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Abbott (ABT) Gets Canadian Nod for FreeStyle Libre Expanded Use
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A breakthrough for Abbott Laboratories’ (ABT - Free Report) diabetes care business, the company recently received Health Canada authorization under interim order for an expanded use of the FreeStyle Libre flash glucose monitoring system. With this nod, this leading continuous glucose monitoring (CGM) system can be used in hospital and professional healthcare settings to include Canadian pregnant women.
Notably, in April 2020, Health Canada authorized Abbott’s FreeStyle Libre to be used by frontline healthcare professionals to remotely monitor the glucose status and glucose history of patients without the requirement of painful fingersticks.
With the latest approval, Abbott aims to fortify grounds in the global CGM market, thereby boosting the Medical Devices segment.
FreeStyle Libre at a Glance
FreeStyle Libre System is equipped with features like one-second scan using a smartphone or a reader, measuring glucose reading every minute, providing historical glucose level trends and patterns. Further, the sensor eliminates the need for painful fingersticks to monitor glucose levels.
FreeStyle Libre helps physicians get the actionable patient’s information and glucose level remotely to make important decisions through LibreView, a no-cost and secure cloud-based diabetes management system.
For investors’ note, Abbott has secured partial or full reimbursement for the FreeStyle Libre portfolio in 36 countries, including Canada, France, Germany, Japan, the United Kingdom and the United States.
Significance of the Approval
With the recent Canadian approval, people with or without diabetes (including expectant mothers) and patients getting medical therapy for COVID-19 can now access FreeStyle Libre in hospitals or professional healthcare settings.
The expanded approval for FreeStyle Libre extends the ability of healthcare professionals to support expectant mothers by addressing their diabetic requirements remotely and at the same time, reducing their COVID-19 exposure. This expanded approval, while improving the overall health of the patients, will also broaden the FreeStyle Libre user range.
Notable Developments in Diabetes Care Segment
Abbott has been witnessing plenty of developments in the diabetes business arm over the past few months.
The company, during its fourth-quarter earnings release, confirmed that its diabetes care business grew nearly 30% banking on the solid worldwide adoption of FreeStyle Libre. In 2020, FreeStyle Libre sales grew 50% in the United States while it flared up 40% outside the country.
Notably, FreeStyle Libre has achieved global leadership among CGM systems for both Type 1 and Type 2 users. In 2020, Abbott received the U.S. approval of FreeStyle Libre 2 and the CE Mark for Libre 3 (the latest generations of market-leading continuous glucose monitoring systems).
Industry Prospects
Per a report by Grand View Research, the global continuous glucose monitoring device market size is expected to reach $10.4 billion by 2027, at a CAGR of 12.7%. Factors like the rising incidence of diabetes and increasing adoption of CGM devices are expected to drive the market’s growth.
Given the market potential, the recent regulatory approval is expected to significantly boost Abbott’s business.
Price Performance
Shares of the company have gained 45.2% in a year’s time compared with the industry’s growth of 14.8%.
Envista has a projected long-term earnings growth rate of 24%.
Owens & Minor has a projected long-term earnings growth rate of 61%.
Meridian Biosciences has an estimated long-term earnings growth rate of 49%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Abbott (ABT) Gets Canadian Nod for FreeStyle Libre Expanded Use
A breakthrough for Abbott Laboratories’ (ABT - Free Report) diabetes care business, the company recently received Health Canada authorization under interim order for an expanded use of the FreeStyle Libre flash glucose monitoring system. With this nod, this leading continuous glucose monitoring (CGM) system can be used in hospital and professional healthcare settings to include Canadian pregnant women.
Notably, in April 2020, Health Canada authorized Abbott’s FreeStyle Libre to be used by frontline healthcare professionals to remotely monitor the glucose status and glucose history of patients without the requirement of painful fingersticks.
With the latest approval, Abbott aims to fortify grounds in the global CGM market, thereby boosting the Medical Devices segment.
FreeStyle Libre at a Glance
FreeStyle Libre System is equipped with features like one-second scan using a smartphone or a reader, measuring glucose reading every minute, providing historical glucose level trends and patterns. Further, the sensor eliminates the need for painful fingersticks to monitor glucose levels.
FreeStyle Libre helps physicians get the actionable patient’s information and glucose level remotely to make important decisions through LibreView, a no-cost and secure cloud-based diabetes management system.
For investors’ note, Abbott has secured partial or full reimbursement for the FreeStyle Libre portfolio in 36 countries, including Canada, France, Germany, Japan, the United Kingdom and the United States.
Significance of the Approval
With the recent Canadian approval, people with or without diabetes (including expectant mothers) and patients getting medical therapy for COVID-19 can now access FreeStyle Libre in hospitals or professional healthcare settings.
The expanded approval for FreeStyle Libre extends the ability of healthcare professionals to support expectant mothers by addressing their diabetic requirements remotely and at the same time, reducing their COVID-19 exposure. This expanded approval, while improving the overall health of the patients, will also broaden the FreeStyle Libre user range.
Notable Developments in Diabetes Care Segment
Abbott has been witnessing plenty of developments in the diabetes business arm over the past few months.
The company, during its fourth-quarter earnings release, confirmed that its diabetes care business grew nearly 30% banking on the solid worldwide adoption of FreeStyle Libre. In 2020, FreeStyle Libre sales grew 50% in the United States while it flared up 40% outside the country.
Notably, FreeStyle Libre has achieved global leadership among CGM systems for both Type 1 and Type 2 users. In 2020, Abbott received the U.S. approval of FreeStyle Libre 2 and the CE Mark for Libre 3 (the latest generations of market-leading continuous glucose monitoring systems).
Industry Prospects
Per a report by Grand View Research, the global continuous glucose monitoring device market size is expected to reach $10.4 billion by 2027, at a CAGR of 12.7%. Factors like the rising incidence of diabetes and increasing adoption of CGM devices are expected to drive the market’s growth.
Given the market potential, the recent regulatory approval is expected to significantly boost Abbott’s business.
Price Performance
Shares of the company have gained 45.2% in a year’s time compared with the industry’s growth of 14.8%.
Zacks Rank and Other Key Picks
Currently, Abbott carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the broader medical space are Envista Holding Corporation (NVST - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and Meridian Biosciences Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of Zacks #1 Rank stocks here.
Envista has a projected long-term earnings growth rate of 24%.
Owens & Minor has a projected long-term earnings growth rate of 61%.
Meridian Biosciences has an estimated long-term earnings growth rate of 49%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>