) recently announced that the company has gained approval from
the US Food and Drug Administration (FDA) for its TECNIS Toric
1-Piece intraocular lens (IOL). The company gained approval for
treating cataract patients with pre-existing corneal
Abbott Labs has launched the product following the
Corneal astigmatism results in blurred vision as it prevents
light rays from focusing clearly on the retina. We note that the
new product from Abbott Labs is superior to conventional IOLs
since it has the ability to correct the loss of focus due to
pre-existing corneal astigmatism of one diopter or greater.
As per Abbott Labs, the number of surgeries is expected to
grow nearly 3% each year driven by an aging US population which
should fuel patient demand for improved, precise visual outcomes
and independence from glasses.
We note that cataract sales accounted for 60% of the company's
total medical optics in the first quarter of 2013 driven by solid
growth of its TECNIS brand of intraocular lenses. In particular,
growth was strong in emerging markets. Meanwhile, sales of
Medical Optics were down 0.6% in the first quarter of 2013 as
growth in cataract sales was partially offset by a modest decline
in refractive sales driven by continued soft market
Going forward, Abbott Labs expects to launch several products
in the cataract segment such as TECNIS Preloaded IOLs in 2013. In
addition, the Japanese launch of Tecnis OptiBlue IOL in the first
quarter of 2013 should further propel growth of cataract
Abbott Labs expects low-single digit sales growth in its
vision care business in the second quarter of 2013 (excluding the
impact of foreign exchange).
We remind investors that in Jan 2013, Abbott Labs separated
its research-based pharmaceuticals business by creating a new
Following the move, Abbott Labs became a diversified medical
products company with a presence in branded generic
pharmaceutical, devices, diagnostic and nutritional
Abbott intends to increase its presence in emerging markets,
which provide a substantial opportunity for growth, given the
rise in middle-class income and aging population. The
diversification should enable Abbott to penetrate these markets
and capture market share.
Abbott Labs currently carries a Zacks Rank #3 (Hold). As of
) looks attractive with a Zacks Rank #1 (Strong Buy).
) also looks well placed with a Zacks Rank #2 (Buy).
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