Abbott Laboratories (NYSE:ABT) Q3 2023 Earnings Call Transcript

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Robert Ford: Sure. Well, we had a really good quarter, up 28%. International was up 26%. U.S., we continue to do pretty well in the plus 30% range there. And to your point, we saw a nice impact from that basal coverage, especially in the international markets, right? And it’s nice to see the international growth accelerate again. I remember last year, the question marks about our international growth and a lot of our focus was on our upgrade strategy for Libre 3. So getting the sales team now reworking the demand generation. And a lot of that growth is, as you pointed out, we’re seeing nice growth from that basal segment, especially in France and Japan, where we got reimbursement — differentiated reimbursement, right? We’ve added about $150,000.

I think that was the day that we reviewed over the last 12 months, of basal users onto the user base. And if you look at that last 12 months, a larger portion of that $150,000 was happening towards the second half of that. So there’s definitely acceleration ongoing there. I was actually surprised to see the speed at the U.S. coverage. So right now, about, I’d say, 90% of commercial payers have now adopted some level of basal coverage. So that’s very positive. So both those three markets, U.S., Japan and France are doing very well in terms of basal and basal coverage and providing that kind of tailwind of growth. And again, there’s a lot of good data to be able to support while that it benefits these types of patients also and saw that in the data that we presented with the French claims data.

So I’d say, yes, it’s a great opportunity. It’s not something that’s happened. We’ve been focused on this, generating the clinical evidence, building the sales forces to be able to reach a primary care team, investing in direct-to-consumer advertising where we’re allowed to do that. And that’s a key growth driver here of this target, we have to reach $10 billion by 2028. I’d say that’s an important growth driver. It’s not the only growth driver, but it’s an important growth driver, and we’ve got a lot of good momentum there, Robbie.

Robbie Marcus: Appreciate it. Thanks a lot

Operator: Thank you. Our next question will come from Daniel Antalffy from UBS. Your line is open.

Danielle Antalffy: Hi. Good morning, everyone. Thanks so much for taking the question, Robert and Phil just wanted to follow up on Josh’s question earlier, and I appreciate you’re not going to give 2024 guidance. But just at a high level, there’s a few puts and takes I can think of, Robert, I appreciate the momentum in the underlying business, but you will have competition coming on the EP side, which has been a strong double-digit grower looking at MitraClip and a quarter of double-digit growth, that was great to see, like how sustainable is that? And comps are just inherently potentially a little bit tougher. So, if you could maybe walk through in a little bit more detail. Some of the puts and takes at a high level that we should consider nutrition, tough comps there, should consider as we think about 2024, that would be awesome.

Robert Ford: Yes. I mean you’re — not sure we’ll do a planned review here. But I mean there’s a lot there. I’ll try and touch on some of the topics there. I mean I’d just go back to — we have a growth model and a growth forecast that I’d say, during the last two years has been masked a little bit by COVID and the ups and downs of COVID-testing, but being able to sustain high single-digit growth, double-digit growth in the bottom line. That’s what we’ve been doing this year, a pretty significant double-digit bottom line because we forward invested back in 2022. So, if you look at our top line growth, right now, we haven’t had to put as much SG&A to be able to kind of support that growth this year. So — but the growth model of that high single-digit growth and double-digit bottom line growth is been happening throughout this pandemic with COVID testing.

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