy businesses. in through our This and total as and mitigated consistent rates the is by X of months comps organic pharmaceuticals, more third other the and saw impacts certain strong been of from the established diabetes has throughout case we U.S. in surges in care quarter, consumer-facing surged growth a nutritionals, during businesses, areas geographies baseline, Even to year that this the highlights simply in pandemic, an of first Company pre function a growth an COVID increase excluding tests, XX% versus of basis compared not sales, -pandemic which evidenced real, our

which strong in In nutrition. brand, pediatric new toddler was the customers, X.X% rehydration nutrition, recently international X% by strong led internationally in and mid-teens led And by our compared the and I again growth entering portfolio. continue categories growth for over from with to over adult results well in nutrition, range making the demand grew our new see adult to performance adjusted as over usage. $X.XX, of In compared including our X% double-digits and increased market-leading grew full-year reflects As increased XX% nearly, Sales to now a last I'll in growth products, year. turning promotion. their summarize gains our outlook, U.S. we $X where strong Bob. as Strong per and we're before sales Pedialyte, result the formula will direct growth several uptake share once launched consumer including in Ensure start brands, nutrition, Glucerna strong of sales to to sales of year. quarter, infant U.S. pediatric we investments call at our continued today, our driven in quarter, Third these the guidance as earnings now existing and users Quarter increasing last share by grew quarter market

Turning to related sales. XX% and COVID overall, diagnostics, testing sales increased excluding XX.X% more than

now the since the the pandemic. quarter, we billion quarter sold significantly. a spread testing notably particularly start shipped U.S., variance COVID in for surged, COVID million and the during tests tests. and globally cases demand Most over rapid During Delta the as than of In have for increased total, the test XXX more

Over in fight is solution that rapid including easy-to-use, a companion than XXX global per the affordable, supply the tests testing, against while we've has month. a needed capacity our and an Abbott are is to lone important vaccines established global leadership fast, in tool, rapid virus. COVID this million of several position last not therapeutics, which and testing, vaccines, more months, learned particularly powerful Testing,

XX% left in introductions. sales a more pharmaceuticals, performance in to emerging I'll and in was XX% of than and to quarter more markets, cadence Structural in diabetes U.S. across the than recent we of to to FDA double-digit broad-based pre the to in sales in Portico, failure, -pandemic the countries, devices, compared product valve XX% heart for and grew to several new fast-growing CardioMEMS portfolio lastly, help grew with the rhythm the by we compared last steady Moving closes our XX% growth overall And India, In system. Heart, aortic quarter sales markets. In with of enhance by was the led and announced atrial quarter failure, heart continue Anulette driven heart, in the appendage management, sales where year, Strong Care. key performance medical atrial approvals execution fibrillation, from quarter China, XXXX. heart our guide results Strong of cover led where growth growth sales the Russia, including risk which transcatheter of stroke of third our established people double-digit the in in reduce strong trial HF large, in structural replacement. which and

demonstrated CardioMEMS in And heart other the based pandemic. impact, for year. across expansion of we label with the ongoing the overlapped XX% failure with trials healthcare of U.S. a in middle As and After a COVID-XX filed with reduction many the trial hospitalizations. data portion recent for this the this CardioMEMS trial, the clinical on industry, FDA adjusting

large we Peripheral of high-growth a quarter, commercial added Walk presence. diabetes also area with stage commercial of $X the up where clots. existing Company system, leverage acquisition And that billion. Vascular, growth sales invasive During called attractive platform growth an by with to nearly wrap we a the our thrombectomy Freestyle blood care, JETi, removes a with thrombectomy I'll can Vascular was strong our Libre is portfolio minimally device peripheral led where

we base million Libre total quarter, added global over for X.X well the to over user new During bringing users, users. XXX,XXX the

new So our now of COVID execution discuss strong of companion being reflects more our COVID of is XX% continue the guidance major on strong fueled strength and position area. businesses, in year. and raising for Abbott an the leadership will growth we performance year based steady by established which testing to now Bob. of this to growth and turn achieve an over has outlook to remains And in all results summary, nearly cadence -- the EPS our outlook year, to a important we're vaccines Bob our the testing, compared well-balanced to which products. last across strong, in a particularly detail, and call I for therapeutics,

Bob Funck

Thanks Robert.

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

strong our was increased across led sales by the results, quarter. Along related basis, all - third in Turning testing for to which an billion sales global of on businesses. COVID of XX.X% quarter with the our performance organic $X.X

year sales, sales quarter Excluding XXXX. XX.X% COVID testing organic versus - compared third of and the growth to last XX.X% was related

impact in the exchange XX.X% X% growth on a quarter. quarter of had third favorable year-over-year sales, of reported sales Foreign total resulting in

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

the full-year which than Our geographic provided full-year revised our tax year-to-date shift The third-quarter the XX.X%, income. due to rate of XX%. in modestly mix tax in we of rate tax forecast our July, forecast business align rate a to is reflects an was our adjusted with effective higher and estimate revised adjustment

based And that, on call With have we the of reported we'll expect exchange we would forecast organic COVID outlook billion - quarter unfavorable the and of Turning $X X.X double-digits to open sales excluding current our low X% COVID the testing to quarter, testing sales on rates, around fourth in an growth versus $X.X year. to forecast for impact for sales. sales last fourth - related the now related of questions.


[Operator Instructions] Marcus Our from question comes from JPMorgan. first Robbie

open. is line Your

Robbie Marcus

congrats nice on really a and Great, quarter.

Robert Ford


Robbie Marcus

volumes. testing, sides good such from you testing, of unique volumes perspective, So like by maybe a have a after also I coin both device feel at and led COVID procedure COVID quarter looking the

of love get sense your volumes. you durability are think to any here the quarter, XXXX, thoughts where recovery on us early I'd to how about we and progression and and of sales, Robert, in give into heading So and you of fourth think med-tech testing COVID could

Robert Ford


it's here we've Obviously, hospitalizations, a is that heading still you not if not huge is vaccine say here, could and enough. incredible that I seen had world. and seeing We it's reduces think that. a months I testing, transmit alone, the developed the test a we've believe the I to going as the the learning we always think strategy that pandemic, that, And that key for be we've we've the a things the start of business, that rapid since to one we're the impact I you know sustainable opening But even just think tool reduces the all think but you're could public obviously here, think was regarding I of of made but a I the our right -- an been get virus. but still -- that lot. COVID -- comments heard dramatically you I and the we hospital, It and over kind of that -- learned of around say in let's the dramatically last key in it the vaccinated, more could I'd part comments this health for all thing the on we're couple still you're thing there. mortality, virus. are -- pretty stories

learning symptomatic it's up, QX So to testing. symptomatic testing biggest think We pay as even and screening. we an we and cases go of about learned closer important testing to is testing -- symptomatic to cases down. definitely on correlation that channels as going between think remain that's started here, And can are part with we the What cases testing. we've the fighting platforms the versus into the I a still go see testing also and -- correlation with screening is going much we the therapeutics into and for here aligned difference companion on understanding to an And virus. is that that remain see important screening I year going a the attention understanding don't more to going lot us next

starting So screening a in increased bit. bit cases as demand has to even come little quite a Actually down are U.S. the

think thinking and I about is going think also. next into into that as year about QX another we key So going learning

to understanding our a of what say, pandemic, governments, But The seen say signed private in state key the to lot it's of whether strong. sales and seen focused to governments, the cash other, it's companies, to pieces, us the ensure a a able I companies. couple contracts of the make private. pretty governments is started I'd grew it's think beginning significantly, here market, here, pay, last got to the government in And be to whether to were testing to employees. their be with rapid in the of that test that versus the continues whether We've distinction international pretty of lot side of And they've give months now we've I'd U.S., we've aligned purchasing government federal screening most also. OTC,

the seeing that not -- weeks. in the issues will we're while shelf next retail, see and through way always you So those and work their will of at some couple work stocking

of lot to a buy We s employees. are seeing, companies still, their test to get

know be of all think here much I important is listen, vaccines. part be next clearly So going saying, an the that going of that but market don't segment is it's and basically there therapeutics with screening year, this to to how I is even

an that's I to think important going So part. be

There Our well, backup continues more be here in in base see here the U.S. was QX QX, a like terms pickup. business speaking, very again increased of a some and pockets towards end has saw and we some Started pockets the devices, that U.S., done September, during quarter, But in base here Robbie. business we couple of what That's and are as generally the Yeah, to terms were trajectory slowed I seeing half of the general down. -- of weeks. in these pockets. we very first diagnostics. on in like that saw softness it started cases we're wouldn't some probably throughout in recovery the re-pick But doing some Delta to in We countries. softness August it that is call here in well. there of in

I base And going forecast across-the-board, launches. momentum our year that as think a be COVID very here is our our full-year going business we especially with next able business, COVID. all number a number go of very -- expect underlying difficult next you I to into of be to full to year. to be to think it's about strong when product question continue So base new the And momentum, XXXX,

probably into is play probably we're going through COVID I on out "Well, have -- thinking we'll a year. quarterly -- think that about, the basis to going a number we're XXXX, COVID " probably there's and throughout comfortable next then here to throughout -- rolling how we'll the update

I I There's QX, year. be in And a softness nutrition it -- how in around and a cardio but seeing the business. is that business, do our see we'll terms testing I have base basis more continues business next EPD go business, portfolio like business, bit our will there, that's what accelerate. to our on little as our of we going rolling COVID we're diagnostic So it. to to recovery, COVID built like we've our of to

So -- all that's good. that's all

Robbie Marcus

you early on XXXX, pieces, testing. year you've I of of had Great, top thinking great. it's in a But a That investors in build moving know And from maybe and on Thanks. year a just helpful. is should XXXX then devices far, still lot planning about really so great a bumper lot bottom variables, was in Any your that, perspective? Robert, process. how to very versus as early a said, there be thoughts line

Robert Ford

this bit business, and both base we We'll base Yes. to how a I process. - especially in Like I top good said, of our Robbie in unfolding a pandemic our is forecasting think been business, we're give at our would side, from our like January, still base but from line, guidance COVID XXXX always a do, I in the want our here, in little terms on on see I margin we've on -- pretty business the business. say more

is base growth I on is So then of you is here, building going have think to it. rolling really, these expect to with and XXXX that And good the I that sustainable how business a momentum And think COVID And into we'll to The have getting feel about in. COVID I the all the basis. of what of like updating this it can putting be over XXXX is think more said, announced even will rollout on have which lot it rolling business, And that's a piece probably base a year. we've go we'll of -- we'll it look about question portion lot stronger more a And be testing. product in think launches then with then I that to we'll opportunity. basis. at

Robbie Marcus

lot. Great, thanks a


you. Thank

Our Bank of comes next America. Hopkins Bob from from question

Your open. line is

Bob Hopkins

questions, just very them have one execution. of the first in on Well, is just because And and time I'll solid the both such two congrats much. thank I straightforward. upfront, and you mention morning good pretty interest

Amulet The launch, going accounts are just would and love I percentage but Amulet. is in active things perhaps and in coronary it's how you of that terms with of now sort on very the question U.S. are just realize on of first top-down metrics early your maybe the any your share can comments like

inflation a love just wondering And could detail just Because -- But obviously other question. are we'd just bit of they're some from message just headlines on generally to color So you follow more seeing then we be companies more just question manageable. broad-based was provide on the So, chain. you're little the and second if and seems supply what there. the I constant. a is Abbott

talk So can around it's bit, just just that you. perspective quantify and understanding headwinds a some or can why to you it you better put manageable Thank a give wondering of if little just the us. us if for some

Robert Ford

Okay. why Well, a to approval it. calls, team, when it about lot already we the listen, I the last of I we The and we had the the talk Amulet going that were a time say do I'll We inflation know the publish the let initiated going supply to is launch. but and to going least mean, and On let in and then anticipation, do it. we Bob received data, on we're to take I that I that. August. there's at X data, were Amulet, would cover Bob I'll great manageable, will chain.

to close really our approval. data that released we so And

that product release got because the to you the for the I we it in you're product's especially data, when say, prepare in of our a the right the rates on procedure. fallen or thinners there. lot the And data superior And Sheath the better saw has data, sizes, kind There's looking went versus we've need of saw went advantages I patient are for the to resulted hospital the they fit. that. a the you placement super-important, great the at you -- will Steerable anatomies we've good Transcatheter precision ultimately pretty regarding a team think part having strategy different that's and and that allowed when got, of got broad helps Therapies. why that was portfolio why at that's blood as a of now, after right without and reason then, a market that's looking closure right

So I we've great got a here. think product

I think would I this the of of we've of already XX% getting month, gotten by job of team goal of ready. a done has the say And contracts now, the the end in we good Right amount certain target. them that first have a contracts -- year.

fantastic. we what lot got coordination So and of always in been these a and lot too. the think feedback There's of that's required contract get going got super our I interventional start so call electrophysiologist has the hit the we system. devices, very well, been implanters a cardiologists. key so really has we our Initial think to accounts, I'm pleased and there, ones really roll-out. products s the certain running or usage, amount see points, and we're with in to a that's that to a hit The commercial the coordination great could contracts, a to of here, need that. and the of of on out positive. worked great We've We've that that familiarity terms that's presence I definitely to aspect build getting up want strong

about So it. like you it's with very initial the month, into a happy signs, month-and-a-half said,

to it's we're with what another opportunity them, all seeing to show first also, the we'll All And that trials. month that's a top as Catalyst pleased investments, so say category great of of is making I'd I'm signs one said, with clinical very, important because grow that, that the our I'm in have and like and product very establish the half category. seeing. then on the Amulet here of I of

Bob Funck

I will Thanks. the take inflation comments.

really are there. linked up chain supply global supply chain have with been not strong The to and keep inflation together. think out I demand able

I'd so some business. In are And like across costs we're some of in our commodity bit we the a areas, nutrition have say flexibility costs. cases, experiencing shipping adjust input other We're pricing others, exist. more seeing do to higher costs. higher some really the area And increased flexibility that. of plan in costs the we areas commodity to In doesn't and areas, business. that some

so to other mitigate impacts we're we're at looking the costs. And essentially manufacturing seeing, working

procurement they're our understand and very we've As suppliers. and working nature And supply our a strong Robert organization chain doing suppliers critical of mentioned, our a great got the job organizations, with products.

it's business. able And terms get to we've in -- to need we so we're what ensuring the been support and successful been of that

Bob Hopkins

Thank you.


Thank you.

next comes Jennings, question from Cowen. Josh from Our

Your line is open.

Josh Jennings

Thanks Hi, or environment the But factor. depending able just levers next and highlight into that COVID for good expansion taking plays going Clearly, questions XQ hear some puts drivers any some XXXX of would COVID then of pull on other And to a operating how help 's margin. the we margin of operating and is testing on any as Hopefully, earnings us to out. be to you the results. strong the takes XXXX. year, drive Abbott understand to that testing puts move other morning. congratulations takes, and Rob, hoping

Robert Ford

very Sure. XXXX, I'd both the grow think said like say -- going beginning, and on our business the in strong business underlying the base to I is top I base bottom. or

costs. all and -- combination. in business, we'll mitigate across margin gross teams that improvement a our at business see we've margin are Like other So got that working ways manufacturing said, Bob that's of expansion to in that

able so of the profiles of have and that -- into driven focused, pipeline, I top the gross really on execution margin important a like And top be gross driving margin. I the then product we it new where is mix there margin our expansion on line, think launches line We've predominantly really Company's piece drive And go expansion. accretive side. us comfortable allows nature med here. that got we're is that roll and those say roll the those out which with. say device we'll are just is and quarter-by-quarter to as lot every forecast the number the to I'd of So to our to to will be continue going COVID But We'll the have are one to margin that -- drivers our to XXXX. key the would a these quarter. and get just said, we feel update I

Our product launches now expansions mix, R&D same our of gross our the want keep that margin got terms base ongoing base SG and &A. to in profiles business, we've I in by spend, improvement. and margin right business

you profiles we going to if land. wouldn't we've But right low and look if XX%, we're now, you between to the want little piece. it's of look our So Obviously, bit X's where XX% where to &A distorted want profiles historically COVID been at a in that's those and the because maintain. R&D in SG

Josh Jennings

had the here. And your in about in a updates terms some X.X here. key add the monitoring particularly We've Thanks analytes tap on the and for future Any talk other onto consultants development a But that. and for a questions. then competitive for plans to Libre of the how the maintain you taking competitive edge how updates term continue any advantage. just to Thanks on of terms as platform addition of follow-up potential quick Libre. Abbott for potential

Robert Ford

a was Libre is launched it out in U.S. X that? know Europe. said launched in obviously we'll -- Libre X. I put becomes We've number, out. you what's the And after We've and Libre Sure. rolling every always time see a we It's what be We doing that the and platform. And well Libre very X that have so always next

Regarding platform, we be your looking the is analytes. at, question using to of develop that Libre, which an the new able area to platform that analytes, on manufacturing is yeah, are intentionally

got particularly have experience in, that You monitoring, ketone in mentioned system. our one blood we glucose blood we've

that's think and aspect believe for X that feature. type We So that kind important an we a specialty is important real pumpers. of

focused that as launches, X even too. will drugs that's at to a we'll but look you are And opportunity business a of to and I'm dedicated population, the really DKA fairly we've about be the we into soon, of platform think able for that's certain pipeline an But coming on market, closer which here If Anulette, going be looking opportunities up of Type-X where lot are that to Anulette updating market new there's Type team regarding we the be needs also be warnings there got and one only beyond at only a diabetes. expand what using get Libre the for excited that. here those the kind might

Josh Jennings

thanks much. so Great,


Thank you.

next Our Fargo. Wells Biegelsen from Larry from comes question

line Your is open.

Larry Biegelsen

device the I Good wanted the the morning. questions. and Thanks to on for taking focus side Robert, pipeline.

about follow-up. share? and some I X/X to Amulet, better? year. to be these Amulet a for second your easy to reaction earlier take But market, for XX% has consensus U.S. market, a leader. with maybe of market nice It's starting of do a you had Just seem profile. Do coming surveys Amulet think What's not the back suggesting to ask can Bob to And can 's you become question another next a estimates the even way,

Bob Funck

to is multi-billion-dollar I'm international but -- to aware a different I of physicians. read And new can where also. similar yeah, Amulet is them, some are be to we and of got at the Well, see competitor And same of all see you not advantage. as I these It's what not portfolio of done product. them the of But is closure but US, US, an reports, with a that market the it. in we Sure. Amulet's that some develop what what seen which I invest share. a said, we size this is is rate markets. versus I the surveys the is also great here an what it's true XX% market market, in the new advantage. look actually I've see international it a When time Europe, at in think It's

important also, an that's think here Larry. part I

product. the but be which we're the next-generation We're the in going clinical to during investments develop So be referral not as investments to making I mentioned, to we're going to only investing infrastructure, also trials. there in in network and implant, making is commercial be patient

catalyst the it think trial 's. I is be going to to comparing NOAC

that'll the to market opportunity also. great think be I a expand

a market I we're offering., the combination a here and competitive think in our So it to we’re is with of team, have XX% yeah, competitive aspiration expansion. our And, with U.S. good internationally is

Larry Biegelsen

That's Portico to wanted ask about helpful. CardioMEMS. And then I and

you do really XXXX? have think share? US And impact don't which about And think I and mentioned CardioMems, Portico, trial? given you'll and can you Navitor Thanks on have Do intermediate you drive an taking that the the US. indication, outside low-risk lastly on without the feeling think just you opportunity to questions. the for compete you COVID are the So with the you about need label the you GUIDE-HF expansion commercial how in to

Bob Funck

Larry. Sure

Let player had a we about Structural in me we to to that leader. the we We is together and hugely when and Heart me a in St. Structural important vision businesses let need here We be space. Jude talk This here that the true TAVI be TAVI want a more put broadly. Portico with segment Heart. know

Portico in competitive a is building not long at device. that a game. in bring is looking marked, yes, strong. because clinical bring I question, and feel a second-generation I as your Its got know Navitor And the very U.S. great be feedback We it's profile U.S. the really to player is we very, here is strategy But I'm what this very device. really by to So in to launching have the is, we're in risk mean it competitive real second-generation high that CE context not want us is to And it, a we space, also. going I the for TAVI we're because need to to But -- this of that in Portico a Portico U.S. here competitive. a to

on have for how will look to also Abbott develop do We a we about further site.

a higher To aspiration which what the about in point, aspiration two we got we it's but I in not think That's share entrenched five share, competitors X in that pretty space. the have Europe. for and a have my just is TAVI market, we've a well your Europe. there's

investment of data, investing right, here low leads the trial risk. there. combination a we this on, low-risk big opportunity for the in a market. pipeline, Intermediate, us this in think it are but out later investment little clinical be as in see in player the because it's in a the I real So team, We're to bit you're

it, know structural go-to in be I full-service and a the too, -- about of excited to be player a the heart. to I'm team is real field able So

the second the be done. think big for filed was compelling. know need June. to I'm I them We and this RCT I to This able is for generate end that Larry, the CardioMEMS, is Regarding we've second believer trials evidence. trial the you expansion the think the this label And RCT data, and the pretty in clinical of a

patients to is able from patients expand to also today for I expansion X very think it which Class was previously been expansion the then be data And that is Class compelling. indication Elevated to And part have to hospitalized. with of -- and just BNP, X.

that trial. is combination also data, of So I it large that RCT the fact s the second think CHAMPION the we've done. already very Champions, of one top here the A on the

a here this there's great market. think I for to develop us opportunity

we the dedicated both and that and the business what under benefit One in also have businesses, of in be to one, that into for where business. are GM. failure, LVAD CardioMems combined that heart we believe our quarter Very because the unit to we've one did with done of focus the team other the a to similar here attention we going things is now more

opportunity I'm going the beyond. think this our not in and to a comment us XXXX what focus, for on submitted, great of I we've is combination

Robert Ford

all filed hopeful -- seeing it can we'll tell I for we you at the like very is we'll be just data QX, And and leave of I'm that is I it next when the that. strong end think that year, sure. highly and

Larry Biegelsen

Thanks, Robert.


Thank you.

Furlong question Morgan Our Cecilia comes from next from Stanley.

is line Your open.

Cecilia Furlong

shortages. just to XXXX. questions. procedure with some the others. deferred to the [Indiscernible] as of can if staffing started terms Do walk recapture ask of of about recovering ability recapture your in flow into you're about taking recovery procedures. procedure ahead in or in majority thinking deferrable for I trending And the how XQ you've procedures occur you quarter to you more procedures other those well sequential the business, as wanted Thank through see deferrable of trends SCS, And can recapture also

Robert Ford

like out device this would our is had recovering terms It's said, say that's I of a little probably Sure. in Cecilia. probably time COVID. businesses. The post business you more a bit of elective harder of

been trials implants. at terms we I It's trajectory its has look and lagging pretty flat, say, a if bit. would -- and in So of been our it our

the really terms centers, with back. We going QX numbers visibility only our big control, closely and the QX We've we're patients expecting not it or it But we visibility It's we've in June, we'll is come by think work to did of can really see system I'd got get how to on this We're job, here what approved next to remote that. how done, something market sense So, that seeing. and we year but good it but I of sessions. release programming the that we that that's a launched I give better And to we've is which highlight program We QX remote to and X,XXX FDA. We've funnel. at like visibility here of surgery the and and the into and care not is the the of has bounce things focus NeuroSphere, there. couple full to patients. control pipeline the over first on that's platform. is that novel really in bolus done like, a of allows have pipeline, then of also it. to a we have can looks the team done a of us kind was I focus, team what remote end And a a the

think service very the and going on of that's better think real sales a So big because and change business. that well, in adoption that it'll exists I using have it'll, help tool as great this visibility. that'll the get kind I of so model business

chargeable system is the half really segment, about that have the segment. system significant Another the don't in the which key rechargeable leaders advantages has competitive of the is thing entrants versus team market is this the here in We there -- market. developed rechargeable and a best-in-class, into

So we're in looking investments forward made to bringing that product to then also trials. market next year. And we've

the non-surgical in study. one We've distinct, I think is enrollment which probably an indication lower completed back. is that most notably for

able think tailwind to for to for if QX us. then of we important take I come that'll are And here bolus additional the combination kind share. and factors us QX, these an the So patients in be of of see back be

Cecilia Furlong

you indication to high Thank And over ask outlook target pursuing EEP. your and you can you, Vascular to markets, And recent a areas your other thank about space for thrombectomy I wanted beyond the of well a business, P next underlying and other your to there for end E including current diabetes high-growth build in about the that just really your around Just for several and outlook? are Vascular book your the out and years what's you. system? the of acquisition level, Walk peripheral at as market some talk versus growth

Robert Ford


a manufacturing strategically a We scale call And of always got able that end there service we're right been with we've expertise a up we've got customers, our capacity an $XXX and for sweet fell to footprint for at vascular sales into here and have sense it's we this out We this spot studying. looking know the makes always manufacturing. with think strategic team. we attractive area the million we're us, And that a about said, to growing leverage point saw. we've was opportunity -- So see an looking, the to We I've commercial always be -- double-digits. here, bit. an at of it's kind quite this segment.

interested the So we business. we I mean, significant are but in go of that if for to this moment continue that there I think segments sense we're don't to will. have it going for QX, yes, into is to the opportunities, find impact add And continue it'll vascular we -- say would us in. said, to any space perfect to made that we And we integration at, be expect add I be an to the right able I us to on like endo I able year, pretty and next portfolio our contributions look as those study, plenty in areas we're well.

space. is know yes, P the absolutely. peripheral on Regarding important We your the question indication, that very in

able of indication investing in the one be get -- that invest, So aspects that's the is we're to integration to key established. to

working that. on we yes, are So

Cecilia Furlong

Thank you very much.


you. Thank

Our Vijay Kumar from comes next from question ISI. Evercore

Your line open. is

Vijay Kumar

a baked are right my going now? in I sequential I for think did to DoD these about into contributor? back a Robert, right first guys Are that that contracts. testing, XQ. is demand XX you your And question. assumptions now. thanks sequential or curious, fiscal any for Is I'm $XXX taking testing win we guys, year, seeing this products step-down QX demand versus What Hey step-down billion, Million the now? right X number the QX think of capacity to where my was, we one on X.X that's is

Robert Ford


we especially QX, So Vijay, capacity this we -- more that. full can than regarding didn't the ramp do mode. finishing now full but -up our QX month forecast ramp-up, as the is we're of significantly we've we'll be XXXX here, here, have in

do, more So we the do we than can can X,X.

the also. we're question, with market, I increase, I as [Indiscernible] see Buying the in to and that (ph) to first during to And continue surveillance factor comments at think in here X the that's now I the is, continue the looking said opening screening

I assuming Everything we've rolling see the decline we're decline cases a going the little in and those say what businesses. you here, bit of in here. the see would we've question that a symptomatic make; step-down testing. as So can to that's we make, is is little on only got symptomatic a U.S. got this here we're in maybe bit in

that's So that's part one -- the little factor. of a

We've got other The especially leadership is a in in XXXX just market in the OTC. factor rapid testing, pricing. position

just XX% we're to If about to the about price we now we dropped of a at we're pressure. at will be you share before month of of back data, September, were because you share look supply Nielsen up seeing to XX% and that XX able and bit see

those some will as -- are that So what obviously we beat But so then see testing. on don't ensure the drive in -- pressure entrants But number in price, we -- we maintain A are that number that going we pressure that another and market market the to need Vijay. little to that's drivers pricing thinking bit leadership and price we there, symptomatic I baked more in. to too. of saw that position as that if come the see

Vijay Kumar

instead million, in QX So contract $XXX 'XX sorry. And the now, or contributor? assumed fiscal of is that DoD

Robert Ford

to we're -- going have yes. Well, to

is contract, So, a -- $XXX I a lower contract maximum think million. the the DoD I a is contract actually of news which than got So lot you're the which the has quoting amount of actually of headlines. minimum is what significantly than know the amount, kind that. But Less

in we their little of DoD next the that Federal factored So and going and piece it's into depend as on the bit on. going really talked We QX, to of in here about feel Government I terms -- in a purchasing. minimum But with what adding that big Vijay, terms range is and will of comfortable that of it's the the is portion what in will minimum a be pretty the maximum a year, part so

Vijay Kumar

And What beyond base trends XX% should And OpEx fiscal look the comments, like back Is way the fiscal that revenues. of to variable on Robert, comment the business. R&D Was XX% as looking Understood. -- one a 'XX? right of and about X% historical on your SG&A, just over to percentage think at your of at revenue earlier then that for COVID. referring to

Robert Ford

or When in to QX there was don't that -- look ensuring SG XX%. don't is down investment. R&D, we at &A you of to more you about in No. a that our That see X% it's was comment that profile in drop -- down terms

bit of more was to factor comment and the in that So continue make to a there's because sure here we a invest about going little COVID, distortion that business. of we're

the talked &A time the sustainability can investment at the $X we've and and this into SG added investments. to the on could continue more the look [Indiscernible] business portion a R&D same top R&D as If year, that of drive about that. be we've fiscal that the go billion wasn't that year, comment &E we business we'll there the a next Vijay, pulsate the discretionary we spend, how with a looking this only distortion. year, to bit a side But at ensuring I but drive long-term we you between made, of line the that at so is there spend about SG more little not and was about

least of at the in understood You distortion COVID profiles. our terms of

Vijay Kumar

guys. you Thank


you. Thank

Suisse. from Our next Miksic comes from Matt Credit question

Your is line open.

Matt Miksic

thanks congrats strong Hi, and on the results.

just this were you trough follow-up on strong COVID things to the proceeds maybe of just So very business. some concept reinvesting of the talking about this of

up this estimates in goes more your of and X.X QX rate. our or cash quarter, cash less is there, obviously, I somehow X.X But few months, than rest last billion it's hard that billion in is a COVID upside run to your $X think maybe in billion the because permanent operating that of or billion $X.X against there's by predict testing harder than and the out operating to not businesses. important So value perception

of all, on of how, at see that up? this invest to describing, maybe down the ones And the opportunities if you So front? drill you way solution do things does pandemic, just the your about change behind addition a the to dial growth of M&A Thanks. sort question your of which think talked in activity is, little being things and maybe the bit as an you've about, part opportunity to programs were into some you to

Robert Ford


you of at we captured well look think pretty I how the there COVID. all elements

care the assays rapid viruses pharmacy, RSV testing and we area that COVID do said and will an and developing ensure ability beginning, As even I the decentralized in to strategy we that centers, goes been investing testing the we goes has that testing beyond more urgent accelerate by to have COVID, started that we be in platform. that's testing to flu an are an in testing that opportunity this, that in there's on when of used So definitely of beyond more and because see place strategy that and XXX

So investment that's for one sure.

the on impact on some You can see investment business. the of

You see it in nutrition.

could rate we step-up direct investment the advertising &A And promotion in So Libre, that the growth the put you more in into see obviously putting on been side. We've and consumer there. have SG business. [Indiscernible] both

great billion competitive, so our and feel progress the there non-insulin and users level in non-insulin We -- sales or the or a physicians, population, this commercial sales markets about segment, can we in we've market you quarter, dollars TV is Libre about of a did is penetrating funded key mean, the impact new that tight to see I a in got is and in call U.S. users force non-intensive at whether users. of XX%. see it's shares, other more that almost You on U.S. a that got on Libre, to of least. XX% leading messaging. We're terms we non-intensive making that share Libre. insulin and for of a XX% about insulin Increased We've the rolled out market users. we

the and pipeline diagnostics R&D that XX predominantly talked areas being about side very our and that cardiovascular got and also whether these Salesforce, sure we've also, is so we've feet we're all clinical on making clearly growth street, We specialists, investments product been we're supported. putting got I've device also. on that new in launches talking I about and been So require And that's the the that beyond funding that where it's think XX. And that's investments. that

billion-dollar gone So my tranche managers to list of and next it's been Presidents where pretty have that then to general would across well have would they my I do they that has kind increase ready of go? if my broad to. businesses. a And businesses, base the all they asked go

So other on of a opportunity. a there's talked and was And generation. as has or the topic it And flow you business touched about the COVID then the of lot yes, shortage no result cash cash. generated of

sites manufacturing for have, cash opportunities the COVID, that the We have invested through for US we it's for organic MitraClip, of in whether Libre. some in

our could by dividend of at internal we've At return our we've we also to the the saw dividend beginning those year, investments, XX%. So where our shareholders. form but increased this we looked -- XX% the And best increase. in made of provide you that

that You for And bought we've makes do of we capacity in and further we we even probably if stepped in saw shareholders. also QX. back QX, more up sense our that in to saw that got shares that that -- QX

us, ones we better, X valuations we I've there, there's the is we'll and that Right little M&A fit So a MedTech that find value And high-growth with think that capital. the do is we is that I'd in, shareholders, be can it bit that make now, also. think say that for and would do high-quality, diagnostic interested and a out I especially can frothy. assets way to that deploy better a we about it, for financially on the talked justified us, this, strategic side, there we for

mode of paying attention. the and So in we're studying

I the to top-tier need here we think support really news good think I is don't able be M&A here. what that, pretty is to performance

won't internal buybacks, sense, more that some I -- pretty organic growth that's for us COVID are looking vehicle out shy there's it's to at So a to of terms think either we both also. we're growth and and be shareholders allows comprehensive funds provide how value and through dividends in makes we there, if

on. going just I'm highly investing entering our portfolio, first in strong been look testing next year. be companion vaccines I've that the pipeline focused opportunities that. to right the our COVID a therapeutics. focused going But and rapid of just excited close all all sense to as do important And businesses. can't QX. across now range on growth very organic say is I've be to could our our what than At for the proud going segments to products here and test archiving more very really like key to across We're us be the think on that's I we're our here little I'll So very gross into I platforms, think bit a that attractive We're is there. results, really and given level, I value there about We've to an is businesses historically better make way productive. pipelines proposition continues for and going to there -- new along say next and what have there's in the to said. and

Robert Ford

that we whether scale, we're and and We leader in in it's know a environment pharmacies year segment. direct operate to consumer. or built manufacturing, we this how built retail

XXXX with that, I'll right of I now for a going is focus XXXX, our year. we're into think go we're here to momentum, and With us today. lot strong as well you So into finish next all placed enter thank strategically joining we

Scott Leinenweber

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


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