Abbott's FreeStyle LibreLink App Now Available in Europe

AbbottABT announced the availability of FreeStyle LibreLink app in Europe for use in smartphones(both iPhone and Android). Notably, diabetes patients using the FreeStyleLibre system in Europe will no longer need to carry the FreeStyle Libre readerseparately to get glucose result. Diabetes patients will now be able to check glucose results directly from their smartphones.

Per company, the FreeStyle LibreLink app allows users to hold their smartphone near their FreeStyle Libre sensor to capture and view real-time glucose levels. Also, it shows eight-hour glucose history and how the glucose levels are changing.

FreeStyle LibreLink app customers will have access to several updates and new features when compared to the FreeStyle Libre reader. The company also said that the app can replace the reader and also be used in combination with each other.

FreeStyle LibreLink customers will have the option to share information with their physicians through LibreView and LibreLinkUp. These are other digital health tools that are part of the FreeStyle Libre platform.

The FreeStyle LibreLink app is free of cost for both iPhone and Android users, and will initially be available in 12 European countries. Also, Abbott is planning for a mobile app solution for FreeStyle Libre users outside Europe, based on in-country regulatory approvals.

Developments in FreeStyle Libre

FreeStyle Libre System is the flagship, sensor-based continuous glucose monitoring (CGM) system. The company has been witnessing solid growth in the global Diabetes Care business. Notably, Diabetes Care sales rose 27.6% on a comparable operational basis in the last reported fourth quarter, buoyed by double-digit international sales growth, led by continued consumer uptake of FreeStyle Libre. Accordingly, it is leaving no stone unturned to cash in on the growing popularity of this system that eliminates the need for daily finger sticks.

Following the FDA approval in September 2017 for the FreeStyle Libre Flash glucose monitoring system, Abbott recently achieved another major milestone after U.S. Centers for Medicare & Medicaid Services (CMS) granted FreeStyle Libre approval for Medicare coverage.

Meanwhile, Abbott has been steadily progressing with the development of its Diabetes Care segment. Last September, the company announced the receipt of national reimbursement for FreeStyle Libre in the U.K., marking another milestone for the company. Notably, the FreeStyle Libre system is partially or fully covered in 21 countries, including France, Germany and Japan.

Moreover, the company announced receipt of Health Canada License for FreeStyle Libre Flash Glucose Monitoring System in June 2017. This drove the Diabetes Care segment, which saw revenue growth of 37.6% in third-quarter 2017 on continued acceptance of FreeStyle Libre internationally.

Market Potential

According to a report by Mordor Intelligence, the global market for diabetes care devices is expected to reach a value of $30.25 billion by 2021, at a CAGR of 5.93%. Considering the huge potential of the market, we believe the latest development will help Abbott gain traction in this space.

Share Price & Estimate Revision Trend

Abbott has been gaining investor confidence on consistently positive results. Over the last six months, the stock has outperformed the broader industry . It has gained 17.6%, in comparison with the broader industry's 3.5%.

The current estimate revision trend is favorable. For the current year, 13 estimates moved north compared with no movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year has risen 1.1% to $2.86 per share.

Zacks Rank & Key Picks

Abbott carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical sector are PerkinElmer PKI , Bio-Rad Laboratories BIO and Becton, Dickinson and Company BDX .

Bio-Rad Laboratories has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The company has a long-term expected earnings growth rate of 25%.

PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.

Becton, Dickinson and Company has a Zacks Rank #2. The company has a long-term expected earnings growth rate of 13.3%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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