ABBOTT PARK, Ill. - Abbott has received U.S. Food and Drug Administration (FDA) clearance for two new over-the-counter continuous glucose monitoring (CGM) systems, Lingo™ and Libre Rio™, expanding options for individuals monitoring their glucose levels. Lingo is targeted at general consumers seeking to enhance their health and wellness, while Libre Rio is designed for adults with Type 2 diabetes who manage their condition through lifestyle changes rather than insulin.
The Lingo system is intended for users 18 years and older, aiming to help them develop healthy habits and improve metabolic health. It works by tracking glucose and providing personalized insights and coaching. This launch comes in the context of a University of North Carolina study showing only 12% of Americans are metabolically healthy, and a Harris Poll indicating 82% of Americans would alter their habits if they received actionable coaching from a biowearable.
Libre Rio marks Abbott's first over-the-counter CGM system for people with Type 2 diabetes in the U.S. It is notable for its measurement range of 40-400 mg/dL, which can detect extremely low or high glucose events. With diabetes being a significant public health issue in the U.S., affecting approximately 38.4 million people, the availability of Libre Rio may facilitate easier access to CGM technology for those not using insulin.
Abbott's FreeStyle Libre systems, from which Lingo and Libre Rio are derived, are already used by roughly 6 million people worldwide. Clinical and real-world data suggest that FreeStyle Libre technology can improve glucose control, reduce HbA1c levels, and enhance the quality of life for individuals with diabetes.
The company continues to invest in innovative solutions for diabetes management, including a new sensor that measures both glucose and ketones. While Lingo is also available in the UK, interested consumers in the U.S. can sign up at www.hellolingo.com to be notified of its availability.
This news is based on a press release statement from Abbott.
In other recent news, Abbott Laboratories (NYSE:ABT) has been making significant strides. The company's Lingo Glucose Tracking System received clearance from the FDA, a development acknowledged by BTIG, which confirmed its Buy rating and $135.00 stock price target for Abbott. The FDA also approved Abbott's Esprit BTK Everolimus Eluting Resorbable Scaffold System, a novel medical device for treating severe peripheral artery disease.
Analysts have been closely monitoring Abbott's progress. Goldman Sachs (NYSE:GS) initiated coverage on Abbott, issuing a Buy rating and setting a price target of $121.00, reflecting confidence in the company's potential for financial performance and market position.
Barclays (LON:BARC), despite reducing its price target for Abbott to $140.00 from $141.00, maintained an Overweight rating on the stock. Meanwhile, Citi reiterated its Buy rating on Abbott shares, maintaining a price target of $128.00, after the company's strong first-quarter performance.
These are recent developments, and all the firms anticipate Abbott Labs' continued growth and success in the medical devices sector. However, they also await further details from Abbott regarding the launch and marketing strategy for the Lingo Glucose Tracking System, and are keeping an eye on ongoing litigation concerning necrotizing enterocolitis and its connection to pediatric nutrition products.
InvestingPro Insights
Abbott's recent FDA clearance for its new CGM systems, Lingo and Libre Rio, reflects the company's sustained commitment to innovation in the healthcare equipment and supplies industry. As a prominent player in this sector, Abbott's advancements are backed by a strong financial foundation. With a market capitalization of $187.15 billion, Abbott showcases its stability in the market. An InvestingPro Data metric reveals the company's P/E Ratio stands at 33.49, indicating high investor expectations for future earnings growth. Additionally, Abbott's revenue for the last twelve months as of Q1 2024 is reported at $40.33 billion, despite a slight decrease in growth by -2.84%.
Investors may find Abbott's dividend history particularly reassuring. An InvestingPro Tip highlights that the company has raised its dividend for 10 consecutive years, demonstrating a reliable return to shareholders. Moreover, Abbott has maintained dividend payments for an impressive 54 consecutive years, a testament to its financial resilience and commitment to shareholder value. The dividend yield as of the specified date stands at 2.04%, with a growth of 7.84% over the last twelve months as of Q1 2024.
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