Abbott Laboratories's Medical Devices segment to make 36% of $32.8 billion in Abbott Laboratories's 2020 revenues, but Abbott Laboratories's Diagnostics segment is key to the company's revenue growth
Medical Devices segment expected to be the single-biggest revenue driver with $11.8 billion in revenues (36% of Total Revenues) in 2020Diagnostics will be the fastest-growing segment - adding $3.4 billion over 2017-2020 (62% of $5.4 billion in incremental revenues)
Total Revenue
WHAT IS BIG?
(1) Medical Devices : $11.8 billion (36%)
(2) Nutritionals : $7.7 billion (24%)
(3) Diagnostics : $9.0 billion (27%)
(4) Established Pharmaceutical Products : $4.3 billion (13%)
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TOTAL Revenues in 2020: $32.8 billion
WHAT HAS CHANGED?
From 2017-2020
+ Change in Medical Devices : $1.2 billion
+ Change in Nutritionals : $0.8 billion
+ Change in Diagnostics : $3.4 billion
+ Change in Established Pharmaceutical Products : $0.0 billion
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TOTAL Change 2017-2020 $5.4 billion
+ Abbott Laboratories's Revenues in 2017 $27.4 billion
= TOTAL Revenues in 2020 $32.8 billion
Below we discuss Abbott Laboratories's business model, followed by sections that review past performance as well as expectations for Abbott Laboratories's revenue drivers for 2020 and 2021, along with competitive comparisons with peers DexCom and Novartis AG
Abbott Laboratories's Business Model
What Does Abbott Offer?
Abbott primarily serves the medical devices, pharmaceuticals, and nutritional products market. These medical devices are used primarily by various healthcare institutions in several countries. Its established pharmaceuticals business focuses primarily on emerging markets.
Who Pays?
Blood banks, hospitals, commercial laboratories, and clinics, Physicians, Government agencies, Health care facilities, specialty pharmacies, wholesalers, distributors, independent retailers, and Retail consumers
What Are The Alternatives?
Abbott competes with other medical devices companies, such as Medtronic, Johnson & Johnson, Boston Scientific, and Intuitive Surgical among others. In Diagnostics it competes with Roche among other companies. In established pharmaceuticals business, it competes with Pfizer, and GlaxoSmithKline among others.
Has 4 Operating Segments:
Medical Devices : The Established Pharmaceutical Products segment includes a broad line of generic drugs that are manufactured worldwide and sold outside the U.S.
Nutritionals : The Nutritional segment includes pediatric, adult, healthy living and sports nutrition products, such as infant formulas, snack bars, and meal replacement shakes.
Diagnostics : The Diagnostics segment includes systems and tests used for screening for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases, and infectious diseases such as hepatitis and HIV.
Established Pharmaceutical Products : The Medical Devices segment includes minimally invasive medical devices for heart diseases, strokes, carotid artery diseases, and other serious vascular conditions.