Abbott reported yesterday its 4Q05 earnings, highlighting that Abbott Diabetes Care has exceeded the milestone $1.0 billion mark in revenue. Management remarks on the Navigator indicated a very positive outlook on this device, suggesting that they are pleased with the clinical trials results and expect it to be launched later this year. They indicated that the clinical trials are finished. “The clinical studies for the PMA approval are now complete and we are very pleased with the result. This completes the clinical session of the PMA and Abbott anticipates launching the Freestyle navigator later this year.”
Abbott executives cited the strength and success of ADC on multiple occasions during the call. The company announced that 05 sales grew 34.8% while 4Q05 sales rose 18.1% from 4Q04. Management indicated that they currently have 20% market share in this industry. Abbott expects its new Freestyle Connect blood glucose monitor, which received FDA approval in 2005, to help continue its success in the hospital. In support of this assertion, an executive said that it will be the fastest monitor available, generating results in 15 seconds, and requires the smallest blood sample of any current monitor.
In other related diabetes/CVD/obesity results, Abbott commented that it has ongoing trials looking at combination therapy possibilities for Tricor with statins. Initially, executives said to expect data sometime in 2006 – when someone asked if the data could be expected by March, they said this was probably too early but that it would be available later in the year.
In response to a question concerning what products/divisions of Abbott the street may be underestimating, the company said they felt that public expectations should be higher for Humira (emphasized throughout the call), Tricor, and Abbott Diabetes Care.
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