Headquarters: Chicago, Illinois
2024 projected sales: $26.6 billion
2024 projected R&D spend: $2.35 billion
2017 sales: $16.0 billion
2017 R&D spend: $1.64 billion
After catapulting up five ranks on the list between 2016 and 2017, Abbott Laboratories will be looking to hold on to its third-place spot through 2024, on the laurels of its $25 billion acquisition of St. Jude Medical in January of last year.
But Abbott will not be resting on that achievement alone, according to Evaluate’s predictions of 7.5% compounded annual growth and expectations to swell its revenues from 2017’s $16 billion to over $26 billion in 2024.
Its somewhat rocky purchase of diagnostics player Alere, finalized in October 2017, is expected to add $7 billion in sales to its bottom line, including $2.5 billion in point-of-care testing—setting up Abbott to become the world’s second-largest company in the in vitro market, behind Roche. Abbott’s 2024 sales in the sector alone are forecast to top $10 billion, while in vitro diagnostics are set to grow into a nearly $80 billion market, as the largest medical device segment.
A similar story is playing out in its cardiology efforts: placing second to Medtronic in 2024, with $11.1 billion in expected sales, up from just under $8 billion last year.
Its acquisitions from St. Jude Medical—which counts products in nearly every segment in the space, from atrial fibrillation to structural heart interventions to chronic pain—boosted its earnings over 60% from 2016 to 2017 and helped set the company up for future growth.
“The addition of St. Jude Medical creates one of the broadest medical device portfolios in the world and provides a steady stream of new technologies and therapies for many years to come,” Abbott CEO Miles White said in a statement at the time. By 2024, the company is expected to capture a 15.4% share of the projected $72.6 billion cardiology market.
It’s already seen progress in the time since, with the FDA’s clearance of an implantable cardiac monitor, picked up from the deal, which syncs with a smartphone to track abnormal heart rhythms and palpitations.
Abbott also gained an FDA green light in July for the third generation of its MitraClip transcatheter heart valve repair device, plus a CE mark earlier this year. First approved by the agency in 2013, it has been used to treat more than 65,000 patients globally, the company said. The latest version includes new steering, navigation and placement capabilities that allow it to be used in more patients with mitral regurgitation.
In diabetes care, Abbott’s Freestyle Libre continuous glucose monitoring system received an FDA approval earlier this summer for a 14-day sensor. In the third quarter of this year, the device accounted for $304 million in sales, a 101% increase compared to the year before.