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Abbott’s Weak Medical Device Sales, China Influence Stocks Down Nearly 7%

Abbott’s Weak Medical Device Sales, China Influence Stocks Down Nearly 7%

Abbott’s Weak Medical Device Sales, China Influence Stocks Down Nearly 7%

– Abbott Laboratories on Wednesday reported lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China, sending the company’s shares down nearly 7%.

The US company’s weak medical device sales in markets outside its home country offset initial enthusiasm for its quarterly beat and upbeat outlook.

Abbott reported total medical device sales of $3.62 billion, down 0.5% from last year, as the company faced supply challenges due to the shutdown in China.

JP Morgan analyst Robbie Marcus says the problems plaguing the medical device segment “could bleed over a bit” in the first quarter of next year as well.

Multinationals such as Abbott and Johnson & Johnson were hit by the dollar’s strength against a basket of currencies including sterling and the yen after the US Federal Reserve raised interest rates to tame inflation.

Illinois-based Abbott reported third-quarter worldwide sales of $10.4 billion, down 4.7% from a year ago.

Excluding the impact of exchange rates, total sales increased by 1.3%, while the medical devices segment recorded growth of 6.4%.

COVID-Sales of 19 testing kits were $1.7 billion, compared with $2.3 billion in the second quarter, as testing declined due to a slower pace of infections.

Abbott said he expects about $7.8 billion COVID-19 test sales this year, with $500 million in the fourth quarter, compared to $6.1 billion previously forecast.

Medical device manufacturers such as Abbott have relied on them COVID-19 tests to increase sales during the peak of the pandemic. However, demand is slowing as more people are vaccinated and overall cases are stabilizing.

Abbott’s shares have fallen 25 percent this year through Tuesday, as the company also grappled with closing its infant formula plant in Sturgis, Michigan.



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