Q4 2023 Abbott Laboratories Earnings Call

January 24, 2024

Michael Weinstein: On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign exchange rates. Page 9 of 9, Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier. With that, I will now turn the call over to Robbie.

Thank you for watching.

Okay.

Good morning and thank you for standing by. Welcome to Abbott's fourth quarter 2023 earnings conference call.

Good morning, and thank you for standing by welcome to Abbott's fourth quarter 2023 earnings Conference call.

All participants will be able to listen only until the question and answer portion of this call.

During the question and answer session, you will be able to ask your question by pressing the star 1 1 keys on your touchtone phone.

During the question and answer session, you'll be able to ask your question by pressing the star one one keys on your Touchtone phone.

This call is being recorded by Abbott. With the exception of any participants' questions asked during the question and answer session, the entire call, including the question and answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's express written permission.

This call is being recorded by Abbott.

With the exception of any participants questions asked during the question and answer session. The entire call, including the question and answer session is material copyrighted by Abbott it cannot be recorded or rebroadcast without abbott's expressed written permission.

Robbie: Thanks Mike. Good morning, everyone, and thank you for joining us. Today, I'll discuss our 2023 results, as well as our outlook for this year. But before I do that, I think it's important that we take a moment to look back at the challenging environment that we all faced over the last few years and how our actions during that time... have positioned the company to be in an even stronger position today than before the start of the pandemic. In the two years preceding the start of the pandemic, Abbott delivered organic sales growth of more than 7%, which was considered top tier given the large size of our company. We expected growth in 2020 to be in a similar range. But then COVID-19 arrived and disrupted that trajectory.

I would now like to introduce Mr. Mike Camilla, Vice President, Investor Relations.

I would now like to introduce Mr. Michael Miller, Vice President Investor Relations.

Michael Weinstein: Good morning and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer, Bob Funk, Executive Vice President, Finance.

Michael Weinstein: Good morning, and thank you for joining US with me today are Robert <unk>, Chairman and Chief Executive Officer, Bob <unk>.

Bob: Executive Vice President Finance.

Speaker Change: and Phil Boudreaux, Senior Vice President, Finance and Chief Financial Officer.

Speaker Change: Phil Boudreaux, Senior Vice President Finance, and Chief Financial Officer.

Speaker Change: Robert and Phil will provide opening remarks. Following their comments, we'll take your questions.

Speaker Change: Robert and Phil will provide opening remarks following their comments, we'll take your questions.

Speaker Change: Before we get started, some statements made today may be forward looking for purposes of the Private Securities Litigation Reform Act of 1995.

Speaker Change: Before we get started some statements made today may be forward looking for purposes of the private Securities Litigation Reform Act of 1995, including the expected financial results for 2024.

Speaker Change: including the expected financial results for 2024.

Speaker Change: Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements.

Speaker Change: Abbott cautions that these forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward looking statements.

Speaker Change: Economic, competitive, governmental, technological, and other factors that may affect Abbott's

Speaker Change: Economic competitive governmental technological and other factors that may affect abbott's operations are discussed in item one a risk factors to our annual report on Form 10-K for the year ended December 31 2022.

Robbie: While our procedures-driven businesses, such as medical devices and routine diagnostic testing, experienced a slowdown due to healthcare systems around the world shifting their focus, our branded generics pharmaceutical business was able to stay the course, and our nutrition business accelerated as people around the world placed a greater emphasis on protecting their health. While some companies saw their entire portfolio suffer during the pandemic.

Speaker Change: are discussed in item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31st, 2021.

Speaker Change: Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments except as required by law.

Speaker Change: Abbott undertakes no obligation to release publicly any revisions to forward looking statements as a result of subsequent events or developments, except as required by law.

Speaker Change: On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance.

Speaker Change: On today's conference call as in the past non-GAAP financial measures will be used to help investors understand abbott's ongoing business performance.

Speaker Change: These non-GAAP financial measures are reconciled with the comparable GAAP financial measures are reconciled with the comparable GAAP financial measures.

Speaker Change: These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at Abbott Dot com.

Robbie: Abbott's diversified business once again proved to be resilient. It was also during this time that we created a multi-billion dollar COVID testing business in just a matter of months that helped play a role in reducing the spread of the virus around the world. COVID testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022. And given the important role that these tests have on society and on our financial performance, COVID testing temporarily altered our identity and became a main point of focus for the general public, our investors, and other stakeholders. But we knew that the pandemic would not last forever.

Speaker Change: In our earnings news release and regulatory filings from today, which are available on our website at abbott.com.

Speaker Change: Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign

Speaker Change: Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward looking basis, because the company is unable to predict future changes in foreign exchange rates, which could impact reported sales growth.

Speaker Change: and many more.

Speaker Change: Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today.

Speaker Change: Unless otherwise noted our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today with that I will now turn the call over to Robert.

Speaker Change: With that, I will now turn the call over to Robbie.

Robbie: Thanks, Mike.

Robert: Thanks, Mike.

Robbie: Good morning, everyone, and thank you for joining us.

Robert: Good morning, everyone and thank you for joining us.

Robbie: Today, I'll discuss our 2023 results.

Robert: Today I'll discuss our 2023 results.

Robbie: as well as our outlook for this year.

As well as our outlook for this year.

Robert: But before I do that I think it's important that we take a moment to look back at the challenging environment that we all faced over the last few years and how our actions during that time.

Robbie: Before I do that, I think it's important that we take a moment to look back at the challenging environment that we all faced over the last few years and how our actions during that time

Robbie: So we planned ahead. We pulled forward or accelerated investments in several areas across the company when the demand for COVID testing was at peak levels, knowing that we would scale these investments back down when the eventual decline in demand for COVID testing occurred, and the experiences we gained in creating the COVID testing business, and then managing the rapid scale up and subsequent scale down of that business will have a lasting positive impact on our company, our R&D pipeline, was one of the areas we targeted for the accelerated investments, and we're seeing those investments pay off. In the last two years, we have announced more than 25 new growth opportunities, which include a mix of new products. New Indications.

Robbie: have positioned the company to be in an even stronger position today than before the start of the pandemic.

Robert: Positioning the company to be in an even stronger position today than before the start of the pandemic.

Robbie: In the two years preceding the start of the pandemic, Abbott delivered organic sales growth of more than 7%, and a half percent of the total sales growth in the last two years.

Robert: And the two years preceding the start of the pandemic Abbott delivered organic sales growth of more than 7%.

Robbie: which was considered top tier given the large size of our company.

Robert: Which was considered top tier given the large size of our company.

Robbie: We expected growth in 2020 to be in the similar range.

Robert: We expected growth in 2020 to be in the similar range, but then COVID-19 arrived the disrupted that trajectory, while our procedures driven businesses, such as medical devices and routine diagnostic testing experienced a slowdown.

Robbie: But then COVID-19 arrived and disrupted that trajectory, and while our procedures-driven businesses such as medical devices and routine diagnostic testing experienced a slowdown,

Robbie: through the healthcare systems around the world shifting their focus.

Robert: Through the health care systems around the world shifting their focus.

Robbie: Our branded generics pharmaceutical business was able to stay the course

Robert: Our branded generics pharmaceutical business was able to stay the course.

Robbie: The Geographic and Reimbursement Expansion. And this level of pipeline activity is occurring across the entire company. In EPD, for example, we announced an agreement to commercialize several biosimilars in emerging markets. In nutrition, we continue to invest in science-based solutions to address emerging medical needs, with particular emphasis on the Fast-Growing Adult Nutrition Segment in Diagnostics.

Robbie: and our nutrition business accelerated as people around the world placed a great emphasis on protecting their health.

Robert: And our nutrition business accelerated as people around the world place a greater emphasis on protecting their health.

Robbie: While some companies saw their entire portfolio suffer during the pandemic,

Robert: While some companies saw their entire portfolio suffered during the pandemic.

Robbie: Abbott's diversified business once again proved to be resilient.

Robert: Abbott's diversified business once again proved to be resilient.

Robbie: It was also during this time that we created a multi-billion dollar COVID testing business.

Robert: It was also during this time that we created a multibillion dollar COVID-19 testing business in just a matter of months.

Robbie: and just a matter of months.

Robbie: that help play a role in reducing the spread of the virus around the world.

Robert: That help play a role in reducing the spread of the virus around the world.

Robbie: COVID testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022.

Robert: Covid testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022.

Robbie: We announced approvals for new tests, new instruments, and a new laboratory automation solution. And in medical devices, we announced 10 new product approvals, along with several new opportunities to further improve the growth outlook of the existing portfolio. These new opportunities are well balanced, with each of our seven medical device businesses accomplishing at least one significant pipeline-related achievement. Looking back at our performance in 2023, it is clear that these new opportunities contributed to an acceleration in our growth. Both our sales and earnings growth exceeded the expectations we communicated at the beginning of last year. Sales excluding COVID testing grew double digits every quarter last year and finished the year up more than 11 percent, higher than our original guidance of high single-digit growth. Adjusted earnings per share finished the year at $4.44, which was above the midpoint of our original guidance range, despite COVID testing sales coming in much lower than originally forecast.

Robbie: and given the important role that these tests had on society and on our financial performance and on our financial performance

Robert: And given the important role that these tests had on society and on our financial performance.

Robbie: COVID testing temporarily altered our identity.

Robert: Covid testing temporarily altered our identity.

Robbie: and became a main point of focus to the general public, our investors and other stakeholders.

Robert: And it became a main point of focus the general public our investors and other stakeholders.

Robbie: But we knew that the pandemic would not last forever.

Robert: But we knew that the pandemic would not last forever.

Robbie: So we planned ahead.

Robert: So we planned ahead.

Robbie: We pulled forward or accelerated investments in several areas across the company when the demand for COVID testing was at peak levels.

Robert: We pulled forward or accelerated investments in several areas across the company when the demand for Covid testing was at peak levels.

Robbie: knowing that we would scale these investments back down when the eventual decline in demand for COVID testing occurred.

Robert: Knowing that we would scale these investments back down when the eventual decline in demand for Covid testing occurred.

Robbie: and the experiences we gained in creating the COVID testing business, and the experiences we gained in creating the COVID testing business.

Robert: And the experiences we gained in creating the COVID-19 testing business and.

Robbie: And then managing the rapid scale up and subsequent scale down of that business will have a lasting positive impact on our company.

Robert: And then managing the rapid scale up and subsequent scale down of that business.

Robert: Last thing positive impact on our company.

Robbie: Our R&D pipeline.

Robert: Our R&D pipeline.

Robbie: was one of the areas we targeted for the accelerated investments, and we're seeing those investments pay off.

Robert: Was one of the areas, we targeted for the accelerated investments and we're seeing those investments pay off.

Robbie: In the last two years, we have announced more than 25 new growth opportunities, which include a mix of new products.

Robert: And the last two years, we've announced more than 25, new growth opportunities, which include a mix of new products, new indications and geographic and reimbursement expansions.

Robbie: New indications.

Robbie: geographic and reimbursement expansion.

Robbie: and this level of pipeline activity is occurring across the entire company.

Robbie: And this is a testament to the strength of the Abbott portfolio and a strong indication of the top-tier sustainable performance we are positioned to continue to deliver as we move past the pandemic. Turning to our outlook for 2024. As we announced this morning, we forecast sales growth, excluding COVID testing, to be in the range of 8 to 10%, which equates to generating organic sales growth of more than three billion dollars. We forecast adjusted earnings per share of $4.50 to $4.70, which contemplates double-digit earnings growth on the base business.

Robert: And this level of pipeline activity is occurring across the entire company.

Robbie: In EPD, for example, we announced an agreement to commercialize several biosimilars in emerging markets.

Robert: And <unk> for example, we announced an agreement to commercialize several biosimilars in emerging markets.

Robert: Nutrition, we continue to invest in science based solutions to address emerging medical needs with particular emphasis on fast growing adult nutrition segment.

Robbie: with particular emphasis.

Robbie: on the fast-growing adult nutrition segment.

Robbie: and diagnostics.

Robert: In diagnostics, we announce approvals for new tests, new instruments, and a new laboratory automation solution.

Robbie: We announce approvals for new tests, new instruments, and a new laboratory automation solution.

Robbie: and in medical devices, we announced 10 new product approvals that will make your life a better place.

Robert: And in medical devices, we announced 10, new product approvals, along with several new opportunities to further improve the growth outlook of the existing portfolio.

Robbie: along with several new opportunities to further improve the growth outlook of the existing portfolio.

Robbie: These new opportunities are well balanced.

Robert: These new opportunities are well balanced.

Robbie: With each of our seven medical device businesses accomplishing at least one significant pipeline related achievement.

Robert: With each of our seven medical device businesses accomplishing at least one significant pipeline related achievement.

Speaker Change: And I'll provide additional details on our 2023 results by business area before turning the call over to Phil. I'll start with nutrition, where sales increased 14% in the quarter. In pediatric nutrition, double-digit growth in the U.S. was driven by continued market share capture in the U.S. and from Formula Business, where we are once again the market leader; international growth of 18% was driven by growth coming from both infant formula products and our Pity Ashore toddler brand; and in adult nutrition, fills for the full year surpassed $4 billion and grew 13.5% in the quarter, driven by strong demand for Abbott's market-leading Turning to Established Pharmaceuticals, or EPD, where sales increased nearly 9% in the quarter and 11% for the full year.

Robert: Looking back at our performance in 2023, it is clear that these new opportunities opportunities contributed to an acceleration in our growth.

Robbie: Looking back at our performance in 2023, it is clear that these new opportunities contributed to an acceleration in our growth.

Robbie: Both our sales and earnings growth exceeded the expectations we communicated at the beginning of last year.

Robert: Both our sales and earnings growth exceeded the expectations, we communicated at the beginning of last year.

Robbie: Sales excluded COVID testing grew double digits every quarter last year and finished the year up more than 11%, higher than our original guidance of high single-digit growth.

Robert: Sales, excluding COVID-19 testing.

Robert: Double digits every quarter last year and finished the year up more than 11% higher than our original guidance of high single digit growth.

Robert: Adjusted earnings per share finished the year at $4 44.

Robbie: Adjusted earnings per share finished the year at $4.44.

Which was above the midpoint of our original guidance range. Despite COVID-19 testing sales coming in much lower than originally forecasted.

Robbie: despite COVID testing sales coming in much lower than originally forecast.

Robbie: This is a testament to the strength of the Abbott portfolio and a strong indication of the top tier sustainable performance we are positioned to continue to deliver as we move past the pandemic.

Robert: This is a testament to the strength of the Abbott portfolio and a strong indication of the top tier sustainable performance. We are positioned to continue to deliver as we move past the pandemic.

Robbie: Turning to our outlook for 2024.

Robert: Turning to our outlook for 2024.

Robbie: As we announced this morning, we forecast sales growth, excluded COVID testing, to be in the range of 8% to 10%.

Robert: As we announced this morning, we forecast sales growth, excluding COVID-19 testing to be in the range of 8% to 10%.

Speaker Change: This is the third consecutive year that EPD sales have grown double digits. Our unique business model of offering broad product portfolios across a targeted set of therapeutic areas that are tailored to the local needs of each emerging market we operate in continues to deliver outstanding results. Moving to diagnostics, growth in rapid diagnostics was impacted by seasonality related to respiratory virus testing. The flu season arrived later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Robbie: which equates to generating organic sales growth of more than $3 billion.

Robert: Which equates to generating organic sales growth of more than $3 billion.

Robert: We forecast adjusted earnings per share of $4 50.

Robbie: We forecasted adjusted earnings per share of $4.50 to $4.70, which contemplates double-digit earnings growth on the base business.

Robert: To $4 70.

Which contemplates double digit earnings growth on the base business.

Robbie: and I'll provide additional details on our 2023 results by business area before turning the call over to Phil.

Robert: I'll now provide additional details on our 2023 results by business area before turning the call over to Phil.

Larry Biegelsen: and I'll start with nutrition.

Larry Biegelsen: And I'll start with nutrition.

Larry Biegelsen: were sales increased 14% in the quarter.

Larry Biegelsen: Where sales increased 14% in the quarter.

Larry Biegelsen: In pediatric nutrition, double-digit growth in the U.S. was driven by continued market share capture in the U.S. in from formula business.

Larry Biegelsen: In pediatric nutrition double digit growth in the U S was driven by continued market share capture in the U S infant formula business.

Larry Biegelsen: where we are once again the market leader.

Larry Biegelsen: Where we are once again the market leader.

Larry Biegelsen: International growth of 18%.

<unk> growth of 18%.

Larry Biegelsen: was driven by growth coming from both infant formula products and our Pity Assure toddler brand.

Larry Biegelsen: It was driven by growth coming from both infant formula products, and our <unk> toddler brand.

Larry Biegelsen: In adult nutrition.

Larry Biegelsen: and adult nutrition.

Larry Biegelsen: Phil's for the full year surpassed four billion dollars.

Larry Biegelsen: Sales for the full year surpassed $4 billion.

Speaker Change: But in core laboratory diagnostics, growth of nearly 10% continues to be driven by the success of our Alinity suite of systems paired with our broad test menu offerings. Alinity continues to drive high contract renewal rates and competitive win rates. We recently announced that we received FDA approval for our new lab automation system, which offers cutting-edge technology to help laboratories increase performance and improve the overall quality of their operations.

Larry Biegelsen: and grew 13.5% in the quarter.

Larry Biegelsen: And grew 13, 5% in the quarter.

Larry Biegelsen: Driven by strong demand for Abbott's market-leading Ensure and Glucerna brands.

Driven by strong demand for abbott's market, leading ensure and <unk> brands.

Larry Biegelsen: Turning to established pharmaceuticals, or EPD, where sales increased nearly 9% in the quarter and 11% for the full year.

Larry Biegelsen: Turning to established pharmaceuticals, or <unk>, where sales increased nearly 9% in the quarter and 11% for the full year.

Larry Biegelsen: This is the third consecutive year that EPD sales have grown double digits.

Larry Biegelsen: This is the third consecutive year that <unk> sales have grown double digits.

Larry Biegelsen: are a unique business model of offering broad product portfolios across a targeted set of therapeutic areas.

Larry Biegelsen: Our unique business model of offering broad product portfolios across a targeted set of therapeutic areas that are tailored to the local needs of each emerging market. We operate in continues to deliver outstanding results.

Larry Biegelsen: that are tailored to the local needs of each emerging market we operate in continues to deliver outstanding results.

Speaker Change: This system has been available in international markets, and we look forward to offering this to customers in the U.S. I'll wrap up with medical devices, where sales grew more than 15% in the quarter, led by Double Digit Grove and six of our seven medical device businesses. In diabetes care, fourth-quarter sales of Freestyle Libre, our market-leading continuous glucose monitoring system, grew 24% at the end of the year, with global sales surpassing $5.3 billion. In terms of sales dollars, Libre has become the most successful medical device in history, and it has outpaced market growth in 13 out of the last 16 quarters. In electrophysiology, sales growth of 21% was driven by double-digit growth across all major geographic regions, including more than 20% growth in Europe. In rhythm management, growth was led by double-digit growth in pacemaker sales, led by AVER, a recently launched leadless pacemaker that can be used for both single-chamber and dual-chamber applications. Structural Heart.

Larry Biegelsen: Moving to diagnostics, growth in rapid diagnostics was impacted by seasonality related to the respiratory virus testing.

Larry Biegelsen: Moving to diagnostics growth and rapid diagnostics was impacted by seasonality related to the respiratory virus testing.

Larry Biegelsen: The flu season arrived later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Larry Biegelsen: The flu season arrive later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Larry Biegelsen: But in core laboratory diagnostics, growth of nearly 10% continues to be driven by the success of our Linity suite of systems paired with our broad test menu offerings.

Larry Biegelsen: But in core laboratory diagnostics growth of nearly 10%.

Larry Biegelsen: <unk> to be driven by the success of our <unk> suite of systems paired with our broad test menu offering.

Larry Biegelsen: Alinity continues to drive high contract renewal rates and competitive win rates.

Larry Biegelsen: Liberty continues to drive high contract renewal rates and competitive win rates.

Larry Biegelsen: We recently announced that we received FDA approval for our new lab automation system, and we're looking forward to working with you in the future to see what we can do to improve the system.

Larry Biegelsen: We recently announced that we received FDA approval for our new lab automation system.

Larry Biegelsen: That offers cutting-edge technology to help laboratories increase performance and improve the overall quality of their operations.

Larry Biegelsen: That offers cutting edge technology to help laboratories increase performance and improve the overall quality of their operations.

Larry Biegelsen: This system has been available in international markets and we look forward to offering this to customers in the U.S.

Larry Biegelsen: The system has been available in international markets, and we look forward to offering this to customers in the U S.

Larry Biegelsen: I'll wrap up with medical devices, where sales grew more than 15% in the quarter led by double digit growth in six of our seven medical device businesses.

Larry Biegelsen: I'll wrap up with medical devices

Larry Biegelsen: where sales grew more than 15% in the quarter.

Larry Biegelsen: led by double-digit growth in six of our seven medical device businesses.

Speaker Change: Double-digit growth in the quarter and full year was led by MitraClip, as well as several recently launched new products, including Amulet, Triclip, and Navitor. For the full year, microclips sales grew in the high teens internationally and 10% on a global basis. In heart failure, sales grew more than 15% in the quarter and 12% for the full year, driven by continued adoption of both chronic and acute circulatory support devices. And lastly, in neuromodulation, CILs grew nearly 19%, driven by the recent launch of ETERNA, our first rechargeable neurostimulation device for pain management. So, in summary, we exited the pandemic in an even stronger position. 2023 was a very successful year.

Larry Biegelsen: In diabetes care, fourth quarter sales of Freestyle Libre, our market-leading continuous glucose monitoring system, grew 24% in 2017.

Larry Biegelsen: In diabetes care fourth quarter sales of freestyle Libre, our market, leading continuous glucose monitoring system grew 24%.

Larry Biegelsen: at end of the year with global sales surpassing 5.3 billion dollars.

Larry Biegelsen: It ended the year with global sales, surpassing $5 3 billion.

Larry Biegelsen: In terms of sales dollars Libre has become the most successful medical device and history and it has outpaced market growth in 13 out of the last 16 quarters.

Larry Biegelsen: In terms of sales dollars, Libre has become the most successful medical device in history, and it has outpaced market growth in 13 out of the last 16 quarters.

Larry Biegelsen: In electrophysiology, sales growth of 21% in the U.S.

In electrophysiology sales growth of 21%.

Larry Biegelsen: was driven by double-digit growth across all major geographic regions, including more than 20% growth in Europe.

Larry Biegelsen: Was driven by double digit growth across all major geographic regions, including more than 20% growth in Europe.

Larry Biegelsen: In rhythm management growth was led by double digit growth in pacemakers sales led by <unk>. Our recently launched <unk> pacemaker that can be used for both single chamber and dual chamber.

Larry Biegelsen: In rhythm management, growth was led by double-digit growth in pacemaker sales, led by Averre, a recently launched leadless pacemaker that can be used for both single chamber and dual chamber.

Larry Biegelsen: In structural heart double digit growth in the quarter and full year was led by Mitraclip as.

Larry Biegelsen: Structural Heart, double-digit growth in the quarter and full year was led by MitraClip, as well as several recently launched new products, including Amulet, TriClip, and Navitore.

Speaker Change: We outperformed our initial expectations on both the top and bottom lines. The pipeline is generating a lot of new opportunities for growth, and we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024. I'll now turn over the call to Phil.

Larry Biegelsen: As well as several several recently launched new products, including Ambulate try clip and avatar.

Larry Biegelsen: For the full year, Microclips sales grew high teens internationally and 10% on a global basis.

Larry Biegelsen: For the full year Mitraclip sales grew high teens internationally and 10% on a global basis.

Larry Biegelsen: In heart failure, sales grew more than 15% in the quarter and 12% for the full year, driven by continued adoption of both chronic and acute circulatory support devices.

Larry Biegelsen: In heart failure sales grew more than 15% in the quarter and 12% for the full year driven by continued adoption of both chronic and acute circulatory support devices.

Larry Biegelsen: Thanks, Robert. As Mike mentioned earlier, please note that all references to sales growth rates, unless, Turning to our fourth quarter results, sales increased 2.1% on an organic basis, which as expected reflects the impact of the year-over-year decline in COVID testing sales. Excluding COVID testing sales, underlying base business organic sales growth was 11%, and foreign exchange had an unfavorable year-over-year impact of Regarding other aspects of the P&L, the adjusted gross margin ratio was 55.9% of sales, adjusted R&D with 6.1% of sales, and the adjusted SG&A was 26.3% of sales. Lastly, our fourth-quarter adjusted tax rate was 14.

Larry Biegelsen: And lastly, in neuromodulation, sales grew nearly 19% driven by the recent launch of Eterna, our first rechargeable neurostimulation device for pain management.

Larry Biegelsen: And lastly in Neuromodulation sales grew nearly 19% driven by the recent launch of <unk> turn up our first rechargeable neurostimulation device for pain management.

Larry Biegelsen: So in summary, we exited the pandemic in an even stronger position.

Larry Biegelsen: 2023 was a very successful year. We outperformed our initial expectations on both the top and bottom lines.

Larry Biegelsen: 2023 was a very successful year, we outperformed our initial expectations on both the top and bottom lines.

Larry Biegelsen: The pipeline is generating a lot of new opportunities for growth.

Larry Biegelsen: and we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024.

Larry Biegelsen: And we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024.

Larry Biegelsen: I'll now turn over the call to Phil.

Larry Biegelsen: I'll now turn over the call to Phil Phil.

Larry Biegelsen: Thanks, Robert.

Larry Biegelsen: Thanks Robert.

Larry Biegelsen: As Mike mentioned earlier, please note that all references to sales growth rates unless otherwise noted are on an organic basis.

Larry Biegelsen: Mike mentioned earlier. Please note that all references to sales growth rates unless otherwise noted are on an organic basis.

Larry Biegelsen: Turning to our fourth quarter results, sales increased 2.1% on an organic basis, which as expected, reflects the impact of the year-over-year decline in COVID testing-related conditions.

Larry Biegelsen: Turning to our fourth quarter results sales increased two 1% on an organic basis, which as expected reflects the impact of the year over year decline in Covid testing related sales.

Larry Biegelsen: Including COVID testing sales, underlying base business organic sales growth was 11% of the total.

Larry Biegelsen: Excluding COVID-19 testing sales underlying base business organic sales growth was 11% in the quarter.

Larry Biegelsen: Foreign exchange had an unfavorable year-over-year impact of 0.8% on fourth quarter

Foreign exchange had an unfavorable year over year impact of 0.8% on fourth quarter sales.

Larry Biegelsen: Turning to our outlook for 2024, today we issued guidance for full-year adjusted earnings per share of $4.50 to $4.70. This concludes an adjusted earnings per share forecast of $0.93 to $0.97 for the first quarter of 2021. For the year, we forecast total underlying base business organic sales growth, which excludes COVID testing, a range of eight to ten. Based on current rates, we would expect exchange to have an unfavorable impact of a little more than 1% on our reported full-year sales. This includes an unfavorable impact of approximately 2% on our first quarter revenue. We forecast non-operating income of approximately $130 million and an adjusted tax rate of $15,000.

Larry Biegelsen: Regarding other aspects of the P&L, the adjusted gross margin ratio was 55.9% of sales of the P&L.

Larry Biegelsen: Regarding other aspects of the P&L. The adjusted gross margin ratio was 55, 9% of sales.

Larry Biegelsen: Adjusted R&D was 6.1% of sales.

Larry Biegelsen: Adjusted R&D was six 1% of sales.

Larry Biegelsen: adjusted SG&A was 26.3% of sales.

Larry Biegelsen: And adjusted SG&A was 26, 3% of sales in the quarter.

Larry Biegelsen: Lastly, our fourth quarter adjusted tax rate was 14%.

Larry Biegelsen: Turning to our outlook for 2024, today we issued guidance for full year adjusted earnings per share of $4.50 to $4.70.

Larry Biegelsen: Turning to our outlook for 2024 today, we issued guidance for full year adjusted earnings per share of $4 50 to.

Larry Biegelsen: To $4 70.

Larry Biegelsen: This concludes an adjusted earnings per share forecast of 93 cents to 97 cents for the first quarter of the week.

Larry Biegelsen: Which includes an adjusted earnings per share forecast of 93 to <unk> 97 for the first quarter of 2024.

Larry Biegelsen: For the year, we forecast total underlying base business organic sales growth, which excludes COVID-19 testing sales to be in the range of 8% to 10%.

Larry Biegelsen: For the year, we forecast total underlying base business organic sales growth, which excludes COVID testing

Larry Biegelsen: and the range of eight to ten

Larry Biegelsen: Based on current rates, we would expect exchange to have an unfavorable impact of a little more than 1% on our reported full-year sales.

Larry Biegelsen: Based on current rates, we would expect exchange to have an unfavorable impact of a little more than 1% on a reported full year sales, which includes an unfavorable impact of approximately 2% on our first quarter reported sales.

Larry Biegelsen: This includes an unfavorable impact of approximately 2% on our first quarter report.

Speaker Change: And with that, we'll now open the call. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press the star 1 1 on your telephone. You will then hear an automated message advising you that your hand is raised.

Larry Biegelsen: We forecast non-operating income of approximately $130 million and an adjusted tax rate of 15%.

Larry Biegelsen: We forecast non operating income of approximately $130 million and an adjusted tax rate of 15%.

Larry Biegelsen: With that, we'll now open the call for questions.

Larry Biegelsen: With that we'll now open the call for questions.

Speaker Change: Thank you.

Speaker Change: At this time, we will conduct the question and answer session.

Speaker Change: At this time, we will conduct a question and answer session.

Speaker Change: As a reminder, to ask a question, you will need to press the star 1-1 on your telephone.

Speaker Change: As a reminder to ask a question you will need to press star one one on your telephone.

Speaker Change: To withdraw your question, please press star one one again. For optimal sound quality, we kindly ask that you please use your handset instead of your speakerphone when asking your question. And again, that's star 11 to ask a question. Please stand by while we compile the Q&A route. And our first question will come from Larry Biegelsen from Wells Fargo. Your line is open. Good morning.

Speaker Change: You will then hear an automated message advising you that your hand is raised.

Speaker Change: And then here an automated message advising you that your hand is raised.

Speaker Change: To withdraw your question, please press star 1-1 again.

Speaker Change: To withdraw your question. Please press star one again.

Speaker Change: For optimal sound quality, we kindly ask that you please use your handset instead of your speakerphone when asking your question.

Speaker Change: For optimal sound quality, we kindly ask that you. Please use your handset instead of your speaker phone when asking your question.

Speaker Change: And again, that's star 1-1 to ask a question.

Speaker Change: And again Thats star one to ask a question. Please.

Speaker Change: Please stand by while we compile the Q&A rough.

Speaker Change: Please standby, we compile the Q&A roster.

Speaker Change: And our first question will come from Larry Biegelsen from Wells Fargo. Your line is open.

Speaker Change: And our first question will come from Larry <unk> from Wells Fargo. Your line is open.

Larry Biegelsen: Good morning. Thanks for taking the question and congrats on a nice end to the year here. So, Robert, you know, pre-COVID Abbott was growing 7% to 8% organically, as you mentioned. You're guiding to 8% to 10% today for 2024 off of a higher revenue base. What has changed and what is giving you the confidence to guide that high to start the year? Maybe talk about the key assumptions and I'll leave it there for my 1 question. Thank you.

Larry Biegelsen: Good morning, Thanks for taking the question and congrats on a nice end to the year here.

Larry Biegelsen: Thanks for taking the question. And congrats on a nice end to the year here. So, Robert, pre-COVID, Abbott was growing 7 to 8% organically; as you mentioned, you're guiding to 8 to 10% today for 2024, off of a higher revenue base. What has changed, and what is giving you the confidence to guide that high to start the year? Perhaps you could talk about the key assumptions, and I'll leave it there for my one question.

Robert: So Robert.

Robert: Pre Covid Abbott was growing 7% to 8% organically as you mentioned youre guiding to 8% to 10% today for 2024 off of a higher revenue base.

Robert: What has changed and what is giving you the confidence to guide that high <unk>.

Robert: Start the year, maybe talk about the <unk>.

Robert: Key assumptions and I'll leave it there for my one question. Thank you.

Robert B. Ford: I mean, as I said in my prepared remarks and, quite frankly, as we talked about, throughout most of 2023, the impact of the strategy we took to take some of the some of the COVID revenue and reinvest in the base business. I think, ultimately, that's really the factor here. I mean, we operate in these four business segments, and their underlying attractiveness is still very sustainable.

Speaker Change: Thanks Larry. I mean as I said in my prepared remarks and quite frankly as we talked about,

Speaker Change: Thanks, Larry.

Speaker Change: I mean as I said in my prepared remarks, and quite frankly, as we talked about.

Speaker Change: <unk>.

Speaker Change: throughout most of 2023.

Speaker Change: Throughout most of 2023.

Speaker Change: The impact of the strategy we took to take some of the The impact of the strategy we took to take some of the

Speaker Change: The impact of the strategy, we took to take.

Speaker Change: Some of the.

Speaker Change: Some of the COVID revenue and reinvest in the base business, I think ultimately that's really the factor here. I mean, we operate in these four business segments, and their underlying attractiveness still is very sustainable. So strengthening our positions that were already pretty strong in each of these four segments.

Speaker Change: Some of the Covid revenue and reinvest in the base business I think ultimately thats really the the.

Speaker Change: The factor here I mean, we operate in these four business segments.

Speaker Change: And their underlying attractiveness still is is very sustainable.

Robert B. Ford: So strengthening our positions that were already pretty strong in each of these four segments was absolutely the right strategy here because we believe that these are important areas of healthcare to be in. So I'd make the case here that all four of our major businesses are actually in better and stronger shape than when we were pre-pandemic, which was about $10 billion less and growing at that 7% to 8% range. You look at EPD, as I said in my comments, these are three consecutive years of double-digit organic sales growth. This is probably one of our best commercial teams.

Speaker Change: So strengthening our positions that were already pretty strong in each of these four segments.

Speaker Change: was absolutely the right strategy here because we believe that these are important areas of healthcare to be in. So I'd make the case here that all four of our major businesses are actually in a better and stronger shape than when we were pre-pandemic, which was about $10 billion less and growing at that 7% to 8% range. You look at EPD, as I said in my comments, I mean, these are three consecutive years of double-digit organic sales growth. This is probably one of our best commercial teams. They operate in a very challenging geographies and different markets. And they've done an exceptional job at growing the top line and expanding the bottom line. I think even with all the effects and all the challenges that we've seen in those markets, they've expanded their op margin profile by 300 basis points. So it's a pretty strong position, strong team. And then we layered in that now a new growth vertical by adding biosimilars, which historically hasn't been a platform that's been readily available in emerging markets. It's probably been more of a developed market place. So I think that's going to provide a new growth vertical for us there. Nutrition, I think, did an incredible job here, as we said at the beginning of last year, at regaining our leadership position here in the U.S. I think it speaks a lot about the trust that our users and customers have for our product. But I think it speaks a lot about the trust that our users and customers have for our adult business.

Speaker Change: It was absolutely the right strategy here, because we believe that these are important areas of healthcare to be in.

Speaker Change: So I would make the case here that all four of our major businesses are actually.

Speaker Change: In a better and stronger shape than we were pre pandemic, which was about $10 billion less and growing at 7% to 8% range. If you look at <unk> as I said in my comments I mean, these are three consecutive years of double digit organic sales growth. This.

Speaker Change: This is probably one of our best commercial teams they operate in a very challenging.

Robert B. Ford: They operate in very challenging geographies and different markets, and they've done an exceptional job at growing the top line and expanding the bottom line. Even with all the effects and all the challenges that we've seen in those markets, they've expanded their operating margin profile by 300 basis points. So it's a pretty strong position, and a strong team. And then, you know, we layered in that now a new growth vertical by adding biosimilars, which historically hasn't been a platform that's been readily available in emerging markets. It's probably been more of a developed market play.

Speaker Change: Geographies in different markets.

Speaker Change: And they've done an exceptional job at growing the top line and expanding the bottom line.

Speaker Change: Even with all of the FX and all the challenges that we've seen in those markets. They have expanded their their op margin profile by 300 basis points. So.

Speaker Change: So it's a pretty strong position strong team and then we layered in that now a new growth vertical by adding biosimilar switch.

Speaker Change: Historically hasnt been a platform that's been readily available and emerging markets. It's probably been more of a developed market play. So so I think thats going to provide a new growth vertical for us their nutrition I think did an incredible job here as we said at the beginning of last year at regaining our leadership position.

Robert B. Ford: So I think that's going to, you know, provide a new growth vertical for us there. Nutrition, I think, did an incredible job here, as we said at the beginning of last year, at regaining our leadership position here in the U.S. I think it speaks a lot about the trust that our users and customers have for our product. But even our adult business, our adult business has increased a billion dollars since pre-pandemic. And It's just strengthening and getting stronger.

Speaker Change: Here in the U S. I think it speaks a lot about the trust that our users and customers have for our product, but even adult our adult business. Our adult business has increased $1 billion.

Speaker Change: has increased a billion dollars since pre-pandemic, and it's just strengthening and getting stronger. I mean, it's $4 billion growing high single digits. There's a lot of medtech businesses, Larry, that command very strong premiums in terms of evaluation just by having those kind of growth rates and sizes. And we're making investments in that channel also. Diagnostics has got a great track record here. Our core lab business has done very well. We've talked about our algorithm and formula here and framework for growth. We've gotten some recent very large account wins globally here. I think that's the result of our portfolio and, quite frankly, the trust that these customers have in Avid and our ability to execute. And our Rapids portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing. And we've been making investments on new assays to be able to put through those instruments. And then medical devices, you know, historically was in that high single-digit growth. I think what's changed there to become now a double-digit grower for us on a very large-sized business is that you have historically double-digit growth businesses like HeartBit or EP, Structural Heart, ADC. I mean, those are continuing. I think what's changed here is that. We've taken a strategic look at about 40% of the revenue in medical devices are CRM and vascular businesses that were, you know, showing very little growth historically and made investments in them to accelerate their growth rates. I think you saw that in Q4. With CRM, I'd say it's predominantly been an organic play with our leadless platform and technology. On vascular, it's been a combination of adding in organically to. To the business and organic plays to reposition some of the portfolio to higher growth segments. So I think that's really, you know, in a nutshell, across all these very four attractive segments, we've spent the last couple of years strengthening it. And I think you're starting, you know, you saw that last year. Every year, double-digit growth. And they've gotten stronger and they've gotten better and they've gotten, you know, more growth opportunities with them. So I think that's really the driver there. I mean, if you. I've gotten some of the headlines here about, you know, accelerating sales, but, you know, not seeing maybe that come through in the, on the earnings. Again, this is another one where you look at the impact that COVID had on us and the clouding of it. And, you know, our core business grew EPS last year, you know, 40 plus percent. We're forecasting double-digit earnings per share growth, you know, this at the midpoint double-digit. So I think, you know, we've got a range around it. I mean, there's a lot of volatility in the world, Larry. So I'd say, yeah, you know, I don't have to list all those out in terms of macro and geopolitics, but, you know, we've proven to be pretty resilient there. And I think, I think the, I think the range captures the opportunity that we have on the earnings side. I'd say there's probably more upside than downside in that range, but it's only January. So. I think this is a good starting point.

Speaker Change: Since pre pandemic and it's just strengthening and getting stronger I mean, it's it's $4 billion growing high single digits and.

Robert B. Ford: It's $4 billion and growing, high single digits. There are a lot of med tech businesses, Larry, that command very strong premiums in terms of evaluation just by having those kind of growth rates and sizes. And we're making investments in that channel also. Diagnostics has got a great track record here.

Speaker Change: There's a lot of med tech businesses, Larry that yet.

Speaker Change: Command very strong premiums in terms of evaluations just by having those kind of growth rates in sizes. So.

Speaker Change: And we're making investments in that channel also so diagnostics.

Speaker Change: He's got a great track record here, our core lab business has done very well talked about our algorithm and formulate here and framework for growth.

Robert B. Ford: Our core lab business has done very well. We've talked about our algorithm and formula here, and the framework for growth. We've gotten some recent very large account wins globally here.

Speaker Change: We've gotten some recent very large account wins globally here I think thats. The result of our portfolio and quite frankly the <unk>.

Robert B. Ford: I think that's the result of our portfolio and, quite frankly, the trust that these customers have in us and have in us, and our ability to execute. And our RAPIDS portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing. We've been making investments in new assays to be able to put those instruments through. And then medical devices, historically, were in that high single-digit growth. I think what's changed there to become now a double-digit grower for us in a very large-sized business is that you have historically double-digit growth businesses like HeartFit, or EP, Structural Heart, ADC. I mean, those are continuing.

Speaker Change: Just that these customers have an abbott.

Speaker Change: And our ability to execute and our rapid portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing and we've been making investments on new assets to be able to put through those those instruments, so that medical devices historically.

Speaker Change: In that high single digit growth I think what's changed there to become now.

Speaker Change: A double digit grower for us on a very large size business is that you have historically double digit growth businesses like carpet our EP structural heart ADC I mean, those are continuing I think what's changed here is that we've taken a strategic look at.

Robert B. Ford: I think what's changed here is that we've taken a strategic look at about 40% of the revenue in medical devices, our CRM and vascular businesses, which were showing very little growth historically, and made investments in them to accelerate their growth rates. I think you saw that in Q4. With CRM, I'd say it's predominantly been an organic play with our leadless platform and technology. On vascular, it's been a combination of adding in organically to the business and organic plays to reposition some of the portfolio to higher growth segments. So I think that, in a nutshell, across all these very attractive segments, we've spent the last couple of years strengthening them, and I think you saw that last year.

Speaker Change: 40% of the revenue in medical devices, our CRM and vascular businesses.

Speaker Change: That we're showing very little growth historically and made investments in them to accelerate their growth rates.

Speaker Change: You saw that in Q4.

Speaker Change: With CRM I'd say, it's predominantly been an organic play with our <unk> platform and technology on vascular it's been a combination of adding inorganically too to the business and organic plays to reposition some of the portfolio to higher growth segments. So I think thats really.

Speaker Change: In a nutshell across all of these very for attractive segments. We've spent the last couple of years strengthening it and I think you saw that last year every year double digit growth in there.

Robert B. Ford: Every year, double-digit growth. And they've gotten stronger, and they've gotten better, and they've gotten more growth opportunities with them. So I think that's really the driver there.

Speaker Change: <unk> gotten stronger and they've gotten better and they've gotten more growth opportunities with them. So.

Speaker Change: So I think that's that's that's really the driver there.

Speaker Change: I mean, I've gotten some of the headlines here about accelerating sales, but not seeing maybe that come through in the earnings. Again, this is another one where you look at the impact that COVID had on us and the clouding of it. Our core business grew EPS last year by 40-plus percent. We're forecasting double-digit earnings per share growth at the midpoint, and double-digit growth this year. We've got a range around it. I mean, there's a lot of volatility in the world, Larry. So I'd say, yeah, I don't have to list all those things out in terms of macro and geopolitics. But we've proven to be pretty resilient there.

Speaker Change: I've gone some of the headlines here about accelerating sales.

Speaker Change: But not seeing may be that come through in the on the earnings.

Speaker Change: Again. This is another one where you look at the impact that Covid had on us and the clouding of that are our core business grew EPS last year 40, plus percent, we're forecasting double digit earnings per share growth.

Speaker Change: No.

Speaker Change: At the midpoint double digit.

Speaker Change: This year.

Speaker Change: We've got a range around it I mean, there's a lot of volatility in the world Larry So I would say yes.

Speaker Change: Yes, I don't have to list all those out in terms of macro and geopolitics, but yes.

Speaker Change: We've proven to be pretty resilient, there and I think I think the I think the range captures the opportunity that we have.

Speaker Change: And I think the range captures the opportunity that we have on the earnings side. I'd say there's probably more upside than downside in that range. But it's only January, so I think this is a good starting point. Very helpful.

Speaker Change: On the earnings side.

Speaker Change: I'd say, there's probably more upside than downside in that range, but it is only January so I think this is a good starting point.

Speaker Change: Super helpful. Thanks for taking the question.

Speaker Change: Thanks for taking the question. Thank you. And our next question will come from Joshua Jennings from Cowan. Your line is open. Hi, good morning.

Speaker Change: Thank you.

Speaker Change: And our next question will come from Joshua Jennings from Cowan. Your line is open.

Speaker Change: And our next question will come from Joshua Jennings from Cowen Your line is open.

Joshua Jennings: Hi, good morning. Thanks for taking the questions and I echo the congratulations on the strong finish of the year.

Joshua Jennings: Thanks for taking the questions, and I echo the congratulations on the strong finish of the year. I was hoping to just follow up on your comments there, Robert, on just the earnings power and just the margin expansion trajectory. You know, Abbott is a unique story relative to Peers because you didn't have the margin headwinds during the pandemic due to the COVID testing business that you developed internally. But I was hoping to just think about the pre-pandemic margin expansion trajectory of the business in that 30 to 50 basis point range, and hopefully, you can just give us a little bit more color on some of the drivers of margin expansion and how your team sees that Thanks for taking the question. Sure.

Joshua Jennings: Hi, good morning, Thanks for taking the questions.

Joshua Jennings: Echo the congratulations on the strong finish to the year.

Speaker Change: I was hoping to just follow up on your comments, Sir Robert, on just the earnings power and just the margin expansion trajectory. You know, Abbott is a unique story relative to peers because you didn't have the margin headwinds during the pandemic due to the COVID testing business that you developed internally. But I was hoping to just thinking about the pre-pandemic margin expansion trajectory of the business in that 30 to 50 basis point range. And if you'll just give us a little bit more color on some of the drivers of margin expansion and how your team sees that trajectory going forward in 2024 and into the out years. Thanks for taking the question.

Speaker Change: Was hoping to just follow up on your comments Robert on.

Speaker Change: The earnings power and just the margin expansion trajectory.

Speaker Change: Stuart relative to peers, because you didn't have the the margin headwinds during the pandemic due to the Covid testing.

Speaker Change: That you've developed internally, but was hoping to just thinking about the pre pandemic margin expansion trajectory of the business in that 30 to 50 basis point range and so hoping you can just give us a little bit more color on some of the drivers of margin expansion and how your team sees that that trajectory going forward in 2004.

Speaker Change: Yes, thanks for taking the question.

Bob Hopkins: Sure. I mean, listen, we hear a lot of companies talk about working here to recover to their operating margin and try to get back to their op margin pre-pandemic. We're in a pretty unique position, I'd say, versus our peers here. Our op margin profile is already at the pre-pandemic level. And I think what you saw us do there, Josh, and I talked a little bit about in my comments is I think we managed very well strategically the spending piece of it. We accelerated the spending investments when we were at our COVID sales were at their peak levels a few years ago. And then we held that spending flat these last couple of years.

Speaker Change: Sure Alex.

Joshua Jennings: I mean, listen, we hear a lot of companies talk about working here to recover to their operating margin and try to get back to their pre-pandemic level. We're in a pretty unique position, I'd say, versus our peers here. Our operating margin profile is already at the pre-pandemic level.

Speaker Change: Here a lot of companies talk about working here to recover.

Speaker Change: Recover to their operating margin.

Speaker Change: Try to get back to their op margin pre pandemic.

Speaker Change: We're in a pretty unique position I would say versus our peers here our op margin profile is already at.

Speaker Change: You're already at the pre pandemic level.

Joshua Jennings: And I think what you saw us do there, Josh, and I talked a little bit about in my comments, I think we managed the spending piece of it very well. We accelerated the spending investments when our COVID sales were at their peak levels a few years ago, and then we held that spending flat these last couple of years, even though our top line was growing pretty significantly here. So, I'd say our biggest opportunity for margin expansion really is on the gross margin line. And that is, you know, I think about our big five activities this year at the company, and we can do all five at the same time.

Speaker Change: You saw us do there, Josh and I talked little bit about in my comments is I think we manage very well strategically the spending piece of it we accelerated the spending investments when we were at our cobot sales were at their peak levels. A few years ago and then we held that spending flat. These last couple of years.

Bob Hopkins: Even though our top line was growing pretty significantly here. So I'd say our biggest opportunity for margin expansion really is on the gross margin line. And that is, you know, I think about our big five activities this year at the company, you know, and we can do all five at the same time. But I'd say gross margin is pretty high up there in our priority. You know, we're forecasting a pretty nice step up in our gross margin profile this year, you know, roughly around 75 basis points. And, you know, there's a combination of factors that are helping to drive that margin expansion, that profile expansion. We've got a pretty strong track record here of executing on internal margin improvement programs. So, you know, every business has got their programs. We manage those on a monthly basis. They all get reported. So there's a high degree of visibility and inspection to those programs.

Speaker Change: Even though our top line.

Speaker Change: Growing pretty significantly here so.

Speaker Change: I'd say, our biggest opportunity for margin expansion.

Speaker Change: Really is on the gross margin line and.

Speaker Change: And that as I think about our big five activities this year at the company.

Speaker Change: And we can do all five and at the same time, but I'd say gross margin is pretty high up there in our priority.

Joshua Jennings: But I'd say gross margin is pretty high up there on our priority list. You know, we're forecasting a pretty nice step up in our gross margin profile this year, roughly around 75 basis points. And, you know, there's a combination of factors that are helping to drive that margin expansion and that profile expansion. We've got a pretty strong track record here of executing on internal margin improvement programs. So, you know, every business has got its own programs. We manage those on a monthly basis. They all get reported out.

Speaker Change: Forecasting a pretty nice step up in our gross margin profile this year roughly around 75 basis points.

Speaker Change: And.

Speaker Change: There is a combination of factors that are helping to drive that margin expansion that profile expansion. We've got a pretty strong track record here of executing on internal margin improvement program. So every business has got their programs.

Speaker Change: We manage those on a monthly basis, they all get reported out.

Joshua Jennings: So, there's a high degree of visibility and inspection into those programs. Some of the headwinds that we faced, I'd say, over the last couple of years are starting to turn a little bit into tailwinds, so whether it's commodity costs, freight, and distribution, all those elements seem to be, I'd say right now, and given our visibility for the year as we stand here today, turning into tailwinds, so that helps And then the other part here is just, you know, I'd say portfolio mix, so as...

Speaker Change: High degree of.

Speaker Change: Visibility in inspection to those programs.

Bob Hopkins: Some of the headwinds that we faced, I'd say, over the last couple of years are starting to turn a little bit into tailwinds, so whether it's commodity costs, freight and distribution, all those elements seem to be, I'd say, right now, and given our visibility for the year as we stand here today, turning into tailwinds, so that helps.

Speaker Change: Some of the headwinds that we faced I'd say over the last couple of years are starting to turn a little bit into tailwind. So whether it's commodity cost freight and distribution all of those elements seem to be let's say right now and given our visibility.

Speaker Change: For the year as we stand here today.

Speaker Change: Turning into a tailwind so that helps.

Bob Hopkins: And then the other part here is just, you know, I'd say portfolio mix.

Speaker Change: And then the other part here is just you know.

Speaker Change: I'd say portfolio mix so as.

Bob Hopkins: Some of the device businesses continue to outpace and continue to grow. Those are higher margin businesses. And, you know, they provide that, you know, that mixed element in that gross margin expansion. So, I think this provides a nice, you know, this provides a nice opportunity for us this year. But I expect over time, we'll get back to our pre-pandemic, you know, our pre-pandemic gross margin profile. It's, for me, it's not a question of if, it's just a question of when, you know, if we could target, you know, 50, 75, you know, I mean, it's never going to be as linear as we always would want. But, you know, that kind of expansion for us, I think, really provides a good opportunity to drive earnings growth over the next couple of years. So, I'd say that's our biggest opportunity. I think we did a really good job at leveraging spending. And I think you see that in our profiles. So, our big opportunity here is gross margin. And, you know, we're all over it.

Joshua Jennings: Some of the device businesses continue to outpace and continue to grow. Those are higher-margin businesses, and, you know, they provide that, you know, that mixed element in that gross margin expansion. So I think this provides a nice opportunity for us this year, but I expect, over time, we'll get back to our pre-pandemic gross margin profile. For me, it's not a question of if, it's just a question of when. If we could target, you know, 50, 75, you know, I mean, it's never going to be as linear as we always would want, but, you know, that So I'd say that's our biggest opportunity.

Speaker Change: Some of the device businesses continue to outpace and continue to grow those are higher margin businesses.

Speaker Change: And they provide that that mix element in that gross margin expansion. So.

Speaker Change: I think this provides a nice.

Speaker Change: This provides a nice opportunity for us this year, but I expect over time.

Speaker Change: We will get back to our pre pandemic.

Speaker Change: Pre pandemic gross margin profile.

Speaker Change: For me, it's not a question of if it's just a question of when.

Speaker Change: If we could target 50, 75, I mean, it's never going to be as linear as we always would want but that kind of that kind of expansion for us I think really provides.

Speaker Change: A good opportunity to do.

Speaker Change: Five earnings growth over the next couple of years. So I'd say, that's our that's our biggest opportunity I think we did a really good job at leveraging spending.

Joshua Jennings: I think we did a really good job at leveraging spending, and I think you see that in our profiles. So our big opportunity here is gross margin, and, you know, we're all over it. We appreciate those details. Thank you. And our next question will come from Marie Theiboldt from BTIG. Your line is open. Good morning.

Speaker Change: And I think you see that in our profiles.

Speaker Change: So our big opportunity here is gross margin and we're all over it.

Speaker Change: I appreciate those details thanks Robert.

Speaker Change: Appreciate those details. Thanks, Robert.

Robert B. Ford: Thank you.

Robert: Thank you.

Speaker Change: And our next question will come from Marie Theiboldt from BTIG. Your line is open.

Speaker Change: And our next question will come from Marie Thibault from <unk>. Your line is open.

Marie Theiboldt: Good morning. Thank you for taking the questions. I wanted to ask a little bit more about your electrophysiology business. That segment has been very strong, and I've been impressed that you've been able to put up that European growth rate in the face of some competitive PFA launches. So we'd love to hear what's going on behind the scenes there, how you're getting those growth rates, and how you're thinking about the USEP business as we see some PFA launches this year. Thanks for taking the questions.

Marie Theiboldt: Thank you for taking the questions. I wanted to ask a little bit more about your electrophysiology business. That segment has been very strong, and I've been impressed that you've been able to put up that European growth rate in the face of some competitive PFA launches. So we'd love to hear what's going on behind the scenes there, how you're getting those growth rates, and how you're thinking about the US EP business as we see some PFA launches this year. Thanks for taking the questions.

Marie Thibault: Morning, Thank you for taking the questions.

Marie Thibault: I wanted to ask a little bit more about your electrophysiology business that that segment has been very strong and I have been impressed that you have.

Marie Thibault: <unk> been able to put up that European growth rate in the face of some competitive.

Marie Thibault: PSA launches so would love to hear what's going on behind the scenes there how youre getting those growth rates on how youre thinking about the U S E T business Sbcs and PSA launches this year.

Speaker Change: For taking my questions.

Speaker Change: Sure. Well, I think we've showed pretty strong, robust growth in our EP business throughout all the year, even in the face of actual in-market competition.

Speaker Change: Sure. Well, I think we've shown pretty strong, robust growth in our EP business throughout the whole year, even in the face of actual in-market competition. It's been strong across the board. I don't think it's just been a European story.

Speaker Change: Sure.

Speaker Change: Well I think we've showed pretty strong robust growth.

Speaker Change: In our EP business throughout all the year, even in the face of actual end market.

Speaker Change: Competition.

Speaker Change: It's been strong across the board. I don't think it's just been a Europe story. U.S. has been strong. China has been very strong for us this year, especially in VBP. I mean, there was some price challenges throughout the year with VBP, but the volume we picked up, the market share we pick up more than offset that. So it's really been across the board here. And I think it really is about the strength of the portfolio. So, you know, not only having a strong mapping system with our inside X, I think is at the core, you know, good mapping disposables and diagnostic disposables also. And I think launching TactiFlex, which is, you know, the flexible tip combined with a contact force, we've seen great results, great outcomes, whether it's, you know, outcomes for the patient or

Speaker Change: It's been strong across the board I don't think it's just been a Europe story.

Speaker Change: <unk> has been strong China has been very strong for us this year.

Speaker Change: Especially at <unk> I mean, there was some there was some price challenges throughout the year with BBB, but the volume we picked up the market share we pick up more than more than offset that so it's really been across the board here and I think it really is about the strength of the portfolio. So.

Speaker Change: And not only having a <unk>.

Speaker Change: Strong <unk>.

Speaker Change: <unk> system.

Speaker Change: With our <unk> I think is at the core.

Speaker Change: Good mapping disposables and diagnostic disposables also and I think.

Speaker Change: And I think launching TactiFlex, which is the flexible tip combined with a contact force. We've seen great results, great outcomes, whether it's outcomes for the patient or..., time of procedure. We've seen that consistently around the world. And then on top of that, I think we've got a great team, really a great team that is very close to our customers. And yeah, we were able to see the adoption of new technologies. We've talked about some of the shortcomings that exist in those.

Speaker Change: Launched tack to flex.

Speaker Change: Which is the flexible flexible tip combined with the contact center.

Speaker Change: Seen great results great outcomes, whether it's.

Speaker Change: I'll come to the patient or.

Speaker Change: time of procedure. We've seen that consistently around the world. And then on top of that, I think we've got a great team, really a great team that is very close to our customers. And yeah, we were able to see the adoption of new technologies. We've talked about some of the shortcomings that exist in those. So I think it's really the combination of our portfolio and our team that really has kind of sustained the growth. As we look to, you know, more PFA systems that will be in the market this year in the U.S. Listen, as I've said, I think it's a great technology. I think there are some challenges with some of these first generation products. I do expect there to be uptake and usage of it. I think what's been interesting in observing the uptake in Europe is that it is first, at least from what we've seen, it is first seen to have broader adoption in the cryo sector.

Speaker Change: Time of procedure, we've seen that consistently around the world and then on top of that I think we've got a great team.

Speaker Change: Really a great team that is very close to our customers.

Speaker Change: Yes, we were able to see the adoption of new technologies, we've talked about some of the shortcomings that exist in those so I think it's really the combination of our portfolio and are on our team.

Speaker Change: So I think it's really the combination of our portfolio and our team that really has kind of sustained the growth. As we look to, you know, more PFA systems that will be in the market this year in the U.S. Listen, as I've said, I think it's a great technology, but I think there are some challenges with some of these first generation products.

Speaker Change: That really has kind of sustain the growth as we look to.

Speaker Change: More PFA systems that will be in the market this year in.

Speaker Change: In the U S listen I as I've said I think it's a great technology.

Speaker Change: There are some challenges with some of these first generation products I do expect there to be uptake in usage of it.

Speaker Change: I do expect there to be uptake and usage of it. I think what's been interesting in observing the uptake in Europe is that it is the first, at least from what we've seen, it is the first seen to have broader adoption in the cryo sector. And then from there, kind of moving past that. So, you know, right now, I think, I guess that's my assumption in the U.S. Until I see something differently, that it will follow a similar pattern. And then the question will just be kind of about the speed.

Speaker Change: I think what's been interesting in observing the uptake in Europe is that it is first at least from what we've seen it as first seemed to have broader adoption in the cryo segment.

Speaker Change: and then from there, then kind of moving past that. So, you know, right now, I think, I guess that's my assumption in the U.S. until I see something differently is that, you know, it will follow a similar pattern and then the question will just be kind of the speed. But I think the team has done a really good job here on the ground, you know, with the technology.

Speaker Change: And then from there then kind of moving moving past that so.

Speaker Change: Right now I think I guess, that's my assumption in the U S until I see something differently.

Speaker Change: It will follow a similar pattern.

Speaker Change: And then the question will just be kind of the speed but.

Speaker Change: But I think the team has done a really good job here on the ground, you know, with the technology. Thank you, Robert. Thank you. And our next question will come from Robbie Marcus from J.P. Morgan. Your line is open.

Speaker Change: I think the team has done a really good job here.

Speaker Change: On the ground with the technology.

Speaker Change: Thank you, Robert.

Speaker Change: Thank you Robert.

Robert B. Ford: Thank you.

Robert: Thank you.

Speaker Change: And our next question will come from Robbie Marcus from J.P. Morgan. Your line is open.

Speaker Change: And our next question will come from Robbie Marcus from Jpmorgan. Your line is open.

Robbie Marcus: Oh, great. Thanks for taking the question. Robert, maybe I could ask on Libre, you know, this is the most successful medical device. At the conference just a few weeks ago in San Fran, you were talking about really robust growth rates moving forward and targets.

Robbie Marcus: Oh, great. Thanks for taking the question.

Robbie Marcus: Oh, great. Thanks for taking the question. Robert, maybe I could ask on Libre. You know, this is the most successful medical device.

Robbie Marcus: Robert maybe I could ask on Libre. This is the most successful medical device.

Robbie Marcus: At the conference just a few weeks ago in San Fran you were talking about really robust growth rates moving forward and targets.

Robbie Marcus: At the conference just a few weeks ago in San Fran, you were talking about really robust growth rates moving forward and targets. You know, maybe you could help us understand where the growth is going to come from in 24 and beyond. And one question I get a lot from investors is: "We see the IQ via script data. It's the best we have."

Robbie Marcus: you know maybe you could help us understand where the growth is going to come from in 24 and beyond and one question I get a lot from investors is we see the IQVS script data it's the best we have it seems like Libre sales or at least prescriptions are flattening out yet the sales keep growing

Robbie Marcus: Maybe you could help us understand where the growth is going to come from in 'twenty, four and beyond and one question I get a lot from investors is we see the IQ via script data to the best we have it seems like libre sales or at least prescriptions are flattening out yet the sales keep growing.

Robbie Marcus: How do we think about the discrepancy there and how big is the Medicare DME business?

Robbie Marcus: How do we think about the discrepancy there and how big is the Medicare <unk> business.

Robbie Marcus: It seems like Libre sales, or at least prescriptions for it, are flattening out, yet sales keep growing. How do we think about the discrepancy there and how big is the Medicare DME business? You know, the growth we're getting there from Basel. Thanks a lot.

Speaker Change: You know, the growth we're getting there from Basel. Thanks a lot.

Robbie Marcus: The growth, we're getting there from basal thanks a lot.

Speaker Change: Sure. Strong growth in Q4, under $1.5 billion. U.S. was up 32%.

Sure.

Robbie Marcus: <unk> growth in Q4.

Robbie Marcus: Under $1 5 billion U S was up 32%.

Speaker Change: And I'd say still haven't, team hasn't even had to unleash L3 in the U.S. market in 2023. I think you'll see that now really hit in 2024. But, you know, being able to put those kind of growth rates in the U.S. without even having to launch L3 with a competitive new system, I think that speaks a lot about our position, our scale, and our brand. You know, the growth is going to come from, I've been pretty consistent about this, Robbie, and there was a lot of opportunities here for growth. I'm not going to list them all out here, but I'd say, okay, the Basel is a big opportunity. It's a large opportunity for us, and I also think it's multi-year. So I don't think it's just a 24, 25. I think the penetration to the Basel segment. It's definitely, you know, two-plus years easily. And Libre dominates in the pharmacy channel here. I mean, you reference IQVIA, Robbie. Seven out of ten new scripts for this patient segment is Libre. And I think that's a testament to the strength and the value proposition that the product has. So it's becoming an increasingly strong growth contributor in the U.S. In Japan and in France, where, you know, that reimbursement is exclusive to Libre, that's also having a nice contribution on growth. I think right now in the U.S., most of the population is now covered, whether it's in Medicare or whether it's in private commercial. Medicare represents about a third of the market. So, yeah.

Speaker Change: And I'd say.

Speaker Change: Haven't team Hasnt, even add to unleash L. Three in the U S market in 2023, I think youll see that.

Speaker Change: Sure. Strong growth in Q4, under 1.5 billion, the U.S. was up 32%. And I'd say still haven't, the team hasn't even had to unleash L3 in the U.S. market in 2023.

Speaker Change: Now really hit.

Speaker Change: In 2024, but be able to put those kind of growth rates in the U S.

Speaker Change: Without even having to launch L. Three with the competitive new system I think that speaks a lot about our position our scale and our brand.

Speaker Change: I think you'll see that really hit in 2024. But, you know, being able to achieve those kind of growth rates in the U.S. without even having to launch L3 with a competitive new system, I think that speaks a lot about our position, our scale, and our brand. You know, the growth is going to come from, I've been pretty consistent about this, Robbie, and there are a lot of opportunities here for growth. I'm not going to list them all out here, but I'd say, okay, Basel is a big opportunity. It's a big opportunity for us, and I also think it's multi-year, so I don't think it's just a 24, 25.

Speaker Change: The growth is going to come from.

Speaker Change: <unk> been pretty consistent about this Rob I mean, there was a lot of opportunities here for growth.

Speaker Change: I'm not going to list them all out here, but I would say, okay. The basal as Basil is a big opportunity.

Speaker Change: It's a large opportunity for us, but I also think it's multiyear so.

Speaker Change: So I don't think its just a 'twenty four 'twenty five I think the penetration into the basal segment is definitely.

Speaker Change: Two plus years easily.

Speaker Change: And Lee break dominates in the pharmacy channel here I mean, you referenced IQ via Ravi seven out of 10, new scripts for this patient segment is as Libre.

Speaker Change: And I think thats.

Speaker Change: A testament to the strength and the value proposition.

Speaker Change: The product has so it's becoming an increasingly strong growth contributor in the U S.

Speaker Change: I think the penetration into the Basel segment is definitely, you know, two plus years easily. And Libre dominates in the pharmacy channel here. I mean, you referenced IQVIA, Robbie.

Speaker Change: In Japan, and in France, where that reimbursement is exclusive to Libre. That's also having a nice contribution on growth.

Speaker Change: Seven out of 10 new scripts for this patient segment are for Libre, and I think that's a testament to the strength and the value proposition that the product has. So it's becoming an increasingly strong growth contributor in the U.S. In Japan and in France, where, you know, that reimbursement is exclusive to Libre, that's also making a nice contribution to growth. I think right now in the U.S., most of the population is now covered, whether it's Medicare or whether it's private commercial. Medicare represents about a third of the market. So,

Speaker Change: I think right now in the U S. Most of the population is now covered.

Speaker Change: Whether it's in Medicare or whether it's in private.

Speaker Change: Private commercial Medicare represents about a third of the market. So.

Speaker Change: So I think there's great opportunity here. We just got to build the awareness, build the, you know, build the trialing experience with primary care. And that's what we're doing. That's what we have been doing, quite frankly, for some time. So it's a nice opportunity, and it's a great growth opportunity for us. And like I said, you know, easily two-plus years. I think the other part of the opportunity we have, Robbie, is, you know, looking at a segment that really hasn't been, we haven't been able to access, which is that of, you know, pump connectivity. I think this represents a great opportunity for us. If you look at Basel as being a market expansion opportunity, I think the pump connectivity becomes a market conversion opportunity for us. You've got $150,000. You've got $100,000 to $200,000, I guess, new pumpers every year. And that patient segment has, you know, we haven't been able to target it. But now that we've got the regulatory clearings and connecting to pumpers,

Speaker Change: So I think there's great opportunity here, we just got to build the build the awareness build the build the trialing experience with primary care.

Speaker Change: And that's that's what we're doing that's what we have been doing quite frankly for some time.

So it's a nice opportunity and it's a great growth opportunity for us.

Speaker Change: Unlike I said easily two plus years I think the other part of the opportunity we have.

Speaker Change: Ravi is.

Speaker Change: As.

Speaker Change: Looking at a segment that really hasnt been we havent been able to access.

Speaker Change: Which is that.

Speaker Change: Pump connectivity I think this represents a great opportunity for us if you look at basal as being a market expansion opportunity I think the pump connectivity.

Speaker Change: So I think there's a great opportunity here. We just have to build the awareness, build the trialing experience with primary care. And that's what we're doing. That's what we have been doing, quite frankly, for some time. So it's a nice opportunity, and it's a great growth opportunity for us. Like I said, easily two plus years.

Speaker Change: From a market conversion opportunity for us you've got 150000 to 200000.

Speaker Change: New pumper is every year in that patient segment has.

Speaker Change: We haven't been able to targeted but now that we've got the regulatory clearing and.

Speaker Change: I think the other part of the opportunity we have, Robbie, is looking at a segment that really hasn't been, or we haven't been able to access, which is that of pump connectivity. I think this represents a great opportunity for us. If you look at Basel as being a market expansion opportunity, I think pump connectivity becomes a market conversion opportunity for us. You got 150,000 to 200,000, I guess, new pumpers every

Speaker Change: And connecting to.

Speaker Change: to all the different pump manufacturers. I think this is a great opportunity for us. You know, and I think it's good for patients. I think it's going to be good to have a different option, especially for this patient population where insulin delivery and the whole connected system is important, right? Recently, there was an independent third-party study. I think this is the first time you've seen an independent head-to-head study that was published a few weeks ago showing that Libre 3 is superior to the recently launched product from our competitor across a variety of different metrics, whether it's bias, whether it's MARG. So, I look at that and I say, okay, if you're a pump company and you're wanting to provide the best

Speaker Change: To all the different pump manufacturers I think this is a great opportunity for us.

Speaker Change: And I think.

Speaker Change: I think it's good for patients I think it's going to be good.

Speaker Change: To have a different option, especially for.

Speaker Change: For this patient population, where insulin delivery and the whole connected system is important right.

Speaker Change: Recently, there was an independent third party study I think thats. The first time, we've seen an independent head to head star.

Speaker Change: Study that was published.

Speaker Change: A few weeks ago.

Speaker Change: Showing that Libre three is superior to the recently launched product from from our competitor across a variety of different metrics, whether it's biased, but whether it's mark so I look at that and I say, okay, if you're a pump company.

Speaker Change: And that patient segment hasn't been able to target it. But now that we've got the regulatory clearances and are connecting to all the different pump manufacturers, I think this is a great opportunity for us. You know, and I think it's good for patients. I think it's going to be good to have a different option, especially for this patient population where insulin delivery and the whole connected system are important, right? Recently, there was an independent third-party study.

Speaker Change: And you're wanting to provide the best best.

Speaker Change: <unk>.

Speaker Change: You know, best solution to your users. That's an important aspect, especially for this segment. So I look at the basal, I look at the pump as probably good drivers for us, you know, in 24, 25. But, you know, we've got multiple growth verticals here on this platform, like I've said. To your question on IQVIA, you know, I think anybody who kind of follows pharma and is more attuned to pharma knows that IQVIA doesn't pick up the entire market. So, you know, the pharmacy channel in the U.S. gets picked up by IQVIA, but there are other segments in the market that drive, you know, drive adoption that don't get picked up by IQVIA. So maybe that's what you're saying.

Speaker Change: Best solution to users that's an important aspect, especially for this segment. So I look at the basal I look at the pump.

Speaker Change: It's probably good drivers for us.

Speaker Change: In 'twenty four 'twenty five, but we've got we've got multiple growth verticals here on this platform like I've said.

Speaker Change: Your question on <unk>.

Speaker Change: No.

Speaker Change: I think anybody who kind of follows pharma.

Speaker Change: I think this is the first time we've seen an independent head-to-head study that was published a few weeks ago showing that Libre 3 is superior to the recently launched product from our competitor across a variety of different metrics, whether it's biased, whether it's marred. So, I look at that and I say, okay, if you're a pump company and you're wanting to provide the best, best, you know, best That's an important aspect, especially for this segment.

Speaker Change: And as more attuned to pharma.

Speaker Change: Knows that IQ good doesn't pick up the entire market. So.

Speaker Change: The pharmacy channel in the U S gets picked up by <unk>, but there are other segments in the market that drive.

Speaker Change: Drive adoption that don't get picked up by <unk>. So maybe that's maybe thats what youre seeing.

Speaker Change: Great. Appreciate the talk.

Speaker Change: Great I appreciate the thoughts.

Speaker Change: Thank you.

Speaker Change: Our next question will come from Danielle Ann Toffey from UBS. Your line is open.

Speaker Change: Our next question will come from Danielle <unk> from UBS. Your line is open.

Speaker Change: Hey, good morning guys. Thanks so much for taking the question. Congrats on a strong end to the year and strong guidance. Just Robert, since this story seems to be very much about line growth, I haven't heard you reference the Fab Five, one of my favorite analogies in a long time. So just wanted to, and maybe I just missed it, but just wanted to get an update on those five products or where you think you guys are in launch trajectories, revenue contribution for each of those products. Do you still think they're the Fab Five and where, you know, how they sort of factor into the growth, the eight to 10% organic growth for 2024? Thanks so much.

Danielle: Hey, good morning, guys. Thanks, so much for taking the question congrats on a strong end of the year end and strong guidance just Robert Smith.

Speaker Change: So I look at the base, and I look at the pump as probably good drivers for us, you know, in 24, 25. But, you know, we've got multiple growth verticals here on this platform, like I've said. To your question on IQVIA, you know, I think anybody who kind of follows pharma and is more attuned to pharma knows that IQVIA doesn't pick up the entire market. So, you know, the pharmacy channel in the U.S. gets picked up by IQVIA, but there are other segments in the market that drive, you know, drive adoption that don't get picked up by IQVIA. So maybe that's, maybe that's what you're.

Robert Marcus: Do you think you'd be very much about plain growth.

Robert Marcus: I haven't heard you reference the fab five one of my favorite analogies in a long time so.

Robert Marcus: Just wondering if you and maybe I just missed it but just wanted to get an update on those five products or where you think you guys are in launch trajectories revenue contribution for each of those products do you still think there are the fab five.

Speaker Change: And where how they sort of factor into the growth to 8% to 10% organic growth for 2024. Thanks, So much yes.

Speaker Change: Yes. Thanks.

I don't know if I regret using that terminology or not now.

Speaker Change: Danielle but.

Speaker Change: I guess.

Speaker Change: I would say, yes, they are great products.

Speaker Change: And we didn't think about calling them that because theyre going to be a flash in the pan for one or two years. We look at these as really long term great growth opportunities that we have.

Speaker Change: Great, I appreciate the thoughts. Thank you. Our next question will come from Danielle Ann Tolfey from UBS. Your line is open. Hey, good morning, guys.

Speaker Change: That will significantly add to the company.

Speaker Change: Thanks so much for taking the question. Congratulations on a strong end to the year and strong guidance. Just, Robert, since this story seems to be very much about supply and growth, I haven't heard you reference the Fab Five, one of my favorite analogies in a long time. So just wanted to, and maybe I just missed it, but just wanted to get an update on those five products or where you think you guys are on the launch trajectories, revenue contribution for each of those products. Do you still think they're the Fab Five and how do they sort of factor into the growth, the 8 to 10% organic growth for 2024? Thanks so much. Yeah, thanks. I don't know if I regret using that terminology or not now, Danielle, but I guess I would, I would, I would say yes, they are great products.

Speaker Change: Over over the next few years and quite frankly, they have added.

Speaker Change: A good amount of growth for us.

Speaker Change: This year and they will accelerate so I think this year sorry in 2023, those five product that represented about half a point of growth I expect that to increase in 2024 to about about a point of growth total Abbott contribution. So so theyre definitely stepping up.

Speaker Change: And I'd say some of them I would call market, creating opportunities tricuspid I would put over there at Cardiome Mems over there generating the clinical data generating the data for reimbursement.

Speaker Change: Generating referral pathways, we know how to do this.

Speaker Change: And we all want things to go pretty fast, especially with med tech products right.

Speaker Change: Products like this that have such significant growth opportunities.

There is a certain amount of work that you need to do regarding clinical work as it relates to <unk>.

Speaker Change: Market expansion development and market development.

Speaker Change: I'd say some of the other products on that list I would say are probably more market market conversion and these are already attractive large attractive growth segments.

Robert B. Ford: And we didn't think about calling them that because they were going to be a flash in the pan for, you know, one or two years. We look at these as really long-term great growth opportunities that we have that will significantly add to the company over the next few years. And, you know, quite frankly, they have added a good amount of growth for us this year, and they'll accelerate it. So I think this year, sorry, in 2023, those five products that represented about half a point of growth, I expect that to increase in 2024 to about a point of growth in total Abbott contribution. So, they're definitely stepping up.

Speaker Change: That debt.

Speaker Change: That we're targeting with our technologies.

Speaker Change: <unk> in the <unk> space.

Speaker Change: They're in the CRM side I mean, these are large large segments that were coming in.

Speaker Change: And we will have different value propositions, I think <unk> got a tremendous opportunity, it's a $3 billion global pacing market and the value proposition for.

Are there I think is second to none.

Speaker Change: In terms of its proposition to the to the implant or to the patient.

Speaker Change: We I expect.

Speaker Change: I expect a lot from <unk>.

In terms of growth.

Speaker Change: I expect a lot from <unk>.

Speaker Change: And we're going to be expanding so we'll have two new line extensions to <unk> this year and average revision and laboratory tightened.

Robert B. Ford: And I'd say some of them, I would call market-creating opportunities, Tricuspid, I would put over there, CardioMEMS over there, you know, generating clinical data, generating data for reimbursement, you know, generating referral pathways, you know, we know how to do this. And we all want things to go pretty fast, especially with MedTech products, right? But with products like this that have such significant growth opportunities, you know, there's a certain amount of work that you need to do regarding clinical work as it relates to, you know, market expansion, development, and market development. I'd say some of the other products on that list are probably more market entry, market conversion. And, you know, these are already attractive, large, attractive growth segments that, you know, that we're targeting with our technologies, Navitore in the TAVR space, Avere on the CRM side. I mean, these are large, large segments that, you know, we're coming into, and we'll have different value propositions. I think Avere's got a tremendous opportunity.

Speaker Change: And so we're investing in those areas and yes. There is still there is still great products.

Speaker Change: We'll have the fab five on it and <unk>.

Speaker Change: They continue to increase.

Speaker Change: They'll grow 50% leased we're forecasting a 50% growth next year and it will contribute about a point of growth.

Speaker Change: To the overall company so.

Speaker Change: That being said I will say.

Speaker Change: Those are great products and they take a lot of focus but we still have we still have a lot in the chamber here too whether it's lingo, whether it's our tbi test, we're going to be launching a nutritional drink for <unk> users. This year also.

Robert B. Ford: Those are great products and they take a lot of focus, but we still have, you know, we still have a lot in the chamber here too, whether it's lingo, whether it's our TBI test, we're going to be launching a nutritional drink for GLP-1 users this year. Also, you know, we're doing a lot of work on Volt, which is our PFA solution. We put out some announcements already at the beginning of the year regarding our clinical trials. I talked about biosimilars in EPD, our dual analyte sensor for Libre. We're developing a new alinity system to target a segment of the diagnostic market that we're currently not competing. So, yeah, 5.5, a lot of great contributions, but there's a lot in the chamber here. And I think that's really what's going to sustain our growth beyond 2024 and 2025 is just having a robust pipeline.

Speaker Change: We're doing a lot of work on vault, which is our <unk> solution, we put out some announcements our read of the beginning of the year regarding our clinical trials I talked about biosimilars.

Speaker Change: Our dual analyte sensor for for Libre.

Speaker Change: We're developing a new <unk> system to target a segment of the diagnostic market that we're currently not competing so so yes, $5 five a lot of great contributions, but theres a lot in the chamber here and I think thats really whats going to sustain our growth beyond 2024, and 2025 is just having a robust pipe.

Speaker Change: Your line.

Speaker Change: Thank you very thorough thank you so much.

Speaker Change: Thank you. Very thorough. Thanks so much.

Speaker Change: Thank you.

Speaker Change: Our next question will come from Joanne Wuensch from Citibank. Your line is open.

Joanne K. Wuensch: Good morning and thank you for taking the questions. Nice start to the year or nice end to last year too. So here's a question I have. In nutrition, you've done a great job of sounds like returning to normalcy. I'm wondering if there are pockets that still need to sort of get back on track or whether we should think of this returning to sort of a mid-single digit segment growth category.

Joanne K. Wuensch: Good morning, and thank you for taking my questions and nice start to the year end to last year.

Robert B. Ford: It's a $3 billion global pacing market, and the value proposition for Avere, I think, is second to none in terms of its proposition to the implanter, to the patient, so we expect a lot from Avere in terms of growth. I expect a lot from Navitore, and we're going to be expanding, so we'll have two new line extensions for Navitore this year, Navitore Vision and Navitore Titan And so we're investing in those areas, and yeah, they're still great products. They'll still have the Fab Five on them, and they continue to increase.

Joanne K. Wuensch: So here's a question I have and nutrition, you've done a great job of it sounds like returning to normalcy.

Joanne K. Wuensch: Wondering if there are pockets that still need to sort of get back on track or whether we should think of this returning to sort of a mid single digit.

Joanne K. Wuensch: Segment growth category.

Speaker Change: Thank you.

Speaker Change: Yeah, I think kudos to the team here. We set out a target at the beginning of last year, this time last year, to get to market leadership in our October call. We had already confirmed that, and I'd say over the last couple of months that continues to expand in terms of our position versus the number two.

Yes.

Speaker Change: Yes, I think kudos to the team here.

Speaker Change: We set out a target at the beginning of last year at this time last year to get to market leadership.

Speaker Change: Our October call, we had already confirm that and I'd say over the last couple of months that that continues to expand.

In terms of our position versus versus the number too.

Speaker Change: Yeah, I mean, I think you'll now have the full-year effect, Joanne, of having all of that share, and I'd say, you know, given the strength of the portfolio of the team and what we went through and the actions that we've taken,

Robert B. Ford: They'll grow 50 percent, or at least we're forecasting a 50 percent growth next year, and they'll contribute about a point of growth to the overall company. So, you know, that being said, I will say, you know, those are great products and they take a lot of focus, but we still have a lot in the chamber here too, whether it's LINGO, whether it's our TBI test, we're gonna be launching a nutritional drink for GLP-1 users this year. Also, we're doing a lot of work on FOLT, which is our PFA solution. We put out some announcements already at the beginning of the year regarding our clinical trials. I talked about biosimilars in EPD, our dual analyte sensor for Libre. We're developing a new alignment system to target a segment of the diagnostic market that we're currently not competing in. So yeah, 5.5, a lot of great contributions, but there's a lot in the chamber here. And I think that's really what's gonna sustain our growth beyond 2024 and 2025, just having a robust pipeline. Thank you. Very thorough. Thank you so much.

Speaker Change: Yes, I mean, I think you will now have the full year effect.

Speaker Change: Joanne of having all of that share.

Speaker Change: And.

Speaker Change: I'd say given the strength of the portfolio of the team and what we went through and the actions that we've taken.

Speaker Change: I'd actually expect us to actually surpass our pre-recall share. You know, I don't know exactly when, but that'll be my expectation on that. You'll have a little bit of a partial year impact there of some pricing that we took across the entire nutrition portfolio. So, I'd say we're probably above that four to six range that we used to have pre-pandemic, at least into 2024. As I've said, I think that we can, you know, be at the higher end of that range once everything kind of settles down. And I think a big growth driver for us going forward is really going to be the adult segment, which is growing high single digits, and of which we've got

Speaker Change: I would actually expect us to actually surpass our pre recall share.

Speaker Change: Yes.

Speaker Change: I don't know exactly when.

Speaker Change: But that will be my expectation.

Speaker Change: That.

Speaker Change: You'll have.

Speaker Change: A little bit of a partial year impact there of some pricing that we took.

Speaker Change: Across the entire nutrition portfolio.

So I'd say, we're probably above that 4% to six range that we used to have pre pandemic at least into 2024.

Speaker Change: As I've said I think that we can be at the higher end of that range once everything settles down and I think a big growth driver for us going forward is really going to be the adult segment.

Speaker Change: Which is growing high single digits and of which we've got very high market share positions across the globe and this position.

Speaker Change: very high market share positions across the globe and this position, this position,

Speaker Change: With the brand we have, the science that we have, really aligns to, I'd say, a pretty I'd say, a pretty

Speaker Change: With the brand we have the science that we have really aligns to.

Speaker Change: I would say a pretty.

Speaker Change: sustainable demographic trend that we're seeing, which is just an aging population that is focusing on healthcare and on nutrition. So I'd say that's probably an opportunity for us to maybe break out of that higher N6 range going forward. But, you know, I think right now you'll see the impact of the share in the U.S., some partial year impact of the price.

Speaker Change: Sustainable.

Speaker Change: Demographic trends that we're seeing which is just an aging population that is focusing on health care and and on nutrition. So.

Speaker Change: So I'd say that's probably.

Speaker Change: An opportunity for us to maybe break out of that higher end six range going forward.

Robert B. Ford: Thank you. Our next question will come from Joanne Wuensch from Citibank. Your line is open. Good morning, and thank you for taking the questions. Nice start to the year, or a nice end to last year, too. So here's a question I have.

Speaker Change: I think right now youll see the impact of the share in the U S.

Speaker Change: Partial year impact of the price.

Speaker Change: Allow us to be above that 6% range and then as we move into next year whats going to be the impact of some of the launches that we have planned for the adult segment and what is that going to do for us.

Joanne K. Wuensch: In nutrition, you've done a great job of, sounds like, returning to normalcy. I'm wondering if there are pockets that still need to sort of get back on track, or whether we should think of this returning to sort of a mid-single-digit segment growth category. Thanks.

Speaker Change: Thank you very much.

Speaker Change: Thank you.

Speaker Change: And our next question will come from Vijay Kumar with Evercore ISI. Your line is open.

Vijay Muniyappa Kumar: Hi, guys. Thanks for taking my question. And Robert, congratulations on a nice Q4 and a solid guide. I guess my one question is on M&M. Looking at the balance sheet, phenomenal position. You at least have a minimum of $20 billion of firepower. Abbott hasn't done any large deals in the last few years. So my question is, how do you see the opportunity for a larger size deal? What is Abbott's appetite for a larger size, more meaningful transaction?

Vijay Muniyappa Kumar: Hi, guys. Thanks for taking my question and then Robert Congratulations on a nice Q4 and a solid guide.

Speaker Change: Yes, My one question is on M&A.

Joanne K. Wuensch: Yeah, yeah, I think kudos to the team here. You know, we set out a target at the beginning of last year, this time last year, to get to market leadership, and on our October call, we had already confirmed that. And I'd say over the last couple of months that that continues to expand in terms of our position versus versus number two. Yeah, I mean, I think you'll now have the full year effect, Joanne, of having all of that share.

Speaker Change: Looking at the balance sheet phenomenal position Keith have minimum 20 billion of firepower Abbott hasn't done any large deals in the last few years. So my question is.

Speaker Change: How do you see the opportunity for larger size deals what does abbott's appetite for a larger sized more meaningful transaction.

Speaker Change: Thank you.

Robert B. Ford: Well, yeah, we've got a strong balance sheet and provides us a lot of flexibility on our capital allocation plan. On the M&A side, Vijay, listen, I think it starts off with we've got great pipeline. We have great organic opportunities here to be able to kind of drive top-tier sustainable growth. So that ends up allowing us to be in a selective position here where we're not trying to use M&A as a way to kind of bulk up our top line or to cover any kind of top-line gaps that might be there. So that allows us to be more selective. And if there are opportunities that fit strategically and can generate an attractive return, then we're going to be able to do that.

Speaker Change: Well, we got a strong balance sheet.

Speaker Change: And provides us a lot of flexibility on our on our capital allocation plan on the M&A side Vijay.

Joanne K. Wuensch: And I'd say, you know, given the strength of the portfolio team and what we went through and the actions that we've taken, I'd actually expect us to actually surpass our pre-recall share, you know, I don't know exactly when, but that'll be my expectation on that. You'll have a little bit of a partial year impact there of some pricing that we took across the entire nutrition portfolio, so I'd say we're probably above that four to six range that we used to have pre-pandemic, at least into 2024. As I've said, I think that we can, you know, be at the higher end of that range once everything kind of settles down, and I think a big growth driver for us going forward is really going to be the adult segment, which is growing high single digits, and of which we've got very high market share positions across the globe and this position, With the brand we have, the science that we have really aligns to, I'd say, a pretty, sustainable demographic trend that we're seeing, which is just an aging population that is focusing on healthcare and on nutrition.

Speaker Change: Listen I think it starts off with we've got great pipeline, we have great organic opportunities here to be able to kind of drive top tier sustainable growth.

Speaker Change: So that that ends up putting allowing us to be in a selective position here.

We're not trying to use M&A as a way to kind of bulk up our top line or to cover any kind of topline gaps that might be there. So that allows us to be sustainable allows us to be more selective and if there are opportunities that fit strategically.

Speaker Change: And can generate an attractive return.

Speaker Change: Then.

Speaker Change: <unk>.

Speaker Change: Like you said, you've done the math. We've got we've got the flexibility and the firepower to do that. But I'm not looking to acquire businesses simply to make simply to make the top line look good. You know, profitability matters. You know, earnings matter. And, you know, when you when you get into these larger sized deals,

Speaker Change: Like you said you've done the math, we've got we've got the flexibility and the firepower to do that but I'm not looking to acquire businesses simply to make simply to make the top line look good.

Speaker Change: Profitability matters earned.

Speaker Change: Earnings matter and.

Speaker Change: When you when you get into these larger size deals.

Speaker Change: You know, you have to have very strong conviction and understanding of that to be able to generate those returns and not just look at it as a top line play. I think they're harder nowadays. You know, you look at what we did with St. Jude, and we have looked back at the deal model that we put together, you know, spot on in terms of all aspects there of how we thought this business would impact the company.

Speaker Change: You have to have very strong conviction and understanding of that to be able to generate those returns.

Speaker Change: And not just look at it as a top line play.

Speaker Change: I think they are harder nowadays.

Speaker Change: When you look at what we did with St. Jude.

Speaker Change: And we have look back that the deal model that we put together.

Joanne K. Wuensch: So I'd say that's probably an opportunity for us to maybe break out of that higher end six range going forward. But, you know, I think right now you'll see the impact of the share in the US, some partial year impact of the price. Allow us to be above that 6% range and then, as we move into next year, you know, what's going to be the impact of some of the launches that we have planned for the adult segment and what that will do. Thank you very much. And our next question will come from Vijay Kumar with Evercore ISI. Your line is open.

Speaker Change: Spot on in terms of all aspects there of how we thought this business would.

Speaker Change: It would impact the company so.

Speaker Change: So.

Speaker Change: So I'm not discarding anything like that. I'm just providing you the framework that says they're harder to make work if you want to look beyond just top line and you want to look at ROICs and all the right financial metrics here in terms of how you deploy capital.

Speaker Change: I am not discarding anything like that I'm, just providing you the framework that says they are harder to make work. If if if you want to look beyond just top line and you want to look at ROIC CS and all the right financial metrics here in terms of how you deploy capital and.

Speaker Change: Okay.

Speaker Change: I don't feel that we need to do anything like that to cover a top line kind of gap. If we ever did something like that, it was because it would be strategic and looking at the company kind of long term and not trying to fill a top line.

Speaker Change: But I don't feel that we need to do anything like that.

Speaker Change: To cover a topline kind of gap, if we ever did something like that it was because it would be strategic.

Speaker Change: And looking at the company kind of long term and not trying to feel a topline gap.

Speaker Change: Thanks, guys.

Speaker Change: Got it thanks guys.

Speaker Change: Operator, we'll take one more question.

Speaker Change: Operator, we'll take one more question please.

Speaker Change: Thank you. And our last question will come from Travis Steed from B of A Securities. Your line is open.

Speaker Change: Thank you and our last question will come from Travis Steed from Bofa Securities. Your line is open.

Vijay Muniyappa Kumar: Hi, guys. Thanks for taking my question. And Robert, congratulations on a nice Q4 and a solid guide. I guess my one question is on M&M. Looking at the phenomenal balance sheet position, you at least have a minimum of $20 billion of firepower. Abbott hasn't done any large deals in the last few years.

Travis Steed: Everybody, thanks for taking the question. So some of the insurance companies are getting surprised by higher procedure utilization. Some of the companies are kind of calling out above normal growth. So curious, Robert, if you look at your med device markets, are there areas where you think you're seeing some kind of above elevated, you know, catch up still coming through? Or do you think this is kind of more normalized growth rates that you're seeing in 2024? Just kind of curious in some of your thoughts on the overall market.

Travis Steed: Hi, good morning, Thanks for taking the question.

Travis Steed: So some of the insurance companies are getting surprised by higher procedure utilization. Some of that good companies are kind of calling out above normal growth. So curious Robert if you look at your med device markets are there areas, where you think youre seeing some kind of above elevated catch up so coming through or do you think this is kind of more normalized growth rates that youre seeing.

Speaker Change: So my question is, how do you see the opportunity for larger-scale deals? What is Abbott's appetite for a larger-scale, more meaningful transaction? Thank you.

Robert: In 2024, it is kind of curious in some of your thoughts on the overall market.

Robert B. Ford: Yeah, I don't think that we're seeing kind of any kind of catch-up or pent-up or anything like that. I think what you're seeing here is more, at least I can speak for our portfolio, I just think you're seeing more adoption of the technologies, right? So I think there was some disruption. We've talked about it on some parts of some procedures that require a little bit more pre-op planning or imaging before and imaging after. I mean, I think that combined with the labor shortages that occurred 2022, I think that that probably slowed a few of them down. But I don't think that there was a bolus returning as a result of that. I just think we got back into a normal cadence here of being able to see procedures increasing. We saw that in structural heart procedures, saw that in

Yes, I don't think that I don't think that we're seeing kind of any kind of catch up or pent up or or anything like that I think what youre seeing here is.

Robert B. Ford: Well, yeah, we've got a strong balance sheet that provides us with a lot of flexibility on our capital allocation plan. On the M&A side, Vijay, listen, I think it starts off with we've got a great pipeline. We have great organic opportunities here to be able to kind of drive top-tier sustainable growth, so that ends up putting us in a selective position here where we're not trying to use M&A as a way to kind of bulk up our top line or to cover any kind of top line gaps that might be there. So that allows us to be more selective.

Robert: More at least I can speak for our portfolio I, just think youre seeing more adoption.

Robert: Of all of the technologies right.

Robert: So I think there was some disruption we've talked about it in some parts of some procedures that require a little bit more pre op planning or imaging before an imaging after I mean I think those.

Robert: That combined with the labor shortages that occurred.

Robert: <unk> 2022, 2022, I think that that that probably slowed a few of them down but I don't I don't think that there was a bolus returning as a result of that I. Just I just think we got back into a normal cadence here of being able to see procedures.

Robert B. Ford: And if there are opportunities that fit strategically and can generate an attractive return, then that's what we're looking for. So that's where we are. Like you said, you've done the math.

Robert: Increasing we saw that in structural heart procedures saw that in.

Robert: <unk>.

Speaker Change: You know, in CRM and NDP procedures, not just here in the U.S., but around the world, too. So seeing that also in routine diagnostic testing, Travis, a lot of our – a good portion of the diagnostic business, our core lab business, is actually in the hospital. So we also get to see that, too. And, you know, didn't see a bolus of testing coming back. So we try and triangulate this. I just see this as, you know, procedures are returning back to normal. And because these technologies that are being developed and launched into the market are so – got such great opportunity to improve care, improve life of patients, I just think you're seeing the return to the adoption and the adoption curve. You know, some are faster than others, just given, I think, the market and, you know, market positions, et cetera. But I wouldn't account for it to be some sort of pent-up piece over here.

Robert B. Ford: We've got the flexibility and the firepower to do that, but I'm not looking to acquire businesses simply to make the top line look good. Profitability matters. Earnings matter. And when you get into these larger-scale deals, you have to have very strong conviction and understanding of that to be able to generate those returns and not just look at it as a top-line play. I think they're harder nowadays.

Robert: Yeah.

Robert: In CRM and EP procedures, not just here in the U S, but around the world too so seeing that also in di and routine diagnostic testing.

Robert: There's a lot of our a good portion of the diagnostic business. Our core lab business is actually in the hospital.

Robert: So we also get to see that too and didn't see it didnt see a bolus of testing coming back. So we try and triangulate. This I just see this as pre.

Robert: Procedures are returning back to normal and because the adopted because of these technologies that are being developed and launched into the market are so.

Robert B. Ford: You know, we look back at what we did with St. Jude, and we have looked back at the deal model that we put together, you know, spot on in terms of all aspects of how we thought this business would impact the company. So I'm not discarding anything like that. I'm just providing you the framework that says they're harder to make work if you want to look beyond just Popline and you want to look at ROICs and all the right financial metrics here in terms of how you deploy capital. But I don't feel that we need to do anything like that to cover a top-line kind of gap. If we ever did something like that, it would be because it would be strategic and looking at the company kind of long-term and not trying to fill a top line. Thanks, guys. Operator, we'll take one more question. Thank you. And our last question will come from Travis Steed from B of A Securities. Your line is open.

Robert: <unk> got such great opportunity.

Improve care improved life of patients I, just think youre seeing the return to the adoption.

Robert: Adoption curve some are faster than others, just given I think the market and.

Robert: Market positions et cetera, but I wouldn't I wouldn't account for it to be some sort of pent up.

Robert: So over here.

Speaker Change: Great. Thanks a lot. Okay. Well, I'll wrap up here. And like I said in the beginning, you know, very successful year 2023. In many ways, it sort of represented this transition year regarding, you know, regarding, you know, the coming down of COVID. I think we did a really good job at managing, you know, the scale up and the scale down. A lot of healthcare companies actually participated in trying to solve the, you know, the COVID problem. And I think we did a good job here at being able to scale up and scale down. Our performance here is now transitioned from being driven by COVID testing to once again being driven by a broad base.

Speaker Change: Great. Thanks, a lot.

Well I'll wrap up here.

Speaker Change: And like I said in the beginning very successful year of 2023 in many ways.

Speaker Change: It's sort of represented this transition year.

Speaker Change: Regarding.

Speaker Change: Regarding the coming down of Covid I think we did a really good job at managing the scale up and the scale down a lot of health care companies actually participated in trying to solve.

Speaker Change: <unk> problem.

Speaker Change: I think we did a good job here at being able to scale up and scale down our performance here.

Travis Steed: Everybody, thanks for taking the question. So some insurance companies are getting surprised by higher procedure utilization. Some of the companies are kind of calling out above-normal growth. So I'm curious, Robert, if you look at your med device markets, are there areas where you think you're seeing some kind of elevated, you know, catch up still coming through? Or do you think this is kind of more normalized growth rates that you're seeing in 2024? Just kind of curious about some of your thoughts on the overall market. Yeah, I don't think that we're seeing any kind of catch up or pent up or anything like that.

Speaker Change: Now transitioned from being driven by Covid testing to once again being driven by a broad based.

Speaker Change: Strength across the entire company. We deliver double-digit organic sales growth on every base business, on every quarter, and we're clearly entering 2024 with a lot of momentum. The pipeline, we talked a bit about it, continues to be highly productive, and I'm forecasting here top-tier growth in 2024. As you look at our range on the EPS guide, like I said, there's probably more upside to that than downside, but we're in January, so we're off to a good start and looking forward to executing this year.

Speaker Change: Strength across the entire company, we delivered double digit organic sales growth on every base business every quarter and we are clearly entering 2020 forward a lot of momentum the pipeline, we've talked a bit about it continues to be highly productive.

Speaker Change: And im forecasting here top tier growth in 2024, and as you look at our range on the EPS guide like I said, theres, probably more upside to that than downside.

Speaker Change: But we're in January so we're off to a good start and looking forward to executing this year.

Robert B. Ford: I think what you're seeing here is more, at least I can speak for our portfolio, I just think you're seeing more adoption of the technologies, right? So, you know, there was some disruption. We've talked about it in some parts of some procedures that, you know, require a little bit more pre-op planning or imaging before and imaging after. I mean, I think that combined with the, you know, the labor shortages that occurred in 2022, you know, 2022, I think that that probably slowed a few of them down. But I don't, I don't think that there was a bolus returning as a result of that.

Speaker Change: Thank you, Operator, and thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11 a.m. Central Time today on Abbott Investor Relations' website at abbottinvestor.com. Thank you for joining us.

Speaker Change: Okay. Thank you operator, and thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available. After 11 am central time today on Abbott Investor Relations website at Abbott Investor Dot Com. Thank you for joining us today.

Speaker Change: Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.

Speaker Change: Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.

Speaker Change: Thank you for watching.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: [music].

Robert B. Ford: I just, I just think we got back into a normal cadence here of being able to see, you know, procedures increasing. We saw that in structural heart procedures, saw that in, you know, in CRM and NDP procedures, not just here in the U.S. but around the world too. So seeing that also in routine diagnostic testing, Travis, a lot of our, a good portion of the diagnostic business, our core lab business, is actually in the hospital. So we also get to see that too.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Robert B. Ford: And, you know, I didn't see a bolus of testing coming back. So we're trying to triangulate this. I just see this as, you know, procedures are returning back to normal. And because these technologies that are being developed and launched into the market are so, they have such a great opportunity to improve care and improve the lives of patients. I just think you're seeing the return of adoption and the adoption curve. You know, some are faster than others, just given the market and, you know, market positions, et cetera. But I wouldn't account for it to be some sort of pent-up piece over here. Great, thanks a lot.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay, well, I'll wrap up here. And like I said at the beginning, you know, very successful year 2023. In many ways, it sort of represented this transition year.

Speaker Change: Yes.

Speaker Change: [music].

Okay.

Speaker Change: [music].

Speaker Change: Regarding, you know, regarding the coming down of COVID, I think we did a really good job at managing the scale up and the scale down. A lot of healthcare companies actually participated in trying to solve the COVID problem. And I think we did a good job here at being able to scale up and scale down. Our performance here has now transitioned from being driven by COVID testing to once again being driven by a broad base, and strength across the entire company. We deliver double-digit organic sales growth on every base business every quarter, and we're clearly entering 2024 with a lot of momentum.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.

Sure.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: The pipeline, we talked a bit about it, continues to be highly productive. And, you know, I'm forecasting here, top-tier growth in 2024. And, you know, as you look at our range on the EPS guide, like I said, there's probably more upside to that than downside. But we're in January.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: So we're off to a good start and looking forward to executing this. Okay, thank you, operator, and thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11 a.m. central time today on Abbott Investor Relations' website at abbottinvestor.com.

Speaker Change: Sure.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Thank you.

Speaker Change: [music].

Speaker Change: Thank you for joining us. Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day. Hopkins. Good evening. You can find these coils, shapes, & designs in our ETSY store!

Speaker Change: © transcript Emily Beynon © transcript Emily Beynon

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: https://www.etsy.com-shop-for-more-designs https://www.etsy.com-shop-for-more-designs https://www.etsy.com-shop-for-more-designs, ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Thank you for watching. Thank you for watching. Thank you for watching. Thank you for watching. Thank you for watching. Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? Good morning, and thank you for standing by.

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Speaker Change: © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon

Speaker Change: [music].

Speaker Change: Welcome to Abbott's fourth quarter 2023 earnings conference call. All participants will be able to listen only to the question and answer portion of this call. During the question and answer session, you will be able to ask your question by pressing the star one one keys on your touchtone phone.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: This call is being recorded by Abbott with the exception of any participants' questions asked during the question and answer session. The entire call, including the question and answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott Express written permission.

Speaker Change: Yes.

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Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

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Speaker Change: I would now like to introduce Mr. Mike Camilla, Vice President, Investor Relations. Good morning, and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer, Bob Funk, Executive Vice President, Finance, and Phil Boudreaux, Senior Vice President, Finance, and Chief Financial Officer. Bob and Phil will provide opening remarks. Following their comments, we'll take your questions. Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including our expected financial results. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statement. Economic, competitive, governmental, technological, and other factors that may affect Abbott's operations are discussed in Item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31st. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

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Speaker Change: [music].

Speaker Change: Thank you for watching. Thank you for watching. Thank you for watching. Thank you for watching. Thank you for watching.

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Speaker Change: Sure.

Speaker Change: Yes.

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Michael Weinstein: On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at Abbott.com. Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign exchange rates, which could impact reported sales. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today. With that, I will now turn the call over to Rob.

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Rob: Thanks, Mike. Good morning, everyone, and thank you for joining us. Today, I'll discuss our 2023 results, as well as our outlook for this year. But before I do that, I think it's important that we take a moment to look back at the challenging environment that we all faced over the last few years and how our actions during that time... have positioned the company to be in an even stronger position today than before the start of the pandemic. In the two years preceding the start of the pandemic, Abbott delivered organic sales growth of more than 7%, which was considered top tier given the large size of our company. We expected growth in 2020 to be in a similar range. But then COVID-19 arrived and disrupted that trajectory.

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Rob: And while our procedure-driven businesses, such as medical devices and routine diagnostic testing, experienced a slowdown due to healthcare systems around the world shifting their focus, our branded generics pharmaceutical business was able to stay the course, and our nutrition business accelerated as people around the world placed a greater emphasis on protecting their health. While some companies saw their entire portfolio suffer during the pandemic.

Thank you.

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Rob: Abbott's diversified business once again proved to be resilient. It was also during this time that we created a multi-billion dollar COVID testing business in just a matter of months that helped play a role in reducing the spread of the virus around the world. COVID testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022. And given the important role that these tests have on society and on our financial performance, COVID testing temporarily altered our identity and became a main point of focus for the general public, our investors, and other stakeholders. But we knew that the pandemic would not last forever.

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Rob: So we planned ahead. We pulled forward or accelerated investments in several areas across the company when the demand for COVID testing was at peak levels, knowing that we would scale these investments back down when the eventual decline in demand for COVID testing occurred, and the experiences we gained in creating the COVID testing business, and then managing the rapid scale up and subsequent scale down of that business will have a lasting positive impact on our company, our R&D pipeline, was one of the areas we targeted for the accelerated investments, and we're seeing those investments pay off. In the last two years, we have announced more than 25 new growth opportunities, which include a mix of new products. New Indication.

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Rob: Geographic and Reimbursement Expansion. And this level of pipeline activity is occurring across the entire company. In EPD, for example, we announced an agreement to commercialize several biosimilars in emerging markets. In nutrition, we continue to invest in science-based solutions to address emerging medical needs, with particular emphasis on the Fast-Growing Adult Nutrition Segment and diagnostics. We announced approvals for new tests, new instruments, and a new laboratory automation solution

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Speaker Change: Good morning and thank you for standing by. Welcome to Abbott's fourth quarter 2023 earnings conference call.

Speaker Change: Good morning, and thank you for standing by welcome to Abbott's fourth quarter 2023 earnings Conference call.

Speaker Change: All participants will be able to listen only until the question and answer portion of this call.

Speaker Change: During the question and answer session, you will be able to ask your question by pressing the star one one keys on your touch tone phone.

Speaker Change: During the question and answer session, you'll be able to ask your question by pressing the star one one keys on your Touchtone phone.

Speaker Change: This call is being recorded by Abbott. With the exception of any participants' questions asked during the question and answer session, the entire call, including the question and answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's express written permission.

Speaker Change: This call is being recorded by Abbott.

Speaker Change: With the exception of any participants questions asked during the question and answer session. The entire call, including the question and answer session is material copyrighted by Abbott.

Rob: And in medical devices, we announced 10 new product approvals, along with several new opportunities to further improve the growth outlook of the existing portfolio. These new opportunities are well balanced, with each of our seven medical device businesses accomplishing at least one significant pipeline-related achievement. Looking back at our performance in 2023, it is clear that these new opportunities contributed to an acceleration in our growth. Both our sales and earnings growth exceeded the expectations we communicated at the beginning of last year. Sales excluding COVID testing grew double digits every quarter last year and finished the year up more than 11 percent, higher than our original guidance of high single-digit growth. Adjusted earnings per share finished the year at $4.44, which was above the midpoint of our original guidance range, despite COVID testing sales coming in much lower than originally forecast.

Speaker Change: It cannot be recorded or rebroadcast without abbott's expressed written permission.

Speaker Change: I would now like to introduce Mr. Mike Camilla, Vice President, Investor Relations.

Speaker Change: I would now like to introduce Mr. Michael Miller, Vice President Investor Relations.

Michael Weinstein: Good morning and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer, Bob Funk, Executive Vice President, Finance,

Michael Weinstein: Good morning, and thank you for joining US with me today are Robert <unk>, Chairman and Chief Executive Officer, Bob Funck, Executive Vice President Finance and fill Boudreaux Senior Vice President Finance and Chief Financial Officer.

Speaker Change: and Phil Boudreaux, Senior Vice President, Finance and Chief Financial Officer.

Speaker Change: Robert and Phil will provide opening remarks. Following their comments, we'll take your questions.

Michael Weinstein: Robert and Phil will provide opening remarks following their comments, we'll take your questions.

Robert B. Ford: Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995.

Michael Weinstein: Before we get started some statements made today may be forward looking for purposes of the private Securities Litigation Reform Act of $19 95, including the expected financial results for 2024.

Robert B. Ford: including the expected financial results for 2024.

Robert B. Ford: Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially.

Michael Weinstein: Abbott cautions that these forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward looking statements.

Robert B. Ford: and those indicated in the forward-looking statements.

Robert B. Ford: Economic, competitive, governmental, technological, and other factors that may affect Abbott's operations.

Michael Weinstein: Economic competitive governmental technological and other factors that may affect abbott's operations are discussed in item one a risk factors to our annual report on Form 10-K for the year ended December 31 2022.

Rob: And this is a testament to the strength of the Abbott portfolio and a strong indication of the top-tier sustainable performance we are positioned to continue to deliver as we move past the pandemic. Turning to our outlook for 2024. As we announced this morning, we forecast sales growth, excluding COVID testing, to be in the range of 8 to 10 percent, which equates to generating organic sales growth of more than three billion dollars. We forecast adjusted earnings per share of $4.50 to $4.70, which contemplates double-digit earnings growth on the base business.

Robert B. Ford: are discussed in item 1A risk factors to our annual report on form 10-K for the year ended December 31st, 2021.

Robert B. Ford: Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments except as required by law.

Michael Weinstein: Abbott undertakes no obligation to release publicly any revisions to forward looking statements as a result of subsequent events or developments, except as required by law.

Robert B. Ford: On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance.

Michael Weinstein: On today's conference call as in the past non-GAAP financial measures will be used to help investors understand abbott's ongoing business performance.

Robert B. Ford: These non-GAAP financial measures are reconciled with the comparable GAAP financial measures as the GAAP financial measures.

Michael Weinstein: These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at Abbott Dot com.

Robert B. Ford: in our earnings news release and regulatory filings from today, which are available on our website at abbott.com.

Rob: And I'll provide additional details on our 2023 results by business area before turning the call over to Phil. I'll start with nutrition, where sales increased 14% in the quarter. In pediatric nutrition, double-digit growth in the U.S. was driven by continued market share capture in the U.S. from the Formula Business, where we are once again the market leader; international growth of 18% was driven by growth coming from both infant formula products and our pity-assured toddler brand; and adult nutrition, fills for the full year surpassed $4 billion and grew 13.5% in the quarter, driven by strong demand for Abbott's Turning to Established Pharmaceuticals, or EPD, where sales increased nearly 9% in the quarter and 11% for the full year.

Robert B. Ford: Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign exchange

Michael Weinstein: Note that Abbott has not provided the GAAP financial measure for our organic sales growth on a forward looking basis because of the company is unable to predict future changes in foreign exchange rates, which could impact reported sales growth.

Robert B. Ford: could impact reported sales

Robert B. Ford: Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier

Speaker Change: Yes, otherwise noted our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today with that I will now turn the call over to Robert.

Robbie Marcus: With that, I will now turn the call over to Robbie.

Robbie Marcus: Thanks, Mike.

Robert: Thanks, Mike.

Robbie Marcus: Good morning, everyone, and thank you for joining us.

Robert: Good morning, everyone and thank you for joining us.

Robbie Marcus: Today, I'll discuss our 2023 results.

Robert: Today I'll discuss our 2023 results.

Robbie Marcus: as well as our outlook for this year.

Robert: As well as our outlook for this year.

Robbie Marcus: Before I do that, I think it's important that we take a moment to look back at the challenging environment that we all faced over the last few years and how our actions during that time

Robbie Marcus: have positioned the company to be in an even stronger position today than before the start of the pandemic.

Robert: Our position the company to be in an even stronger position today than before the start of the pandemic.

Robbie Marcus: In the two years preceding the start of the pandemic, Abbott delivered organic sales growth of more than 7%.

Robert: And the two years preceding the start of the pandemic Abbott delivered organic sales growth of more than 7%.

Rob: This is the third consecutive year that EPD sales have grown double digits. Our unique business model of offering broad product portfolios across a targeted set of therapeutic areas that are tailored to the local needs of each emerging market we operate in continues to deliver outstanding results. Moving to diagnostics, growth and rapid diagnostics were impacted by seasonality related to the respiratory virus test. The flu season arrived later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Robbie Marcus: which was considered top tier given the large size of our company.

Robert: Which was considered top tier given the large size of our company.

Robbie Marcus: We expected growth in 2020 to be in the similar range,

Robert: We expect a growth in 2020 to be in the similar range, but then COVID-19 arrived and disrupted that trajectory and while our procedures driven businesses, such as medical devices and routine diagnostic testing experienced a slowdown.

Robbie Marcus: but then COVID-19 arrived and disrupted that trajectory. And while our procedures driven businesses such as medical devices and routine diagnostic testing experienced a slowdown,

Robbie Marcus: through the healthcare systems around the world shifting their focus.

Robert: Due to the health care systems around the world shifting their focus or.

Robbie Marcus: Our branded generics pharmaceutical business was able to stay the course

Robert: Our branded generics pharmaceutical business was able to stay the course.

Robbie Marcus: and our nutrition business accelerated as people around the world placed a great emphasis on protecting their health.

Robert: And our nutrition business accelerated as people around the world place a greater emphasis on protecting their health.

Robbie Marcus: While some companies saw their entire portfolio suffer during the pandemic,

Robert: While some companies saw their entire portfolio suffered during the pandemic.

Robbie Marcus: Abbott's diversified business once again proved to be resilient.

Abbott's diversified business once again proved to be resilient.

Rob: But in core laboratory diagnostics, growth of nearly 10% continues to be driven by the success of our Alinity suite of systems paired with our broad test menu offerings. Alinity continues to drive high contract renewal rates and competitive win rates. We recently announced that we received FDA approval for our new lab automation system, which offers cutting-edge technology to help laboratories increase performance and improve the overall quality of their operations.

Robbie Marcus: was also during this time that we created a multi-billion dollar COVID testing business.

Robert: It was also during this time that we created a multibillion dollar COVID-19 testing business in just a matter of months.

Robbie Marcus: in just a matter of months.

Robbie Marcus: that help play a role in reducing the spread of the virus around the world.

Robert: That help play a role in reducing the spread of the virus around the world.

Robbie Marcus: COVID testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022.

Robert: Covid testing grew to become a significant part of our portfolio, representing nearly 20% of our sales in 2021 and 2022.

Robert: And given the important role that these tests had on society and on our financial performance.

Robbie Marcus: COVID testing temporarily altered our identity.

Robert: Covid testing temporarily altered our identity.

Robbie Marcus: and became a main point of focus to the general public, our investors and other stakeholders.

Robert: And became a main point of focus the general public our investors and other stakeholders.

Robbie Marcus: But we knew that the pandemic would not last forever.

Robert: But we knew that the pandemic would not last forever.

Robbie Marcus: So we planned ahead.

Rob: This system has been available in international markets, and we look forward to offering this to customers in the U.S. Now, I'll wrap up with medical devices, where sales grew more than 15% in the quarter, led by Double Digit Grove and six of our seven medical device businesses. In diabetes care, fourth-quarter sales of Freestyle Libre, our market-leading continuous glucose monitoring system, grew 24% and ended the year with global sales exceeding $5.3 billion. In terms of sales dollars, Libre has become the most successful medical device in history, and it has outpaced market growth in 13 out of the last 16 quarters. In electrophysiology, sales growth of 21% was driven by double-digit growth across all major geographic regions, including more than 20% growth in Europe. In rhythm management, growth was led by double-digit growth in pacemaker sales led by Avere, a recently launched leadless pacemaker that can be used for both single-chamber and dual-chamber. Structural Heart.

Robert: So we planned ahead.

Robbie Marcus: We pulled forward or accelerated investments in several areas across the company when the demand for COVID testing was at peak levels.

Robert: We pulled forward or accelerated investments in several areas across the company when the demand for Covid testing was at peak levels.

Robbie Marcus: Knowing that we would scale these investments back down when the eventual decline in demand for COVID testing occurred.

Robert: Knowing that we would scale these investments back down when the eventual decline in demand for Covid testing occurred.

Robbie Marcus: and the experiences we gained in creating the COVID testing business, thank you so much for joining us.

Robert: And the experiences we gained in creating the COVID-19 testing business and.

Robbie Marcus: And then managing the rapid scale up and subsequent scale down of that business will have a lasting positive impact on our company.

Robert: And then managing the rapid scale up and subsequent scale down of that business will have a lasting positive impact on our company.

Robbie Marcus: Our R&D pipeline.

Robert: Our R&D pipeline.

Robbie Marcus: was one of the areas we targeted for the accelerated investments, and we're seeing those investments pay off.

Robert: One of the areas, we targeted for the accelerated investments and we're seeing those investments pay off.

Robbie Marcus: In the last two years, we have announced more than 25 new growth opportunities, which include a mix of new products.

Robert: And the last two years, we've announced more than 25, new growth opportunities, which include a mix of new products, new indications and geographic and reimbursement expansions.

Robbie Marcus: New indications.

Robbie Marcus: Geographic and reimbursement expansion.

Robbie Marcus: and this level of pipeline activity is occurring across the entire complex.

Robert: And this level of pipeline activity is occurring across the entire company.

Robbie Marcus: In EPD, for example, we announced an agreement to commercialize several biosimilars in emerging markets.

Robert: And <unk> for example, we announced an agreement to commercialized several biosimilars in emerging markets.

Robbie Marcus: In nutrition, we continue to invest in science-based solutions to address emerging medical needs

Robert: Nutrition, we continue to invest in science based solutions to address emerging medical needs with particular emphasis on fast growing adult nutrition segment.

Robbie Marcus: with particular emphasis.

Robbie Marcus: on the fast-growing adult nutrition segment.

Robbie Marcus: and diagnostics.

Robert: In diagnostics, we announce approvals for new tests, new instruments, and a new laboratory automation solution.

Robbie Marcus: We announce approvals for new tests, new instruments, and a new laboratory automation solution.

Rob: Double-digit growth in the quarter and full year was led by MitraClip, as well as several recently launched new products, including Amulet, Triclip, and Navitor. For the full year, microclips sales grew in the high teens internationally and 10% on a global basis. In heart failure, sales grew more than 15% in the quarter and 12% for the full year, driven by continued adoption of both chronic and acute circulatory support devices. And lastly, in neuromodulation, CILs grew nearly 19%, driven by the recent launch of ETERNA, our first rechargeable neurostimulation device for pain management. So, in summary, we exited the pandemic in an even stronger position. 2023 was a very successful year.

Robbie Marcus: and in medical devices, we announced 10 new product approvals, 10 new product approvals,

Robert: And in medical devices, we announced 10, new product approvals, along with several new opportunities to further improve the growth outlook of the existing portfolio.

Robbie Marcus: along with several new opportunities to further improve the growth outlook of the existing portfolio.

Robbie Marcus: These new opportunities are well balanced.

Robert: These new opportunities are well balanced.

Robbie Marcus: With each of our seven medical device businesses accomplishing at least one significant pipeline related achievement.

Robert: With each of our seven medical device businesses accomplishing at least one significant pipeline related achievement.

Robbie Marcus: Looking back at our performance in 2023, it is clear that these new opportunities contributed to an acceleration in our growth.

Robert: Looking back at our performance in 2023, it is clear that these new opportunities opportunities contributed to an acceleration in our growth.

Robbie Marcus: Both our sales and earnings growth exceeded the expectations we communicated at the beginning of last year.

Robert: Both our sales and earnings growth exceeded the expectations, we communicated at the beginning of last year.

Robbie Marcus: Sales excluded COVID testing grew double digits every quarter last year and finished the year up more than 11%, higher than our original guidance of high single-digit growth.

Robert: Sales, excluding COVID-19 testing grew double digits every quarter last year and finished the year up more than 11% higher than our original guidance of high single digit growth.

Robbie Marcus: Adjusted earnings per share finished the year at $4.44.

Robert: Adjusted earnings per share finished the year at $4 44.

Robbie Marcus: which was above the midpoint of our original guidance range, and we'll see you next time.

Which was above the midpoint of our original guidance range. Despite COVID-19 testing sales coming in much lower than originally forecasted.

Robbie Marcus: despite COVID testing sales coming in much lower than originally forecast.

Rob: We outperformed our initial expectations on both the top and bottom lines. The pipeline is generating a lot of new opportunities for growth, and we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024. Now I'll turn it over to Phil.

Robbie Marcus: This is a testament to the strength of the Abbott portfolio and a strong indication of the top tier sustainable performance we are positioned to continue to deliver as we move past the pandemic.

Robert: And this is a testament to the strength of the Abbott portfolio and a strong indication of the top tier sustainable performance. We are positioned to continue to deliver as we move past the pandemic.

Robbie Marcus: Turning to our outlook for 2024,

Robert: Turning to our outlook for 2024.

Robbie Marcus: As we announced this morning, we forecast sales growth, excluded COVID testing, to be in the range of 8 to 10%.

Robert: As we announced this morning, we forecast sales growth, excluding COVID-19 testing to be in the range of 8% to 10%.

Larry Biegelsen: Thanks, Robert. As Mike mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic... Turning to our fourth quarter results, sales increased 2.1% on an organic basis, which, as expected, reflects the impact of the year-over-year decline in COVID testing-related sales. Excluding COVID testing sales, underlying base business organic sales growth was 11%. Foreign exchange had an unfavorable year-over-year impact of 0.8% on the fourth quarter. Regarding other aspects of the P&L, the adjusted gross The adjusted R&D cost was 6.1% of sales, and the adjusted SG&A cost was 26.3% of sales.

Robbie Marcus: which equates to generating organic sales growth of more than $3 billion.

Robert: Which equates to generating organic sales growth of more than $3 billion.

Robbie Marcus: We forecasted adjusted earnings per share of $4.50 to $4.70, which contemplates double-digit earnings growth on the base business.

We forecast adjusted earnings per share of $4 50.

Robert: To $4 70.

Robert: Which contemplates double digit earnings growth on the base business.

Robbie Marcus: and I'll provide additional details on our 2023 results by business area before turning the call over to Phil.

Robert: I'll now provide additional details on our 2023 results by business area before turning the call over to Phil.

Larry Biegelsen: and I'll start with nutrition.

Larry Biegelsen: And I'll start with nutrition.

Larry Biegelsen: were sales increased 14% in the quarter.

Larry Biegelsen: Where sales increased 14% in the quarter.

Larry Biegelsen: Pediatric Nutrition, double-digit growth in the U.S. was driven by continued market share capture in the U.S. in from formula business.

Larry Biegelsen: In pediatric nutrition double digit growth in the U S was driven by continued market share capture in the U S infant formula business.

Larry Biegelsen: where we are once again the market leader.

Larry Biegelsen: Where we are once again the market leader.

Larry Biegelsen: International growth of 18%.

Larry Biegelsen: was driven by growth coming from both infant formula products and our Pity Assure toddler brand.

Larry Biegelsen: Was driven by growth coming from both infant formula products, and our Pitier sure toddler brand.

Speaker Change: Lastly, our fourth-quarter adjusted tax rate was... Turning to our outlook for 2024, today we issued guidance for full-year adjusted earnings per share of $4.50 to $4.70.

Larry Biegelsen: and adult nutrition.

Larry Biegelsen: In adult nutrition.

Larry Biegelsen: Phil's for the full year surpassed $4 billion.

Larry Biegelsen: Sales for the full year surpassed $4 billion.

Larry Biegelsen: and grew 13.5% in the quarter.

Larry Biegelsen: And grew 13, 5% in the quarter.

Larry Biegelsen: Driven by strong demand for Abbott's market-leading Ensure and Glucerna brands.

Larry Biegelsen: Driven by strong demand.

Larry Biegelsen: For abbott's market, leading ensure and <unk> brands.

Speaker Change: This concludes an adjusted earnings per share forecast of 93 cents to 97 cents for the first quarter of 2020. For the year, we forecast total underlying base business organic sales growth, which excludes COVID testing, a range of 8 to 10. Based on current rates, we would expect exchange to have an unfavorable impact of a little more than 1% on our reported full-year sales and an unfavorable impact of approximately 2% on our first quarter. We forecast non-operating income of approximately $130 million and an adjusted tax rate of $15. And with that, we'll now open the call. Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press the star 1 1 on your telephone. You will then hear an automated message advising you that your hand is raised.

Larry Biegelsen: Turning to established pharmaceuticals, or EPD, where sales increased nearly 9% in the quarter and 11% for the full year.

Larry Biegelsen: Turning to established pharmaceuticals, or <unk>, where sales increased nearly 9% in the quarter and 11% for the full year.

Larry Biegelsen: This is the third consecutive year that EPD sales have grown double digits.

Larry Biegelsen: This is the third consecutive year that <unk> sales have grown double digits.

Larry Biegelsen: are a unique business model of offering broad product portfolios across a targeted set of therapeutic areas.

Larry Biegelsen: Our unique business model of offering broad product portfolios across a targeted set of therapeutic areas.

Larry Biegelsen: that are tailored to the local needs of each emerging market we operate in continues to deliver outstanding results.

Larry Biegelsen: That are tailored to the local needs of each emerging market. We operate in continues to deliver outstanding results.

Larry Biegelsen: Moving to diagnostics, growth in rapid diagnostics was impacted by seasonality related to the respiratory virus testing.

Larry Biegelsen: Moving to diagnostics growth and rapid diagnostics was impacted by seasonality related to the respiratory virus testing.

Larry Biegelsen: The flu season arrived later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Larry Biegelsen: The flu season arrive later this year than last year, which caused sales of flu and other respiratory tests to be lower in the fourth quarter compared to that of the prior year.

Larry Biegelsen: But in core laboratory diagnostics, growth of nearly 10% continues to be driven by the success of our Linity suite of systems paired with our broad test menu offerings.

Larry Biegelsen: But in core laboratory diagnostics growth of nearly 10% continues to be driven by the success of our <unk> suite of systems paired with our broad test menu offering.

Larry Biegelsen: Alinity continues to drive high contract renewal rates and competitive win rates.

Larry Biegelsen: Liberty continues to drive high contract renewal rates and competitive win rates.

Larry Biegelsen: We recently announced that we received FDA approval for our new lab automation system.

Larry Biegelsen: We recently announced that we received FDA approval for our new lab automation system that offers cutting edge technology to help laboratories increase performance and improve the overall quality of their operations the.

Speaker Change: To withdraw your question, please press star one one again. For optimal sound quality, we kindly ask that you please use your handset instead of your speakerphone when asking your question. And again, that's star 11 to ask a question. Please stand by while we compile the Q&A roster. And our first question will come from Larry Biegelsen from Wells Fargo. Your line is open.

Larry Biegelsen: That offers cutting-edge technology to help laboratories increase performance and improve the overall quality of their operations.

Larry Biegelsen: This system has been available in international markets and we look forward to offering this to customers in the U.S.

Larry Biegelsen: The system has been available in international markets, and we look forward to offering this to customers in the U S.

Larry Biegelsen: I'll wrap up with medical devices.

Larry Biegelsen: where sales grew more than 15% in the quarter, and a half in the quarter.

Larry Biegelsen: Our sales grew more than 15% in the quarter.

Larry Biegelsen: led by double-digit growth in six of our seven medical device businesses.

Larry Biegelsen: Led by double digit growth in six of our seven medical device businesses.

Larry Biegelsen: In diabetes care, fourth quarter sales of Freestyle Libre, our market leading continuous glucose monitoring system grew 24% In diabetes care, fourth quarter sales of Freestyle Libre, our market leading continuous glucose monitoring system grew 24%

In diabetes care fourth quarter sales of freestyle Libre, our market, leading continuous glucose monitoring system grew 24% at.

Larry Biegelsen: Good morning, thanks for taking the question and congrats on a nice end to the year here. So, Robert, you know, pre-COVID, Abbott was growing seven to eight percent organically, as you mentioned, you're guiding to eight to ten percent today for 2024 off of a higher revenue base. What has changed, and what is giving you the confidence to guide that high to start the year? Maybe you could talk about the key assumptions, and I'll leave it there for my one question.

Larry Biegelsen: at end of the year with global sales surpassing $5.3 billion.

Larry Biegelsen: It ended the year with global sales, surpassing $5 3 billion.

Larry Biegelsen: In terms of sales dollars, Libre has become the most successful medical device in history and it has outpaced market growth in 13 out of the last 16 quarters.

Larry Biegelsen: In terms of sales dollars Libre has become the most successful medical device and history and it has outpaced market growth in 13 out of the last 16 quarters.

Larry Biegelsen: In electrophysiology, sales growth of 21% in the U.S.

Larry Biegelsen: In electrophysiology sales growth of 21%.

Larry Biegelsen: was driven by double-digit growth across all major geographic regions, including more than 20% growth in Europe.

Larry Biegelsen: Driven by double digit growth across all major geographic regions, including more than 20% growth in Europe.

Larry Biegelsen: In rhythm management, growth was led by double-digit growth in pacemaker sales led by Averre, a recently launched leadless pacemaker that can be used for both single chamber and dual chamber.

Speaker Change: Thank you. Thanks, Larry. I mean, as I said in my prepared remarks and, quite frankly, as we talked about, throughout most of 2023, the impact of the strategy we took to take some of the COVID revenue and reinvest in the base business. I think, ultimately, that's really the factor here. I mean, we operate in these four business segments, and their underlying attractiveness is still very sustainable, so strengthening our positions, which were already pretty strong in each of these four segments, was absolutely the right strategy here because we believe that these are important areas of health care to be in. So I'd make the case here that all four of our major businesses are actually in better and stronger shape than when we were pre-pandemic, which was about $10 billion less and growing at that 7% to 8% range. You look at EPD, as I said in my comments, these are three consecutive years of double-digit organic sales growth. This is probably one of our best commercial teams.

Larry Biegelsen: Structural Heart. Double digit growth in the quarter and full year was led by MitraClip, as well as several recently launched new products, including Amulet, TriClip, and Navitore.

Larry Biegelsen: In structural heart double digit growth in the quarter and full year was led by Mitraclip as.

Larry Biegelsen: As well as several several recently launched new products, including Ambulate try clip and avatar.

Larry Biegelsen: For the full year, MicroClips sales grew high teens internationally and 10% on a global basis.

Larry Biegelsen: For the full year Mitraclip sales grew high teens internationally and 10% on a global basis.

Larry Biegelsen: In heart failure, sales grew more than 15% in the quarter and 12% for the full year, driven by continued adoption of both chronic and acute circulatory support devices.

Larry Biegelsen: In heart failure sales grew more than 15% in the quarter and 12% for the full year driven by continued adoption of both chronic and acute circulatory support devices.

Larry Biegelsen: And lastly, in neuromodulation, sales grew nearly 19%, driven by the recent launch of Eterna, our first rechargeable neurostimulation device for pain management.

Larry Biegelsen: And lastly in Neuromodulation sales grew nearly 19% driven by the recent launch of <unk> turn up our first rechargeable neurostimulation device for pain management.

Larry Biegelsen: So in summary, we exited the pandemic in an even stronger position.

Larry Biegelsen: 2023 was a very successful year. We outperformed our initial expectations on both the top and bottom line.

Larry Biegelsen: 2023 was a very successful year, we outperformed our initial expectations on both the top and bottom lines.

Larry Biegelsen: The pipeline is generating a lot of new opportunities for growth.

Larry Biegelsen: and we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024.

Larry Biegelsen: And we're forecasting this positive momentum to continue and contribute to the strong growth we're forecasting for 2024.

Speaker Change: They operate in very challenging geographies and different markets, and they've done an exceptional job at growing the top line and expanding the bottom line. Even with all the effects and all the challenges that we've seen in those markets, they've expanded their operating margin profile by 300 basis points. So it's a pretty strong position, and a strong team. And then, you know, we layered in that now a new growth vertical by adding BioSimilars, which historically hasn't been a platform that's been readily available in emerging markets. It's probably been more of a developed market play.

Larry Biegelsen: I'll now turn over the call to Phil.

I'll now turn over the call to Phil Phil.

Larry Biegelsen: Thanks, Robert.

Larry Biegelsen: Thanks Robert.

Larry Biegelsen: As Mike mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis.

Larry Biegelsen: Mike mentioned earlier. Please note that all references to sales growth rates unless otherwise noted are on an organic basis.

Larry Biegelsen: Excluding COVID testing sales, underlying base business organic sales growth was 11% of the total.

Larry Biegelsen: Excluding COVID-19 testing sales underlying base business organic sales growth was 11% in the quarter.

Larry Biegelsen: Foreign exchange had an unfavorable year over year impact of 0.8% on fourth quarter

Larry Biegelsen: Foreign exchange had an unfavorable year over year impact of <unk>, 8% on fourth quarter sales.

Larry Biegelsen: Regarding other aspects of the P&L, the adjusted gross margin ratio was 55.9% of sales,

Larry Biegelsen: Regarding other aspects of the P&L. The adjusted gross margin ratio was 55, 9% of sales.

Speaker Change: So I think that's going to, you know, provide a new growth vertical for us there. Nutrition, I think, did an incredible job here, as we said at the beginning of last year, regaining our leadership position here in the U.S. I think it speaks a lot about the trust that our users and customers have for our product. But even our adult business.

Larry Biegelsen: Adjusted R&D was 6.1% of sales.

Larry Biegelsen: Adjusted R&D was six 1% of sales.

Larry Biegelsen: adjusted SG&A was 26.3% of sales.

Larry Biegelsen: And adjusted SG&A was 26, 3% of sales in the quarter.

Larry Biegelsen: Lastly, our fourth quarter adjusted tax rate was $14.

Larry Biegelsen: Lastly, our fourth quarter adjusted tax rate was 14%.

Larry Biegelsen: Turning to our outlook for 2024, today we issued guidance for full year adjusted earnings per share of $4.50 to $4.70.

Larry Biegelsen: Turning to our outlook for 2024 today, we issued guidance for full year adjusted earnings per share of $4 50 to.

Larry Biegelsen: To $4 70.

Larry Biegelsen: This concludes an adjusted earnings per share forecast of 93 cents to 97 cents for the first quarter of the week.

Larry Biegelsen: Which includes an adjusted earnings per share forecast of 93 to <unk> 97 for the first quarter of 2024.

Speaker Change: Our adult business has increased a billion dollars, you know, since pre-pandemic, and it's just strengthening and getting stronger. I mean, it's $4 billion and growing in high single digits. There are a lot of med tech businesses, Larry, that, you know, that command very strong premiums in terms of evaluation just by having those kind of growth rates and sizes. So, and we're making investments in that channel also. So diagnostics has got a great track record here.

Larry Biegelsen: For the year, we forecast total underlying base business organic sales growth, which excludes COVID testing.

Larry Biegelsen: For the year, we forecast total underlying base business organic sales growth, which excludes COVID-19 testing sales to be in the range of 8% to 10%.

Larry Biegelsen: and the range of eight

Larry Biegelsen: Based on current rates, we would expect exchange to have an unfavorable impact of a little more than 1% on our reported full-year sales.

Larry Biegelsen: This includes an unfavorable impact of approximately 2% on our first quarter report.

Larry Biegelsen: We forecast non-operating income of approximately $130 million and an adjusted tax rate of 15%

Larry Biegelsen: We forecast non operating income of approximately $130 million and an adjusted tax rate of 15%.

Speaker Change: With that, we'll now open the call for questions.

Speaker Change: With that we'll now open the call for questions.

Speaker Change: Thank you.

Speaker Change: At this time, we will conduct the question and answer session.

Speaker Change: At this time, we will conduct a question and answer session.

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Speaker Change: Our core lab business has done very well. We've talked about, you know, our algorithm and formula here and the framework for growth. We've gotten some recent very large account wins globally here.

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Speaker Change: I think that's the result of our portfolio and, quite frankly, the trust that these customers have in us and our ability to execute. And our Rapids portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing. And we've been making investments in new assays to be able to, you know, put through those, those instruments. So, and then medical devices, you know, historically were in that high single-digit growth. I think what's changed there to become now a double-digit grower for us on a very large size business is that you have historically double-digit growth businesses like Carpet or EP, Structural Heart, ADC. I mean, those are continuing.

Speaker Change: And again, that's star one one to ask a question.

Speaker Change: And again Thats star one to ask a question. Please.

Speaker Change: Please stand by while we compile the Q&A rough.

Speaker Change: Please standby, we compile the Q&A roster.

Speaker Change: And our first question will come from Larry Biegelsen from Wells Fargo. Your line is open.

Speaker Change: And our first question will come from Larry <unk> from Wells Fargo. Your line is open.

Larry Biegelsen: Good morning, Thanks for taking my question and congrats on a nice end to the year here.

Robert: So Robert.

Robert: Pre Covid Abbott was growing 7% to 8% organically as you mentioned youre guiding to 8% to 10% today for 2024 off of a higher revenue base.

Speaker Change: What has changed and what is giving you the confidence to guide that high <unk>.

Speaker Change: Start the year, maybe talk about the <unk>.

Speaker Change: Key assumptions and I'll leave it there for my one question. Thank you.

Speaker Change: I think what's changed here is that we've taken a strategic look at about 40% of the revenue in medical devices, our CRM, and vascular businesses that were, you know, showing very little growth historically and made investments in them to accelerate their growth rates. I think you saw that in Q4. With CRM, I'd say it's predominantly been an organic play with our leadless platform and technology. On vascular, it's been a combination of adding in organically to the business and organic plays to reposition some of the portfolio to higher growth segments. So I think that's really, you know, across all these very four attractive segments, we've spent the last couple of years strengthening it. And I think you're starting, you know, you saw that last year, every year, double-digit growth, and they've gotten stronger and they've gotten better, and they've gotten, you know, more growth opportunities with them. So, I think that's, that's, that's really the driver there. I mean, if you've gotten some of the headlines here about, you know, accelerating sales, but, you know, not seeing maybe that come through in the earnings. Again, this is another one where you look at the impact that COVID has had on us and the clouding of it.

Speaker Change: Thanks Larry. I mean as I said in my prepared remarks and quite frankly as we talked about,

Speaker Change: Thanks, Larry.

Speaker Change: I mean as I said in my prepared remarks, and quite frankly, as we talked about.

Speaker Change: <unk>.

Speaker Change: throughout most of 2023.

Speaker Change: Throughout most of 2023.

Speaker Change: The impact of the strategy we took to take some of the The impact of the...

Speaker Change: The impact of the strategy, we took to take some of the.

Speaker Change: Some of the COVID revenue and reinvest in the base business. I think ultimately that's really the factor here. I mean, we operate in these four business segments and their underlying attractiveness still is

Speaker Change: Some of the Covid revenue and reinvest in the base business I think ultimately thats really the the.

Speaker Change: The factor here I mean, we operate in these four business segments.

Speaker Change: And their underlying attractiveness still is is very sustainable.

Speaker Change: Thank you for joining us today.

Speaker Change: So strengthening our positions that were already pretty strong in each of these four segments.

Speaker Change: was absolutely the right strategy here because we believe that these are important areas of health care to be in. So I'd make the case here that all four of our major businesses are actually in a better and stronger shape than when we were pre-pandemic, which was about $10 billion less and growing at that 7% to 8% range. You look at EPD, as I said in my comments, I mean, these are three consecutive years of double-digit organic sales growth. This is probably one of our best commercial teams. They operate in a very challenging, you know, geographies and different markets. And they've done an exceptional job at growing the top line and expanding the bottom line. I think, you know, even with all the effects and all the challenges that we've seen in those markets, they've expanded their op margin profile by 300 basis points. So it's a pretty strong position, strong team. And then, you know, we layered in that now a new growth vertical by adding, you know, biosimilars, which historically hasn't been a platform that's been readily available in emerging markets. It's probably been more of a developed markings play. So I think that's going to, you know, provide a new growth vertical for us there. Nutrition, I think, did an incredible job here, as we said at the beginning of last year, at regaining our leadership position here in the U.S. I think it speaks a lot about the trust that our users and customers have for our product. But even adult, our adult business. I think it speaks a lot about the trust that our users and customers have for our product.

Speaker Change: It was absolutely the right strategy here, because we believe that these are important areas of healthcare to be in.

Speaker Change: So I would make the case here that all four of our major businesses are actually.

In a better and stronger shape than we were pre pandemic, which was about $10 billion less and growing at 7% to 8% range you look at <unk> as I said in my comments I mean, these are three consecutive years of double digit organic sales growth. This.

Speaker Change: This is probably one of our best commercial teams they operate in a very challenging.

Speaker Change: Geographies in different markets.

Speaker Change: They've done an exceptional job at growing the top line and expanding the bottom line.

Speaker Change: Even with all the FX and all the challenges that we've seen in those markets. They have expanded their their op margin profile by 300 basis points. So.

Speaker Change: So it's a pretty strong position strong team and then we layered in that now and new growth vertical by adding biosimilar switch.

Speaker Change: You know, our core business grew EPS last year by 40 plus percent. We're forecasting double-digit earnings per share growth this year, at the midpoint, double-digit this year. We've got a range around it. I mean, there's a lot of volatility in the world, Larry.

Speaker Change: So I'd say, yeah, you know, I don't have to list all those out in terms of macro and geopolitics, but, you know, we've proven to be pretty resilient there. And I think, I think the range captures the opportunity that we have on the earnings side. I'd say there's probably more upside than downside in that range, but it's only January. So I think this is a good starting point. Super helpful.

Speaker Change: has increased a billion dollars since pre-pandemic, and it's just strengthening and getting stronger. I mean, it's $4 billion growing high single digits. There's a lot of medtech businesses, Larry, that command very strong premiums in terms of evaluation just by having those kind of growth rates and sizes. And we're making investments in that channel also. Diagnostics has got a great track record here. Our core lab business has done very well. We've talked about our algorithm and formula here and framework for growth. We've gotten some recent very large accountants globally here. I think that's the result of our portfolio and, quite frankly, the trust that these customers have in Avid and our ability to execute. And our Rapids portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing. And we've been making investments on new assays to be able to put through those instruments. And then medical devices historically was in that high single-digit growth. I think what's changed there to become now a double-digit grower for us on a very large-sized business is that you have historically double-digit growth businesses like HeartFit or EP, Structural Heart, ADC. I mean, those are continuing. I think what's changed here is that. We've taken a strategic look at about 40% of the revenue in medical devices are CRM and vascular businesses that were showing very little growth historically and made investments in them to accelerate their growth rates. I think you saw that in Q4. With CRM, I'd say it's predominantly been an organic play with our leadless platform and technology. On vascular, it's been a combination of adding in organically to. To the business and organic plays to reposition some of the portfolio to higher growth segments. So I think that's really, you know, in a nutshell, across all these very four attractive segments, we've spent the last couple of years strengthening it. And I think you're starting, you know, you saw that last year. Every year, double-digit growth. And they've gotten stronger and they've gotten better and they've gotten, you know, more growth opportunities with them. So I think that's really the driver there. I mean, if you. I've gotten some of the headlines here about, you know, accelerating sales, but, you know, not seeing maybe that come through in the on the earnings. Again, this is another one where you look at the impact that COVID had on us and the clouding of it. Our core business grew EPS last year, you know, 40 plus percent. We're forecasting double-digit earnings per share growth, you know, this at the midpoint double-digit. We've got a range around it. I mean, there's a lot of volatility in the world, Larry. So I'd say, yeah, you know, I don't have to list all those out in terms of macro and geopolitics. But, you know, we've proven to be pretty resilient there. And I think the range captures the opportunity that we have on the earnings side. I'd say there's probably more upside than downside in that range. But it's only January. So I think. This is a good starting point.

Speaker Change: Since pre pandemic and it's just strengthening and getting stronger I mean, it's it's $4 billion growing high single digits and.

Speaker Change: There is a lot of med tech businesses, Larry that yet.

Speaker Change: Command very strong premiums in terms of evaluations just by having those kind of growth rates in sizes. So.

Speaker Change: And we're making investments in that channel also so diagnostics has got a great track record here, our core lab business has done very well talked about.

Speaker Change: Thanks for taking the question. Thank you. And our next question will come from Joshua Jennings from Cowan. Your line is open. Hi, good morning.

Speaker Change: Our algorithm and formulate here and framework for growth.

Speaker Change: We've gotten some recent very large account wins globally here I think thats, the result of our portfolio and quite frankly.

Joshua Jennings: Thanks for taking the questions, and I echo the congratulations on the strong finish of the year. I was hoping to just follow up on your comments there, Robert, on just the earnings power and just the margin expansion trajectory. You know, Abbott is a unique story relative to Peers because you didn't have the margin headwinds during the pandemic due to the COVID testing business that you developed internally. But I was hoping to just think about the pre-pandemic margin expansion trajectory of the business in that 30 to 50 basis point range, and I'm hoping you could just give us a little bit more color on some of the drivers of margin expansion and how your team see Thanks for taking the question. Sure.

Speaker Change: Trust that these customers have an abbott and.

Speaker Change: And our ability to execute and our rapid portfolio has done very well in terms of placing a lot of new instruments out there for decentralized testing and we've been making investments on new assays to be able to put through those those instruments. So that medical devices historically was in that high single digit growth.

Speaker Change: I think what's changed there to become now.

Speaker Change: About 40% of the revenue in medical devices, our CRM and vascular businesses.

Speaker Change: That we're showing very little growth historically and made investments in them to accelerate their growth rates I think you saw that in Q4.

Joshua Jennings: Listen, we hear a lot of companies talk about working here to recover to their operating margin and try to get back to their pre-pandemic level. We're in a pretty unique position, I'd say, versus our peers here. Our operating margin profile is already at the pre-pandemic level.

With CRM I'd say, it's predominantly been an organic play with our <unk> platform and technology on vascular it's been a combination of adding inorganically too.

Speaker Change: To the business and organic plays to reposition some of the portfolio to higher growth segments. So I think thats really.

Speaker Change: Yes in a nutshell across all of these very for attractive segments. We've spent the last couple of years strengthening it and I think.

Speaker Change: And I think what you saw us do there, Josh, and I talked a little bit about in my comments, I think we managed the spending piece of it very well, strategically. We accelerated the spending investments when we were at our COVID sales peak levels a few years ago, and then we held that spending flat these last couple of years, even though our top line was growing pretty significantly here. So, I'd say our biggest opportunity for margin expansion really is on the gross margin line. And that is, you know, I think about our big five activities this year at the company, and we can do all five at the same time.

Speaker Change: You saw that last year every year double digit growth and they've gotten stronger and they've gotten better and they've gotten more growth opportunities with them. So.

Speaker Change: So I think thats.

Speaker Change: That's really the driver there.

Speaker Change: I've gone some of the headlines here about accelerating sales.

Speaker Change: But not seeing may be that come through in the on the earnings.

Speaker Change: Again. This is another one where you look at the impact that Covid had on us and the clouding it.

Our core business grew EPS last year 40, plus percent, we're forecasting double digit earnings per share growth.

Speaker Change: Yes.

Speaker Change: This at the mid point double digit this year.

Speaker Change: But I'd say gross margin is pretty high up there on our priority list. You know, we're forecasting a pretty nice step up in our gross margin profile this year, roughly around 75 basis points. And, you know, there's a combination of factors that are helping to drive that margin expansion and that profile expansion. We've got a pretty strong track record here of executing on internal margin improvement programs. So, you know, every business has got its own programs. We manage those on a monthly basis. They all get reported out.

Speaker Change: We've got a range around it I mean, there's a lot of volatility in the world Larry So I would say yes.

Speaker Change: Yes, I don't have to list all those out in terms of macro and geopolitics, but.

Speaker Change: We've proven to be pretty resilient, there and I think I think the I think the range captures the opportunity that we have.

Speaker Change: On the earnings side.

Speaker Change: I'd say, there's probably more upside than downside in that range, but it is only January so I think this is a good starting point.

Speaker Change: Super helpful. Thanks for taking the question.

Speaker Change: Thank you.

Speaker Change: And our next question will come from Joshua Jennings from Cowan. Your line is open.

Speaker Change: And our next question will come from Joshua Jennings from Cowen Your line is open.

Speaker Change: So there's a high degree of visibility and inspection of those programs. Some of the headwinds that we faced, I'd say, over the last couple of years are starting to turn a little bit into tailwinds. So whether it's commodity costs, freight, and distribution, all those elements seem to be, I'd say, right now, and given our visibility for the year as we stand here today, turning into tailwinds. So that helps. And then the other part here is just, you know, I'd say portfolio mix. So, as...

Joshua Jennings: Hi, good morning. Thanks for taking the questions and echo the congratulations on the strong finish of the year. I was hoping to just follow up on your comments, sir, Robert, on just the earnings power and just the margin expansion trajectory. You know, Abbott, it's a unique story relative to peers because you didn't have the margin headwinds during the pandemic due to the COVID testing business that you developed internally. But I was hoping that just thinking about the pre-pandemic margin expansion trajectory of the business and that 30 to 50 basis point range and so maybe just give us a little bit more color on some of the drivers of margin expansion and how your team sees that trajectory going forward in 2024 and into the out years. Thanks for taking the question.

Joshua Jennings: Hi, good morning, Thanks for taking the questions and.

Joshua Jennings: Echo the congratulations on the strong finish to the year.

Speaker Change: Was hoping to just follow up on your comments Robert on.

Speaker Change: The earnings power and just the margin expansion trajectory Abbott has a unique story relative to peers. Because you didn't have the the margin headwinds during the pandemic due to the Covid testing.

Speaker Change: <unk> developed internally, but was hoping to just thinking about the pre pandemic margin expansion trajectory of the business in that 30 to 50 basis point range and hoping you can just give us a little bit more color on some of the drivers of margin expansion and how your team sees that that trajectory going forward in 2004.

Speaker Change: Some of the device businesses continue to outpace and continue to grow. Those are higher-margin businesses, and, you know, they provide that, you know, that mixed element in that gross margin expansion. So I think this provides a nice opportunity for us this year, but I expect, over time, we'll get back to our pre-pandemic gross margin profile. For me, it's not a question of if, it's just a question of when. If we could target, you know, 50, 75, you know, I mean, it's never going to be as linear as we always would want, but, you know, that So I'd say that's our biggest opportunity. I think we did a really good job at leveraging spending, and I think you see that in our profiles. So our big opportunity here is gross margin, and, you know, we're all over it. Appreciate those details.

Speaker Change: Yes, thanks for taking the question.

Speaker Change: Sure. I mean, listen, we hear a lot of companies talk about working here to recover to their operating margin and try to get back to their op margin pre-pandemic. We're in a pretty unique position, I'd say, versus our peers here. Our op margin profile is already at the pre-pandemic level. And I think what you saw us do there, Josh, and I talked a little bit about it in my comments, is I think we managed very well strategically the spending piece of it. We accelerated the spending investments when we were at our COVID sales were at their peak levels a few years ago, and then we held that spending flat these last couple of years.

Speaker Change: Sure.

Speaker Change: A lot of companies talk about working here at up to recover.

Speaker Change: Recover to their operating margin.

Speaker Change: To get back to their op margin pre pandemic.

Speaker Change: We're in a pretty unique position I would say versus our peers here our op margin profile is already at.

Speaker Change: Already at the pre pandemic level.

Speaker Change: Even though our top line was growing pretty significantly here. So I'd say our biggest opportunity for margin expansion really is on the gross margin line. And that is, you know, I think about our big five activities this year at the company, you know, and we can do all five at the same time. But I'd say gross margin is pretty high up there in our priority. You know, we're forecasting a pretty nice step up in our gross margin profile this year, you know, roughly around 75 basis points. And, you know, there's a combination of factors that are helping to drive that margin expansion, that profile expansion. We've got a pretty strong track record here of executing on internal margin improvement programs. So, you know, every business has got their programs. We manage those on a monthly basis. They all get reported. So there's a high degree of visibility and inspection to those programs.

Speaker Change: Even though our top line.

Speaker Change: Growing pretty significantly here so.

Speaker Change: I would say our biggest opportunity for margin expansion really is on the gross margin line.

Speaker Change: And that as I think about our big five activities this year at the company.

Speaker Change: And we can do all five and at the same time, but I'd say gross margin is pretty high up there in our priority.

Speaker Change: We're forecasting a pretty nice step up in our gross margin profile this year roughly around 75 basis points.

And yes there.

Speaker Change: Thanks, Robert. Thank you. And our next question will come from Marie Theibold from BTIG. Your line is open. Good morning.

Marie Theibold: Thank you for taking the questions. I wanted to ask a little bit more about your electrophysiology business. That segment has been very strong, and I've been impressed that you've been able to put up that European growth rate in the face of some competitive PFA launches. So we'd love to hear what's going on behind the scenes there, how you're getting those growth rates, and how you're thinking about the US EP business as we see some PFA launches this year. Thanks for taking the questions.

Speaker Change: We manage those on a monthly basis, they all get reported out.

There is a high degree of.

Speaker Change: Visibility in inspection to those programs.

Speaker Change: Some of the headwinds that we faced, I'd say, over the last couple of years are starting to turn a little bit into tailwinds, so whether it's commodity costs, freight and distribution, all those elements seem to be, I'd say, right now, and given our visibility for the year as we stand here today, turning into tailwinds, so that helps.

Speaker Change: Some of the headwinds that we faced I'd say over the last couple of years are starting to turn a little bit into tailwind. So whether it's commodity costs freight and distribution all of those elements seem to be let's say right now and given our visibility for the for the year as we stand here today turning into a tailwind so that helps.

Speaker Change: And then the other part here is just, you know, I'd say portfolio mix.

Speaker Change: <unk>.

Speaker Change: And then the other part here is just you know I'd say portfolio mix so as.

Speaker Change: Some of the device businesses continue to outpace and continue to grow. Those are higher margin businesses. And, you know, they provide that, you know, that mixed element in that gross margin expansion. So, I think this provides a nice, you know, this provides a nice opportunity for us this year. But I expect over time, we'll get back to our pre-pandemic, you know, our pre-pandemic gross margin profile. It's, for me, it's not a question of if, it's just a question of when, you know, if we could target, you know, 50, 75, you know, I mean, it's never going to be as linear as we always would want. But, you know, that kind of expansion for us, I think, really provides a good opportunity to drive earnings growth over the next couple of years. So, I'd say that's our biggest opportunity. I think we did a really good job at leveraging spending. And I think you see that in our profiles. So, our big opportunity here is gross margin. And, you know, we're all over it.

Speaker Change: Some of the device businesses continue to outpace and continue to grow those are higher margin businesses.

Speaker Change: And they provide that that mix element in that gross margin expansion. So.

Speaker Change: Sure. Well, I think we've shown pretty strong, robust growth in our EP business throughout the whole year, even in the phase of actual in-market competition. It's been strong across the board. I don't think it's just been a European story.

Speaker Change: I think.

Speaker Change: This provides a nice.

Speaker Change: This provides a nice opportunity for us this year, but I expect over time.

Speaker Change: We will get back to our pre pandemic.

Speaker Change: The U.S. has been strong, and China has been very strong for us this year, especially in VBP. I mean, there were some price challenges throughout the year with VBP, but the volume we picked up, the market share we picked up, more than offset that. So it's really been across the board here, and I think it really is about the strength of the portfolio. So, you know, not only having a strong mapping system with our InsightX, I think is at the core, but good mapping disposables and diagnostic disposables also, and I think launching TactiFlex, which is, you know, the flexible tip combined with the contact force. We've seen great results, great outcomes, whether it's outcomes for the patient or... time of procedure. We've seen that consistently around the world.

Speaker Change: Our pre pandemic gross margin profile. It's for me, it's not a question of if it's just a question of when.

If we could target 50, 75, I mean, it's never going to be as linear as we always would want but.

Speaker Change: That kind of that kind of expansion for us I think really provides a good opportunity to do.

Speaker Change: <unk> earnings growth over the next couple of years, So I'd say, that's our that's our biggest opportunity.

Speaker Change: We did a really good job at leveraging spending.

Speaker Change: And I think you see that in our profiles.

Speaker Change: So our big opportunity here is gross margin and we're all over it.

Speaker Change: Appreciate those details. Thanks, Robert.

Speaker Change: I appreciate those details thanks Robert.

Robert B. Ford: Thank you.

Robert: Thank you.

Speaker Change: And our next question will come from Marie Theiboldt from BTIG. Your line is open.

Speaker Change: And our next question will come from Marie Thibault from <unk>. Your line is open.

Marie Theiboldt: Good morning. Thank you for taking the questions. I wanted to ask a little bit more about your electrophysiology business. That segment has been very strong and I've been impressed that you've been able to put up that European growth rate in the face of some competitive PFA launches. So we'd love to hear what's going on behind the scenes there, how you're getting those growth rates and how you're thinking about the USEP business as we see some PFA launches this year. Thanks for taking the questions.

Marie Thibault: Good morning, Thank you for taking the questions I wanted to ask a little bit more about your electrophysiology business that that segment has been very strong and I have been impressed.

Speaker Change: You've been able to put up that European growth rate in the face of some competitive PSA launches so would love to hear what's going on behind the scenes there how youre getting those growth rates and how youre thinking about the U S. E T business as we see some PSA launches this year, thanks for taking the questions.

Speaker Change: And then on top of that, I think we've got a great team, really a great team that is very close to our customers. And yeah, we were able to see the adoption of new technologies. We've talked about some of the shortcomings that exist in those.

Speaker Change: Sure. Well, I think we've showed pretty strong, robust growth in our EP business throughout all the year, even in the face of actual in-market competition.

Speaker Change: Sure.

Speaker Change: Well I think we've showed pretty strong robust growth.

Speaker Change: So I think it's really the combination of our portfolio and our team that really has kind of sustained the growth. As we look to more PFA systems that will be in the market this year in the U.S., listen, as I've said, I think it's a great technology, but I think there are some challenges with some of these first generation products.

Speaker Change: In our EP business throughout all the year, even in the face of actual end market.

Speaker Change: Competition.

Speaker Change: It's been strong across the board. I don't think it's just been a Europe story. U.S. has been strong. China has been very strong for us this year, especially in VBP. I mean, there was some price challenges throughout the year with VBP, but the volume we picked up, the market share we pick up more than offset that. So it's really been across the board here. And I think it really is about the strength of the portfolio. So, you know, not only having a strong mapping system with our inside X, I think it's at the core, you know, good mapping disposables and diagnostic disposables also. And I think launching TactiFlex, which is, you know, the flexible tip combined with a contact force, we've seen great results, great outcomes, whether it's, you know, outcomes for the patient or, you know,

Speaker Change: It's been strong across the board I don't think it's just been a Europe story.

Speaker Change: <unk> has been strong China has been very strong for us this year, especially.

Speaker Change: Especially at MVP I mean, there was some there was some price challenges throughout the year with VP, but the volume we picked up the market share we pick up more than more than offset that so it's really been across the board here and I think it really is about the strength of the portfolio. So.

Speaker Change: Not only having a <unk>.

Speaker Change: Strong mapping system.

Speaker Change: With our end side X I think is at the core.

Speaker Change: Good mapping disposables and diagnostic disposables also and I think.

Speaker Change: Launched tack to flex.

Speaker Change: Which is the flexible flexible tip combined with the contact center.

Speaker Change: Seen great results great outcomes, whether it's.

Speaker Change: Outcomes for the patient or.

Speaker Change: Time of procedure, we've seen that consistently around the world. And then on top of that, I think we've got a great team, really a great team that is very close to our customers. And yeah, we were able to see the adoption of new technologies. We've talked about some of the shortcomings that exist in those. So I think it's really the combination of our portfolio and our team that really has kind of sustained the growth. As we look to, you know, more PFA systems that will be in the market this year in the U.S. Listen, as I've said, I think it's a great technology. I think there are some challenges with some of these first generation products. I do expect there to be uptake and usage of it. I think what's been interesting in observing the uptake in Europe is that it is first, at least from what we've seen, it is first seen to have broader adoption in the cryo sector.

Speaker Change: Time of procedure, we've seen that consistently around the world and then on top of that I think we've got a great team really a great team that is very close to our customers.

Robbie Marcus: Oh, great. Thanks for taking the time to answer the question. Robert, maybe I could ask about Libre. You know, this is the most successful medical device. At the conference just a few weeks ago in San Fran, you were talking about really robust growth rates moving forward and targets. You know, maybe you could help us understand where the growth is going to come from in 24 and beyond. And one question I get a lot from investors is whether we see the IQ via script data. It's the best we have.

Speaker Change: That really has kind of sustain the growth as we look to.

Speaker Change: More PFA systems that will be in the market this year in.

Speaker Change: In the U S listen I as I've said I think it's a great technology I think there are some challenges with some of these first generation products I do expect there to be uptake in usage of it.

Robert B. Ford: It seems like Libre sales, or at least prescriptions for it, are flattening out, yet sales keep growing. How do we think about the discrepancy there and how big is the Medicare DME business? You know, the growth we're getting there from Basel. Thanks a lot.

I think what's been interesting in observing the uptake in Europe is that it is first at least from what we've seen it as first seemed to have broader adoption in the cryo segment.

Speaker Change: and then from there then kind of moving moving past that so you know right now I think I guess that's my assumption in the U.S. until I see something differently is that you know it will follow a similar pattern and then the question will just be kind of the speed but what I think the team has done a really good job here on the ground you know with the technology

Speaker Change: And and then from there then kind of moving moving past that so.

Speaker Change: Right now I think I guess, that's my assumption in the U S until I see something differently.

Robert B. Ford: Sure, strong growth in Q4, under 1.5 billion, the U.S. was up 32%. And I'd say still haven't, the team hasn't even had to unleash L3 in the U.S. market in 2023. I think you'll see that now really hit in 2024. But, you know, being able to achieve those kind of growth rates in the U.S. without even having to launch L3 with a competitive new system, I think that speaks a lot about our position, our scale, and our brand. You know, the growth is going to come from, I've been pretty consistent about this, Robbie, and there are a lot of opportunities here for growth. I'm not going to list them all out here, but I'd say, okay, Basel is a big opportunity. It's a big opportunity for us, and I also think it's multi-year, so I don't think it's just a 24, 25.

Speaker Change: It will follow a similar pattern.

Speaker Change: And then the question will just be kind of the speed but.

Speaker Change: I think the team has done a really good job here.

On the ground with the technology.

Speaker Change: Thank you, Robert.

Speaker Change: Thank you Robert.

Speaker Change: Thank you.

Thank you.

Speaker Change: And our next question will come from Robbie Marcus from JP Morgan. Your line is open.

Speaker Change: And our next question will come from Robbie Marcus from Jpmorgan. Your line is open.

Robbie Marcus: Oh, great. Thanks for taking the question. Robert, maybe I could ask on Libre. You know, this is the most successful medical device. At the conference just a few weeks ago in San Fran, you were talking about really robust growth rates moving forward and targets.

Robbie Marcus: Oh, great. Thanks for taking the question.

Robbie Marcus: Robert maybe I could ask on Libre. This is the most successful medical device.

Robbie Marcus: At the conference just a few weeks ago in San Fran you were talking about really robust growth rates moving forward and targets.

Robbie Marcus: Hi.

Robert B. Ford: you know maybe you could help us understand where the growth is going to come from in 24 and beyond and one question I get a lot from investors is we see the IQVS script data it's the best we have it seems like Libre sales or at least prescriptions are flattening out yet the sales keep growing

Robert B. Ford: I think the penetration into the Basel segment is definitely, you know, two plus years easily. And Libre dominates in the pharmacy channel here. I mean, you referenced IQVIA, Robbie.

Robert B. Ford: How do we think about the discrepancy there and how big is the Medicare DME business?

How do we think about the discrepancy there and how big is the Medicare <unk> business.

Speaker Change: You know, the growth we're getting there from Basel. Thanks a lot.

Robbie Marcus: The growth, we're getting there from basal thanks a lot.

Speaker Change: Sure. Strong growth in Q4, under $1.5 billion. U.S. was up 32%.

Robbie Marcus: Sure.

Robbie Marcus: <unk> growth in Q4.

Robbie Marcus: Under $1 5 billion U S was up 32%.

Robert B. Ford: Seven out of 10 new scripts for this patient segment are for Libre, and I think that's a testament to the strength and the value proposition that the product has. So it's becoming an increasingly strong growth contributor in the U.S. In Japan and in France, where, you know, that reimbursement is exclusive to Libre, that's also making a nice contribution to growth. I think right now in the U.S., most of the population is now covered, whether it's Medicare or whether it's private commercial. Medicare represents about a third of the market. So,

Speaker Change: And I would say.

Speaker Change: Haven't team Hasnt, even add to unleash L. Three in the U S market in 2023, I think youll see that.

Speaker Change: Now really hit.

Speaker Change: In 2024, but be able to put those kind of growth rates in the U S.

Speaker Change: Without even having to launch L. Three with the competitive new system I think that speaks a lot about our position our scale and our brand.

Speaker Change: The growth is going to come from.

Speaker Change: <unk> been pretty consistent about this Rob I mean, there was a lot of opportunities here for growth.

Speaker Change: I'm not going to list them all out here, but I would say, okay. The basal as the basal as a big opportunity.

Speaker Change: It's a large opportunity for us, but I also think it's multiyear so.

Speaker Change: So I don't think its just a 'twenty four 'twenty five I think the penetration into the basal segment is definitely.

Robert B. Ford: So I think there's a great opportunity here. We just have to build the awareness, build the trialing experience with primary care. And that's what we're doing. That's what we have been doing, quite frankly, for some time. So it's a nice opportunity, and it's a great growth opportunity for us. Like I said, easily two plus years.

Speaker Change: Two plus years easily.

Speaker Change: And Lee break dominates in the pharmacy channel here I mean, you referenced IQ via Ravi seven out of 10, new scripts for this patient segment is as Libre.

Speaker Change: And I think thats.

Speaker Change: A testament to the strength and the value proposition.

Robert B. Ford: I think the other part of the opportunity we have, Robbie, is looking at a segment that really hasn't been, or we haven't been able to access, which is that of pump connectivity. I think this represents a great opportunity for us. If you look at Basel as being a market expansion opportunity, I think the pump connectivity becomes a market conversion opportunity for us. You got 150,000 to 200,000, I guess, new pumpers every year, and that patient segment has, we haven't been able to target it.

Speaker Change: The product has so it's becoming an increasingly strong growth contributor in the U S.

Speaker Change: In Japan, and in France, where that reimbursement is exclusive to Libre. That's also having a nice contribution on growth.

Speaker Change: I think right now in the U S. Most of the population is now covered.

Speaker Change: Whether it's in Medicare or whether it's in private.

Speaker Change: Private commercial Medicare represents about a third of the market. So.

Speaker Change: So I think there's great opportunity here. We just gotta build the awareness, build the trialing experience with primary care. And that's what we're doing. That's what we have been doing, quite frankly, for some time. So it's a nice opportunity and it's a great growth opportunity for us. And like I said, easily two plus years. I think the other part of the opportunity we have, Robbie, is looking at a segment that really hasn't been, we haven't been able to access, which is that of pump connectivity. I think this represents a great opportunity for us. If you look at Basel as being a market expansion opportunity, I think the pump connectivity becomes a market conversion opportunity for us. You got 150,000 to 200,000, I guess, new pumpers every year and that patient segment has, we haven't been able to target it. But now that we've got the regulatory clearings and connecting to

Speaker Change: So I think there's great opportunity here, we just got to build the build the awareness build the build the trialing experience with primary care.

Robert B. Ford: But now that we've got the regulatory clearances and are connecting to all the different pump manufacturers, I think this is a great opportunity for us. You know, and I think it's good for patients. I think it's going to be good to have a different option, especially for this patient population where insulin delivery and the whole connected system are important, right? Recently, there was an independent third-party study.

And that's that's what we're doing that's what we have been doing quite frankly for some time.

Speaker Change: So it's a nice opportunity and it's a great growth opportunity for us.

Speaker Change: Unlike I said easily two plus years I think the other part of the opportunity we have.

Speaker Change: Ravi is.

Speaker Change: As.

Speaker Change: Looking at a segment that really hasnt been we havent been able to access.

Speaker Change: Which is that of pump connectivity I think this represents a great opportunity for us if you look at basal as being a market expansion opportunity I think the pump connectivity becomes a market conversion opportunity for US you got 150000 to 200000.

Robert B. Ford: I think this is the first time we've seen an independent head-to-head study published a few weeks ago showing that Libre 3 is superior to the recently launched product from our competitor across a variety of different metrics, whether it's biased, whether it's marred. So I look at that, and I say, okay, if you're a pump company and you're wanting to provide the best, Thank you. Thank you, you know, the best solution for your users. That's an important aspect, especially for this segment. So I look at the base; I look at the pump.

Speaker Change: <unk> New pumper is every year in that patient segment has we haven't been able to targeted but now that we've got the regulatory clearing and.

Speaker Change: And connecting to.

Speaker Change: to all the different pump manufacturers. I think this is a great opportunity for us. You know, and I think it's good for patients. I think it's going to be good to have a different option, especially for this patient population where insulin delivery and the whole connected system is important, right? Recently, there was an independent third-party study. I think this is the first time you've seen an independent head-to-head study that was published a few weeks ago showing that Libre 3 is superior to the recently launched product from our competitor across a variety of different metrics, whether it's bias, whether it's MARG. So I look at that and I say, okay, if you're a pump company and you're wanting to provide the best

Speaker Change: To all the different pump manufacturers I think this is a great opportunity for us.

Speaker Change: And I think.

I think it's good for patients I think it is going to be good.

Speaker Change: To have a different option, especially for.

Speaker Change: <unk> for this patient population, where insulin delivery and the whole connected system is important right.

Speaker Change: Recently, though is an independent third party study I think thats. The first time, we've seen an independent head to head study.

Study that was published.

Speaker Change: A few weeks ago.

Robert B. Ford: It's probably good drivers for us, you know, in 24, 25, but, you know, we've got multiple growth verticals here on this platform, like I've said. To your question on IQVIA, you know, I think anybody who kind of follows pharma and is more attuned to pharma knows that IQVIA doesn't cover the entire market. So, you know, the pharmacy channel in the U.S. gets picked up by IQVIA, but there are other segments in the market that drive, you know, drive adoption that don't get picked up by IQVIA. So maybe that's, maybe that's what you're looking for.

Speaker Change: Showing that Libre three is superior to to the recently launched product from from our competitor across a variety of different metrics, whether it's biased, but whether it's mark so I look at that and I say, okay sure a pump company.

Speaker Change: And you're wanting to provide the best bet.

Speaker Change: First.

Speaker Change: <unk>.

Speaker Change: Best solution to your users. That's an important aspect, especially for this segment. So I look at the basal. I look at the pump. It's probably good drivers for us in 24, 25, but we've got multiple growth verticals here on this platform, like I've said. To your question on IQVIA, you know, I think anybody who kind of follows pharma and is more attuned to pharma knows that IQVIA doesn't pick up the entire market. So, you know, the pharmacy channel in the U.S. gets picked up by IQVIA, but there are other segments in the market that drive, you know, drive adoption that don't get picked up by IQVIA. So maybe that's what you're

Best solution to users that's an important aspect, especially for this segment. So I look at the basal I look at the pump.

Speaker Change: It's probably good drivers for us.

Speaker Change: In 'twenty four 'twenty five, but we've got we've got multiple growth verticals here on this platform like I've said.

Speaker Change: Your question on <unk>.

Speaker Change: No.

Speaker Change: I think anybody who kind of follows pharma.

Speaker Change: And as more attuned to pharma.

Speaker Change: Note that IQ good doesn't pick up the entire market. So.

Speaker Change: The pharmacy channel in the U S gets picked up by acute but there are other segments in the market that drive.

Speaker Change: Great, I appreciate the thoughts. Thank you. Our next question will come from Danielle Ann Tolfey from UBS. Your line is open. Hey, good morning, guys.

Speaker Change: Drive adoption that don't get picked up by <unk>. So maybe that's maybe thats what youre seeing.

Speaker Change: Great. Appreciate the talk.

Speaker Change: Great I appreciate the thoughts.

Speaker Change: Thank you.

Speaker Change: Our next question will come from Danielle Ann Toffey from UBS. Your line is open.

Speaker Change: Our next question will come from Danielle <unk> from UBS. Your line is open.

Speaker Change: Hey, good morning, guys. Thanks so much for taking the question. Congrats on a strong end to the year and strong guidance. Just, Robert, since this story seems to be very much about line growth, I haven't heard you reference the Fab Five, one of my favorite analogies in a long time. So just wanted to, and maybe I just missed it, but just wanted to get an update on those five products or where you think you guys are in launch trajectories, revenue contribution for each of those products. Do you still think they're the Fab Five and where, you know, how they sort of factor into the growth, the 8% to 10% organic growth for 2024? Thanks so much.

Danielle: Hey, good morning, guys. Thanks, so much for taking the question congrats on a strong end of year end and strong guidance just Robert Smith.

Robert Marcus: Thank you very much about plain growth.

Speaker Change: So just wanted to, and maybe I just missed it, but just wanted to get an update on those five products or where you think you guys are in the launch trajectories, revenue contribution for each of those products. Do you still think they're the Fab Five and how do they sort of factor into the growth, the 8 to 10% organic growth for 2024? Thanks so much.

Speaker Change: I haven't heard you reference the fab five one of my favorite analogies in a long time so.

Speaker Change: Just wondering if you and maybe I just missed it but just wanted to get an update on those five products or where you think you guys are in launch trajectories revenue contribution for each of those products do you still think there are the fab five.

Speaker Change: And where how they sort of factor into the growth to 8% to 10% organic growth for 2024. Thanks, So much yes.

Speaker Change: Yeah, thanks. I don't know if I regret using that terminology or not now, Danielle, but I guess I would I would say yes, they are great products. And we didn't think about calling them that because they were going to be a flash in the pan for, you know, one or two years. We look at these as really long-term great growth opportunities that we have that will significantly add to the company over the next few years. And, you know, quite frankly, they have added a good amount of growth for us this year, and they'll accelerate it. So I think this year, sorry, in 2023, those five products that represented about half a point of growth, I expect that to increase in 2024 to about a point of growth in total Abbott contribution. So, they're definitely stepping up.

Speaker Change: Yes. Thanks.

Speaker Change: I don't know if I regret using that terminology or not now.

Speaker Change: Danielle but.

Speaker Change: I guess I.

Speaker Change: I would say, yes, they are great products.

Speaker Change: That will significantly add to the company.

Speaker Change: Over over the next few years and quite frankly, they have added.

Speaker Change: A good amount of growth for us.

Speaker Change: This year and they will accelerate this year sorry in 2023, those five product that represented about half a point of growth I expect that to increase in 2024 to about about a point of growth total Abbott contribution. So so theyre definitely stepping up.

Speaker Change: And I'd say some of them, I would call market-creating opportunities, Tricuspid, I would put over there, CardioMEMS over there, you know, generating clinical data, generating data for reimbursement, you know, generating referral pathways, you know, we know how to do this. And we all want things to go pretty fast, especially with MedTech products, right? But with products like this that have such significant growth opportunities, you know, there's a certain amount of work that you need to do regarding clinical work as it relates to, you know, market expansion, development, and market development. I'd say some of the other products on that list are probably more market entry, market conversion.

Speaker Change: And I'd say some of them I would call.

Market, creating opportunities tricuspid.

Speaker Change: Put over there at Cardiome Mems over there generating clinical data generating the data for reimbursement.

Generating referral pathways, we know how to do this and.

Speaker Change: And we all want things to go pretty fast, especially with med tech products right, but with products like this that have such significant growth opportunities.

Speaker Change: Theres a certain amount of work that you need to do regarding clinical work as it relates to <unk>.

Speaker Change: Market expansion development and market development.

Speaker Change: I'd say some of the other products on that list I would say are probably more market market conversion and these are already attractive large attractive growth segments.

Speaker Change: And, you know, these are already attractive, large, attractive growth segments that, you know, that we're targeting with our technologies, Navitore in the TAVR space, Avere in the CRM side, I mean, these are large, large segments that, you know, we're coming into, and we'll have different value propositions. I think Avere has got a tremendous opportunity; it's a $3 billion global pacing market, and the value proposition for Avere, I think, is second to none in terms of its proposition to the implanter and to the patient. So we I expect a lot from Avere in terms of growth. I expect a lot from Navitore, you know.

Speaker Change: That.

That we're targeting with our technologies.

Speaker Change: <unk> in the <unk> space.

Speaker Change: They're in the CRM side I mean, these are large large segments that were coming in.

Speaker Change: And we will have different value propositions, I think <unk> got a tremendous opportunity, it's a $3 billion global pacing market and the value proposition.

Speaker Change: Are there I think is second to none.

Speaker Change: In terms of its proposition to the to the implant or to the patient.

Speaker Change: We I expect.

Speaker Change: I expect a lot from <unk>.

Speaker Change: In terms of growth.

Speaker Change: I expect a lot from <unk>.

Speaker Change: And, you know, we're going to be expanding, so we'll have two new line extensions for Navitore this year, Navitore Vision and Navitore Titan. And so we're investing in those areas. And yeah, they're still great products.

Speaker Change: And we're going to be expanding so we'll have two new line extensions to <unk> this year and average revision and laboratory tightened.

Speaker Change: And so we're investing in those areas and yes. There is still there is still great products.

Speaker Change: They'll still have the Fab Five on it, and if they continue to increase, they'll grow 50%, at least we're forecasting a 50% growth next year, and they'll contribute about a point of growth to the overall company. So, you know, that being said, I will say, you know, those are great products and they take a lot of focus, but we still have a lot in the chamber here too, whether it's LINGO, whether it's our PBI test, we're gonna be launching a nutritional drink for GLP-1 users this year. Also, we're doing a lot of work on VOLT, which is our PFA solution. We put out some announcements already at the beginning of the year regarding our clinical trials. I talked about biosimilars and NEPD, our dual analyte sensor for Libre. We're developing a new alignment system to target a segment of the diagnostic market that we're currently not competing in.

Speaker Change: We'll have the fab five on it and.

Speaker Change: They continue to increase <unk>.

Speaker Change: Youll grow 50% leased we're forecasting a 50% growth next year and it will contribute about a point of growth.

Speaker Change: To the overall company so.

Speaker Change: That being said I will say.

Robert B. Ford: Those are great products and they take a lot of focus, but we still have, you know, we still have a lot in the chamber here too, whether it's lingo, whether it's our TBI test, we're going to be launching a nutritional drink for GLP-1 users this year. Also, you know, we're doing a lot of work on Volt, which is our PFA solution. We put out some announcements already at the beginning of the year regarding our clinical trials. I talked about biosimilars in EPD, our dual analyte sensor for Libre. We're developing a new alinity system to target a segment of the diagnostic market that we're currently not competing. So, yeah, 5-5, a lot of great contributions, but there's a lot in the chamber here. And I think that's really what's going to sustain our growth beyond 2024 and 2025 is just having a robust pipeline.

Speaker Change: <unk>, our dual analyte sensor for for Libre.

Speaker Change: So yeah, 5-5, a lot of great contributions, but there's a lot in the chamber here. And I think that's really what's gonna sustain our growth beyond 2024 and 2025, just having a robust pipeline. Thank you. Very thorough. Thank you so much. Thank you. Our next question will come from Joanne Wuensch from Citibank. Your line is open. Good morning, and thank you for taking the questions. Nice start to the year, or a nice end to last year, too. So here's a question I have.

Speaker Change: Your line.

Speaker Change: Thank you. Very thorough. Thanks so much.

Speaker Change: Thank you very thorough thank you so much.

Speaker Change: Thank you.

Speaker Change: Our next question will come from Joanne Wuensch from Citibank. Your line is open.

Joanne K. Wuensch: Good morning, and thank you for taking the questions. Nice start to the year, or nice end to last year, too. So here's a question I have. In nutrition, you've done a great job of, it sounds like, returning to normalcy. I'm wondering if there are pockets that still need to sort of get back on track, or whether we should think of this returning to sort of a mid-single-digit segment growth category.

Joanne K. Wuensch: Good morning, and thank you for taking my questions and nice start to the year end.

Joanne K. Wuensch: <unk> last year.

Speaker Change: Go ahead with your question I have and nutrition, you've done a great job of it sounds like returning to normalcy.

Speaker Change #100: I was wondering if there are pockets that still need to sort of get back on track or whether we should think of this returning to sort of a mid single digit.

Speaker Change #100: <unk> growth category.

Speaker Change: Thank you.

Speaker Change: Yeah. I think kudos to the team here. We set out a target at the beginning of last year, this time last year, to get to market leadership in our October call. We had already confirmed that, and I'd say over the last couple of months that continues to expand in terms of our position versus the number two.

Speaker Change #100: Yes.

Speaker Change #101: Yes, I think kudos to the team here.

Joanne K. Wuensch: You know, we set out a target at the beginning of last year, this time last year, to get to market leadership, and on our October call, we had already confirmed that. And I'd say over the last couple of months that our position versus number two continues to expand. Yeah, I mean, I think you'll now have the full year effect, Joanne, of having all of that share. And I'd say, you know, given the strength of the portfolio team and what we went through and the actions that we've taken, I'd actually expect us to actually surpass our pre-recall share. I don't know exactly when, but that'll be my expectation for that. You'll have a little bit of a partial year impact there because of some pricing that we took across the entire nutrition portfolio, so I'd say we're probably above that four to six range that we used to have pre-pandemic, at least into 2024. As I've said, I think that we can, you know, be at the higher end of that range once everything kind of settles down, and I think a big growth driver for us going forward is really going to be the adult segment, which is growing in the high single digits, and of which we've got a very high market share position.

Speaker Change #101: We set out a target at the beginning of last year. This time last year to get to market leadership.

Speaker Change #101: In our October call, we had already confirmed that in net say over the last couple of months that that.

Speaker Change #101: That continues to expand.

Speaker Change #101: In terms of our position versus versus the number too.

Speaker Change #101: <unk>.

Speaker Change #102: Yes, I mean, I think you will now have the full year effect.

Speaker Change #102: Joanne off having all of that share.

Speaker Change #102: And.

Speaker Change #102: I'd say given the strength of the portfolio of the team and what we went through and the actions that we've taken.

Speaker Change #102: I would actually expect us to actually surpass our pre recall share.

Yes.

Speaker Change #102: I don't know exactly when.

But that'll be my expectation on that.

Speaker Change #102: You will have.

Speaker Change #102: A little bit of a partial year impact there of some pricing that we took.

Speaker Change #102: Across the entire nutrition portfolio.

So I'd say, we're probably above that 4% to six range that we used to have pre pandemic at least into 2024.

Speaker Change #102: As I've said I think that we can be at the higher end of that range once everything settles down and I think a big growth driver for us going forward is really going to be the adult segment.

Speaker Change #102: Which is growing high single digits and of which we've got very high market share positions across the globe and this position.

Speaker Change: Very high market share position.

Speaker Change #102: With the brand we have the science that we have really aligns to.

Speaker Change #102: I would say a pretty.

Speaker Change #102: Sustainable.

Demographic trends that we're seeing which is just an aging population that is focusing on health care and and on nutrition. So.

Speaker Change #102: So I'd say that's probably.

Speaker Change #102: An opportunity for us to maybe break out of that higher end six range.

Speaker Change #102: Going forward.

Speaker Change #102: <unk>.

Speaker Change #102: I think right now youll see the impact of the share in the U S.

Speaker Change #102: Some partial year impact of the price.

Speaker Change #102: Allow us to be above that 6% range and then as we move into next year whats going to be the impact of some of the launches that we have planned for the adult segment and what is that going to do for us.

Speaker Change #103: Thank you very much.

Speaker Change #104: Thank you.

Speaker Change #105: And our next question will come from Vijay Kumar with Evercore ISI. Your line is open.

Vijay Muniyappa Kumar: Hi, guys. Thanks for taking my question and then Robert Congratulations on a nice Q4 and a solid guide.

Speaker Change #106: I guess my one question is on M&A.

Looking at the balance sheet phenomenal position you have a minimum of $20 billion of firepower Abbott hasn't done any large deals in the last few years. So my question is.

Speaker Change #106: How do you see the opportunity for larger sized deals what does abbott's appetite for a larger sized more meaningful transaction.

Speaker Change #107: Well, yes, we got a strong balance sheet.

Speaker Change #107: And provides us a lot of flexibility on our on our capital allocation plan on the M&A side Vijay.

Speaker Change #108: Listen I think it starts off with we've got great pipeline, we have great organic opportunities here to be able to kind of drive top tier sustainable growth.

Speaker Change #108: So that that ends up putting allowing us to be in a selective position here.

Speaker Change #108: We're not trying to use M&A as a way to kind of bulk up our top line or to cover any kind of topline gaps that might be there. So that allows us to be sustainable allows us to be more selective and if there are opportunities that fit strategically.

Speaker Change #108: And can generate an attractive return.

Speaker Change #108: Then.

Speaker Change #109: Like you said you've done the math, we've got we've got the flexibility and the firepower to do that.

Speaker Change #109: But I'm not looking to acquire businesses simply to make simply to make the top line look good.

Speaker Change #109: Profitability matters.

Speaker Change #109: Earnings matter and.

Speaker Change #109: When you when you get into these larger size deals.

Speaker Change #109: You have to have very strong conviction and understanding of that to be able to generate those returns.

Speaker Change #109: And not just look at it as a top line play.

Speaker Change #109: I think they're harder nowadays.

Speaker Change #109: Look at what we did with St. Jude.

Speaker Change #109: And we have looked back that the deal model that we put together.

Speaker Change #109: Spot on in terms of all aspects there of how we thought this business would.

Speaker Change #109: It would impact the company so.

Speaker Change #109: So.

Speaker Change #109: I am not discarding anything like that I'm, just providing you the framework that says they are harder to make work. If if you want to look beyond just top line and you want to look at ROIC CS and all of the right financial metrics here in terms of how you deploy capital.

Speaker Change #109: <unk>.

Speaker Change #109: Okay.

Speaker Change #109: But I don't feel that we need to do anything like that.

Speaker Change #109: To cover a topline kind of gap, if we ever did something like that it was because it would be strategic and looking at the company kind of long term and not trying to feel a topline gap.

Speaker Change #110: Got it thanks guys.

Operator, we'll take one more question please.

Speaker Change #111: Thank you and our last question will come from Travis Steed from Bofa Securities. Your line is open.

Travis Steed: Hi, good morning, Thanks for taking the question.

Travis Steed: So some of the insurance companies are getting surprised by higher procedure utilization in some of the companies are kind of calling out above normal growth. So curious Robert and if you look at your med device markets are there areas, where you think youre seeing some kind of above elevated.

Robert: So coming through or do you think this is kind of more normalized growth rates that youre seeing in 2020 forward just kind of curious in some of your thoughts on the overall market.

Speaker Change #112: Yes, I don't think that I don't think that were seeing kind of any kind of catch up or <unk>.

Speaker Change #112: Or or anything like that I think what youre seeing here is.

Speaker Change #112: More at least I can speak for our portfolio I, just think youre seeing more adoption.

Of all of.

Speaker Change #112: The technologies right.

Speaker Change #112: So I think there was some disruption we've talked about it in some parts of some procedures that require a little bit more pre op planning or imaging before an imaging after them and I think those.

Speaker Change #112: That combined with the labor shortages that occurred.

Speaker Change #112: 120 to 2022, I think that that that probably slowed a few of them down but I don't I don't think that there was a bolus returning as a result of that I. Just I just think we got back into a normal cadence here.

Speaker Change #112: Being able to see procedures.

Increasing we saw that in structural heart procedures saw that in in.

Speaker Change #112: In CRM and EP procedures, not just here in the U S, but around the world too. So <unk> seen that also in di and routine diagnostic testing <unk> as a lot of or a good portion of the diagnostic business. Our core lab business is actually in the hospital.

Speaker Change #112: So we also get to see that too and didn't see it didnt see a bolus of testing coming back. So we try and triangulate. This I just see this says.

Speaker Change #112: Procedures are returning back to normal and because the adoptive because these technologies that are being developed and launched into the market or so.

Speaker Change #112: Got such great opportunity to improve care improved life of patients I, just think youre seeing the return to the adoption and.

On the adoption curve I know some are faster than others, just given I think the market and.

Speaker Change #112: Yes.

Speaker Change #112: Market positions et cetera, but I wouldn't I wouldn't account for it to be some sort of pent up.

Speaker Change #112: Piece over here.

Speaker Change #113: Alright, Thanks, a lot okay.

Speaker Change #114: I'll wrap up here.

Speaker Change #114: And like I said in the beginning.

Speaker Change #114: Successful year 2023 in many ways.

Speaker Change #114: It's sort of represented this transition year.

Speaker Change #114: Regarding.

Speaker Change #114: Regarding the coming down of Covid I think we did a really good job at managing the scale up and scale down a lot of health care companies actually.

Speaker Change #114: <unk> participated in and trying to solve the COVID-19 problem.

Speaker Change #114: And I think we did a good job here at being able to scale up and scale down our performance here is now.

Speaker Change #114: <unk> from being driven by Covid testing to once again being driven by a broad based.

Speaker Change #114: Strength across the entire company, we delivered double digit organic sales growth on every base business on every quarter and we are clearly entering 2020 forward a lot of momentum the pipeline, we've talked a bit about it continues to be highly productive.

Speaker Change #114: And im forecasting here top tier growth in 2024, and as you look at our range on the EPS guide like I said, theres, probably more upside to that than downside.

Speaker Change #114: But were in January.

Speaker Change #114: We're off to a good start and looking forward to executing this year.

Speaker Change #115: Okay. Thank you operator, and thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after eliminate am central time today on Abbott Investor Relations website at Abbott Investor Dot Com.

Speaker Change #115: For joining us today.

Speaker Change #116: Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.

Q4 2023 Abbott Laboratories Earnings Call

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