Abbott Laboratories, Inc. ABT recently announced the first patient procedures with its investigational transcatheter aortic valve implantation (TAVI) balloon-expandable system for treating symptomatic severe aortic stenosis. The system is designed to build a foundation for artificial intelligence (AI) guided procedures.
The investigational TAVI system will complement Abbott's Navitor TAVI system for aortic stenosis. The latest investigational TAVI system is aimed at expanding Abbott's structural heart portfolio.
ABT Stock Trend Following the News
Since the announcement, Abbott’s share price rose 0.3% to $118.13 on Monday. On a promising note, the Structural Heart product line continues to bolster the company’s Medical Devices segment, driven by growth across a market-leading comprehensive portfolio of surgical valves, structural interventions and transcatheter repair products. Accordingly, we anticipate the market sentiment toward the stock to remain positive surrounding this development.
Abbott has a market capitalization of $204.60 billion. It delivered an average earnings beat of 1.64% in the trailing four quarters.
Importance of ABT’s Investigational TAVI system
Among the aged population, calcium may build up in the aortic valve and cause it to narrow. This condition is known as aortic stenosis, which results in the heart needing to work harder to pump blood through the valve. Patients at risk of open-heart surgery due to age, frailty, or multiple other conditions may benefit from minimally invasive treatment options. Aortic stenosis remains the most common primary valve disease, ranging from approximately 2% in adults aged 70-80 years to 9% in those over 80 years. Hence, continuous research and expansion of TAVI solutions are necessary.
By leveraging physician insights and key learnings from the company's TAVI product portfolio, Abbott has developed this differentiated investigational TAVI platform. Abbott’s aims to offer best-in-class heart blood flow and enhance ease of use and precision.
How ABT’s Investigational TAVI System Works
Abbott’s investigational TAVI system is a type of balloon-expandable device. It crimps the new heart valve on a deflated balloon. The balloon with the mounted valve is then inserted into the body through an artery in the groin and routed up to the heart. Once properly positioned inside the narrowed heart valve, the balloon is inflated to expand the new valve. It then takes over the function of the patient's narrow native heart valve. The balloon is then deflated and removed from the body.
ABT’s Recent Development
Last month, Abbott announced a new, first-of-its-kind clinical trial designed to improve outcomes in patients with worsening heart failure who could benefit from advanced therapy options. The TEAM-HF trial is set to enroll 850 patients across 75 sites worldwide to measure pulmonary artery pressures (PAP) using Abbott's CardioMEMS HF System. The goal is to objectively identify advanced heart failure patients at high risk of mortality who could benefit from a life-saving HeartMate 3 left ventricular assist device (LVAD or heart pump) earlier in their disease progression.
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Industry Prospect Favors ABT
Per a Precedence Research report, the global transcatheter aortic valve replacement market was valued at $5.79 billion in 2023 and is expected to reach $12.22 billion by 2034 at a CAGR of 7% from 2024 to 2034. One prominent trend fueling the TAVR market is the global aging demographic. Also, increasing consciousness and continuous technological evolution are driving market growth.
ABT Stock Price Performance
In the past three months, Abbott’s shares have risen 14.8% compared with the industry’s 20.8% growth.
ABT’s Zacks Rank and Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Penumbra PEN and ResMed RMD. While ResMed sports a Zacks Rank #1 (Strong Buy) at present, Haemonetics and Penumbra carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. The company’s shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for HAE’s 2025 EPS have moved north 0.4% to $4.59 in the past 30 days.
Estimates for Penumbra’s 2024 EPS have moved north 8.1% to $2.79 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 10.54%.
Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.
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