Abbott Q3 device sales slowed by supply chain pressures; COVID-19 tests exceed expectations

Original from: Medtech Dive

Abbott Laboratories faced “a very challenging quarter… probably our most challenging,” CEO Robert Ford said Wednesday on an earnings call. The company, like its medtech peers, is grappling with hospital staffing shortages, foreign-exchange rate fluctuations and continued supply chain disruptions. 

“Inflation continues to be a stubborn force globally, but we’ve started to see some moderating impacts in certain parts of our business compared to earlier in the year,” Ford said. “COVID remains as unpredictable as ever with intermittent surges continuing throughout the world.” 

Those challenges were offset by higher-than-expected sales of COVID-19 tests, leading the company to raise its earnings forecast for 2022. 

Abbott launched its FreeStyle Libre 3 continuous glucose monitor in the third quarter. The company also reopened its baby formula plant in Sturgis, Mich. following an investigation of bacterial infections in infants.

Diagnostics: Sales of COVID-19 tests brought in $1.7 billion in the quarter, “significantly” above the company’s expectations, but still lower than last year, Ford said. Demand for laboratory-based tests has declined, while sales of at-home rapid tests were about on par with the third quarter of 2021. 

Rapid-test sales accounted for the majority of the total, about $1.6 billion, beating J.P. Morgan analysts’ estimates of $769 million, Marcus wrote. 

“Right now it’s looking like COVID test sales are stickier than most of us assumed,” Ford said. 

Source: Abbott Q3 device sales slowed by supply chain pressures; COVID-19 tests exceed expectations