Abbott profit more than doubles as medical device sales rebound

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July 22, 2021

(Reuters) -Abbott Laboratories’ quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales.

The medical device maker and its rivals, Quest Diagnostics and Becton Dickinson and Co, banked on soaring sales of COVID-19 tests last year to cushion a lockdown-driven hit to their mainstay businesses.

But with curbs lifted and vaccinations gathering pace, demand for medical devices is returning as more people opt for non-urgent procedures.

Second-quarter sales in Abbott’s diagnostics business grew nearly 63% to $3.25 billion, with COVID-19 testing-related sales at $1.3 billion, down from the previous quarter.

The company recorded sales growth of more than 11%, excluding COVID testing, on an organic basis in the quarter compared to pre-pandemic levels.

It maintained its 2021 adjusted earnings forecast of $4.30 to $4.50 per share from continuing operations.

The company’s net earnings rose to $1.19 billion, or 66 cents per share, in the quarter ended June 30, from $537 million, or 30 cents per share, a year earlier.

(Reporting by Amruta Khandekar and Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)