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| Abbott's FreeStyle Libre Flash glucose monitoring system--Courtesy of Abbott |
Diabetes care at Abbott Laboratories ($ABT) has returned to sales growth as ex-U.S. sales of its new FreeStyle Libre kick in and the impact of diabetes device reimbursement reductions dropped off the books. The continuous glucose monitor eliminates regular finger sticks and has surpassed the company's sales expectations.
Last month, Abbott completed a U.S. trial of the FreeStyle Libre that it started last fall. The company hasn't guided to a U.S. regulatory or marketing timeline for the device yet.
In the meantime, it's been busily rolling out other diabetes devices. Last week, it launched an over-the-counter product, the FreeStyle Precision Neo Blood Glucose Monitoring System, which costs less than $30 and has inexpensive test strips. Last month, it launched the FreeStyle Libre Pro, a professional-use device for the market in India, where it is uncommon for patients to self-monitor their blood glucose levels.
After struggling for several quarters, diabetes care was actually Abbott's best performing device business during the first quarter, growing by 2.8% to $267 million last quarter compared to the same period a year prior. Overall, devices were up 1% to $1.2 billion during the first quarter. Medical optics had been the strongest segment but was unexpectedly weak with a decline of 3.4% to $261 million due to competition in the cataract and Lasik markets, the company said.
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| Abbott CEO Miles White |
"In diabetes care, global sales in the first quarter increased nearly 3% as this business returned to growth after lapping the impact of U.S. reimbursement changes," observed Abbott Chairman and CEO Miles White on an April 22 earnings call.
"Outside of the U.S., strong consumer and physician adoption of our revolutionary new glucose sensing technology, Freestyle Libre, has exceeded our initial expectations, driven by a successful direct-to-consumer campaign. We continue to expand FreeStyle Libre to new geographies," he added. But he did not comment on the company's FreeStyle Libre U.S. regulatory strategy or timing for an FDA submission.
Abbott is up 3% on its first-quarter earnings news.
- here is the release