) recently announced that it has obtained the CE Marking
(Conformite Europeenne) in Europe for its glucose monitoring
system - FreeStyle Optium Neo Blood Glucose and Ketone Monitoring
The CE mark is a mandatory confirmation for products placed in
the European markets.
In Jul 2013, Abbott Labs obtained the U.S. Food and Drug
Administration (FDA) clearance for its FreeStyle Precision Pro
Blood Glucose and β-Ketone Monitoring System.
We note that Abbott Labs continues to invest in the
development of innovative technologies in its diabetes care
business. The company is currently investing in the
next-generation sensing technology which it expects to initially
launch in the European markets in the second half of 2014.
Abbott Labs expects diabetes care sales growth to be
relatively flat in the third quarter of 2013.
Although growth in the emerging markets is forecasted to be
strong, Abbott Labs expects the implementation of Centers for
Medicare and Medicaid Services (CMS) competitive bidding for
Medicare patients to impact sales in the U.S. in the remainder of
Sales from diabetes care business declined marginally in the
second quarter of 2013. Share gains in the hospital and retail
units in the U.S. were offset by market pricing and reimbursement
pressures. International sales climbed 4% driven by the continued
uptake of FreeStyle InsuLinx Meter along with growth in the
emerging markets continues to positively impact sales in
We remind investors that Abbott Labs became a diversified
medical products company focusing on branded generic
pharmaceutical, medical devices, diagnostic and nutritional
businesses following the separation of its research-based
pharmaceuticals business into a new company,
), in Jan 2013.
We believe the diversification bodes well for Abbott Labs and
should enable the company to counter the challenging business
environment as a result of austerity measures undertaken by
developed markets in 2013 coupled with weak economic conditions
Abbott Labs, a large cap pharma company, currently carries a
Zacks Rank #3 (Hold). Right now, large cap pharma stocks
that look well-placed include
). Both carry a Zacks Rank #2 (Buy).
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