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FDA clears Abbott's two new glucose monitors

Published 10/06/2024, 20:08
ABT
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ABBOTT PARK, IL - Abbott has received U.S. Food and Drug Administration (FDA) clearance for its two latest over-the-counter continuous glucose monitoring (CGM) systems: Lingo™ for general health and Libre Rio™ for Type 2 diabetes management. These devices, which stem from Abbott's widely utilized FreeStyle Libre® technology, aim to cater to distinct consumer needs.

Lingo™ is intended for individuals 18 and older looking to enhance their overall health and wellness. It monitors glucose levels and offers personalized insights and coaching to foster healthy habits and metabolic improvement. This release aligns with a University of North Carolina study showing that only 12 percent of Americans are metabolically healthy, suggesting a significant potential user base for Lingo™.

Libre Rio™, on the other hand, targets adults with Type 2 diabetes who manage their condition through lifestyle changes rather than insulin. It is the first over-the-counter CGM system in the U.S. with a measurement range of 40-400 mg/dL, designed to detect extreme glucose fluctuations.

Both Lingo™ and Libre Rio™ are based on the same FreeStyle Libre® sensing technology, which currently serves about 6 million people globally. Abbott's medical devices business head Lisa Earnhardt highlighted the importance of offering tailored glucose monitoring solutions to meet diverse needs.

Clinical and real-world data suggest that FreeStyle Libre® technology can help users improve glucose control, reduce HbA1c levels, and enhance quality of life. Abbott's expansion in the CGM market also includes plans for a sensor that measures both glucose and ketones.

Abbott, a global healthcare leader, continues to innovate in the field of diabetes care, broadening its manufacturing capacity and product offerings. This information is based on a press release statement from Abbott.

In other recent news, Abbott Laboratories (NYSE:ABT) has made significant advancements. The company has received FDA clearance for two new over-the-counter continuous glucose monitoring systems, Lingo and Libre Rio. Abbott's Lingo Glucose Tracking System also received clearance from the FDA, a development acknowledged by BTIG, which confirmed its Buy rating for Abbott. Goldman Sachs (NYSE:GS) initiated coverage on Abbott, issuing a Buy rating, reflecting confidence in the company's potential for financial performance and market position.

Despite reducing its price target for Abbott to $140.00 from $141.00, Barclays (LON:BARC) maintained an Overweight rating on the stock. 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.

InvestingPro Insights

As Abbott (NYSE:ABT) broadens its product offerings with the FDA clearance of Lingo™ and Libre Rio™, investors and stakeholders may find it insightful to consider the company's financial health and market performance. Abbott has demonstrated a consistent commitment to increasing shareholder value, as evidenced by its track record of raising dividends for 10 consecutive years, a testament to its financial stability and investor confidence. Additionally, the company's stock exhibits low price volatility, providing a more predictable investment environment.

From a financial perspective, Abbott's market capitalization stands at a robust 187.58 billion USD, showcasing its significant presence in the healthcare industry. Despite a slight decline in revenue growth by -2.84% over the last twelve months as of Q1 2024, the company maintains a high gross profit margin of 55.26%, indicating efficient operations and strong pricing power. Moreover, with a P/E ratio of 33.47, Abbott is trading at a high earnings multiple, which could suggest market optimism about its future growth prospects.

Investors interested in further insights can explore additional InvestingPro Tips for Abbott, which delve into various aspects such as analyst predictions, profitability, and debt levels. There are 10 more tips available that could help in making informed decisions regarding the company's stock. For those considering an in-depth analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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