ABBOTT LABORATORIES ABT

Robert Ford reflected on 2025 as a year demonstrating Abbott's leadership in innovation, disciplined execution, and strategic actions for sustainable long-term growth. Key milestones included regulatory approvals for Volt and TactiFlex Duo PFA products, a new indication for Navitor TAVR, CMS national coverage for TriClip and CardioMEMS, and completing enrollment in a pivotal LAA device trial. The announced acquisition of Exact Sciences is expected to establish Abbott in the fast-growing cancer diagnostics market, adding a new high-growth business and pipeline.

The Nutrition segment experienced a sales decline in Q4 FY25 due to market share loss from a WIC contract and suppressed volume growth resulting from prior price increases. Management acknowledged that higher prices, while mitigating manufacturing costs, are now constraining demand. To reignite volume growth, Abbott began implementing price and promotion initiatives in Q4 and plans to launch at least 8 new products over the next 12 months. The business is expected to remain challenged in H1 2026, with a return to positive growth in H2.

Medical Devices sales grew 10.5% in Q4 FY25, driven by strong performance across several segments. Diabetes Care saw CGM sales exceed $7.5 billion in 2025, growing 17% for the year and marking the third consecutive year of over $1 billion growth. Electrophysiology achieved double-digit growth, bolstered by FDA approval of Volt PFA and CE Mark for TactiFlex Duo. Structural Heart also posted double-digit growth in Navitor, TriClip, and MitraClip, while Heart Failure grew 12%. Foundational segments like Rhythm Management (12% growth) and Vascular (6.5% growth) also outperformed their markets.

Diagnostics sales declined 3.5% in Q4 FY25 due to the anticipated year-over-year decline in COVID testing sales. However, Core Lab Diagnostics grew 3.5%, achieving its third consecutive quarter of accelerating growth. For the full year, Core Lab Diagnostics grew 7% excluding China, reflecting durable demand. Point of Care Diagnostics sales grew 7%, driven by the adoption of Abbott's high-sensitivity troponin test. The company expects overall Diagnostics to achieve mid-single-digit growth in 2026, with the China business becoming more stable after significant VBP impacts in 2025.

Abbott highlighted its strong Electrophysiology portfolio, emphasizing a 'toolbox approach' for physicians. The successful launch of Volt PFA in Europe and its limited market release in the US received positive feedback for its integration and potential for sedation. With both RF and PFA products, comprehensive diagnostic elements, and an LAA device, Abbott believes it is uniquely positioned. The company expects to grow at least in line with the mid-to-high teens market, leveraging its complete portfolio and strong clinical infrastructure.

Despite the law of large numbers, CGM sales continue to grow by over $1 billion annually, with significant penetration opportunities remaining across intensive insulin users, basal insulin users, and non-insulin users globally. Abbott is optimistic about potential non-insulin user reimbursement in the US, citing strong clinical data and support from medical organizations and CMS. The upcoming launch of the dual glucose-ketone sensor (GKS) is also expected to drive market share conversion and expansion, particularly in the underrepresented pumper segment and among SGLT2 users.