Growing Biosimilars Business Supports ABT Stock, Macro Issues Hurt

Core Viewpoint - Abbott's diversified business portfolio is positioned to drive momentum in 2024 despite a challenging global business environment [1] Group 1: Business Performance - Abbott's Diagnostics business accounted for 22.6% of total revenues in Q3 2024, with a strong focus on point-of-care testing in areas such as Infectious Disease and Cardiometabolic [2] - The Diabetes Care segment saw sales of its FreeStyle Libre continuous glucose monitoring system exceed $1.6 billion, growing 21% year-over-year [4] - Abbott's Established Pharmaceuticals Division is advancing in biosimilars, with plans for commercialization in oncology and women's health set for 2025 [3] Group 2: Challenges and Concerns - The macroeconomic environment is leading to increased costs for raw materials and freight, with a 2.1% rise in the cost of products sold and a 6.3% increase in selling, general, and administrative expenses in Q3 [5] - Foreign exchange fluctuations negatively impacted Abbott's sales by 2.5% year-over-year due to a significant portion of revenues coming from international markets [6] Group 3: Market Comparison - Abbott's shares have gained 8.3% over the past three months, compared to the industry's 9.4% growth [4] - Other medical companies like Boston Scientific, Baxter International, and Masimo are currently rated higher, with Zacks Rank 2 (Buy) [7]