Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

c38a82ff0295826c84aa67eb9b10991f398cc09c3fdf3df9257b415320e01144

c32abec365e743ec30edd5f3d45212b805f7c5b8cc17b3170139396ff3733f77

Abbott Laboratories is a global healthcare company that operates in various segments, providing a wide range of products and services. The company focuses on branded generic pharmaceuticals, diagnostic systems and tests, nutritional products, and medical devices, catering to both international and domestic markets **[0001628280-24-005348_abt-20231231.htm:2]** **[0001628280-24-005348_abt-20231231.htm:74]**. Abbott's diversified portfolio includes significant contributions from emerging markets and innovations in medical devices, allowing it to maintain a balanced revenue stream across its segments **[0001628280-24-005348_abt-20231231.htm:33]** **[0001628280-24-005348_abt-20231231.htm:74]**.

1. **Medical Devices** - Offers products in rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation, and diabetes care, with the FreeStyle Libre system being a major growth driver **[0001628280-24-005348_abt-20231231.htm:5]** **[0001628280-24-005348_abt-20231231.htm:54]** **[ABT_3402887_2]**.
2. **Established Pharmaceutical Products** - Focuses on branded generic pharmaceuticals primarily sold in emerging markets, significantly contributing to international sales **[0001628280-24-005348_abt-20231231.htm:2]** **[0001628280-24-005348_abt-20231231.htm:74]**.
3. **Diagnostic Products** - Includes a broad line of diagnostic systems and tests, with notable sales from COVID-19 testing, although this has decreased as the pandemic shifted to an endemic state **[0001628280-24-005348_abt-20231231.htm:33]** **[0001628280-24-005348_abt-20231231.htm:74]** **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:0]**.
4. **Nutritional Products** - Encompasses both pediatric and adult nutrition, with products like Ensure and Glucerna leading growth, particularly in the U.S. market **[ABT_3402887_2]**.

7076ada109a5d443acf0af6c1aeff01549237cb1c3ff8ad5ba47af7948b31a73

| Metric (in millions) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Rapid Diagnostics    | **1,022**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:7]**  | **704**  **[0001628280-23-012020_abt-2023q1xexhibitx991.htm:4]**  | **250**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:4]**  | **292**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:5]**  | **277**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:5]**  | **197**  **[0001628280-24-016497_abt-2024q1xexhibitx991.htm:3]**  | **97**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:5]**  | **259**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:5]**  |
| Core Laboratory Diagnostics | **10**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:7]**  | **6**  **[0001628280-23-015699_abt-20230331.htm:16]**  | **5**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:4]**  | **5**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:5]**  | **4**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:5]**  | **3**  **[0001628280-24-020011_abt-20240331.htm:18]**  | **2**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:5]**  | **3**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:5]**  |
| Molecular Diagnostics | **37**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:7]**  | **20**  **[0001628280-23-015699_abt-20230331.htm:16]**  | **8**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:4]**  | **8**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:5]**  | **7**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:5]**  | **4**  **[0001628280-24-020011_abt-20240331.htm:18]**  | **3**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:5]**  | **3**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:5]**  |

56cff5b18899099f18d151f995b04be35e3259f0d699ed9109fe69d71e958e31

d9cc4fe3a230ff1f564ed9e509a638a15a2db0b0ae38be7bc53346acb12174ca

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Established Pharmaceutical Products (USD Million)** | **1,249**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:8]**  | **1,189**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **1,287**  **[0001628280-23-027203_abt-20230630.htm:18]**  | **1,368**  **[0001628280-23-035957_abt-20230930.htm:20]**  | **1,222**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **1,226**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **1,294**  **[0001628280-24-033740_abt-20240630.htm:21]**  | **1,406**  **[0001628280-24-044602_abt-20240930.htm:6]**  |
| **Nutritional Products (USD Million)** | **1,764**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:8]**  | **1,967**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **2,076**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:1]**  | **2,073**  **[0001628280-23-035957_abt-20230930.htm:20]**  | **2,038**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **2,068**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **2,150**  **[0001628280-24-033740_abt-20240630.htm:21]**  | **2,066**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:1]**  |
| **Diagnostic Products (USD Million)** | **3,722**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:8]**  | **2,688**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **2,317**  **[0001628280-23-027203_abt-20230630.htm:5]**  | **2,449**  **[0001628280-23-035957_abt-20230930.htm:20]**  | **2,534**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **2,214**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **2,195**  **[0001628280-24-033740_abt-20240630.htm:21]**  | **2,412**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:2]**  |
| **Medical Devices (USD Million)** | **3,356**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:8]**  | **3,900**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **4,295**  **[0001628280-23-027203_abt-20230630.htm:5]**  | **4,249**  **[0001628280-23-035957_abt-20230930.htm:20]**  | **4,443**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **4,453**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **4,734**  **[0001628280-24-033740_abt-20240630.htm:21]**  | **4,747**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:1]**  |
| **Other (USD Million)** | **0**  **[0001628280-23-001516_abt-202212523xexhibitx99111.htm:8]**  | **N/A** | **N/A** | **N/A** | **N/A** | **3**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **N/A** | **N/A** |

9cc8e082a92a2ea82bb759b3ce83078ce249fbb24cbb76ae2895bb51c4b87566

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| U.S. Sales           | N/A     | **3,928**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **3,758**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:1]**  | **3,817**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:1]**  | **3,949**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **3,846**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **3,934**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:1]**  | **4,202**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:1]**  |
| International Sales  | N/A     | **5,819**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **6,220**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:1]**  | **6,326**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:1]**  | **6,292**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **6,118**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **6,443**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:1]**  | **6,433**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:1]**  |
| Total Reported Sales | N/A     | **9,747**  **[0001628280-23-015699_abt-20230331.htm:4]**  | **9,978**  **[0001628280-23-025156_abt-2023q2xexhibitx991.htm:1]**  | **10,143**  **[0001628280-23-034544_abt-2023q3xexhibitx991.htm:1]**  | **10,241**  **[0001628280-24-002009_abt-2023q4xexhibitx991.htm:1]**  | **9,964**  **[0001628280-24-020011_abt-20240331.htm:16]**  | **10,377**  **[0001628280-24-032182_abt-2024q2xexhibitx991.htm:1]**  | **10,635**  **[0001628280-24-042893_abt-2024q3xexhibitx991.htm:1]**  |

270d0b195ebea5d24538e8c6442b4affd31f5e860a5e52da6ab6a8b54942ce6d

- **Abbott Laboratories is returning to high single-digit organic sales growth and double-digit EPS growth**, driven by its diversified healthcare portfolio and strong product pipelines in high-growth markets such as med tech and diagnostics, including leading products like **Libre, TriClip, Aveir, Navitor, and Amulet**.  **[ABT_3413010_4]**
- **Increased utilization and innovation in the med tech market**, along with stable pricing, are benefiting Abbott's growth, leading to sequential improvement in growth rates across its med tech businesses and supporting sustainable long-term growth.  **[ABT_3413010_11]**
- **Abbott is successfully expanding its gross margins**, having achieved a **70 basis point improvement in 2024** and expecting an **80 basis point improvement in 2025**, driven by gross margin expansion programs and favorable product mix, indicating improving profitability.  **[ABT_3413010_4]** **[ABT_3413010_7]**

cb4123b83b7d9b6d9e9c9123686530755c4f9a1f0311e794f8ee3b2f89a8381e

- **Abbott faces ongoing headwinds in its Diagnostics business due to Volume-Based Procurement (VBP) dynamics in China, which are expected to continue into 2025, potentially impacting sales growth in this segment.**  **[ABT_3413010_9]**
- **Gross margins are still below pre-pandemic levels**, and while the company is working to improve them, there are concerns about the sustainability of these improvements amid **inflationary pressures** and **commodity cost fluctuations**.  **[ABT_3413010_7]** **[ABT_3413010_8]**
- **Increased competition in key areas like Electrophysiology may challenge Abbott's ability to maintain growth rates and market share** in these segments.  **[ABT_3413010_6]**

ecd155372541ae3e87d4f7121288b4614f81d4c9894ceecc9c275acad8bb4912

1. **2025 Growth Drivers and Margin Expansion**  
   **Q:** What are the key growth drivers and margin expansion components for 2025?  
   **A:** Robert Ford highlighted that Abbott expects to achieve **high single-digit organic sales growth** and **10% EPS growth** in 2025, returning to double-digit EPS growth. This is driven by strong growth drivers across all businesses, with markets remaining attractive and acceleration in several areas. Gross margin is expected to improve by **80 basis points**, and operating margins will benefit from both gross margin expansion and spending leverage. Abbott anticipates **16% underlying EPS growth**, factoring in FX and increased tax rates.  **[ABT_3413010_4]** 

2. **CGM Growth and Libre 3 Supply**  
   **Q:** What are the expectations for CGM growth in 2025, and status of Libre 3 supply issues?  
   **A:** Robert Ford stated that the **Libre 3 supply issues have been resolved**, with manufacturing now at full force. Abbott expects continued strong growth in the CGM business, driven by under-penetration in the intensive insulin-using segment, expansion into the basal segment with expanded reimbursement, share gains through connectivity strategies with insulin delivery systems, and the launch of **LINGO** in the non-diabetes market.  **[ABT_3413010_5]** 

3. **Electrophysiology (EP) Growth and Outlook**  
   **Q:** What is the outlook for EP growth in 2025 amid market dynamics?  
   **A:** Robert Ford expects the EP business to maintain **high single-digit growth** in 2025, benefiting from increased procedure trends and recently launched products like **GridX** and the new **Agilis introducer sheath**. While competition is expected to intensify, Abbott is confident in maintaining a strong position in the mapping segment and anticipates international PFA launches in 2025.  **[ABT_3413010_6]** 

4. **Operating Margins and M&A Strategy**  
   **Q:** How sustainable are the margin trends, and what is the approach to M&A?  
   **A:** Philip Boudreau confirmed that gross margin expansion is sustainable, with Abbott expecting to achieve **another 80 basis points of improvement** in 2025. Operating margins will benefit from both gross margin and spending leverage. Robert Ford stated that Abbott's strong balance sheet allows for selective M&A opportunities in both med tech and diagnostics, focusing on strategic fit and attractive returns while maintaining capital stewardship.  **[ABT_3413010_7]** 

5. **Margin Expansion Opportunities**  
   **Q:** What are the margin expansion opportunities in EPD, Nutrition, and Diagnostics?  
   **A:** Robert Ford highlighted that gross margins in Nutrition have been improving sequentially, with opportunities to return to pre-pandemic levels over the next few years. EPD has maintained strong gross margins despite FX pressures, increasing margins by a couple of hundred basis points. Continued growth in higher-margin med tech businesses will also contribute to overall margin expansion, targeting **50 to 100 basis points** improvement annually.  **[ABT_3413010_8]** 

6. **Structural Heart Business Evolution**  
   **Q:** How is the Structural Heart business evolving and what are its growth drivers?  
   **A:** Robert Ford explained that the Structural Heart portfolio is now more diversified beyond MitraClip, with products like **Amulet**, **Navitor**, and **TriClip** contributing to growth. In Q4, Structural Heart grew **23%**, driven by a full portfolio covering various heart conditions. Investments in new indications and product enhancements continue to fuel growth in this attractive med tech area.  **[ABT_3413010_9]** 

7. **2025 Growth Rate and Headwinds**  
   **Q:** How does Abbott view the 2025 growth rate considering potential headwinds?  
   **A:** Robert Ford acknowledged headwinds such as **VBP in China Diagnostics** and EP market dynamics but emphasized that Abbott aims to have more tailwinds than headwinds. Despite these challenges, Abbott is confident in delivering **8% organic sales growth** at the midpoint on a base of over **$40 billion**, supported by strong performance across businesses.  **[ABT_3413010_10]** 

8. **Health of the Med Tech Market**  
   **Q:** What is Abbott's view on the overall health of the med tech market?  
   **A:** Robert Ford sees continued strong growth in the med tech market, driven by increased utilization, demographic trends, and innovation leading to less invasive procedures. Abbott is observing sequential improvements and stable pricing, benefiting from consumer focus on health and advancements in technology.  **[ABT_3413010_11]** 

9. **Growth in Legacy Businesses**  
   **Q:** How is Abbott elevating growth in legacy businesses like CRM and peripheral?  
   **A:** Robert Ford outlined strategies to accelerate growth in historically flat businesses by aiming for at least **mid-single-digit growth**. In CRM, the launch of the **Aveir** leadless pacemaker system has driven growth of **7%** over the past two years. In vascular, increasing participation in higher-growth peripheral segments has led to improved performance, with a target of around **5%** growth.  **[ABT_3413010_12]** 

10. **Tax Rate Increase and Pillar 2 Impact**  
    **Q:** How will the increased tax rate due to Pillar 2 affect Abbott?  
    **A:** Philip Boudreau indicated that the 2025 guidance reflects current tax laws, with an expected **150 basis point** increase in the tax rate due to adoption of Pillar 2, resulting in an additional **$200 million** expense. Robert Ford emphasized that while absorbing this expense, Abbott continues to invest significantly in the U.S. economy but noted that the policy makes U.S. companies less competitive as two-thirds of the additional tax will be paid overseas.  **[ABT_3413010_13]** 

c3fd8b8387d7945d7598025c3d9e44098e1f99454e00d0345a8893c6d7a92992

1. Given the competitive data expected in the tricuspid space and potential mortality benefits shown by competitors, how does Abbott plan to sustain growth in its structural heart franchises, particularly in the left atrial appendage closure and tricuspid markets?  **[ABT_3402887_13]** 

2. With concerns about U.S. provider capacity potentially limiting growth in structural heart markets like TAVR, what strategies does Abbott have in place to mitigate potential bottlenecks and ensure continued adoption of its therapies?  **[ABT_3402887_9]** 

3. Considering the strong statement from the FDA, CDC, and NIH regarding the lack of conclusive evidence linking infant formula to NEC, how does Abbott plan to address the ongoing lawsuits, and what measures are being taken to ring-fence liabilities related to these cases?  **[ABT_3402887_10]** 

4. As recently launched products are expected to contribute about $1 billion in revenue this year, double that of 2023, what specific plans does Abbott have to sustain this momentum in innovation and revenue growth into 2025 and beyond?  **[ABT_3402887_7]** 

5. With the expansion of the FreeStyle Libre system and the launch of Lingo for non-insulin-intensive type 2 diabetes patients, how does Abbott plan to navigate potential pricing pressures and maintain gross margins, especially as the market expands to a broader, price-sensitive population?  **[ABT_3402887_12]** 

44e47036127879ff24a99af06c21e4c679c862a38d17040b645f1918811a1c45

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

1ac1cc4990a496c2d3328fb280919a934e0b3c863296ba4d3cb9ce11a4a9cbae

b4bb53b53b21b881eb2404cccf1fe0db260f747be359997d523ab20e6f9d2169

f194ba777e4a62647eab0ec153e4aa153d988f773c114bc82502f912384fdc91

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Rapid Diagnostics

Core Laboratory Diagnostics

Molecular Diagnostics

37880608e6e5b2cadd58ae8d554a74a3e6f72483be8a2425116caddb2ff6b4b8

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2024
- **Guidance:**
  - **Adjusted Earnings Per Share (EPS) for Q4 2024:** $1.31 to $1.37  **[ABT_3402887_4]** .
  - **Impact of Foreign Exchange on Q4 2024 Sales:** Unfavorable impact of less than 1%  **[ABT_3402887_4]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  - **Full Year Organic Sales Growth (excluding COVID testing sales):** 9.5% to 10%  **[ABT_3393421_1]** **[ABT_3393421_5]** .
  - **Full Year Adjusted EPS:** $4.61 to $4.71  **[ABT_3393421_1]** **[ABT_3393421_5]** .
  - **Foreign Exchange Impact on Full Year Sales:** Unfavorable impact of more than 2.5%  **[ABT_3393421_5]** .
  - **Foreign Exchange Impact on Q3 2024 Sales:** Unfavorable impact of approximately 3%  **[ABT_3393421_5]** .
  - **Third Quarter Adjusted EPS:** $1.18 to $1.22  **[ABT_3393421_5]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  - **Full Year Adjusted EPS:** $4.55 to $4.70  **[ABT_3379928_1]** **[ABT_3379928_4]** .
  - **Organic Sales Growth (excluding COVID testing-related sales):** 8.5% to 10%  **[ABT_3379928_1]** **[ABT_3379928_4]** .
  - **Foreign Exchange Impact on Full Year Sales:** Unfavorable impact of approximately 2.5%  **[ABT_3379928_4]** .
  - **Foreign Exchange Impact on Q2 2024 Sales:** Unfavorable impact of approximately 3%  **[ABT_3379928_4]** .
  - **Second Quarter Adjusted EPS:** $1.08 to $1.12  **[ABT_3379928_4]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024 and Q1 2024
- **Guidance:**
  - **Full Year Adjusted EPS:** $4.50 to $4.70  **[ABT_3370684_4]** .
  - **First Quarter 2024 Adjusted EPS:** $0.93 to $0.97  **[ABT_3370684_4]** .
  - **Total Underlying Base Business Organic Sales Growth (Excluding COVID Testing Sales):** 8% to 10% for the full year  **[ABT_3370684_4]** .
  - **Foreign Exchange Impact on Full Year Sales:** Unfavorable impact of a little more than 1%  **[ABT_3370684_4]** .
  - **Foreign Exchange Impact on Q1 2024 Sales:** Unfavorable impact of approximately 2%  **[ABT_3370684_4]** .
  - **Nonoperating Income:** Approximately $130 million  **[ABT_3370684_4]** .
  - **Adjusted Tax Rate:** 15%  **[ABT_3370684_4]** .

c4b34d587e51fd0edc51c000e2c0f86d3a7bcbc64540fc4860a81385013cc415

United States

- Germany

- China

- India

- Switzerland

- Japan

- Netherlands

- All Other Countries

International

Total Revenue

0d2c1826caa1255de12f666404da829b43c45176adb5f2eafbba27375e4f0a09

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert B. Ford        | Chairman of the Board and Chief Executive Officer                        | March 2020       | Robert B. Ford has been with Abbott since 1996, holding various leadership roles. He became CEO in March 2020 and Chairman in December 2021  **[0001628280-24-005348_abt-20231231.htm:31]** **[0001308179-24-000182_abt4257331-def14a.htm:7]** **[0001308179-23-000247_abt4116441-def14a.htm:10]** .                                                   |
| Hubert L. Allen       | Executive Vice President, General Counsel and Secretary                  | 2013             | Hubert L. Allen has served as Executive Vice President, General Counsel, and Secretary since 2013. He was elected as a corporate officer in 2012  **[0001628280-24-005348_abt-20231231.htm:31]** .                                                     |
| Lisa D. Earnhardt     | Executive Vice President and Group President, Medical Devices            | December 1, 2023 | Lisa D. Earnhardt was appointed Executive Vice President and Group President, Medical Devices effective December 1, 2023. She previously served as Executive Vice President, Medical Devices from 2019 to 2023  **[0001308179-24-000182_abt4257331-def14a.htm:45]** **[0001628280-24-005348_abt-20231231.htm:31]** . |
| Robert E. Funck, Jr.  | Executive Vice President, Finance                                        | September 2023   | Robert E. Funck, Jr. transitioned to Executive Vice President, Finance in September 2023. He served as Executive Vice President, Finance and CFO from 2020 to 2023  **[0001308179-24-000182_abt4257331-def14a.htm:35]** **[0001628280-24-005348_abt-20231231.htm:31]** .                                |
| Mary K. Moreland      | Executive Vice President, Human Resources                                | 2019             | Mary K. Moreland has been Executive Vice President, Human Resources since 2019. She was previously Divisional Vice President, Compensation, Benefits and HR M&A from 2013 to 2019  **[0001628280-24-005348_abt-20231231.htm:31]** **[0001628280-23-004026_abt-20221231.htm:29]** .                 |
| Louis H. Morrone      | Executive Vice President, Core Diagnostics                               | 2023             | Louis H. Morrone has been Executive Vice President, Core Diagnostics since 2023. He was Senior Vice President, Rapid Diagnostics from 2021 to 2023  **[0001628280-24-005348_abt-20231231.htm:31]** .                                                   |
| Daniel Salvadori      | Executive Vice President and Group President, Established Pharmaceuticals and Nutritional Products | 2021             | Daniel Salvadori has served in his current role since 2021. He was Executive Vice President of Nutritional Products from 2017 to 2021  **[0001628280-24-005348_abt-20231231.htm:31]** **[0001628280-23-004026_abt-20221231.htm:29]** .                                                             |
| Andrea Wainer         | Executive Vice President, Rapid and Molecular Diagnostics                | 2019             | Andrea Wainer has been Executive Vice President, Rapid and Molecular Diagnostics since 2019. She was Vice President of Molecular Diagnostics from 2015 to 2019  **[0001628280-24-005348_abt-20231231.htm:31]** **[0001628280-23-004026_abt-20221231.htm:29]** .                                    |
| Philip P. Boudreau    | Senior Vice President, Finance and Chief Financial Officer               | September 1, 2023| Philip P. Boudreau was appointed Senior Vice President, Finance and CFO effective September 1, 2023. He was Vice President, Finance and Controller from 2020 to 2023  **[0001308179-24-000182_abt4257331-def14a.htm:39]** **[0001308179-24-000182_abt4257331-def14a.htm:55]** **[0001628280-24-005348_abt-20231231.htm:31]** .                           |
| John A. McCoy, Jr.    | Vice President, Finance and Controller                                   | 2023             | John A. McCoy, Jr. has been Vice President, Finance and Controller since 2023. He was Vice President, Treasurer from 2021 to 2023  **[0001628280-24-005348_abt-20231231.htm:31]** .                                                                    |

f1092e63ac0860344163408d37e170b5bcdbec09f936acb4ab8fa44fdcb5c400

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | December 10, 2021  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**    | October 11, 2024  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**     |
| End Date/Duration        | N/A                        | N/A                        |
| Total Additional Amount  | **$5 billion**  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**       | **$7 billion**  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**       |
| Remaining Authorization  | **$659 million**  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**     | **$7 billion**  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**       |
| Details                  | Remaining authorization includes $659 million from this program  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**  | This program is in addition to the unused portion of Program 1  **[0001628280-24-044602_abt-20240930.htm:32]** **[0001628280-24-044602_abt-20240930.htm:28]**  |

3d5ddc1265de256297f817d2f36a8f91f18dbe6d05f142e6c18ff9b2a2175901

ABT’s Q4 points to high-single-digit organic sales growth and double-digit EPS in 2024, fueled by med tech and diagnostics. Margins rose 70bps, with another 80bps expected in 2025. While China VBP remains a headwind, Abbott’s diversified pipeline supports strong momentum.

ee59936de3105afbcd15925db39ffa632e79777d9aaa9ba3fa6ecc1afcc288aa

**Quarterly guidance for Q1 2025:**
- **Adjusted EPS**: $1.05 to $1.09  **[ABT_3413010_3]**  (no prior guidance)  
- **FX Impact on Reported Sales**: ~3.5% unfavorable  **[ABT_3413010_3]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **Adjusted EPS**: $5.05 to $5.25  **[ABT_3413010_3]** **[ABT_3413010_1]**  (no prior guidance)  
- **Organic Sales Growth**: 7.5% to 8.5%  **[ABT_3413010_3]** **[ABT_3413010_1]**  (no prior guidance)  
- **Adjusted Gross Margin Profile**: ~57% of sales  **[ABT_3413010_3]**  (no prior guidance)  
- **Adjusted Operating Margin Profile**: 23.5% to 24% of sales  **[ABT_3413010_3]**  (no prior guidance)  
- **Adjusted Tax Rate**: 16% to 17%  **[ABT_3413010_3]** **[ABT_3413010_13]**  (no prior guidance)  
- **FX Impact on Reported Sales**: ~2.5% unfavorable  **[ABT_3413010_3]**  (no prior guidance)  
- **COVID Testing Sales Contribution**: Less than 2% of total company sales in 2024  **[ABT_3413010_3]**  (no prior guidance)  

48f0e35293c8fad19587cb7e0b2f1f4079f7c10d8250e2be6de09ecfc08a08cd

| Name             | Start Date | End Date | Reason for Change |
|------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2013  **[0001628280-24-005348_abt-20231231.htm:102]**  | Present  | Current auditor   |

fc0468b9d33606f6c2320597e30d546b14fce53f7ee91d324d8ef5c4685437a7

0cd5c88bedb8d07d162097f5778c8938ae8dd31060363ba3083cf2f31d9607bd

12bc1a4235d8f8d3cf61516e4787f0e197703006f2e0eb877b5115cdfbf3fbab

1. **Increased Organic Growth Guidance**  
   **Q:** What's driving confidence in higher 8%-10% organic growth guidance?  
   **A:** Abbott is confident in guiding higher organic growth due to reinvesting COVID revenues into strengthening their four business segments, making them stronger than pre-pandemic levels.  **[ABT_3370684_5]**  Each segment—EPD, Nutrition, Diagnostics, and Medical Devices—has improved performance, with notable double-digit growth and margin expansion.  **[ABT_3370684_5]**  The core business grew EPS over **40%** last year, and they forecast double-digit EPS growth this year, capturing opportunities despite global volatility.  **[ABT_3370684_5]** 

2. **Margin Expansion Outlook**  
   **Q:** What's the outlook for margin expansion and its drivers?  
   **A:** Abbott aims to expand gross margins by approximately **75 basis points** this year, primarily through internal improvement programs, cost tailwinds (commodities, freight), and favorable portfolio mix with higher-margin Device businesses growing faster.  **[ABT_3370684_6]**  They expect to return to pre-pandemic gross margin profiles over time, driving earnings growth in the coming years.  **[ABT_3370684_6]** 

3. **FreeStyle Libre Growth Prospects**  
   **Q:** Where will Libre's growth come from, and why the data discrepancy?  
   **A:** Libre's growth will come from the basal insulin segment, a significant multi-year opportunity, and from pump connectivity now that they have regulatory clearings.  **[ABT_3370684_8]**  In Q4, U.S. growth was **32%**, even without fully launching Libre 3.  **[ABT_3370684_8]**  The discrepancy with IQVIA data is because IQVIA doesn't capture the entire market; segments beyond the pharmacy channel drive additional adoption.  **[ABT_3370684_8]** 

4. **Pipeline and 'Fab 5' Products Update**  
   **Q:** What's the update on the 'Fab 5' products and their impact on growth?  
   **A:** The 'Fab 5' products remain significant growth drivers, contributing about **1 point** to Abbott's total growth in 2024, with expected growth of **50%**.  **[ABT_3370684_9]**  They include both market-creating (e.g., tricuspid valve repair, CardioMEMS) and market-conversion products (e.g., Navitor in TAVR, Aveir in CRM).  **[ABT_3370684_9]**  Beyond the 'Fab 5', Abbott has a robust pipeline, including Lingo, traumatic brain injury tests, and new Alinity systems, to sustain growth beyond 2024.  **[ABT_3370684_9]** 

5. **M&A Strategy and Appetite**  
   **Q:** What's Abbott's appetite for larger M&A transactions?  
   **A:** With a strong balance sheet and over **$20 billion** in firepower, Abbott is selective about M&A.  **[ABT_3370684_11]**  They have a robust pipeline and don't need acquisitions to cover top-line gaps.  **[ABT_3370684_11]**  They focus on strategic fit and attractive returns, emphasizing profitability and earnings over mere revenue growth, recognizing that larger deals are harder to justify but remain open to opportunities.  **[ABT_3370684_11]** 

6. **Medical Device Market Trends**  
   **Q:** Is higher procedure utilization boosting growth or is it normalized?  
   **A:** Abbott sees procedures returning to normal levels without pent-up demand driving growth.  **[ABT_3370684_12]**  Growth is driven by increased adoption of new technologies and return to normal procedure cadence across segments like structural heart, CRM, EP, and routine diagnostics.  **[ABT_3370684_12]** 

7. **Electrophysiology Business Growth**  
   **Q:** How is EP achieving strong growth despite competition?  
   **A:** EP growth is strong globally due to a robust portfolio, including the EnSite X mapping system and TactiFlex catheter, delivering excellent results.  **[ABT_3370684_7]**  A dedicated team close to customers has helped sustain growth even with new competitive products entering the market.  **[ABT_3370684_7]**  Abbott expects continued growth, acknowledging PFA systems' emergence but is confident in their offerings.  **[ABT_3370684_7]** 

8. **Nutrition Segment Growth Outlook**  
   **Q:** Is Nutrition back on track, and what is the growth outlook?  
   **A:** Abbott's Nutrition segment has regained market leadership and expects to surpass pre-recall share levels.  **[ABT_3370684_10]**  The segment is expected to grow above the pre-pandemic **4%-6%** range in 2024 due to regained share and pricing impacts.  **[ABT_3370684_10]**  Adult Nutrition is highlighted as a significant growth driver, growing at high-single digits, potentially exceeding the higher end of the 6% range with new product launches.  **[ABT_3370684_10]** 

f4b050d6b40cd47bbbae376fc2653875dcd11944e97b7acf0a751bafb2cfbcc8

1. **2025 Guidance**  
   **Q:** Are high single-digit revenue and 10% EPS growth reasonable for 2025?  
   **A:** Robert Ford acknowledged that analyst estimates of high single-digit revenue growth and **10% EPS** growth for 2025 are a **reasonable starting point**.  **[ABT_3402887_7]**  Without the "COVID cloud" affecting comparisons, the company is well-positioned to achieve these targets, driven by its **$40 billion** revenue base and strong pipeline.  **[ABT_3402887_7]** 

2. **Libre Growth and CGM Market**  
   **Q:** How is Libre performing, and what's the outlook for the CGM market?  
   **A:** Libre grew **21%** globally and **26%** in the U.S. in Q3.  **[ABT_3402887_6]**  Abbott views the CGM market as a **mass market opportunity**, aiming for Libre to be a **$6 billion-plus** product growing **20%** this year.  **[ABT_3402887_6]**  The company is ahead of its target **15% CAGR** to reach **$10 billion** in sales by 2028.  **[ABT_3402887_6]**  The launch of Lingo, targeting non-diabetics, has shown strong early interest, with higher reorder rates than in the UK.  **[ABT_3402887_6]** 

3. **Confidence in Full-Year Guidance**  
   **Q:** How confident are you in maintaining full-year guidance despite underperformance in Nutrition and Diagnostics?  
   **A:** Despite underperformance in Nutrition and Diagnostics, Abbott remains confident in its full-year revenue guidance of **9.5% to 10%** growth.  **[ABT_3402887_5]**  Issues in Nutrition were due to temporary challenges in international pediatric markets, which are being addressed.  **[ABT_3402887_5]**  Core Lab Diagnostics was impacted by the VBP implementation in China, but excluding China, international Core Lab was **up double digits**.  **[ABT_3402887_5]**  The diversified portfolio allows overperformance in other areas to compensate.  **[ABT_3402887_5]** 

4. **Investment Spending and Share Buyback**  
   **Q:** How are you managing investment spending and the share repurchase program?  
   **A:** Abbott reduced expenses from **37% in 2019 to about 34% this year**, achieving **$1 billion** in spending leverage over five years.  **[ABT_3402887_8]**  Investments focus on high-growth areas like EP, structural heart, and diagnostics.  **[ABT_3402887_8]**  The Board approved a new **$7 billion** buyback program, with **$750 million** repurchased in Q3.  **[ABT_3402887_8]**  The buybacks aim to correct a perceived disconnect in the PE ratio, not to drive EPS through share count reduction.  **[ABT_3402887_8]** 

fcf57bff948885f74d2d32aa879a7d72e13228fdfd7192ac9bc9972cfbe80609

1. **Early Guidance Raise**  
   **Q:** Why did Abbott raise guidance this early in the year?  
   **A:** Despite typically not raising guidance in the first quarter, Abbott increased their outlook due to strong performance and momentum across businesses, including **five consecutive quarters of double-digit growth**. The company feels confident about the remainder of the year, noting that opportunities outweigh risks such as geopolitics and foreign exchange headwinds.  **[ABT_3379928_5]** 

2. **Pipeline and Growth Sustainability**  
   **Q:** What gives confidence in sustaining premium growth in medtech?  
   **A:** Abbott's robust pipeline includes current contributors like **Libre**, **Alinity**, and **MitraClip**, as well as near-term launches such as **Lingo**, a **dual analyte sensor**, the **Volt system**, and **Esprit**. Future innovations like the **PFA RF catheter** and new TAVR systems are also in development, ensuring sustained premium growth beyond 2026.  **[ABT_3379928_11]** 

3. **FX Headwinds and EPS Guidance**  
   **Q:** Did FX headwinds impact EPS guidance?  
   **A:** Yes, foreign exchange headwinds increased, posing challenges similar to those in January. Despite a **2.5% full-year headwind** on the top line at current rates, Abbott maintained their EPS guidance, reflecting confidence in organic sales performance and earnings growth.  **[ABT_3379928_11]** 

4. **NEC Litigation Risk**  
   **Q:** What is Abbott's stance on NEC litigation?  
   **A:** Abbott faces litigation alleging their infant nutrition products cause necrotizing enterocolitis (NEC) in premature infants. They firmly stand behind their products, citing decades of safe use and clinical studies supporting safety. Upcoming court cases are expected in **July**.  **[ABT_3379928_5]** 

5. **Gross Margins Recovery**  
   **Q:** What's the path to pre-COVID gross margin levels?  
   **A:** Abbott expects about **70 basis points** of improvement this year, focusing on cost control and portfolio mix, especially with medical device growth positively impacting margins. The company remains confident in returning to pre-COVID levels over time.  **[ABT_3379928_10]** 

6. **Libre Coverage and Competition**  
   **Q:** Any updates on Libre's coverage and competitive position?  
   **A:** Internationally, Abbott anticipates expanding coverage in markets like Germany and expects more coverage decisions as the year progresses. In the U.S., they aim to maintain leadership in the Type 2 segment while entering the integrated pump market, leveraging upcoming products like the **dual analyte sensor**, and do not foresee trading share gains for losses in other segments.  **[ABT_3379928_7]** 

7. **EP Business and PFA Impact**  
   **Q:** What's driving EP growth and PFA's impact?  
   **A:** Abbott's Electrophysiology business growth is broad-based, with **mid-teens** average growth over three years in Europe despite PFA competition. The company sees opportunity with their **EnSite mapping system** and plans to file for CE Mark approval of the **Volt system** by year-end, expecting continued strong performance.  **[ABT_3379928_6]** 

8. **TriClip Market Opportunity**  
   **Q:** How significant is the TriClip approval?  
   **A:** TriClip's U.S. approval opens a market of **5 million** global patients with tricuspid regurgitation. Abbott expects TriClip to be the preferred option due to its strong safety profile, anticipating it to be a **$1 billion** opportunity as they expand indications and generate more data.  **[ABT_3379928_8]** 

9. **Structural Heart Portfolio Growth**  
   **Q:** How is the Structural Heart portfolio evolving?  
   **A:** Beyond **MitraClip**, which grew **high single digits**, other products contributed an additional **10%** to growth, reflecting a diversified portfolio driven by organic innovation. Abbott continues to invest in expanding indications and developing new technologies like **mitral replacement systems**.  **[ABT_3379928_13]** 

10. **Concussion Testing Strategy**  
    **Q:** What's the strategy for the concussion test launch?  
    **A:** Abbott plans to convert the current market of **5 million** ER visits by offering a rapid, cost-effective blood test on their point-of-care platform. Future expansion includes developing a fingerstick version to broaden use in settings like universities and high schools.  **[ABT_3379928_12]** 

11. **Aveir Leadless Pacemaker Update**  
    **Q:** How is the Aveir product performing?  
    **A:** Aveir has achieved about **50% share** of the U.S. single-chamber market, with dual-chamber procedures ramping up. Abbott aims for mid-single-digit growth in their Cardiac Rhythm Management portfolio, driven by Aveir's success and the unique benefits it offers.  **[ABT_3379928_9]** 

12. **Use of Cash and Portfolio Strategy**  
    **Q:** How will Abbott utilize its strong balance sheet?  
    **A:** Abbott favors maintaining its four key business segments but remains open to strategic acquisitions that add value and meet financial metrics like ROIC and profitability. They focus on areas where they can drive growth without compromising existing strengths.  **[ABT_3379928_12]** 

13. **Exploring New Medtech Areas**  
    **Q:** Is Abbott looking at new medtech growth areas?  
    **A:** Yes, Abbott actively explores areas where they can add value, primarily in medical devices and diagnostics. They remain selective, considering strong organic growth and financial metrics before pursuing acquisitions, ensuring alignment with long-term objectives.  **[ABT_3379928_14]** 

14. **TriClip Pricing Strategy**  
    **Q:** What's the pricing strategy for TriClip amid competition?  
    **A:** Abbott did not disclose specific pricing details but emphasized focusing on launching the product, ramping up cases, and highlighting TriClip's safety and efficacy advantages over replacement therapies. The company believes repair will be the preferred option unless valves are too damaged.  **[ABT_3379928_8]** 

15b0c94db89ac0f197f4084a4a21d1414a46f0b404e5c526f4a35d0110d0b5a1

- Abbott has a **strong and diversified pipeline** across all segments, including **current contributors** like **FreeStyle Libre**, **Alinity**, and **MitraClip**; **near-term contributors** such as **Lingo**, **dual analyte sensor**, and **Volt system**; and **long-term projects** like **PFA RF catheter** and **new TAVR systems**, promising **sustained future growth**.  **[ABT_3379928_5]**
- The company **raised its full-year guidance** in the first quarter, which is rare, due to **strong performance across all businesses**, with **double-digit growth** in several segments, showing **management's confidence** in continued growth.  **[ABT_3379928_5]** ,  **[ABT_3379928_13]**
- Abbott's **Medical Devices segment grew 14%**, positioning it as the **fastest-growing medtech company**, driven by innovations in products like **Aveir** and expansion of its **structural heart portfolio**, indicating **continued leadership in industry growth**.  **[ABT_3379928_5]** ,  **[ABT_3379928_8]**

f2eb4a9b6defbefd3997aa32244b5ef0fd730e6422045900070f615647df6f41

- **Abbott's Diabetes Care segment achieved strong growth**, with **21%** overall increase in FreeStyle Libre sales and **26%** growth in the U.S., positioning the product to exceed **$6 billion** in revenue this year and ahead of the goal of **$10 billion** by 2028  **[ABT_3402887_6]** . The successful U.S. launch of **Lingo**, targeting non-diabetic individuals, is showing very strong early interest and higher than expected reorder rates, indicating additional growth opportunities  **[ABT_3402887_6]** .
- **Structural Heart sales grew 25% globally and 40% in the U.S.**, driven by strong performance in **Left Atrial Appendage (LAA) closure** and **tricuspid** devices  **[ABT_3402887_13]** . Positive clinical data, such as **95% closure rates for Amulet sustained after 45 days**, and the development of **Amulet 2.0**, along with investments in clinical trials and potential expanded coverage, support continued growth  **[ABT_3402887_13]** .
- **Abbott expects continued high single-digit revenue growth and 10% EPS growth into 2025**, supported by a strong pipeline with recently launched products contributing around **$1 billion** in revenue this year, expected to **double** next year  **[ABT_3402887_7]** . The company is focusing on gross margin expansion and disciplined investment allocation, positioning it for operating margin improvement  **[ABT_3402887_7]** .

5efb2f8e229d12a8aa55251212c14751765229bd54d3905c225c0311d632f8ef

- **Abbott forecasts 8% to 10% organic sales growth for 2024**, driven by a **strong core business** and strategic reinvestment from COVID-19 revenue into its base business, resulting in all four major segments being in **better and stronger shape than pre-pandemic**.  **[ABT_3370684_5]**
- The company expects **margin expansion**, particularly in gross margin, with a **forecasted increase of approximately 75 basis points** in 2024, providing a significant opportunity to drive earnings growth over the next couple of years.  **[ABT_3370684_6]**
- Abbott's robust pipeline, including its "Fab 5" new products, is expected to **grow 50% and contribute about 1 point of growth** to the overall company in 2024, supporting sustainable top-tier growth beyond 2024 and 2025.  **[ABT_3370684_9]**

d58bb8f7b42740d49afa2ed4a2a59783de796f709dd99724af52799929a3000e

| Year  | Amount Due (Millions) | Debt Type                  | Interest Rate | % of Total Debt |
|-------|-----------------------|----------------------------|---------------|-----------------|
| 2024  | $2,154                | Current Portion of Long-Term Debt | N/A           | 14.4% = (2,154 / 14,979) * 100 **[0001628280-24-044602_abt-20240930.htm:2]** **[0001628280-24-044602_abt-20240930.htm:2]** |
| 2029  | $646                  | Yen-Denominated Term Loan  | N/A           | 4.3% = (646 / 14,979) * 100 **[0001628280-24-044602_abt-20240930.htm:28]** **[0001628280-24-044602_abt-20240930.htm:2]** |

639bf4381a1c791cb05168e52f8082ab12594f69eb1f03d5fe7b939447ad6ef9

- **Abbott has been delivering top-tier organic revenue growth** over the past several quarters and expects to continue this trend into the future due to strong performance across all four business segments.  **[ABT_3393421_12]**
- The **Structural Heart division showed significant acceleration**, with **Amulet** sales growing **45%** in the U.S. this quarter, and strong performance from **TriClip** and **Navitor**, indicating broad-based growth and market share gains.  **[ABT_3393421_8]**
- **Innovation in Medical Devices**, particularly with the **Aveir leadless pacemaker system**, is driving growth in previously flat businesses like Cardiac Rhythm Management, now growing at **7%**, which could further increase with new product introductions.  **[ABT_3393421_16]**

18fd417c1d63c33df0d1423e952f1408c2a1e3da58ad5fc9029ba268b16affe9

- **Litigation risks related to Necrotizing Enterocolitis (NEC) lawsuits** concerning Abbott's preterm infant formula and human milk fortifier products could impact the company's reputation and financials, despite management downplaying the impact and stating that the issue is "way overblown".  **[ABT_3393421_6]**
- In the Electrophysiology (EP) market, **Abbott's growth of 17% is lower than the market growth, which is accelerating above 20%**, indicating potential loss of market share and increased competition, especially with new product introductions affecting pricing dynamics.  **[ABT_3393421_7]**
- **Growth in historically slower-growing segments like Cardiac Rhythm Management (CRM) and Vascular heavily depends on the adoption of new technologies**, such as the **Aveir leadless pacemaker**, which may face challenges in physician training and changing established procedures, potentially limiting growth acceleration in these areas  **[ABT_3393421_16]** ,.  **[ABT_3393421_11]**

a804387da127fb8ede37e29f8408b664e6480a7b8d4d205700ffd3e1e1586726

- **Abbott is facing significant legal liabilities related to NEC infant formula lawsuits, which may impact its financial position and could potentially lead to product withdrawal from the U.S. market if unresolved**  **[ABT_3402887_10]** .
- **The judge in the current trial has not allowed key evidence (the joint statement from FDA, CDC, and NIH) to be entered into evidence, potentially increasing the risk of unfavorable legal outcomes for Abbott**  **[ABT_3402887_10]** .
- **Abbott intends to resolve these lawsuits faster than the typical decade-long litigation process, which may result in financial strain and increased liabilities**  **[ABT_3402887_10]** .

ed1df09d8cdf7dfb7258e4e3447b252de18a98b1759c4df15fb8d1d028ebd508

1. **Structural Heart Growth**  
   **Q:** What drove Structural Heart acceleration?  
   **A:** Structural Heart accelerated this quarter, driven by broad-based growth across products like **TriClip**, **Navitor**, and **Amulet**. Early approval and launch of **TriClip** contributed significantly. **Navitor** is gaining traction due to its clinical profile and excellent hemodynamics. **Amulet** saw **45% U.S. growth**, focusing on penetration within existing accounts.  **[ABT_3393421_8]** 

2. **Sensor Business and Lingo**  
   **Q:** How are you segmenting Lingo vs. Rio?  
   **A:** The strategy is to view sensors as a platform, expanding usage across different diabetes populations and into nondiabetic markets. The **Libre** continues to perform well, with significant growth opportunities remaining, especially among multiple daily injectors. **Lingo** aims at consumers without diabetes, focusing on behavior modification and healthier habits, representing a multibillion opportunity even with single-digit penetration.  **[ABT_3393421_9]** 

3. **EP Business and PFA Impact**  
   **Q:** What's driving EP growth and PFA trends?  
   **A:** The EP business grew **17%** due to market acceleration and increased procedure volumes. The market is growing above **20%**, fueled by new products like PFA. Though current penetration is around **10–15%** internationally and stable, RF ablation remains important, especially for redo procedures. Abbott expects continued growth ahead of the **Volt** launch next year.  **[ABT_3393421_7]** 

4. **Leadless Pacing with Aveir**  
   **Q:** Outlook for Aveir and leadless pacing?  
   **A:** Leadless pacing with **Aveir** is expected to change CRM's growth trajectory. After two years, Abbott has captured about **50%** share in single-chamber devices. Dual-chamber procedures are progressing well, and physician training is a focus to drive broader adoption. Leadless pacing presents a significant opportunity in the **$3 billion** global CRM market.  **[ABT_3393421_11]** 

5. **Multiyear Growth Trajectory**  
   **Q:** Can you sustain top-tier growth without M&A?  
   **A:** Abbott believes it can continue delivering top-tier growth organically, leveraging attractive markets, strong positions, and innovation. The last six quarters have shown high single-digit to double-digit growth. While M&A could further enhance growth, it's not dependent on it. Focus remains on strategic fit and attractive returns.  **[ABT_3393421_12]** 

6. **Margin Expansion Outlook**  
   **Q:** Drivers behind expected margin expansion?  
   **A:** Margin expansion is driven by portfolio contributions from top-line growth, particularly in accretive businesses. Abbott is back to prepandemic operating margin levels, focusing on gross margin improvements through productivity, yield enhancements, cost reductions, and innovation. Tailwinds include stabilizing commodities and normalized freight costs.  **[ABT_3393421_14]** 

7. **Capital Allocation and M&A**  
   **Q:** Thoughts on M&A and capital allocation?  
   **A:** Abbott maintains a balanced capital allocation approach, focusing on internal investments, debt paydown, dividends, and buybacks. With a strong balance sheet, the company can pursue M&A if strategic fits arise that generate attractive returns. Recent M&A activity in the sector is acknowledged, but Abbott remains selective.  **[ABT_3393421_15]** 

8. **CRM and Vascular Growth**  
   **Q:** Sustainability of CRM growth and strategy?  
   **A:** Abbott aims to accelerate CRM growth through innovation, focusing on leadless pacemakers like **Aveir**. The strategy includes pipeline expansion and potential innovations in ICDs. By revitalizing traditionally flat markets with new technology, Abbott expects CRM to contribute to higher medtech growth rates. Similar strategies are being applied to the Vascular business.  **[ABT_3393421_16]** 

9. **Strategic Fit of Business Units**  
   **Q:** Any updates on business combinations or spins?  
   **A:** Abbott continuously assesses its portfolio but believes the current diversification provides both defensive and offensive capabilities. All four sectors are delivering strong growth and innovation. While open to opportunities that create shareholder value, the focus remains on managing and growing the existing businesses effectively.  **[ABT_3393421_13]** 

10. **Biosimilars Strategy**  
    **Q:** Elaborate on the biosimilars strategy.  
    **A:** Abbott sees an opportunity to bring biologics to emerging markets where originators haven't focused. By partnering and leveraging its presence, Abbott aims to expand patient access without diluting gross margins. Launches are expected starting in **2025**, with significant oncology opportunities in **2026–2027**.  **[ABT_3393421_18]** 

11. **Amulet Growth and Outlook**  
    **Q:** What's next for Amulet after 45% growth?  
    **A:** **Amulet** achieved **45% U.S. growth**, driven by penetration in existing centers. Abbott plans to continue expanding its sales force, entering new accounts, and investing in next-generation products focused on ease of use and sealing effectiveness. Clinical trials like **CATALYST** will support its value proposition.  **[ABT_3393421_17]** 

12. **NEC Litigation Impact**  
    **Q:** Any updates on NEC litigation?  
    **A:** Management believes the impact of the NEC litigation is overblown and is actively defending its position. They are working with stakeholders to communicate the situation's gravity as it progresses, with no further updates at this time.  **[ABT_3393421_6]** 

ae4a1bbe42d08b467e37ba5933618630a0e3c4baf30ca4c10aa61e30c507b478

- Ongoing litigation concerning Abbott's specialized nutrition products related to **necrotizing enterocolitis (NEC)** in premature infants, with approximately **1,000 cases filed** and **court cases starting in July**, poses a significant legal risk to the company.  **[ABT_3379928_8]**
- **Foreign exchange headwinds** continue to impact Abbott's financial performance, contributing to a **2.9% unfavorable impact on first-quarter sales** and an expected **2.5% headwind for the full year**, potentially affecting earnings and guidance.  **[ABT_3379928_12]**
- Potential risk of **losing market share** in the U.S. continuous glucose monitoring (CGM) market, specifically in the **type 2 non-insulin** segment, due to **competitive launches in early 2024**, which could challenge Abbott's FreeStyle Libre dominance.  **[ABT_3379928_7]**

6e74856f154e4f55ec062f2df50e73e2938b3f6219641a1be341b21dfee5e14c

- **Potential discrepancies in FreeStyle Libre sales data could indicate overstated growth**. Investors have observed that IQVIA prescription data shows flattening prescriptions for Libre, yet Abbott reports continued sales growth, suggesting possible discrepancies in reported figures.  **[ABT_3370684_8]**
- **Upcoming competitive launches may pressure Abbott's Electrophysiology business**. With new Pulsed Field Ablation (PFA) technologies entering the U.S. market, Abbott acknowledges potential uptake by competitors, which could impact their market share in this segment.  **[ABT_3370684_7]**
- **Macroeconomic and geopolitical volatility could affect growth projections**. Abbott's confidence in their earnings range considers potential volatility, but unforeseen global events could negatively impact performance.  **[ABT_3370684_5]**

ca5d941706ab31874b73bf1f3ee80dd0d045475c56ce04a920abcd6b150eb536

Abbott Laboratories (ABT)

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