Core Insights - Abbott Laboratories' Diabetes Care business is experiencing significant growth, primarily driven by the FreeStyle Libre continuous glucose monitoring (CGM) platform, which has achieved global leadership in the CGM market for both Type 1 and Type 2 diabetes users [1][2]. Company Developments - Abbott has received FDA approvals for two new over-the-counter CGM systems, Lingo and Libre Rio, expanding its consumer reach and marking a new era in the U.S. market [2][8]. - In Q2 2025, Abbott's CGM sales exceeded $1.90 billion, reflecting a 19.6% organic growth, with U.S. Libre sales increasing nearly 26% [4][8]. - The upcoming launch of Abbott's dual-analyte sensor, which includes ketone monitoring, is expected to enhance its market share, particularly among intensive insulin users [4][8]. Market Trends - The diabetes care devices market is projected to grow significantly, reaching $99.81 billion by 2035, with a compound annual growth rate (CAGR) of 9.6% from 2025 to 2035 [3]. - The increasing aging population, rising obesity rates, and sedentary lifestyles are driving demand in this fast-growing market [3]. Competitive Landscape - Competitors like DexCom and Tandem Diabetes are also expanding their offerings in the CGM space, with DexCom focusing on its G6 and G7 systems and Tandem enhancing its pump portfolio and digital solutions [5][6]. Financial Performance - Year-to-date, Abbott's shares have increased by 19.7%, outperforming the industry growth of 7.9% and the S&P 500's growth of 21.5% [7]. - Abbott currently trades at a forward 12-month Price-to-Sales (P/S) ratio of 4.84X, below the industry average of 5.63X [10].
Abbott's Q2 Diabetes Care Sales Rise 19.6%: What's Backing It?