Growing Biosimilars Business, New Partnerships Support ABT Stock

Core Insights - Abbott's diversified business portfolio is positioned for continued momentum into 2025, currently holding a Zacks Rank 2 (Buy) [1] Business Segments - Abbott's Established Pharmaceuticals Division (EPD) is advancing in biosimilars, with plans to commercialize several products in oncology and women's health by 2025, capitalizing on its strong presence in emerging markets [2] - The Diabetes Care segment is benefiting from the success of the FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership in its category [7] - Abbott's Diagnostics business, accounting for 22.6% of total revenues in Q3 2024, is expanding its point-of-care testing capabilities, particularly in respiratory tests [8] Financial Performance - In Q3 2024, Diabetes Care sales exceeded $1.6 billion, reflecting a 21% growth [11] - The cost of products sold increased by 2.1%, while selling, general, and administrative expenses rose by 6.3% year-over-year [9] Market Conditions - Foreign exchange fluctuations are negatively impacting Abbott's performance, with a 2.5% unfavorable year-over-year impact on sales in Q3 2024 due to a strong euro and other currencies [4] - The ongoing geopolitical situation is leading to increased raw material and freight costs, which may affect Abbott's business in the coming months [13] Stock Performance - Over the past three months, Abbott's shares have gained 2.6%, outperforming the industry's 2.2% decline, driven by expansion in high-growth areas and new product launches [12]