Abbott Laboratories Explores Consumer Wearables Market As COVID Testing Sales Dwindle: CEO

Abbott Laboratories ABT CEO Robert Ford, while speaking at the HLTH conference in Las Vegas, outlined the company's strategic move into the consumer wearables market. 

While Abbott has historically been a major player in healthcare, particularly in medical devices and diagnostic tools, its success during the COVID-19 pandemic with the rapid 15-minute COVID-19 test is noteworthy. 

In 2021, this test brought in an astounding $7.7 billion in sales, followed by $8.4 billion the following year. 

However, as the pandemic receded, COVID test sales dropped significantly, plummeting to $263 million during Q2, compared to $2.3 billion in the year-earlier period. 

Recognizing the inevitable decline in COVID-19 testing rates, citing the CEO, CNBC noted the importance of continued investment in research and development for their other offerings, such as medical devices.

Abbott's FreeStyle Libre, a continuous glucose monitor (CGM), is a standout product that has dominated the global CGM market, with more than $1.3 billion in sales during Q2. 

Ford's vision extends beyond diabetes care; Abbott aims to enter the market for wearables. Their latest wearable sensor, Lingo, is available in the U.K. and slated for a U.S. release next year. 

Lingo tracks glucose levels and offers personalized coaching recommendations on diet, sleep, and exercise through a paired app. Ford believes this will empower people to make healthier choices.

Abbott acknowledges the challenge of presenting complex medical data in a user-friendly way and plans to address this issue. 

They recognize that health and tech are converging, allowing more accessible access to health data. Abbott is gearing up to submit its Lingo filing to the FDA by the end of the year.

Price Action: ABT shares are down 0.74% at $96.84 during the premarket session on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.