Abbott’s rapid COVID-19 test boosts quarterly sales growth

Rapid-test sales of Abbott’s BinaxNow, Panbio and ID Now brands rose to $2.1 billion from $1.9 billion in the fourth quarter of 2020, as the comparable stretch of 2021 included a spike in world-wide cases from Omicron variants.

In the US, changes in public-health priorities and regulatory challenges made it difficult to conduct rapid testing as of late last year, while demand for diagnostics was rising.

COVID-19 tests contributed to total sales of $4.47 billion for Abbott’s diagnostics division, up 2.9% year over year. With growth elsewhere in the company, including its nutrition and medical-device businesses, that trend helped push Abbott’s quarterly revenue up 7.2%, to $11.47 billion.

After taking rising costs into account, Abbott’s net earnings fell to $1.99 billion from $2.16 billion in the year-ago quarter. According to FactSet, the company’s adjusted earnings of $1.32 per share beat Wall Street analysts’ consensus estimates for adjusted earnings of $1.21 per share and sales of $10.71 billion.

Looking ahead, Abbott said it expects adjusted earnings of at least $4.70 per share in 2022. Analysts were forecasting Abbott’s 2022 adjusted earnings would come in at $4.78 per share.

Abbott estimates that sales related to COVID-19 testing will be $2.5 billion in 2022, down from last year’s total of $7.7 billion. Abbott said most of this year’s test sales are likely to happen early this year.

“We view our guidance as a prudent starting point, given the unpredictability of the virus and variants,” a company spokesperson said.

The stock was down 2.5% in early trading Wednesday. Shares are down 12% so far in 2022, at $123.27 as of Tuesday’s close.

Abbott’s role as a leading manufacturer of rapid at-home COVID-19 tests in the US has placed the company at the center of efforts to deliver enough diagnostics to meet growing demand since late last year as the highly infectious Omicron variant started sending the case. Counts up to the record level.

With infections rising, the Biden administration has pressured industry to catch up with demand for the tests this month, outlining a plan for the federal government to buy and distribute 1 billion of the over-the-counter diagnostics. Abbott Division was one of three manufacturers to receive federal contracts for a total of 380 million rapid tests earlier in January.

Abbott has said it plans to conduct 70 million rapid tests this month, with plans to increase monthly production to 100 million by March. In total, Abbott has distributed 1.4 billion COVID-19 tests since the start of the pandemic, the company said on Thursday.

During the pandemic, experts have debated the role that rapid tests such as Abbott’s Binex Now brand should play along with a lab-based test that takes longer but can produce more accurate results. The relatively strict Food and Drug Administration review process for new tests also limited the selection available to the public.

During the Omicron wave, rapid testing has become indispensable as the rate of people experiencing mild COVID-19 infections has increased, especially as Americans plan holidays last year and companies grapple with staffing shortages. She was The tests – when they could be found – have been key to helping people decide whether they should stay home from work or stay away from friends and family.

Supply-chain glitches in sectors ranging from car makers to supermarkets over the past year have affected other aspects of Abbott’s business as well. The company’s Similac-brand baby formula is one of several formulas that have become difficult to find in some parts of the US.

The company said earlier this month that it was “doing everything we can to ensure continuous and uninterrupted delivery of our products.”

This story has been published without modification to the text from a wire agency feed