Abbott’s Q3 Sales Climb 1.9 Percent

Talk about A-lists.

For much of this year, Abbott Laboratories has focused on growing its business through acquisitions and (product) approvals, gaining regulatory clearance in Europe, Japan and the United States for its Xience Xpedition drug-eluting stent system, a glucose/beta ketone monitoring system and a heart valve leakage prevention device. The healthcare giant also spent $560 million on a California opthalmic device firm and Texas developer of interventional cardiology, radiology and vascular surgical devices.

Now, as Abbott approaches the end of the calendar year, its “A-list” strategy is beginning to bear fruit: Third-quarter device sales totaled $1.3 billion, a 1.9 percent increase compared with the same period last year, and the company’s medical optics unit generated $276 million, a 7.3 percent jump from Q3 2012. Cataract sales outpaced market growth and international diabetes care proceeds swelled 8.7 percent due to increased demand from emerging market customers.

Stent/scaffold sales remained mired in a slump, slipping 3.2 percent to $1.2 billion, but Abbott executives nonetheless are upbeat about the company’s vascular financial future — and for good reason: The firm’s dissovable scaffold (Absorb) is a hit overseas and currently is being tested in clinical trials in the United States. Meanwhile, the next-generation Xience Xpedition stent continues to make inroads worldwide.

Device Revenue 

Worldwide medical optics sales ballooned 11.7 percent in the quarter on an operational basis, with cataract sales driving growth. Much of that increase came from new products releases, including the launch of the Tecnis OptiBlue intraocular lens (IOL) in Japan, which provides Abbott access to the largest segment of the Japan market, and the Tecnis Toric IOL in the United States for patients with astigmatism. Cataract sales growth, however, partially was offset by a decline in refractive dividends due to continued soft market conditions.

Diagnostics Revenue

Core Laboratory Diagnostics sales jumped 9.1 percent on an operational basis, driven by strong growth in key emerging markets and the United States. International sales growth of 7.7 percent on an operational basis was driven by continued strong performance in key emerging markets while U.S. growth of 15.3 percent was driven mostly by several large health system customers. The company’s international sales also received a boost from preliminary clinical study results that suggest Abbott’s Architect High Sensitive Troponin test — currently available outside the United States — may help improve the diagnosis and prognosis of heart attack patients. Data showed the test could be particularly beneficial for women, who often are under-diagnosed.

Molecular diagnostics sales mushroomed 16 percent in Q3 on an operational basis. Sales were driven by strong infectious disease growth, particularly in emerging markets due to the impact of recent tenders, as well as the continued growth of companion diagnostics.

Point-of-care diagnostics also experienced strong sales growth, surging 17.1 percent on an operational basis and 16.5 percent on a reported basis. U.S. sales increased 20.1 percent due to continued growth in the U.S. hospital and physician office segments. Point-of-care revenue also benefited from strong demand in both developed and emerging markets.

Continuing a years-long trend, Abbott’s testing business grew 8 percent to $1.1 billion, fueled by a 6.3 percent jump in its banner core lab unit and a 15 percent leap in its small but fast-growing molecular arm. Abbott credits its strong quarter to an expanded presence in emerging markets, an increase in demand for its analysis platforms and an amped-up focus on companion diagnostics.

On the whole, Abbott reported $5.4 billion in net sales on the quarter, a 2 percent increase, and raked in $773 million in net profit, more than double what it made in the same period last year.