2014 med tech R&D budget: $953 billion
Change from 2013 budget ($928 billion): 2.7%
Percent of 2014 segment sales ($10.1 billion): 9.4%
Diagnostics and devices each accounted for roughly one-quarter of 2014 revenues at Abbott Laboratories ($ABT). Of the remaining amount, nutrition products accounted for more than one-third with established pharmaceuticals making up the remainder.
That means Abbott is very motivated in continuing to grow its med tech presence. Last year, it entered into electrophysiology devices with three deals done in one fell swoop. Also in 2014, Abbott gained a CE mark for its Freestyle Libre, a continuous glucose monitor that doesn't require routine finger sticks even for calibration, and launched it in Europe. Last year also saw the launch of its MitraClip in the U.S. to treat mitral valve regurgitation. Last year, Abbott had about $3 billion in vascular device sales and $1.2 billion in diabetes device sales.
Productive internal R&D is at the core of Abbott's ability to keep rolling out new products to sustain its long-term growth. "Many of our products--like our Absorb bioresorbable vascular scaffold, our FreeStyle Libre glucose monitoring system, or our Tecnis Symfony extended-range-of-vision intraocular lens--are first-of-their-kind breakthroughs, solutions that dramatically change the way people treat their conditions," said the company's 2014 annual report.
"We have got a great drumbeat here of innovation coming steadily, our R&D groups have done a fabulous job I think over the last several years and they continue to just have constant product innovation and launches," summed up Abbott Chairman and CEO Miles White in January. -- Stacy Lawrence (email | Twitter)
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