The paragraph introduces the participants of Abbott's first quarter 2024 earnings conference call, including Chairman and CEO Robert Ford, Senior VP and CFO Phil Boudreau, and Executive VP of Finance Bob Funck. The call is being recorded and copyrighted by Abbott, and any forward-looking statements made during the call are subject to risks and uncertainties. The company will not release any revisions to these statements unless required by law.

On today's conference call, Abbott announced their first quarter results, reporting adjusted earnings per share of $0.98, above analyst estimates. They also raised their guidance for full year earnings per share and sales growth. The quarter saw strong growth across the portfolio, with a 10.8% increase in organic sales growth. They also achieved new product approvals and important clinical trial milestones. Sales in nutrition increased by 8%.

The third paragraph highlights strong growth in pediatric nutrition, with double-digit growth in the U.S. infant formula business and international portfolio. The company also launched a new nutrition shake called PROTALITY for adults pursuing weight loss. Sales in the EPD division increased by 14% and have consistently shown strong performance in recent quarters. The diagnostics division also saw growth, driven by the adoption of market-leading systems and demand for testing in various settings. The company continues to focus on developing new systems and tests to improve healthcare decision-making and accessibility.

The company received FDA approval for a point of care diagnostic test for mild traumatic brain injury or concussion, which can be run on a portable instrument and has the potential to transform the standard of care. Sales of medical devices, particularly FreeStyle Libre, grew 14% and expanded reimbursement coverage for basal insulin users in France and Germany is expected to drive further sales growth.

In the cardiovascular devices sector, sales grew by 10.5% in the quarter, with strong performance in electrophysiology and structural heart. The company is making progress in bringing their innovative PFA catheter, Volt, to market and has completed enrollment in their CE Mark clinical study. They have also begun enrolling patients in a US clinical trial for Volt-AF. In structural heart, growth of 13% was driven by several high-growth areas and a more balanced portfolio. In April, the company received FDA approval for TriClip, a heart valve repair device for tricuspid regurgitation. In Rhythm Management, growth of 7.5% was led by their recently launched leadless pacemaker, AVEIR.

The company AVEIR has seen significant growth in the single chamber pacing market and is now expanding into the larger dual chamber pacing market. Their technology is also driving growth in the Rhythm Management business. In addition, their neuromodulation segment saw a 17% increase in sales thanks to their new device, Eterna. The company has also launched Liberta, the world's smallest rechargeable deep brain stimulation device for Parkinson's disease. Overall, the company has exceeded expectations and has raised their sales and EPS guidance for the year. The first quarter saw a 4.7% increase in organic sales, with a 10.8% increase in underlying base business sales. Foreign exchange had a negative impact on sales.

Abbott reported a strong first quarter with a 55.7% adjusted gross margin ratio and a 15% adjusted tax rate. They raised their guidance for the full year, expecting an increase in adjusted earnings per share and organic sales growth. The company also addressed concerns about a competitor's loss in a case for NEC and stated that they are confident in their stance on ongoing litigation.

In response to a question about the company's guidance, Robert Ford explains that they always set a top tier guidance at the beginning of the year and strive to beat it throughout the year. He mentions that there are both opportunities and risks in the market, but the company's performance has been strong, with consecutive quarters of double-digit growth in multiple businesses. He also highlights the success in introducing biosimilars, recovering share in the adult business, and winning large accounts in the medical devices sector.

The company has been performing well and is the fastest growing MedTech Company. The team has done a great job and the pipeline is strong, leading to accelerated growth and new product approvals. This gives them confidence for the rest of the year and they have raised their guidance, which is unusual for them. They have upcoming court cases in July and have been providing specialized nutrition products for decades to help doctors provide lifesaving nutrition to premature infants. This includes a range of options such as mother's milk, pasteurized donor milk, and preterm infant formula.

The speaker discusses the use of human milk for premature infants and the need to fortify it with additional nutrients. They mention that medical communities consider these products to be a standard-of-care for feeding premature infants and that doctors have used them for decades. They also mention that there have been clinical studies that prove the safety of these products and that litigation cases against them are not supported by the medical community. The speaker then shifts to discussing the company's EP business, which saw growth in the first quarter in both the U.S. and internationally. They mention the upcoming launch of Volt and the expected approval in Europe next year.

The company is on track to file for CE mark by the end of the year, which will depend on the process. The CEO is not surprised by the EP growth, as it is an important and underpenetrated therapy with plenty of potential. The growth in Europe has been consistent over the past three years, with double-digit growth in ablation catheters and mapping technology. The technology has now been introduced in the US, with competitors being aggressive in bringing it to accounts. The company has been involved in a majority of the cases and has noticed some differences in usage compared to Europe.

The speaker discusses the success of their mapping system in the U.S. compared to Europe, noting that a large portion of PFA cases were mapped using their system in the U.S. The system is widely viewed as an excellent option and has a large install base. A recent software upgrade has improved visualization and potential for faster procedures. The speaker believes their system's flexibility is key in a market with many new products and choices. In Europe, an RF catheter was pulled in about a quarter of cases, and the positive dynamics seen there are also happening in the U.S. but it is still early. In March, the company had a high number of cases per day.

The speaker discusses the success of their company in the first quarter and their excitement about their technology and program. They also mention positive feedback from medical meetings and the potential for their product to be a differentiator in the market. In response to a question, they mention progress in securing payment and coverage decisions internationally. They also discuss the potential for both share gain and loss in the integrated pump and Type 2 non-insulin cash pace segments of the CGM market.

The speaker discusses the progress of international markets in terms of reimbursement and coverage decisions for their product. They also mention their focus on maintaining share dominance in the primary care channel, while also targeting the AID and market system segment with a dual analyte sensor and potential connectivity with pump companies.

The speaker is confident that the company will not lose focus on the potential of the basal market, despite the recent approval of TriClip for the transcatheter tricuspid market. They are not willing to comment on pricing strategy, but believe that TriClip is a differentiated and novel technology with potential for growth. They are currently focused on launching the product and have received positive feedback from physicians and patients. The speaker believes that safety will be a key factor in determining whether repair or replacement is the preferred option for patients.

Ford discusses the success of AVEIR, a new product in the company's pipeline. It has advantages over competitors and has been performing well in the market. The company's focus is on getting great clinical results and training for the new product. The goal is for the CRM portfolio to contribute to growth in the mid-single digits.

Robert Ford, CEO of AVEIR, discusses the company's recent performance and future prospects. He mentions that the company has been doing well with a 7.5% growth rate and expects it to continue to improve as more physicians are trained and the number of accounts increases. He also talks about the company's gross margin and its path back to pre-COVID levels, saying that they are forecasting a 70 basis point improvement this year and are focusing on controlling costs and expanding gross margin through portfolio mix. He concludes by saying that the company's growth is sustainable and they have a strong pipeline of opportunities.

The speaker discusses the company's future growth and addresses concerns about foreign exchange headwinds. They also mention the various products in their pipeline, including current contributors and near-term future contributors, such as the lingo product and the Volt system. They also mention a new Alinity system that is in development.

The speaker discusses the company's plans for the next 12-18 months, including opportunities with biosimilars in emerging markets and new product launches in various segments. They also mention a strong pipeline of products and ongoing clinical work to expand indications and markets. The company is facing a 2.5% headwind on sales growth due to foreign exchange rates, but their earnings guidance remains in line with organic sales performance. The first question from the analyst is about concussion testing.

The speaker is interested in understanding the go-to-market strategy for a new product and how it will impact the company financially. They also ask about the company's future plans for growth and how they plan to utilize their strong balance sheet. The speaker also mentions the potential for market conversion and expansion with the new product.

The company is working on a capillary draw for a rapid concussion test that can be done with a finger prick. This technology has potential for market expansion and the company is confident in its four segments - nutrition, diagnostics, treatment, and medical devices. They have a strong balance sheet and strategic flexibility to add value to their assets, as they have done with CSI and St.

The speaker, Robert Ford, discusses the success of the company Alere in reshaping and accelerating its growth through strategic deals. He emphasizes the company's focus on profitability and selective opportunities in their four segments. In response to a question about structural heart, Ford clarifies that the company's leading device, MitraClip, is still showing strong growth, while also discussing the potential for new products like TriClip to further drive growth in this area.

The speaker discusses the success of the company's organic innovation in the structural heart portfolio, which has contributed to a 13% growth. They plan to continue investing in the business and pipeline, with most growth coming from organic sources. The possibility of inorganic growth is also mentioned, with a focus on mitral replacement. The speaker emphasizes the sustainability of the company's growth in the medical technology industry.

Robert Ford, CEO of Abbott, was asked about the company's strong balance sheet and if there are any growth areas in the med tech business that the company is interested in. He mentioned that they are interested in areas where they can add value, particularly in the medical device and diagnostic sectors. They have also looked into biosimilars for their medicines business, but are being selective due to their strong organic growth in med tech. Ford did not disclose specific segments they are looking at, but mentioned that they have an active team exploring potential opportunities.

The speaker discusses their company's success and future prospects, mentioning their strong financial performance and investments made during the pandemic. They also mention their strong pipeline and several new product approvals. They conclude by thanking participants and directing them to a webcast replay for more information.

This summary was generated with AI and may contain some inaccuracies.