Q3 2024 Abbott Laboratories Earnings Call

October 16, 2024

Yeah.

Good day.

Speaker Change: And thank you for standing by welcome to Abbott's third quarter 2024 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'll be able to ask your question by pressing the star one one keys on your touch on phone.

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.

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

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

Michael Miller: Good morning, and thank you for joining US with me today are Robert Ford, Chairman, and Chief Executive Officer, and Phil Boudreaux, Executive Vice President Finance and Chief Financial Officer.

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

Michael Miller: Before we get started some statements made today maybe forward looking for purposes of the private Securities Litigation Reform Act of $19 95.

Michael Miller: <unk> the expected financial results for 2024.

Michael Miller: 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.

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 2023.

Michael Miller: 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 Miller: 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 Miller: 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.

Michael Miller: 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.

Michael Miller: 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.

Robert Ford: Thanks, Mike.

Robert Ford: Good morning, everyone. Thank you for joining us today reported organic sales growth of more than 8%.

Robert Ford: Exclude COVID-19 testing sales and adjusted earnings per share of $1 21.

Robert Ford: In addition to delivering another quarter of strong financial performance, we accomplished several key objectives this quarter.

Robert Ford: Which included entering new strategic partnerships launching new products and making several key advancements in our R&D pipeline.

Robert Ford: And I will elaborate further on these accomplishments when discussing the performance of our businesses and summarize our third quarter results in more detail before turning the call over to Phil.

Robert Ford: And I'll start with nutrition.

Robert Ford: Where sales increased three 5% in the quarter growth in the quarter was led by double digit growth in the U S. And this included growth of 12% in U S. Pediatric nutrition, driven by market share gains in the infant formula business.

And growth of 11, 5% in U S. Adult nutrition led by our market, leading ensure and <unk> brands.

Robert Ford: As the market leader in adult nutrition, we continue to expand our portfolio to meet the growing global demand for products that.

Robert Ford: That offer a combination of high protein low sugar to help people optimize their health and wellness.

Robert Ford: Moving to diagnostics, where sales in core laboratory diagnostics increased four 5%, excluding COVID-19 testing sales.

Robert Ford: Growth in core lab was driven by global demand for routine diagnostic testing and continued adoption of our market, leading diagnostic systems and testing platforms, including recent large account wins that will help continue to sustain our growth into 2025.

Robert Ford: And our rapid point of care diagnostics businesses, we continue to expand our test menus.

Robert Ford: Capitalize on the growing demand for respiratory tests that can be performed at home we're in more traditional health care settings.

Robert Ford: In September we announced an exciting new partnership with the Big 10 conference.

Robert Ford: To help boost the U S blood supply through a blood donation competition.

Robert Ford: Students alumni and fans can donate blood for any of the 18 member universities at blood centers located across the country.

Robert Ford: And our goal with this competition just to help rebuild the nation's blood supply, which is X, which is currently at an extremely low level.

Robert Ford: While also helping to create a new generation of blood donors.

Speaker Change: Turning to <unk>, where sales increased 7% in the quarter.

Speaker Change: Growth was well balanced across the markets in therapeutic areas in which we participate.

Speaker Change: Our performance this quarter was driven by double digit growth in several countries across Latin America, Southeast Asia, and the Middle East.

Speaker Change: Where our broad product portfolio is focused on addressing local market needs continues to enhance our unique position in these markets.

Speaker Change: From a portfolio perspective, we continued to deliver broad based growth across our key therapeutic areas of focus including strong growth in the quarter in the areas of gastroenterology, cardio metabolic central nervous system and pain management.

We also achieved several milestones this quarter as it relates to advancing our portfolio of Biosimilars, which we built and continue to expand through collaboration agreements.

Speaker Change: First of these biosimilars is on track to launch in emerging markets in late 2025.

Speaker Change: And I'll wrap up with our med tech portfolio, where sales grew more than 13%.

Speaker Change: In diabetes care sales of continuous glucose monitors exceeded $1 6 billion in the quarter and grew 21%.

Speaker Change: In August.

Speaker Change: We announced that we had entered into a unique global partnership with Medtronic to connect Abbott's world, leading freestyle Libre CGM sensor with their automated insulin delivery systems.

Speaker Change: Abbott now has partnerships with five of the largest companies that offer automated insulin dosing pumps.

Speaker Change: Allowing more people around the world to benefit from the connectivity with the Libre technology.

Speaker Change: In September we announced the U S launch of Lingo are new glucose monitoring sensor available for purchase without a prescription the lingo wearable sensor and App track real time glucose data and provide personal insights and coaching based on your body's reaction to nutrition exercise and other law.

Speaker Change: <unk> style choices to help create healthier habits and improve overall well being.

Speaker Change: In electrophysiology growth of 14%.

Speaker Change: It was driven by double digit growth in both the U S and international markets and similar to previous quarters. The growth was broad based across the portfolio, including double digit growth in catheters and cardiac mapping related products.

Speaker Change: We also achieved several important milestones as it relates to our electrophysiology new product pipeline and this includes compete.

Speaker Change: Completing enrollment ahead of schedule in our volt after U S. IDE trial and after we complete the required patient follow up phase, we expect to file for FDA approval next year.

Speaker Change: Earlier this month, we announced that we began enrolling patients in our focal flex clinical trial is designed to assess our new tack. The flex duo catheter, which offers physicians the option of using PFA and radiofrequency energy to treat atrial fibrillation.

Speaker Change: And finally, we received FDA approval and launched our new advisor HD grid ex mapping catheter, which further enhances the cardiac mapping process, when using PFA or RF ablation catheters to treat afib.

Speaker Change: In structural heart growth of more than 16% was.

It was driven by growth across our market, leading comprehensive portfolio of surgical valves structural interventions and transcatheter repair and replacement products.

Speaker Change: This quarter, we continue to capture market share and Teva.

Speaker Change: So accelerating adoption of analysts and try clip, which we launched in the U S earlier this year.

Speaker Change: And earlier this month CMS began the process of evaluating try clip for national coverage determination, which if approved.

Speaker Change: Would help expand the addressable market through broader access in the U S. For this first of its kind technology.

Speaker Change: In rhythm management growth of 7% was led by a fair our highly innovative littlest pacemaker and assert our newest implantable cardiac monitor which launched in the U S last year.

Speaker Change: In heart failure growth of 14% was driven by our market leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions.

Speaker Change: In vascular growth of 5% was led by double digit growth in vessel closure in coronary imaging along with a spree our below the knee resorbable stents that launch in the U S and the.

Speaker Change: The second quarter.

Speaker Change: And lastly in Neuromodulation sales grew 5% driven by strong demand in the international markets for our eternal rechargeable spinal cord stimulation device. So in summary.

Speaker Change: We delivered we delivered another quarter of strong top line growth with sales growth with sales growing more than 8%.

Speaker Change: We continue to make good progress expanding our gross margin profile and remain on track to improve our profile by 75 basis points on a full year basis compared to last year.

Speaker Change: And as you saw we achieved several important new product pipeline milestones this quarter and we're well positioned for a strong finish to the year and have great momentum heading into 2025, and I'll now turn over the call to Phil.

Thanks Robert.

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

Phil Boudreaux: Turning to our third quarter results sales increased seven 6% on an organic basis and increased eight 2% when excluding COVID-19 testing sales.

Phil Boudreaux: Foreign exchange had an unfavorable year over year impact of two 5% on third quarter sales.

Phil Boudreaux: During the quarter, we saw the U S dollar weakened versus several currencies, which resulted in a favorable impact on sales compared to exchange rates at the time of our call in July.

Phil Boudreaux: Regarding other aspects of the P&L. The adjusted gross margin ratio was 56, 3% of sales.

Phil Boudreaux: Adjusted R&D was six 5% of sales.

Phil Boudreaux: And adjusted SG&A was 27, 2% of sales in the third quarter.

Phil Boudreaux: Lastly, our third quarter adjusted tax rate was 15%.

Phil Boudreaux: Turning to our outlook for the fourth quarter, we forecast adjusted earnings per share guidance of $1 31 to $1 37.

Phil Boudreaux: And based on current rates, we expect exchange to have an unfavorable impact of less than 1% on fourth quarter reported sales.

Phil Boudreaux: With that we'll open the call for questions.

Phil Boudreaux: 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 star one on your telephone.

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

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 speaker phone when asking your question.

Speaker Change: And again Thats star one to ask a question. Please standby we compile the Q&A roster.

Speaker Change: And our first question will come from Travis Steed from Bofa Securities. Your line is now open.

Travis Steed: Hey, good morning, everybody.

Travis Steed: Q3 devices from a really strong, but nutrition and diagnostics came in below expectations, but you still maintain the full year guidance, which is implying a step up of nine five or more.

Travis Steed: Growth in Q4, so just want to understand what happened in those divisions in Q3, and what's giving you the confidence the silver.

Travis Steed: Full year revenue guidance.

Speaker Change: Sure Travis.

Speaker Change: So listen we've got we've got multiple business units you are I think.

Speaker Change: By my Count, it's close to like 2017, we always want all 17.

Speaker Change: Beaten top your estimates here the reality is sometimes some of them fall short.

Speaker Change: And then the question is is there something more long term is it more of a kind of a one time kind of challenge I would put that more in the second bucket over here.

Speaker Change: Yes, I think one of the benefits that we do have in.

Speaker Change: And having a broad diversified portfolio is that when you do have situations like that Travis.

Other businesses can.

Speaker Change: And over perform and.

Speaker Change: And kind of make up for that and I think thats. What you saw in this quarter. I mean, you opened your question with devices did really good and that's what helped us deliver on our on our quarter.

Speaker Change: And as you look forward to Q4, yes, we do have still a very high confidence.

Speaker Change: And the businesses if I was focused at all concerned about it I wouldn't have raised I wouldn't have raised our guidance now for the third time.

Speaker Change: This year. So yes, we're still very confident in both the EPS forecast that we've got.

Speaker Change: I think this is a great quarter now as we're into Q4 and there's less COVID-19 comps, we'll see we'll see our EPS growth double digits back to the the growth model that we had jewelry.

Pre COVID-19.

Speaker Change: And yet revenue.

Speaker Change: At that nine 5% to 10% still feel very good about that.

Speaker Change: Issues that you raised there are.

Speaker Change: Kind of onetime in nature.

Speaker Change: On nutrition.

The entire business did really well with the exception of our international pediatric business U S was up 12% pediatric use adult was up almost 12% international adult was up high single digits. So what ended up happening. There is we saw we saw some softness in the beginning of the quarter and some of are similar.

Speaker Change: International markets for pediatric.

Speaker Change: Tim quickly determined that it wasn't market. It was actually Austin those are commercial execution or lack thereof that was leading to some share loss. So team took action pretty quickly in the quarter.

Speaker Change: We made some personnel changes recalibrated, our demand generation and what ends up happening in the quarter. There as a result of that share losses, we didn't want to build excess inventory. So we shorted our sales to the distributors just to align that but I feel good about.

Speaker Change: What the team has put together early indications show that that was the right move to do and seeing good progress there. So yes disappointed.

Speaker Change: But the team knows that and they acted quickly so I expect to see.

Speaker Change: International pediatric and overall nutrition growth step up in the quarter.

Speaker Change: It doesn't change my thinking about nutrition for the quarter for next year for the long term aspect of it just something that we had to address and then I think you mentioned.

Speaker Change: Core lab also came a little bit shorter than than expectations.

Speaker Change: I'd say, they're really the driver of that was just the BBB implementation in China. If you look at our core lab business, our international core lab business.

Speaker Change: Excluding shy.

Speaker Change: China The international business was up double digits. So the teams in those markets are doing really well.

Speaker Change: And I've mentioned this in January or are we going to see the GBP impact the core lab business. We had originally forecasted in April it got delayed and pushed out to Q3. If you look at our growth rate in the first half of this year. It was over 7% and if some of that favorability that we.

Speaker Change: <unk>.

Speaker Change: Saw in the business and that we rolled into higher guidance as a result of a little bit of that delay here. So.

Speaker Change: We will go through the Pvp transition we've done it in a lot of our businesses.

Speaker Change: There is the pricing impact going forward there's some.

Transition related items that happen, whether youre, making pricing accommodations for the inventory that's already in the channel et cetera, So I still feel very good about.

Speaker Change: The business, we got there I feel good about China continues to get very attractive market for us. So we will just work our way through this.

Speaker Change: Now to your question on the quarter, Yes, we feel good about the quarter I wouldn't have I wouldn't have kept the guidance. If we didn't we got great momentum in the business. We are meeting with the management team yesterday. They are very committed and feel good about the momentum. So I think we'll have a very good year.

Speaker Change: With a good strong close in Q4 so.

Speaker Change: Great I appreciate the extra color. Thanks, a lot.

Speaker Change: Thank you.

And our next question will come from Larry <unk> from Wells Fargo. Your line is open.

Larry: Yes. Good morning, Thanks for taking the question Robert I wanted to ask about Libre and just big picture.

Larry: You had 21% growth, Italy right.

Speaker Change: In Q3, which was good but your competitors, obviously, having some issues. So would be helpful to hear your view of the state of the CGM market.

Speaker Change: Talk about your confidence in the overall CGM market outlook in your goal of $10 billion in sales by 2028, and maybe just give us some color on what youre seeing so far with lingo. Thanks for taking the question.

Speaker Change: Yes sure.

Speaker Change: Sure.

Speaker Change: Larry Ive always been very very bullish about this market and talked about this market a little bit differently than what we talk about general Med Tech markets right now.

Speaker Change: This is a this is a mass market.

Speaker Change: The opportunity that we have and.

Speaker Change: Yes, we grew 21%.

Speaker Change: U S was actually up 26%.

Speaker Change: And.

Speaker Change: We feel good about the market.

Speaker Change: Fundamentals are still very much there and they are still very much intact.

Speaker Change: This is you've got.

Speaker Change: $10 million CGM users globally, I think right now.

Speaker Change: And you got over 100 million diabetics in the developed world over.

Speaker Change: Over half a billion dollars globally. So so yes, I think this is a.

Speaker Change: A market that's got mass mass market potential to it.

Speaker Change: As long as you stay ahead from a technology perspective, along as you stay ahead from a scale perspective as long as you stay ahead for <unk>.

Speaker Change: From a from a cost perspective for me those are the three elements here that.

Speaker Change: That allow us and have guided our strategy from day one.

Speaker Change: And I don't think that.

Youre going to have some.

Speaker Change: Some changes in the market when you've got a market that's.

Whatever 12 $13 billion growing 15%.

Speaker Change: There'll be more players for sure there'll be more competition for sure, but we feel good about our position and the strategy that we built we've thought about this not just for the next year. We've been thinking about this what is it going to look like a decade from now and how we built our portfolio and our position. So I feel very good about this.

Speaker Change: And I don't think there's anything fundamentally here thats that significantly changed.

Speaker Change: At least from our internal way of thinking about it.

Speaker Change: So.

Yes, I think this is a great opportunity for us Libre is.

Speaker Change: It'll be a six $6 billion plus product it'll grow 20%. This year when we put out the $10 billion target Larry we talked about a compound annual growth rate of 15%. So we're ahead of that and.

Speaker Change: We're going to we're going to work hard to make sure that we stay ahead of that.

Speaker Change: We continue to we continue to gain share will add $1 billion of revenue. This year add 1 million users you've got opportunities in type ones on the pump side on the connectivity side with pens, you got opportunities with type twos and Basil I mean, I think that's just really still so much opportunity in those markets. So I.

Speaker Change: We feel very good about it.

Speaker Change: And as we've talked about Libre, we always viewed it as a platform so you've mentioned lingo.

Speaker Change: Glad to see that gap glad to see that launch.

Speaker Change: <unk>.

Speaker Change: Just as a reminder, we're really focusing on a very different population.

Speaker Change: With this technology right, we're targeting people that don't have diabetes. So it's a little bit of a different kind of business model sell model.

But so far <unk> seen really really good early interest great great feedback from the users so far.

Speaker Change: At the data.

Speaker Change: The website, Hello, Ingo Hello, Lingo website, the delivery the whole nonprescription stuff, that's working out very well.

Speaker Change: The two sensor pack is the most popular version right now and I think that's a good it's a great way to start I was looking at some of the initial reorder rates that came in last night and while was I surprised at that.

Speaker Change: Really really much higher reorder rates than what we saw in the U K and I thought that I think the team did a really good job at adapting.

Speaker Change: Some of the learnings from the UK into that so I think overall over time this is going to be a great opportunity.

Speaker Change: To be able to add to that $10 billion target as we build as we build this.

Speaker Change: This user base out so overall.

Speaker Change: Back to your question on Libre feel very good about our position what we're doing and link goes off to a very good start.

Speaker Change: Alright, great. Thanks, so much.

Speaker Change: Thank you.

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

Robbie Marcus: Oh good morning, Thanks for taking the questions congrats on a nice quarter.

Robbie Marcus: Robert I wanted to ask at this time of year, we all were looking for fourth quarter, but we're also turning our focus to 2025 I see the streets sitting at about 7% on the top line, 10% on the bottom line.

Robbie Marcus: I wanted to see if you had any comments about how you feel about that or your view into next year. Realizing it's still on the early side. Thanks.

Speaker Change: Yes, it's a little early to give real specific.

Speaker Change: Guidance, there Ravi, but similar to you.

Speaker Change: We're also looking at 25 and we're just looking at 25 also as part of our strategic planning process. There too. So yes. This is this is the time of the season right.

Speaker Change: I'd say, yes, similar to last year I look at the analyst estimates going into 2025 high single digit growth, 10% EPS and like I said last year.

Speaker Change: That feels like a very reasonable starting point.

Speaker Change: I think the difference going into 2025 versus.

Speaker Change: When we were coming into 2024 is as we go into 2025, one of the things that we don't have is what I would call kind of like the Covid cloud at least for a couple of the quarters ahead of us in that kind of masked a little bit of our our underlying kind of base EPS kind of business growth. So.

Speaker Change: So I am looking forward in a way not having that be kind of this kind of a comp issue.

Speaker Change: But I think the high single digit.

Speaker Change: 10% EPS, yes that sounds like a very kind of.

Speaker Change: It's a reasonable starting point.

Speaker Change: But if I take a step back also I look at that and say okay.

Speaker Change: Here, we are a company that's $40 billion in revenue and we've been driving high single high single.

Speaker Change: High single top high single digit top line growth I think thats pretty unique for us and I think one of the reasons for that is a combination of two factors.

Speaker Change: First of all the markets that we're participating there very attractive rock, whether it's their size that growth outlook.

Speaker Change: Their alignment to favorable demographic trends the positions we have in them.

Speaker Change: And then there is.

Speaker Change: There's a couple of different types of markets that we that we're in markets that are probably a little bit lower from a growth rate perspective, but we've got tremendous scale tremendous positions in them and that scale and that positioned disproportionate as us.

Speaker Change: And.

Speaker Change: They provide.

Great.

Speaker Change: Financial stability to our business. We've got other markets that are very exciting high growth markets that our goal there is to enter and capture share.

Speaker Change: Whether it's <unk>, a new diagnostic systems that we'll be launching and then other markets. We're building and we're building them and creating them with first of their client types of products, whether it's lingo that we've talked about tbi testing lead list biosimilars in emerging markets et cetera. So.

Speaker Change: So it's a nice collection of markets.

Speaker Change: That really allow us to.

Speaker Change: Set these high single digit target growth rates for us and then the other part is pipeline, which is fundamental right and I think it's been highly productive.

Speaker Change: Recently launched products. This year are going to contribute about $1 billion of revenue this year and thats double to what it was in 2023 and I expect that to be the case again.

Speaker Change: Next year right. So I think it starts to the topline.

Speaker Change: Made a lot of effort right now on expanding gross margin and delivering that was a topic that we talked about last year expanding margins and gross margin is a key focus of ours, but I also think we've been a pretty.

Speaker Change: Pretty proficient allocator of of investment.

Speaker Change: We've invested.

Speaker Change: We've done increasing investments in areas that we know are high growth areas and we've still been able to generate over $1 billion of.

Speaker Change: Spending leverage over the last over the last five years. So I would say as we go down the P&L I think that's another opportunity for us as we go down into into 2025 is our discipline in terms of how we make the investments and our focus on gross margin. So I think the combination of that.

Speaker Change: It will allow us to have that op margin expansion, and then balance sheets and a great year, sorry balance sheets in great shape here. So.

Speaker Change: I think we've got all of the elements that we need to go into 2025 with with great momentum.

Speaker Change: Markets positions.

Speaker Change: And financial flexibility there.

Speaker Change: Great. Thanks, a lot.

Speaker Change: Thank you.

Speaker Change: Our next question will come from David Roman from Goldman Sachs. Your line is open.

David Roman: Thank you and good morning, everybody, Robert maybe if I can push a little bit more on the investment spending and help us think a little bit about the shape of the P&L on a go forward basis. During the quarter, you did accelerate R&D and SG&A spending on a year over year growth basis, and maybe you could help us think through.

David Roman: Where are some of those incremental dollars going how should we think about the trajectory of operating expenses in the context of gross margin expansion and then with the announced share repurchase program should we think about that as.

David Roman: In effort to keep the share count flat or a view that this is an opportunity to return incremental capital to shareholders.

David Roman: And reduce or reduce the share count.

David Roman: Sure.

Yes, I guess on the on the investment side.

David Roman: <unk>.

David Roman: So if you look at what we've done with our with our with our expenses here they've gone from 37%.

David Roman: In 2019 down to about 34%. This year, so that's where that $1 billion of spending leverage comes right. If you look at our five year CAGR, It's high single digits and our operating expense CAGR is about 4%.

David Roman: But it's not a cookie cutter approach.

David Roman: David.

David Roman: We look at the businesses.

David Roman: And look at their look at their opportunities and make those decisions R&D investments they are a little bit more longer term right. So once you commit to R&D programs.

David Roman: They tend to be a little bit more of a longer term then.

David Roman: That theyre, making some SG&A decisions, where you could you could toggle up and down a little bit easier.

David Roman: But I think you can see where some of the some of the growth is coming from and Thats being supported by those investments obviously, our med tech portfolio.

David Roman: Has been getting investments.

David Roman: I'd say in EP and structural heart.

David Roman: In diabetes care.

David Roman: Sure.

David Roman: In Neuromodulation I mean, all of the businesses they come with a strategic plan and we look at where it makes more sense, whether its to put more.

David Roman: More investment.

David Roman: In the field with Salesforce and clinical people, whether it's to make the investment in our clinical trial.

So we we tend to have a pretty good process about how to do that.

David Roman: We've made making investments in diagnostics.

David Roman: Soon we'll probably be talking about a new system that we're going to be launching for a whole new segment of the diagnostic industry.

David Roman: That's a longer term program that's been a couple of years.

So I think we've got a good process about how to how to make the investments.

David Roman: Knowing that R&D investments are a little bit more longer than <unk>.

David Roman: SG&A.

David Roman: So and I think that's that's what we've been able to show and that's one of the reasons, we've been able to get to our op margin profile back to pre pandemic levels, which.

David Roman: Naturally a lot of companies would be able to kind of say that so.

David Roman: And but we haven't we haven't we haven't we haven't driven our op margin by by expenses I mean, we've been driving our top line.

David Roman: Pretty effectively too so I think thats, probably the best proof point that we know how to how to do this allocation.

David Roman: And the cycles of the allocation et cetera.

And then I think I had a question regarding.

David Roman: Our share count and.

And buybacks.

David Roman: <unk>.

David Roman: And.

David Roman: As I've said, we've got a pretty balanced approach about how we allocate our capital.

David Roman: Talked about the importance of the dividend and supporting that growing dividend and we will continue to do that the buybacks is just another element in that capital allocation strategy. We just.

David Roman: <unk> that.

David Roman: The board recently approved a.

David Roman: New $7 billion buyback program.

David Roman: The previous one that we had approved in 2021 was running down and we thought it was.

David Roman: A good time to put that in place.

David Roman: We've deployed around $8 billion towards buyback over the last five years.

David Roman: We took a little bit of a step up.

David Roman: <unk>.

David Roman: A couple of years after the acquisitions that we did we had step that down a little bit. So we've stepped that up Q3, we did about $750 million.

David Roman: Given our strong performance outlook here that we saw a disconnect between what we were doing an RP ratio in fact, I still do so so it made sense to buy shares in the buyback announcement is just part of our balanced.

David Roman: Balanced approach to allocating capital.

David Roman: And we've got that our authorization. So if we feel that there is a disconnect.

David Roman: Going going forward.

Got that opportunity too.

David Roman: To try and correct that so and if that reduces the share count yet.

David Roman: We'll reduce the share count, but we're not we're not trying to drive our Ips through lower share count.

David Roman: Ultimately trying to drive our Aps through topline growth David.

David Roman: Excellent I appreciate all the color thanks, Robert Yeah.

David Roman: Thank you.

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

Hi, good morning, Thanks for taking the question.

Joshua Jennings: Robert I wanted to ask about just structural heart markets.

Joshua Jennings: Taggert market slowing down or decelerating there has been some investor concerns about U S provider capacity.

Joshua Jennings: As a bottleneck.

Speaker Change: Cabot's uniquely positioned because you did ask offerings in transcatheter aortic mitral and tricuspid.

Joshua Jennings: Solutions with atrial appendage occlusion and interventional <unk>.

Speaker Change: Affiliate interventions coming down the Pike.

Speaker Change: Are you seeing any capacity constraints limiting growth you had a strong quarter. This in <unk> or are you concerned about is that on the horizon or should we just think that hospitals are seeing this growth opportunity as well.

Speaker Change: And building out capacity, adding cath labs hybrid wise et cetera, but love to get your view on current situation.

Speaker Change: Whether you are worried in the next 12 24 36 months that we could run into a bottleneck in the U S. Thanks.

Speaker Change: Not seeing the bottleneck not forecasting a bottleneck not not concerned about the capacity here.

Speaker Change: Obviously this is a.

Speaker Change: This is a very growing area not only for those that are developing the technologies, but also for the health care systems that are.

Speaker Change: Our delivering them and deploying them.

Speaker Change: I've been I've been to some large centers over the quarter I've been through some smaller centers over the quarter.

Speaker Change: There's always there's always challenges.

Speaker Change: I put it as a challenge not specific to <unk>.

Speaker Change: Given technology, our challenge is just whether it's.

Speaker Change: Yes.

Speaker Change: Ramping up of new technology getting more people to train.

Speaker Change: But I'm not hearing that the centers that we have been working with that capacity is a big rate limiting.

Speaker Change: Factor today.

Speaker Change: <unk>.

I think if it started to become one.

Speaker Change: And the demand is there I think history has shown that.

Speaker Change: Sure.

We make the right investments.

Speaker Change: The investments will be major to accommodate that demand so.

Speaker Change: And this is obviously what's.

Speaker Change: What's happened in structural heart over over the last decade investments will be made to accommodate that demand. So I'm not I'm not I'm not hearing that and we continue to be.

Speaker Change: Very excited about the prospects that we had in our structural heart portfolio.

Speaker Change: I think the team has kind of hit its stride right now, we've got new management, new products launching and.

Speaker Change: I am very optimistic right now with what the teams are putting together.

Across the entire portfolio I think like you said, we're one of the few companies here that we can see the full spectrum right from all the way from surgical structural interventions.

Speaker Change: <unk>.

Speaker Change: All the occlusion and appendages and then <unk>.

Speaker Change: Looking at being able to see mitral tricuspid aortic, whether it's repair whether its replacement I think the team is hitting its stride right now and our focus here is going to be.

Speaker Change: On both sides, making the investments on the <unk>.

Speaker Change: On the R&D side, I think we've got a lot of new product investment in structural heart.

Speaker Change: New clinical trial, new indications investments over there.

Speaker Change: And I think that different part of our investment profile and we've been doing that for many years in mitral.

Speaker Change: In structural heart and I think Thats why we have the portfolio. We have I think the piece that we're adding on now is like okay. We've got the products now we've got to increase our field presence.

Speaker Change: To support the market share gain that we aspired to or.

Speaker Change: Or to support these growing new fields, whether its tricuspid.

Speaker Change: So our focus now is really to start to add more on the field side in these businesses to be able to kind of support that growth, but now I think this is a tremendous area of growth of opportunity of under penetration of R&D of clinical work. So we're really excited about it.

Speaker Change: I appreciate it thanks.

Speaker Change: Thank you.

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

Vijay Kumar: Hi, Robert Good morning, and thanks for taking my question.

Vijay Kumar: I had one on.

Vijay Kumar: I guess anything in infant formula.

Speaker Change: CDC and NIH put out a joint statement.

Vijay Kumar: It's a pretty strong statement.

Vijay Kumar: Saying, noting that there's perhaps no cause to a relationship between infant formula.

Vijay Kumar: <unk>.

Vijay Kumar: So I guess my question is how does this change.

Vijay Kumar: Abbott's position in these lawsuits does it matter.

Vijay Kumar: What else can we expect from the government could we expect more announcements similar to test what shape or form could it be.

Vijay Kumar: What can <unk> do to.

Vijay Kumar: Perhaps ring fence, our liabilities related to these cases.

Speaker Change: Yes sure.

Speaker Change: Well listen as it relates to our position it's great to see the statement.

Speaker Change: And I agree with you I think it was a very strong statement. It doesn't change what I have been saying which is in the statement.

Speaker Change: It seems to.

Speaker Change: Be aligned and support what I hear from the market and what I hear from Neonatology is which is these products are they are medically necessary.

Speaker Change: They are considered the standard of care and they're valuable tool, they're valuable tool for the neonatologist in their decisions.

Speaker Change: And their decisions and their discussions with parents and how to feed premature.

Speaker Change: And the labels, which is a component and all of this.

<unk> been reviewed by the regulators.

Speaker Change: And.

Speaker Change: Never call for for NEC warnings so.

Speaker Change: This is a this is a.

Speaker Change: A consensus statement made by these three.

Speaker Change:

Speaker Change: Three agencies III regulators here in the U S and.

Speaker Change: Theyre basically.

Speaker Change: Vijay then theyre actually endorsing an expert panel.

Speaker Change: With dozens of researchers that were conveyed by the secretary of HHS and I think the researchers issued a 100 page document or so I think they looked at thousands of.

Speaker Change: Publications I think it was 600 specific to the relationship between net and feeding and in that joint statement the.

Speaker Change: The agencies.

Speaker Change: They've reiterated the importance of preterm formula is the standard of care and they also clearly state that there is no conclusive evidence.

Speaker Change: The formula causes Nick So I think this is only one of a handful of times, where the three agencies the most.

Speaker Change: Prominent in significant health agencies and regulators in the U S have come together and put out a joint statement. Obviously, we saw that during the Covid pandemic, but I think before that I think it was during the HIV pandemic. So I think.

Speaker Change: So I think the statement says a lot.

Speaker Change: D J at this point, though.

Speaker Change: At this point the judge in our trial right now has not allowed.

Speaker Change: The joint statement or the underlying report to be entered into evidence.

Speaker Change: I don't know the reasons, there, but I think it would be we believe that it's.

Speaker Change: The joint statement that report the expert testimony.

Speaker Change: Those are important pieces of information for a jewelry to consider.

Speaker Change: As they're making their decisions so.

Speaker Change: I don't know how to cap that but I would say beyond this case in.

Speaker Change: And as the cases move to more of the federal side.

Speaker Change: My expectation here is that the jewelry.

Speaker Change: In these cases would be allowed to consider the criticality of that important evidence so.

Speaker Change: <unk>.

Speaker Change: Yes to your question on the liability portion and kind of what to do.

Speaker Change: If I take a step back on this one I've been thinking about this quite a bit.

Speaker Change: But as healthcare innovators, we develop healthcare probable products based on problems that we see we run the clinical trials, we gather the data.

Speaker Change: We review the data with the regulators you guys know this process pretty well.

Speaker Change: And then ultimately the regulator decides if the products are safe and they are fit for purpose and they decide how they got to be labeled.

Speaker Change: That's the country, that's the market that I want to be and where the products. The labels. They are evaluated through a well established regulatory process by expert regulators that.

Speaker Change: Have unfettered access to the best scientific evidence rather than trying to do this.

Speaker Change: Regulated products through uncertainty and unpredictability of jury trials. So ultimately to your question if the regulatory process is disregarded.

The science is just disregarded.

Speaker Change: It's going to be very difficult for any company.

Speaker Change: To remain on the market with these products.

Speaker Change: Taking on that indefinite.

Speaker Change: And at that indefinite liability here at least in the United States.

Speaker Change: That would be an issue that the United States would confront it wouldn't be an issue.

Speaker Change: For premature babies.

Speaker Change: In international countries because this issue this is not an issue in the.

Speaker Change: Products are still available there. So yes, I do think there needs to be some fortitude here by those that can make decisions.

Prioritize the babies prioritize preterm babies all 370000 every single year that rely on these products.

Speaker Change: Over those that seem to kind of distort and abuse. This tour system. This tort system that we have in our country here for financial gains I'm, hoping it doesn't come to that.

Speaker Change: But I've been pretty clear that.

Speaker Change: This is.

We stand behind the products, but at the process won't be won't be.

Speaker Change: It was going to be disregarded then this is something that we will not.

Speaker Change: We will not continue adding to the liability here so yes.

Yes, Theres a playbook it seems for these things to happen.

Speaker Change: I can take a decade 10, plus years to litigate this and come to some resolution I don't intend to follow that playbook.

Speaker Change: I intend to resolve this faster and yes. There are there are there are different ways to resolve this in different ways to look at this.

And we are having conversations at all levels to be able to express the concern that this could cause.

Speaker Change: Families here in the United States.

Speaker Change: That's helpful. Thank you.

Speaker Change: Thank you.

Speaker Change: Yes.

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

Joanne Wuensch: Good morning, and thank you for taking the question.

Joanne Wuensch: Congratulation on earlier than expected completion of enrollment in our PSA catheter.

Joanne Wuensch: Clinical trial.

Joanne Wuensch: I would really love to get your view on the state of the electrophysiology market, what youre seeing in terms of PFA uptake and how that is impacting your.

Joanne Wuensch: Mapping and navigation system.

Joanne Wuensch: Thank you again.

Speaker Change: Sure John.

Speaker Change: Well I mean, I think this quarter was a continuation.

Speaker Change: The trend that we've been seeing since the since the arrival of PFA.

Speaker Change: <unk>.

We're growing we're growing a little bit lower than the market. The market has kind of grown pretty significantly here, but if you look at our growth rate.

Speaker Change: Prior to <unk>, we are actually growing faster.

Speaker Change: Now with PFA and I think Theres a couple of factors. There I think you mentioned one of those which is.

Speaker Change: Cardiac mapping.

Speaker Change: Right now we're seeing about 90 plus percent of the cases at least here in the U S being being Matt If you look at where we were before Joanne.

Speaker Change: We're mapping about maybe between 25% to 30% of RF cases, where now mapping 50 plus.

Speaker Change: So so that.

Speaker Change: <unk> is a little bit of a tailwind for us we're seeing.

Speaker Change: A pretty.

Speaker Change: Strong growth in procedures.

Speaker Change: So.

Speaker Change: And I think that's probably what's helped drive some of the market growth that we're seeing but I also think that the volume increase.

Speaker Change: It's actually due to improved treatment guidelines that we're seeing quite frankly, new technologies that are helping to identify.

Speaker Change: Patients too so I think I think it's a combination of factors there.

Speaker Change: That are helping to drive more procedures.

Speaker Change: And then for us.

Speaker Change: The RF portion of it is is still it's still it's still a growth piece for us as I said in my comments we have.

Speaker Change: We grew ablation catheters double digits too.

Speaker Change: So we're seeing about 20% of the PFA cases at least the ones that we're mapping.

Speaker Change: Use RF catheters.

Speaker Change: And we're in those cases, so yes, I think the key thing here is just a at least right now right now PFA is really being used for de novo procedures right.

Speaker Change: So if you kind of break that out it's about a third of all of all ablation procedures are de novo. The other two thirds are VT ablation, SVT ablation reduce and in those cases.

Speaker Change: They are using.

Speaker Change: We're still using RF.

And RF plays an important role there, which is why we've initiated our focal flex trial to be able to have the optionality to be able to toggle between PFA and and and RF. So so we felt we still think that's an important important part there so.

Speaker Change: But I think the team has done a really good job here at leveraging our open mapping system.

Speaker Change: I made comments, we use the open mapping system.

Speaker Change: As a design input for R&D programs to start off with it now that open system is allowing us to be in more cases and partner more with the electrophysiologist. So.

Speaker Change: So I think that is.

Speaker Change: That's what we're seeing.

Speaker Change: We're very committed to be able to bring <unk> to the market. We've completed enrollment like you said.

Speaker Change: And.

Speaker Change: We completed the CE Mark enrollment beginning of this year so.

Speaker Change: So we're committed to this space.

Speaker Change: But we do feel that it's.

Speaker Change: It's a full portfolio approach you need good mapping, which is why we invested in our next generation HD grid, you need to have a PSA portfolio Thats pretty complete you need to have RF I think thats, what the team has been building.

I'd say very very successfully.

Speaker Change: Wonderful thank you.

Speaker Change: Thank you.

Speaker Change: Our next question will come from Matt mixing from Barclays. Your line is open.

Matt Mixing: Hey, thanks, so much for taking the question.

Speaker Change: A follow up on.

Speaker Change: <unk> got a beauty business.

Speaker Change: Just a couple of.

Speaker Change: Couple of topics that come up quite a bit.

Speaker Change: In the last few months.

Speaker Change: Around there.

Speaker Change: The market and competition, the first being kind of.

Speaker Change: Anything you can comment on regarding your share trends.

Speaker Change: And particularly in the DIY channel anything Youre doing differently.

Speaker Change: What youre seeing.

Speaker Change: As a user of lingo for the last couple of months I compliment the team putting together a great product.

Speaker Change: Question, just curious about the.

Speaker Change: The timing and the plan for Rio.

Speaker Change: Yes, John potential reimbursement for that sort of non non insulin intensive type two.

Speaker Change: Community.

Speaker Change: And then lastly, just zooming out for a second.

Speaker Change: Back to your comments and plans for gross margin.

Speaker Change: How if you could.

Speaker Change: Gail.

Speaker Change: Spansion into OTC.

Of Libre in this platform.

It plays a role.

Speaker Change: Hitting.

Speaker Change: Hitting your 24 gross margin plans.

Speaker Change: And your plans for expansion going forward as you scale this business.

Matt Mixing: Your line up a lot there Matt.

Speaker Change: To make sure that.

Speaker Change: Mike Carrier helps me stay with all the questions that you laid out there.

Speaker Change: Regarding the Libre question on competitiveness.

Speaker Change: Yes, I think the team has done a really good job here in the U S. Not just in the <unk> channel, but at the at the <unk> offices at the primary care channel with the basal population I think it's kind of an all out all channel.

Speaker Change: Real strong execution there the U S. We grew 26% in the U S.

Speaker Change: This quarter.

Speaker Change: <unk>.

Speaker Change: And that was having some of the some of the some.

Speaker Change: Some of the challenges we had there regarding regarding some kind of temporary.

Speaker Change: Supply challenges will Libre Libre three so we haven't really unleashed libre three fully yet and a lot of the share gains that we're getting with libre two but.

Speaker Change: That piece of it is behind US we invested in.

Our new manufacturing line, we have a new manufacturing a whole brand new manufacturing facility come up and at.

Speaker Change: Towards the end of the year, so that will that will as we go into next year that will all be kind of behind us.

Speaker Change: So I think our position here in the U S and globally quite frankly is strengthened by the product portfolio. The cost position that we had you mentioned in gross margins in.

Speaker Change: In Libre.

Speaker Change: That's a key aspect here, we've always talked about you got to have cost leadership here because as the market expands to basal and oral meds <unk>, one users and as that population grows.

Speaker Change: Youre going to have a much larger tam to tier two.

Speaker Change: Operating but yes, you are going to see you're going to have to make some pricing adjustments to be able to get that reimbursement. So you got to have your cost structure in place to be able to benefit the top line growth and not have that come at the expense of gross margin and our gross margins as we've grown libre have actually expanded.

Speaker Change: As our manufacturing scale continues to ramp up some of the costs associated with these products because theres a lot of automation and we've been doing this from from.

Speaker Change: From day one.

Speaker Change: Some of the costs are depreciation on the equipment. So as a lot of our facilities are.

Speaker Change: Running through their depreciation schedules those those will help our gross margins too so I feel I feel good about.

Speaker Change: Our opportunity.

Two.

Speaker Change: To drive the market to be competitive to lead in technology to lead in scale and cost.

Speaker Change: And and take advantage of what we believe is a is a mass market opportunity for US I think you had a question on <unk>.

On Rio.

Speaker Change: The initial focus is on lingo right now.

Speaker Change: We've got that think of think of Rio is.

Speaker Change: Another arrow in the quiver that we can pull out.

Speaker Change: <unk>.

Speaker Change: If we need to ahead of schedule, we do have a schedule I am not going to lay out what that schedule is but for some reason we need to do that we will be able to do that but the focus is on is on is on lingo right now and we've got we've got a nice opportunity here to build.

Speaker Change: A completely new segment.

Speaker Change: <unk> wearables with consumers so.

Speaker Change: That's great great. Thanks, so much.

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

Speaker Change: Thank you.

Speaker Change: And our last question will come from Danielle <unk> from UBS. Your line is open.

Danielle: Good morning, guys. Thank you so much for squeezing me in and congrats on a really good quarter here.

Speaker Change: Just wanted to follow up on the structural.

Speaker Change: A component of the business Robert you talked about this earlier in response to Josh his question.

Speaker Change: Just digging a little bit deeper as you look into 2025, I mean, <unk> got potential indication expansion for early close sure.

Speaker Change: But you do have some competitive data coming on the tricuspid side of things at TCP, and whether or not that shows that a mortality benefit. So just curious about how you think about those two markets.

Speaker Change: And sustainable growth in those franchises and there are some puts and takes there. So just wanted to get your sense of how to think about that as we head into next year. Thanks. So much sure just to remind me again, then try tricuspid and what was the other one.

Speaker Change: Sorry left atrial appendage closure.

Speaker Change: Okay, yes, okay. Good.

Speaker Change: These are great areas of investment for us.

Speaker Change: Investment of money time effort thinking power all of that so.

Speaker Change: I think as I said on business hitting its stride I definitely would say that about the amulet team theyre definitely hitting their stride, we saw nice growth this quarter.

Speaker Change: 25% globally, 40% growth in the U S. Here, so and we're making the investments I mean, I think you saw.

Speaker Change: Our registry data shows really good positive results from from annual at 95% of the closure rates achieved.

Speaker Change: Sustained after 45 days.

Speaker Change: I think thats.

Speaker Change: That's pretty that's pretty good 90% closure rate when using analytics for those that have failed.

Speaker Change: Proper closure with a competitive product so.

Speaker Change: But we are investing in there we've got we've got our catalyst trial.

Speaker Change: Just looking at.

Speaker Change: Comparing amulet too.

Speaker Change: Anticoagulants with people that have a risk of afib.

Speaker Change: We expect to complete that trial next year.

Speaker Change: And then the team has been working on it to point out.

Speaker Change: And I expect that we will be.

Speaker Change: Beginning or entering to trial in that business.

Speaker Change: That product towards the end of this year so.

Speaker Change: Really nice progress on the appendage side.

Speaker Change: Whether its annually and quite frankly, <unk> is doing really well and thats and Thats a great great.

Speaker Change: A great growth driver for us too.

Speaker Change: On the tricuspid side.

Speaker Change: Yes, theres going be a lot of data coming out.

Speaker Change: Over the next 12 24 months I expect that I think with any new category here, Danielle youre going to have to make the investments I mean, nobody was doing anything.

Speaker Change: From an interventional perspective on the tricuspid right. So so as companies are developing technologies. I think you are going to see a lot of clinical readout and clinical data.

Speaker Change: More to be able to kind of support the use of these technologies I think we saw one recently at ESC.

Speaker Change: Specifically to try clip.

Speaker Change: European study and this is the second RCT, that's basically confirming what the Tri Illuminant Rct's showed which is much superior to medical therapy and extremely effective at reducing TR. So.

Speaker Change: So I think that that's a.

Speaker Change: An area of investment for us without a doubt I think that there is.

Speaker Change: An opportunity here that the team's been working on regarding our full portfolio approach with our with our structural products and I think try clip plays an important role there.

Speaker Change: Uh huh.

Speaker Change: We're excited about the NCD that was opened and looking forward to that so that's another opportunity for us in 2025, but quite frankly, I just think there's a great opportunity here with our team.

Speaker Change: Got I would say some built in advantages as it comes to the <unk> product, we've got manufacturing scale the sales force.

Speaker Change: And all of that and there is and there is definitely demand and we're seeing that in the launch is going very well. So I think that yes, youre going to see more data and thats. Good.

Speaker Change: And.

Speaker Change: It's a growth opportunity for us I think this is a 1 billion dollar business for us here over time.

Speaker Change: But youre going to have to we're going to have to make the investments on the clinical side too.

Speaker Change: To be able to kind of support the adoption of it so so.

Speaker Change: So.

Speaker Change: So very excited about structural heart overall.

And ultimately excited about the entire company and business we've had.

Speaker Change: Really pleased with the performance through the first three quarters.

Speaker Change: We're on track to finish the year at the high end of the.

Speaker Change: The initial guidance that we provided back in January sales growth has been strong gross margin profile continues to expand.

Speaker Change: EPS growth is now accelerating.

Speaker Change: Throughout the year as we as we are lapping some of those those COVID-19 comps the pipeline is richer than ever so.

Speaker Change: So I think we've got great momentum heading into next year and with that I'm going to I'm going to wrap up and thank all of you for joining us.

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 am central time today on Abbott's Investor Relations website at Abbott Investor Dot Com.

Speaker Change: 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.

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Operator: Thank you for your time, and I'll see you in the next video. .

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Operator: Thank you for watching!

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David Roman: David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman, David Roman. Good day, and thank you for standing by.

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Speaker Change: Good day and thank you for standing by welcome to Abbott's third quarter 2024 earnings Conference call.

Operator: Welcome to Abbott's third quarter 2024 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 one one keys on your touch-tone 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 re-broadcast without Abbott's express written permission.

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'll be able to ask your question by pressing the star one one Keith on your Touchtone phone.

Speaker Change: This call is being recorded by Abbott.

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

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

Operator: I would thank you for joining us.

Robert Ford: With me today are Robert Ford, Chairman and Chief Executive Officer, and Phil Boudreau, Executive Vice President, Finance and Chief Financial Officer. Robert and Phil will provide opening remarks following their comments. We'll take your questions.

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

Robert Ford: 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. We also achieved several important milestones as it relates to our Electrophysiology, new product pipeline, and this includes completing enrollment ahead of schedule in our Volk AFUS IDE trial. And after we complete the required patient's follow-up phase, we expect the file for FDA approval next year. Earlier this month, we announced that we began enrolling patients in our Focal-Flex clinical trial. This is designed to assess our new tactics-flex duo-capiter, which offers physicians the option of using PFA and radio-frequency energy to treat atrial fibrillation.

Michael Miller: 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.

Michael Miller: 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 2023.

Michael Miller: 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 Miller: 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 Dot com.

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.

Robert: Thanks, Mike.

Robert: Morning, everyone. Thank you for joining us today reported organic sales growth of more than 8%.

Robert: Excluding COVID-19 testing sales and adjusted earnings per share of $1 21.

Robert: In addition to delivering another quarter of strong financial performance, we accomplished several key objectives this quarter.

Robert: Which included entering new strategic partnerships launching new products and making several key advancements in our R&D pipeline.

Robert: And I will elaborate further on these accomplishments when discussing the performance of our businesses and summarize our third quarter results in more detail before turning the call over to Phil.

Robert: I'll start with nutrition.

Robert: <unk> sales increased three 5% in the quarter growth in the quarter was led by double digit growth in the U S. And this included growth of 12% in U S. Pediatric nutrition, driven by market share gains in the infant formula business.

Robert: And growth of 11, 5% in U S. Adult nutrition led by our market, leading ensure and <unk> brands.

Robert: As the market leader in adult nutrition, we continue to expand our portfolio to meet the growing global demand for products.

Robert: That offer a combination of high protein low sugar to help people optimize their health and wellness.

Robert: Moving to diagnostics, where sales in core laboratory diagnostics increased four 5%, excluding COVID-19 testing sales.

Robert: Growth in core lab was driven by global demand for routine diagnostic testing and continued adoption of our market, leading diagnostic systems and testing platforms, including recent large account wins that will help continue to sustain our growth into 2025.

And our rapid point of care diagnostics businesses, we continue to expand our test menus.

Robert: And capitalize on the growing demand for respiratory tests that can be performed at home. We're in more traditional health care settings.

Robert: In September we announced an exciting new partnership with the Big 10 conference.

To help boost the U S blood supply through a blood donation competition.

Robert: Students alumni and fans can donate blood for any of the 18 member universities at blood centers located across the country.

Robert: And our goal with this competition just to help rebuild the nation's blood supply, which is X, which is currently at an extremely low level.

Robert: While also helping to create a new generation of blood donors.

Speaker Change: Turning to <unk>, where sales increased 7% in the quarter.

Speaker Change: Growth was well balanced across the markets in therapeutic areas in which we participate.

Speaker Change: Our performance this quarter was driven by double digit growth in several countries across Latin America, Southeast Asia, and the Middle East.

Where our broad product portfolio focus on addressing local market needs continues to enhance our unique position in these markets.

Speaker Change: We also achieved several milestones this quarter as it relates to advancing our portfolio of Biosimilars, which we built and continue to expand through collaboration agreements.

Speaker Change: The first of these biosimilars is on track to launch in emerging markets in late 2025.

And I'll wrap up with our med tech portfolio, where sales grew more than 13%.

Speaker Change: In diabetes care sales of continuous glucose monitors exceeded $1 6 billion in the quarter and grew 21%.

Speaker Change: In August.

Speaker Change: Abbott now has partnerships with five of the largest companies that offer automated insulin dosing pumps.

Allowing more people around the world to benefit from the connectivity with the Libre technology.

<unk> style choices to help create healthier habits and improve overall well being.

Speaker Change: In electrophysiology growth of 14%.

Speaker Change: It was driven by double digit growth in both the U S and international markets and similar to previous quarters. The growth was broad base across the portfolio, including double digit growth in catheters and cardiac mapping related products.

Speaker Change: We also achieved several important milestones as it relates to our electrophysiology new product pipeline and this includes completing.

Speaker Change: Enrollment ahead of schedule in our volt <unk> U S. IDE trial and after we complete the required patient follow up phase, we expect to file for FDA approval next year.

Robert Ford: And finally, we received FDA approval and launched our new advisor HD-Gridx mapping-capiter, which further enhances the cardiac mapping process when using PFA or our F-ablation-capiter to treat AFUS. In structural heart, growth of more than 16 percent was driven by growth across our market leading comprehensive portfolio of surgical valves, structural interventions, and trans-capiter repair and replacement products. This quarter, we continued to capture market share in Tavur and saw accelerating adoption of ananulate and trichlet, which we launched in the US earlier this year. And earlier this month, CMS began the process of evaluating Trichlet for national coverage determination, which, if approved, would help expand the addressable market through broader access in the US for this first of its kind technology.

Speaker Change: In structural heart growth of more than 16% was driven by growth across our market, leading comprehensive portfolio of surgical valves structural interventions and transcatheter repair and replacement products.

Speaker Change: This quarter, we continue to capture market share in Teva and saw accelerating adoption of analysts and try clip, which we launched in the U S earlier this year.

Speaker Change: And earlier this month CMS began the process of evaluating try clip for national coverage determination.

Speaker Change: If approved.

Speaker Change: Would help expand the addressable market through broader access in the U S. For this first of its kind technology.

Robert Ford: In rhythm management, growth of 7 percent was led by a Ver, or highly-innovated leadless pacemaker, and Assert, our newest implantable cardiac monitor, which launched in the US last year. In heart failure, growth of 14 percent was driven by our market leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions. In vascular growth, the 5 percent was led by double-digit growth and vessel closure and coronary imaging, along with a spree, are below the knee-resortable scent that launched in the US in the second quarter. And lastly, in neuromodulation, sales grew 5 percent, driven by strong demand in international markets for our eternal rechargeable spinal cord stimulation device.

Speaker Change: In rhythm management growth of 7% was led by a bear our highly innovative littlest pacemaker and assert our newest implantable cardiac monitor which launched in the U S last year.

Speaker Change: In heart failure growth of 14% was driven by our market leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions.

In vascular growth of 5% was led by double digit growth in vessel closure in coronary imaging along with a spree our below the knee resorbable stents that launch in the U S. In the second quarter.

Speaker Change: And lastly in Neuromodulation sales grew 5% driven by strong demand in the international markets for our eternal rechargeable spinal cord stimulation device. So in summary.

Robert Ford: So, in summary, we delivered another quarter of strong top-line growth, with sales growth was sales growing more than 8 percent. We continue to make good progress, expanding our growth margin profile, and remain on track to improve our profile by 75 basis points in a full year of basis compared to last year.

Speaker Change: We delivered we delivered another quarter of strong top line growth with sales growth with sales growing more than 8%.

Speaker Change: We continue to make good progress expanding our gross margin profile and remain on track to improve our profile by 75 basis points on a full year basis compared to last year.

Robert Ford: As you saw, we achieved several important new product pipeline milestones this quarter, and are well-positioned for a strong finish of the year, and had great momentum heading into 2025, and I'm now turning over the call to Fill.

Phil Boudreau: Thanks, Robert. As Mike mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis. So I think that's an area of investment for us, without a doubt. I think that there's an opportunity here that the teams have been working on regarding our full portfolio approach with our structural products. And I think Tri-Clipp plays an important role there. You know, we're excited about the NCD that was opened. I'm looking forward to that. So that's another opportunity for us in 2025. But quite frankly, I just think there's a great opportunity here with our team.

Phil Boudreaux: Thanks Robert.

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

Phil Boudreaux: Turning to our third quarter results sales increased seven 6% on an organic basis and increased eight 2% when excluding COVID-19 testing sales.

Phil Boudreaux: Foreign exchange had an unfavorable year over year impact of two 5% on third quarter sales.

Phil Boudreaux: Regarding other aspects of the P&L. The adjusted gross margin ratio was 56, 3% of sales.

Phil Boudreaux: Adjusted R&D was six 5% of sales.

Phil Boudreaux: And adjusted SG&A was 27, 2% of sales in the third quarter.

Phil Boudreaux: Lastly, our third quarter adjusted tax rate was 15%.

Turning to our outlook for the fourth quarter, we forecast adjusted earnings per share guidance of $1 31 to $1 37.

Phil Boudreaux: And based on current rates, we expect exchange to have an unfavorable impact of less than 1% on fourth quarter reported sales.

Phil Boudreaux: With that we'll open the call for questions.

Speaker Change: Thank you 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 star one on your telephone.

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

To withdraw your question. Please press star one again.

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

Speaker Change: And again Thats star one to ask a question. Please standby we compile the Q&A roster.

Speaker Change: And our first question will come from Travis Steed from Bofa Securities. Your line is now open.

Travis Steed: Hi, good morning, everybody.

Travis Steed: Q3 devices from a really strong, but nutrition and diagnostics came in below expectations, but you're still maintaining the full year guidance, which is implying a step up of nine five or more.

Travis Steed: Growth in Q4, so just want to understand what happened in those divisions in Q3, and what's giving you the confidence the silver.

Travis Steed: Full year revenue guidance.

Speaker Change: Sure Travis.

Speaker Change: So listen we got we got multiple business units here.

Speaker Change: By my Count, it's close to like 2017, we always want all 17.

Speaker Change: <unk> beaten top your estimates here the reality is sometimes some of them fall short.

Speaker Change: And then the question is is there something more long term is it more of a kind of a one time kind of challenge I would put that more in the second bucket over here.

Speaker Change: Yes, I think one of the benefits that we do have in in.

Speaker Change: And having a broad diversified portfolio is that when you do have situations like that Travis other businesses.

Speaker Change: Can over.

Speaker Change: A form and.

Speaker Change: And kind of make up for that and I think that's what you saw in this quarter. I mean, you opened your question with devices did really good and that's what helped us deliver on our on our quarter and as you look forward to Q4, yes, we do have still a very high confidence.

Speaker Change: And the businesses if I was focused at all concerned about it I wouldn't have raised I wouldn't have raised our guidance now for the third time.

Speaker Change: This year. So yes, we're still very confident in both the EPS forecast that we've got.

Speaker Change: I think this is a great quarter now as we're into Q4 in this less COVID-19 comps, we'll see we'll.

Speaker Change: We will see our EPS growth double digits back to the the growth model that we had jewelry.

Covid.

Speaker Change: And yet revenue.

Speaker Change: At that nine 5% to 10% still feel very good about that.

Speaker Change: The issues that you raised there.

Speaker Change: <unk>.

Speaker Change: Kind of onetime in nature.

Speaker Change: On nutrition.

Speaker Change: Our international markets for pediatric.

Speaker Change: Our team quickly determined that it wasn't market. It was actually Austin those are commercial execution or lack thereof that was leading to some share loss. So team took action pretty quickly in the quarter.

Speaker Change: We made some personnel changes recalibrate, our demand generation and what ends up happening in the quarter. There as a result of that share losses, we didn't want to build excess inventory. So we shorted our sales to the distributors just to align that but I feel good about.

Speaker Change: What the team has put together early indications show that that was the right move to do and seeing good progress there. So yes disappointed.

Speaker Change: But the team knows that and they acted quickly so I expect to see.

Speaker Change: International pediatric and overall nutrition growth step up in the quarter.

Speaker Change: It doesn't change my thinking about nutrition for the quarter for next year for the long term aspect of it just something that we had to address and then I think you mentioned core lab also came a little bit shorter than than expectations.

Speaker Change: I would say that really the driver of that was just the <unk> implementation in China. If you look at our core lab business, our international core lab business.

Speaker Change: Excluding <unk>.

Speaker Change: China The international business was up double digits. So the teams in those markets are doing really well.

Speaker Change: And I've mentioned this in January or are we going to see the Pvp impact the core lab business. We had originally forecasted in April it got delayed and pushed out to Q3. If you look at our growth rate in the first half of this year. It was over 7% and if some of that favorability that we.

Speaker Change: Saw in the business and that we rolled into higher guidance as a result of a little bit of that delay here. So.

Speaker Change: We will go through the Pvp transition we've done it in a lot of our businesses.

Speaker Change: There is the pricing impact going forward there is some transition.

Speaker Change: Transition related items that happen, whether youre, making pricing accommodations for the inventory that's already in the channel et cetera. So.

I still feel very good about.

The business, we've got there I feel good about China continues to get very attractive market for us. So we will just work our way through this.

Now to your question on the quarter, Yes, we feel good about the quarter I wouldn't have I wouldn't have kept the guidance. If we didn't we got great momentum in the business. We are meeting with the management team yesterday. They are very committed and feel good about the momentum. So I think we'll have a very good year.

Speaker Change: A good strong close in Q4 so.

Speaker Change: Great I appreciate the extra color. Thanks, a lot.

Speaker Change: Thank you.

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

Yes. Good morning, Thanks for taking the question Hey, Robert I wanted to ask about Libre and just big picture.

Speaker Change: You had 21% growth, Italy right.

Speaker Change: In Q3, which was good but your competitors, obviously, having some issues. So would be helpful to hear your view of the state of the CGM market.

Speaker Change: Yes sure.

Speaker Change: Larry Ive always been very bullish.

Speaker Change: Bullish about this market and talked about this market a little bit differently than what we talk about general Med Tech markets right.

Speaker Change: This is a this is a mass market.

The opportunity that we have and.

Yes, we grew 21%.

Speaker Change: U S was actually up 26%.

Speaker Change: And.

We feel good about the market.

Speaker Change: <unk> are still very much there and they are still very much intact.

Speaker Change: This is you've got.

Speaker Change: Our 10 million CGM users globally, I think right now.

Speaker Change: And you got over 100 million diabetics in the developed world over.

Speaker Change: Over half a billion globally. So so yes I think this is a.

Speaker Change: A market Thats got mass mass market potential to it.

Speaker Change: As long as you stay ahead from a technology perspective, along as you stay ahead from a scale perspective as long as you stay ahead from a from a from a cost perspective for me those are the three elements here that.

Speaker Change: That allow us and have guided our strategy from day one.

Speaker Change: And I don't think that.

Speaker Change: Youre going to have some.

Speaker Change: Some changes in our market when you've got a market that's.

Speaker Change: Whatever 12 $13 billion growing 15%.

Speaker Change: And I don't think Theres anything fundamentally here thats that significantly changed.

Speaker Change: At least from our internal way of thinking about it.

Speaker Change: So.

Speaker Change: Yes, I think this is a great opportunity for us Libre is.

Speaker Change: It'll be a six $6 billion plus product it will grow 20%. This year when we put out the $10 billion target Larry we talked about a compound annual growth rate of 15%. So we're ahead of that and we're.

We're going to we're going to work hard to make sure that we stay ahead of that.

We continue to we continue to gain share will add $1 billion of revenue. This year at 1 million users you've got opportunities in type ones on the pump side on the connectivity side with <unk> you've got.

Speaker Change: <unk> with type twos, and Basil I mean, I think that's just really still so much opportunity in those markets. So I feel very good about it.

Speaker Change #100: And as we've talked about Libre, we always viewed it as a platform. So you mentioned lingo glad.

Speaker Change #100: Glad to see that gap glad to see that launch.

Speaker Change #100: <unk>.

Speaker Change #100: Just as a reminder, really focusing here on a very different population.

Speaker Change #100: With this technology right, we're targeting people that don't have diabetes. So it's a little bit of a different kind of business model sell model.

Speaker Change #100: But so far <unk> seen really really good early interest great great feedback from the users so far.

Speaker Change #100: At the data.

Speaker Change #100: The website, Hello, Ingo Hello, Lingo website, the delivery the whole non prescription stuff, that's working out very well.

Speaker Change #100: The two sensor pack is the most popular version right now and I think that's a good it's a great way to start I was looking at some of the initial reorder rates that came in last night and while.

Speaker Change #100: While was I surprised at really really much higher reorder rates than what we saw in the U K and I thought that I think the team did a really good job at adapting.

Speaker Change #100: Some of the learnings from the UK into that so I think overall over time. This is going to be a great opportunity to be able to add to.

Speaker Change #100: To that $10 billion target as we build as we build this.

Speaker Change #100: This user base out so overall back to your question on Libre feel very good about our position in what we're doing and lingo is off to a very good start.

Alright, great. Thanks, so much.

Speaker Change #101: Thank you.

Speaker Change #102: And our next question will come from Robbie Marcus from Jpmorgan. Your line is open.

Robbie Marcus: Oh good morning, Thanks for taking the questions congrats on a nice quarter.

Robert Ford: Robert I wanted to ask at this time of year, we all were looking for fourth quarter, but we're also turning our focus to 2025 I see the streets sitting at about 7% on the top line, 10% on the bottom line.

Robert Ford: I wanted to see if you had any comments about how you feel about that or your view into next year. Realizing it's still on the early side. Thanks.

Yes, it's a little early to give real specific guidance, there Ravi, but similar to you.

Speaker Change #103: We're also looking at 25 and we're just looking at 25 also as part of our strategic planning process. There too. So yes. This is this is the time of the season right.

Speaker Change #103: I'd say, yes, similar to last year I look at the analyst estimates going into 2025 high single digit growth, 10% EPS and like I said last year.

Speaker Change #103: That feels like a very reasonable starting point.

Speaker Change #103: I think the difference going into 2025 versus.

Speaker Change #103: When we were coming into 2024 is as we go into 2025, one of the things that we don't have is what I would call kind of like the Covid cloud at least for a couple of the quarters ahead of us in that kind of masked a little bit of our our underlying kind of base EPS kind of business growth. So.

Speaker Change #103: So I am looking forward in a way not having that be kind of this kind of a comp issue.

Speaker Change #103: But I think the high single digit.

Speaker Change #104: 10% EPS, yes that sounds like a very kind of.

Speaker Change #105: It's a reasonable starting point.

Speaker Change #105: But if I take a step back also I look at that and say okay.

Speaker Change #105: Here, we are a company that's $40 billion in revenue and we've been driving high single high single.

Speaker Change #105: High single top high single digit top line growth I think thats pretty unique for us and I think one of the reasons for that is a combination of two factors.

Speaker Change #105: First of all the markets that we're participating there very attractive rock, whether it's their size that growth outlook.

Speaker Change #105: Their alignment to favorable demographic trends the positions we have in them.

Speaker Change #105: And then there is.

Speaker Change #105: There's a couple of different types of markets that we that we're in right markets that are probably a little bit lower from a growth rate perspective, but we've got tremendous scale tremendous positions in them and that scale and that positioned disproportionate to us.

And they.

Speaker Change #105: They provide.

Speaker Change #105: Great.

Speaker Change #105: Actual stability to our business. We've got other markets that are very exciting high growth markets that our goal there is to enter and capture share whether it's <unk> a new diagnostic systems that we'll be launching and then other markets. We're building and we're building them and creating them with first.

Speaker Change #105: Their client types of products, whether it's lingo that we've talked about tbi testing lead list biosimilars in emerging markets et cetera. So.

Speaker Change #105: So it's a nice collection of markets.

Speaker Change #105: That really allow us to.

Speaker Change #105: Set these high single digit target growth rates for us and then the other part is pipeline, which is fundamental right and I think it's been highly productive.

Speaker Change #105: Recently launched products. This year are going to contribute about $1 billion of revenue this year and that's double to what it was in 2023 and I expect that to be the case again.

Speaker Change #105: Next year right. So I think it starts to the topline.

Speaker Change #105: A lot of effort right now on expanding gross margin and delivering that was a topic that we talked about last year expanding margins and gross margin is a key focus of ours, but I also think we've been a pretty.

Speaker Change #105: A pretty proficient allocator of of investment.

Speaker Change #105: We've invested.

Speaker Change #105: We've done increase investments in areas that we know are high growth areas and we've still been able to generate over $1 billion of.

Speaker Change #105: Spending leverage over the last.

Speaker Change #105: The last five years, so I would say as we go down the P&L I think thats.

Speaker Change #105: Opportunity for us as we go down into.

Speaker Change #105: Into 2025 is our discipline in terms of how we make the investments and our focus on gross margins. So I think the combination that will allow us to have that op margin expansion.

Speaker Change #105: On balance sheets, and a great year.

Sorry balance sheets in a great shape here so.

Speaker Change #105: We've got all the elements that we need to go into 2025 with with great momentum.

Speaker Change #105: Markets positions.

And financial flexibility there.

Speaker Change #106: Great. Thanks, a lot.

Speaker Change #107: Thank you.

Speaker Change #108: Our next question will come from David Roman from Goldman Sachs. Your line is open.

David Roman: Thank you and good morning, everybody, Robert maybe if I could push a little bit more on the investment spending and help us think a little bit about the shape of the P&L on a go forward basis. During the quarter, you did accelerate R&D and SG&A spending on a year over year growth basis, and maybe you could help us think through.

David Roman: In effort to keep the share count flat or a view that this is an opportunity to return incremental capital to shareholders.

David Roman: And reduce or reduce the share count.

Sure.

Speaker Change #109: Yes, I guess on the on the investment side.

David Roman: <unk>.

David Roman: So if you look at what we've done with our with our with our expenses here they've gone from 37%.

David Roman: In 2019 down to about 34% this year so.

So that's where that $1 billion of spending leverage comes right. If you look at our five year CAGR, It's high single digits and our operating expense CAGR is about 4%.

David Roman: But it's not a cookie cutter approach.

David Roman: David.

David Roman: We look at the businesses.

And look at their look at their opportunities and make those decisions R&D investments there a little bit more longer term right. So once you commit to R&D programs.

David Roman: They tend to be a little bit more of a longer term then.

They're making some SG&A decisions, where you can you can toggle up and down a little bit easier.

David Roman: But I think you could see where some of the some of the growth is coming from and Thats being supported by those investments obviously, our med tech portfolio.

David Roman: Has been getting investments.

David Roman: I'd say in EP and structural heart.

David Roman: In diabetes care.

David Roman: Sure.

David Roman: In Neuromodulation I mean, all of the businesses they come with a strategic plan and we look at where it makes more sense, whether its to put more.

David Roman: More investment.

David Roman: In the field with Salesforce and clinical people, whether it's to make the investment in our clinical trial.

David Roman: So we we tend to have a pretty good process about how to do that.

David Roman: We've made making investments in diagnostics.

Soon we'll probably be talking about a new system that we're going to be launching for a whole new segment of the diagnostic industry.

That's a longer term program that's been a couple of years.

David Roman: So I think we've got a good process about how to how to make the investments.

David Roman: Knowing that R&D investments are a little bit more longer than than SG&A.

David Roman: So and I think that's that's what we've been able to show and I think that's one of the reasons, we've been able to get to our op margin profile back to pre pandemic levels, which.

David Roman: Naturally a lot of companies would be able to kind of say that so.

And but we haven't we haven't we haven't we haven't driven our op margin by by expenses I mean, we've been driving our topline.

Effectively too so I think thats, probably the best proof point that.

David Roman: We know how to how to do this allocation and the cycles of the allocation et cetera.

David Roman: And then I think you had a question regarding.

David Roman: Share count and.

Speaker Change #110: And buybacks.

Speaker Change #110: Listen we.

Speaker Change #110: As I've said, we've got a pretty balanced approach about how we allocate our capital.

Speaker Change #110: Talked about the importance of the dividend and supporting that growing dividend.

Speaker Change #110: We will continue to do that the buybacks is just another element in that capital allocation strategy. We just.

Speaker Change #110: <unk> that.

Speaker Change #110: The board recently approved a.

Speaker Change #110: New $7 billion buyback program.

Speaker Change #110: The previous one that we had approved in 2021 was running down and we thought it was.

Speaker Change #110: A good time to put that in place.

Speaker Change #110: We've deployed around $8 billion towards buyback over the last five years.

Speaker Change #110: We took a little bit of a step up.

Speaker Change #110: During.

Speaker Change #110: A couple of years after the acquisitions that we did we had step that down a little bit. So we've stepped that up Q3, we did about $750 million.

Speaker Change #110: Given our strong performance outlook here that we saw a disconnect between what we're doing in RP ratio in fact, I still do so so it made sense to buy shares in the buyback announcement is just part of our balanced.

Speaker Change #110: Balanced approach to allocating capital.

Speaker Change #110: And we've got that our authorization. So if we feel that there is a disconnect.

Speaker Change #110: Going going forward.

Speaker Change #110: Got that opportunity too.

Speaker Change #110: To try and correct that.

Speaker Change #110: And if that reduces the share count yet.

Speaker Change #111: It will reduce the share count, but we're not we're not trying to drive our Ips through lower share count.

Speaker Change #110: Ultimately trying to drive our Aps through topline growth David.

David Roman: Excellent I appreciate all the color thanks, Robert Yeah.

David Roman: Thank you.

Speaker Change #112: Our next question will come from Joshua Jennings from TD Cowen Your line is open.

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

Joshua Jennings: Robert I wanted to ask about just structural heart markets.

Joshua Jennings: Taggert market slowing down or decelerating there has been some investor concerns about U S provider capacity.

Joshua Jennings: As a bottleneck.

Speaker Change #113: Cabot's uniquely positioned because you did ask offerings in transcatheter aortic mitral and tricuspid.

Speaker Change #113: Solutions with atrial appendage occlusion and interventional <unk>.

Speaker Change #113: Affiliate interventions coming down the Pike.

Speaker Change #114: Are you seeing any capacity constraints limiting growth you had a strong quarter. This in <unk> or are you concerned about is that on the horizon or should we just think that hospitals are seeing this growth opportunity as well.

Speaker Change #114: And building out capacity, adding cath labs hybrid wise et cetera, but love to get your view on current situation.

Speaker Change #114: Whether you are worried in the next 12 24 36 months that we could run into a bottleneck in the U S. Thanks.

Speaker Change #115: Not seeing the bottleneck not forecasting a bottleneck not not concerned about the capacity here.

Speaker Change #115: Obviously this is a.

Speaker Change #115: This is a very growing area not only for those that are developing the technologies, but also for the health care systems that are.

Speaker Change #115: Our delivering them and deploying them.

Speaker Change #115: I've been I've been to some large centers over the quarter I've been through some smaller centers of over the quarter.

There's always there's always challenges.

Speaker Change #115: I put it as a challenge not specific to <unk>.

Speaker Change #115: Given technology, our challenge is just whether it's.

Speaker Change #115: Yes.

Speaker Change #115: Ramping up of new technology getting more people to train.

Speaker Change #115: But I'm not hearing that the centers that we have been working with that capacity is a big rate limiting.

Factor today.

Speaker Change #115: <unk>.

Speaker Change #115: I think if it started to become one.

Speaker Change #115: And the demand is there I think history has shown that.

Speaker Change #115: Sure.

Speaker Change #115: We make the right investments.

Speaker Change #115: The investments will be major to accommodate that demand so.

Speaker Change #115: And this is obviously what's.

Speaker Change #115: What's happened in structural heart over over the last decade investments will be made to accommodate that demand. So I'm not I'm not I'm not hearing that and we continue to be.

Speaker Change #115: Very excited about the prospects that we had in our structural heart portfolio.

Speaker Change #115: I think the team has kind of hit its stride right now, we've got new management, new products launching and.

Speaker Change #115: I am very optimistic right now with what the teams are putting together.

Speaker Change #115: Across the entire portfolio I think like you said, we're one of the few companies here that we can see the full spectrum right from all the way from surgical straw.

Speaker Change #115: Structural interventions.

Speaker Change #115: All the occlusion and appendages and then <unk>.

Speaker Change #115: Looking at being able to see mitral tricuspid aortic, whether it's repair whether its replacement I think the team is hitting its stride right now and our focus here is going to be.

Speaker Change #115: On both sides, making the investments on the on the R&D side I think we've got a lot of new product investment in structural heart.

Speaker Change #115: New clinical trial, new indications investments over there.

And I think that different part of our investment profile and we've been doing that for many years in mitral.

Speaker Change #115: In structural heart and I think Thats why we have the portfolio. We have I think the piece that we're adding on now is like okay. We've got the products now we've got to increase our field presence.

Speaker Change #115: To support either.

Speaker Change #115: The market share gain that we aspired to or.

Speaker Change #115: Or to support these growing new fields, whether its tricuspid.

So our focus now is really to start to add more on the field side in these businesses to be able to kind of support that growth, but now I think this is a tremendous area of growth of opportunity of under penetration of R&D of clinical work. So we're really excited about it.

I appreciate it thanks.

Speaker Change #116: Thank you.

Speaker Change #117: Our next question will come from Vijay Kumar from Evercore ISI. Your line is open.

Vijay Kumar: Hi, Robert Good morning, and thanks for taking my question.

I had one on <unk>.

Vijay Kumar: Yes.

<unk> in infant formula the FDA, CDC and NIH put out a joint statement.

Vijay Kumar: So a pretty strong statement.

Vijay Kumar: Saying, noting that that there's perhaps no causative relationship between infant formula.

Vijay Kumar: Yes.

So I guess my question is how does this change.

Vijay Kumar: Abbott has positioned in these lawsuits does it matter.

Vijay Kumar: What else can we expect from the government could we expect more announcements similar to this one.

Vijay Kumar: What shape or form could it be.

Vijay Kumar: What can ever do too.

Vijay Kumar: Perhaps ring fence, our liabilities related to these cases.

Speaker Change #118: Yes sure.

Speaker Change #119: Well listen as it relates to our position it's great to see the statement.

Speaker Change #120: And I agree with you I think it was a very strong statement. It doesn't change what I have been saying which is in the statement.

Speaker Change #121: It seems to.

Speaker Change #121: Be aligned and support what I hear from the market and what I hear from Neonatology is which is these products are they're medically necessary.

They are considered a standard of care and they're valuable tool, they're valuable tool for the neonatologist in their decisions.

Speaker Change #121: And their decisions and their discussions with parents and how to feed premature.

And the labels, which is a component and all of this.

Speaker Change #121: <unk> been reviewed by the regulators.

Speaker Change #121: And.

Speaker Change #121: Never call for for NEC warning so.

Speaker Change #121: This is a this is a.

Speaker Change #121: A consensus statement made by these three.

Speaker Change #121: <unk>.

Three agencies three regulators here in the U S and.

Speaker Change #121: They are basically.

Speaker Change #122: Vijay then theyre actually endorsing an expert panel.

Speaker Change #122: With dozens of researchers that were conveyed by the secretary of HHS and I think the researchers issued a 100 page document or so I think they looked at thousands of.

Speaker Change #122: Publications I think it was 600 specific to the relationship between net and feeding and in that joint statement the.

The agencies.

Speaker Change #122: They've reiterated the importance of preterm formula is the standard of care and they also clearly state that there is no conclusive evidence.

Speaker Change #122: But the formula causes Nick So I think this is only one of a handful of times, where the three agencies the most.

Prominent in significant health agencies and regulators in the U S have come together and put out a joint statement. Obviously, we saw that during the Covid pandemic, but I think before that I think it was during the HIV pandemic. So I think.

Speaker Change #122: So I think the statement says a lot.

Speaker Change #123: D J at this point, though at this point the judge in our trial right now has not allowed.

Speaker Change #123: The joint statement or the underlying report to be entered into evidence.

I don't know the reasons, there, but I think it would be we believe that it's.

Speaker Change #123: The joint statement that report the expert testimony.

Speaker Change #123: I think those are important pieces of information for jewelry to consider.

Speaker Change #123: As they're making their decisions so.

Speaker Change #123: So I don't know how to cap that but I would say beyond this case.

Speaker Change #123: That is the cases move to more of the federal side.

Speaker Change #123: My expectation here is that the jewelry.

Speaker Change #123: In these cases would be allowed to consider the criticality of that important evidence so.

Speaker Change #123: <unk>.

Speaker Change #124: Yes to the question on the liability portion and kind of what to do.

Speaker Change #124: Now if I take a step back on this one I've been thinking about this quite a bit.

Speaker Change #125: But as health care innovators, we develop healthcare probable.

Products based on problems that we see we run the clinical trials, we gathered the data.

Speaker Change #125: Now, let me review the data with the regulators you guys know this process pretty well.

And then ultimately the regulator decides if the products are safe and they are fit for purpose and data side, how they got to be labeled.

Speaker Change #125: <unk>.

That's the country, that's the market that I want to be and where the products. The labels. They are evaluated through a well established regulatory process by expert regulators that have unfettered access to the best scientific evidence rather than trying to do this.

Speaker Change #125: Regulated products through uncertainty and unpredictability of jury trials. So ultimately to your question if the regulatory process is disregarded.

If the science is just disregarded.

It's going to be very difficult for any company to.

To remain on the market with these products.

Speaker Change #125: Taking on that indefinite.

Speaker Change #125: And at that indefinite liability here at least in the United States.

Speaker Change #125: That would be an issue that the United States would confront it wouldn't be an issue.

Speaker Change #125: For premature babies.

Speaker Change #125: In international countries. Because this issue. This is not an issue and the products are still available. There. So yes, I do think there needs to be some fortitude here by those that can make decisions.

Prioritize the babies prioritize preterm babies all 370000 every single year that rely on these products.

Speaker Change #125: Over those that seem to kind of distort and abuse. This towards this tort system that we have in our country here for financial gains I'm, hoping it doesn't come to that.

Speaker Change #125: But I've been pretty clear that.

Speaker Change #125: This is.

Speaker Change #125: We stand behind the products, but at the process won't be won't be.

Speaker Change #125: It's going to be disregarded then this is something that we will not.

Speaker Change #125: We will not continue adding to the liability here so yes.

Yes, Theres a playbook it seems for these things to happen.

Speaker Change #125: When you take a decade 10, plus years to litigate this and come to some resolution.

Speaker Change #125: Intend to follow that playbook.

Speaker Change #125: I intend to resolve this faster and yes, there are.

Speaker Change #125: There are different ways to resolve this in different ways to look at this.

Speaker Change #125: And we are having conversations at all levels to be able to express concern that this could cause.

Speaker Change #125: To families who are in the United States.

Speaker Change #126: That's helpful. Thank you.

Speaker Change #127: Thank you.

Speaker Change #127: Yes.

Speaker Change #128: Our next question will come from Joanne Wuensch from Citi. Your line is open.

Joanne Wuensch: Good morning, and thank you for taking the question.

Joanne Wuensch: Congratulation on earlier than expected completion of enrollment in your PFA catheter.

Joanne Wuensch: The clinical trial.

Joanne Wuensch: Would really love to get your view on the state of the electrophysiology market, what youre seeing in terms of PFS uptake and how that is impacting your <unk>.

Joanne Wuensch: Mapping and navigation system.

Joanne Wuensch: Thank you again.

Sure John.

Joanne Wuensch: Well I mean, I think this quarter was a continuation.

Joanne Wuensch: The trend that we've been seeing since the since the arrival of PFA.

<unk>.

Joanne Wuensch: We're growing we're growing a little bit lower than the market. The market has kind of grown pretty significantly here, but if you look at our growth rate.

Joanne Wuensch: Prior to <unk>, we are actually growing faster.

Joanne Wuensch: Now with PFA and I think Theres a couple of factors. There I think you mentioned one of those.

Joanne Wuensch: <unk> is.

Speaker Change #129: Cardiac mapping.

Speaker Change #129: Right now we're seeing about 90 plus percent of the cases at least here in the U S being being mapped if you look at where we were before Joanne.

Speaker Change #129: We were mapping about maybe between 25% to 30% of RF cases, where now mapping 50 plus.

Speaker Change #129: So so that.

Speaker Change #129: Is it a little bit of a tailwind for us we're seeing.

Speaker Change #129: A pretty.

Speaker Change #129: Strong growth in procedures.

So.

Speaker Change #129: And I think that's probably what's helped drive some of the market growth that we're seeing but I also think that the volume increase.

Actually due to improved treatment guidelines that we're seeing quite frankly, new technologies that are helping to identify.

Speaker Change #129: Afib patients too so I think I think it's a combination of factors there that.

Speaker Change #129: That are helping to drive more procedures.

Speaker Change #129: And then for us.

Speaker Change #129: The RF portion of it is is still a still.

Speaker Change #129: Still a growth piece for us as I said in my comments, we grew ablation catheters double digits too.

So we're seeing about 20% of the PFA cases at least the ones that we're mapping use RF catheters.

Speaker Change #129: We're in those cases, so yes, I think the key thing here is just at least right now right now PFA is really being used for de novo procedures.

Speaker Change #129: So if you kind of break that out it's about a third of all of all ablation procedures are de novo. The other two thirds are VT ablation, SVT ablation reduce and in those cases.

They are using.

Speaker Change #129: We're still using RF.

Speaker Change #129: And our App plays an important role there, which is why we've initiated our focal flex trial to be able to have.

Speaker Change #129: The optionality to be able to toggle between PFA and and and RF. So so we felt that we still think that's an important important part there so.

Speaker Change #129: But I think the team has done a really good job here at leveraging our open mapping system.

Speaker Change #129: I made comments, we use the open mapping system.

Speaker Change #129: As a design input for R&D programs to start off with now that open system is allowing us to be in more cases and partner more with the electrophysiologist. So.

Speaker Change #129: So I think that is.

Speaker Change #129: That's what we're seeing.

Speaker Change #129: And we're very committed to be able to bring PFA.

The market, we completed enrollment like you said.

Speaker Change #129: And.

Speaker Change #129: We completed the <unk>.

Speaker Change #129: Mark enrollment beginning of this year so.

So we're committed to this space, but we do feel that it's.

Speaker Change #129: It's a full portfolio approach you need good mapping, which is why we invested in our next generation HD grid, you need to have a PFA portfolio thats pretty complete and each have RF and I think that's that's what the team has been building.

Speaker Change #129: I'd say very very successfully.

Speaker Change #130: Wonderful thank you.

Speaker Change #131: Thank you.

Speaker Change #132: Our next question will come from Matt <unk> from Barclays. Your line is open.

Matt Mixing: Hey, thanks, so much for taking the question.

Matt Mixing: A follow up on.

Speaker Change #133: <unk> got a beauty business.

Matt <unk>: Just a couple of.

Matt <unk>: Couple of topics that come up quite a bit.

Matt <unk>: In the last few months.

Matt <unk>: Around the market and competition.

Matt <unk>: Being kind of.

Speaker Change #135: Anything you can comment on regarding your share trends.

Speaker Change #135: And particularly in the DIY channel anything Youre doing differently there.

Speaker Change #135: <unk>, what youre seeing.

Speaker Change #136: As a user of lingo for the last couple of months I compliment the team putting together a great product.

Speaker Change #136: Question, just curious about the.

Speaker Change #136: The timing and the plan for Rio.

Speaker Change #137: Yes, John potential reimbursement for that.

Speaker Change #137: Non insulin intensive type two.

Community.

Speaker Change #137: And then lastly, just zooming out for a second.

Speaker Change #138: Going back to your comments and plans for gross margin.

Speaker Change #138: If you could.

Speaker Change #138: Gail.

Speaker Change #138: Spansion at OTC.

Speaker Change #138: Of Libre in this platform.

It plays a role.

Speaker Change #138: And hitting it.

Speaker Change #138: Hitting your 24 gross margin plans and your plans for expansion going forward as you scale this business.

Speaker Change #138: The lineup a lot there Matt.

Speaker Change #138: To make sure that.

Speaker Change #138: Mike Carrier helps me stay with all the questions that you laid out there.

Speaker Change #138: Regarding our Libre question on competitiveness.

Speaker Change #139: Yes, I think the team has done a really good job here in the U S. Not just in the <unk> channel, but at the at the <unk> offices.

Speaker Change #139: Mary care channel with the basal population and I think it's kind of an all out all channel.

Speaker Change #139: Strong execution there in the U S. We grew 26% in the U S. This.

Speaker Change #139: This quarter.

Speaker Change #139: And.

Speaker Change #139: And that was having some of the some of the.

Speaker Change #139: Some of the challenges we had there regarding regarding some kind of temporary supply challenges will libre libre three so we haven't really unleashed libre three fully yet and a lot of the share gains that we're getting with our liquid libre two but.

Speaker Change #139: That piece of it is behind US we invested in.

Our new manufacturing line, we have a new manufacturing a whole brand new manufacturing facility come up and.

Towards the end of the year, so that will that will as we go into next year that will all be kind of behind us.

Speaker Change #139: So I think our position here in the U S and globally quite frankly is strengthened by the product portfolio. The cost position that we had you mentioned in gross margins in.

Speaker Change #139: In Libre.

Speaker Change #139: Sure.

Speaker Change #139: That's a key aspect here, we've always talked about you got to have cost leadership here because as the market expands to basal and oral meds <unk>, one users and as that population grows.

Youre going to have a much larger tam to tier two.

Speaker Change #139: Operate in but yes, you are going to see you're going to have to make some pricing adjustments to be able to get that reimbursement. So you got to have your cost structure in place to be able to benefit the top line growth and not have that come at the expense of gross margin.

Speaker Change #139: Gross margins as we've grown libre have actually expanded.

Speaker Change #139: As our manufacturing scale continues to ramp up some of the costs associated with these products because theres a lot of automation and we've been doing this for.

Speaker Change #139: Day one.

Speaker Change #139: Some of the cost.

Speaker Change #139: Our depreciation on the equipment, so as a lot of our facilities are.

Speaker Change #139: Running through their depreciation schedules those those will help our gross margins too so I feel I feel good about.

Speaker Change #139: Our opportunity.

Speaker Change #139: Two.

Speaker Change #139: To drive the market to be competitive to lead in technology to lead in scale and cost.

Speaker Change #139: And and take advantage of what we believe is a is a mass market opportunity for US I think you got it.

Speaker Change #139: <unk>.

Speaker Change #139: On Rio.

Speaker Change #139: Listen. The addition to the initial focuses on lingo right now.

Speaker Change #139: We've got that think of think of Rio is.

Speaker Change #139: As another arrow in the quiver that we can pull out.

Speaker Change #139: If we need to ahead of schedule, we do have a schedule I am not going to lay out what that schedule is but for some reason we need to do that we'll be able to do that but the focus is on is on is on lingo right now and we've got we've got a nice opportunity here to build.

Speaker Change #139: Completely new segment.

Speaker Change #139: By Wearables with consumers so.

Speaker Change #140: That's great great. Thanks, so much.

Speaker Change #141: Operator, we'll take one more question please.

Thank you.

And our last question will come from Danielle <unk> from UBS. Your line is open.

Danielle: Good morning, guys. Thank you so much for squeezing me in and congrats on a really good quarter here I just wanted to follow up on the structural heart component of the business. Robert you talked about this earlier in response to Josh <unk> question, but just digging a little bit deeper as you look into 2025, I mean <unk> got potential.

Speaker Change #141: Expansion for la quota share.

Speaker Change #141: But you do have some competitive data coming on the tricuspid side of things at TCP, and whether or not that shows that a mortality benefit. So just curious about how you think about those two markets, specifically and sustainable growth in those franchises and there are some puts and takes there. So just wanted to get your sense of how to think about.

Speaker Change #142: That as we head into next year. Thanks, So much sure just to remind me again that <unk> tricuspid and what was the other one.

Speaker Change #142: Sorry left atrial appendage closure.

Speaker Change #142: Okay, yes, okay. Good.

Speaker Change #142: These are great areas of investment for us.

Speaker Change #142: Investment of money time effort thinking power all of that so.

Speaker Change #142: I think as I said on business hitting its stride I definitely would say that about the amulet team. They are definitely hitting their stride, we saw nice growth this quarter.

Speaker Change #142: 25% globally, 40% growth in the U S. Here, so and we're making the investments I mean, I think you saw.

Speaker Change #142: Our registry data shows really good positive results from from annual at 95% of the closure rates achieved.

Speaker Change #142: And sustained after 45 days I.

Speaker Change #142: I think thats.

Speaker Change #142: That's pretty that's pretty good 90% closure rate when using analytics for those that have failed.

Speaker Change #142: Proper closure with the competitor products so.

Speaker Change #142: But we're investing in there we've got we've got our catalyst trial.

Speaker Change #142: Just looking at.

Speaker Change #142: Comparing amulet too.

Speaker Change #142: Anticoagulants are people that have.

Speaker Change #142: The risk of Afib.

Speaker Change #142: We expect to complete that trial next year.

Speaker Change #142: And then the team has been working on AML at two point out.

Speaker Change #142: And I expect that we will be.

Speaker Change #142: Beginning or entering to trial in that business.

With that product towards the end of this year so.

Speaker Change #142: Really nice progress on the appendage side.

Speaker Change #142: Whether its annually and quite frankly, <unk> is doing really well and thats and Thats a great great.

Speaker Change #142: A great growth driver for us too.

Speaker Change #142: On the tricuspid side.

Speaker Change #144: Yes, theres going be a lot of data coming out.

Speaker Change #144: Over the next 12 to 24 months I expect that I think with any new category here, Danielle youre going to have to make the investments I mean, nobody was doing anything.

Speaker Change #144: From an interventional perspective on the tricuspid right. So so as companies are developing technologies. I think you are going to see a lot of clinical readouts and clinical data.

Speaker Change #144: More to be able to kind of support the use of these technologies I think we saw one recently at ESC.

Speaker Change #144: Specifically to try clip.

Speaker Change #144: European study and this is the second RCT thats basically confirming what the Tri illuminate Rct's showed which is much superior to medical therapy and extremely effective at reducing Trs. So.

Speaker Change #144: So I think that that's a.

Speaker Change #144: An area of investment for us without a doubt I think that there is.

Speaker Change #144: An opportunity here that the team's been working on regarding our full portfolio approach with our with our structural products and I think <unk> plays an important role there.

Speaker Change #145: Uh huh.

Speaker Change #145: We're excited about the NCD that was opened and looking forward to that so that's another opportunity for us in 2025, but quite frankly, I just think there's a great opportunity here with our team.

Phil Boudreau: We've got, I would say, some built-in advantages as it comes to the Tri-Clipp product. You know, we've got manufacturing scale, sales force, and all of that. And there's definitely demand, and we're seeing that, and the launch is going very well. So I think that, yeah, you're going to see more data, and that's good. And it's a growth opportunity for us. I think this is a billion-dollar business for us here over time.

Speaker Change #145: Got I would say some built in advantages as it comes to the <unk> product, we've got manufacturing scale the sales force.

Speaker Change #145: And all of that and there is and there is definitely demand and we're seeing that in the launch is going very well. So I think that yes, youre going to see more data and thats. Good.

Speaker Change #145: And.

Speaker Change #145: It's a growth opportunity for us I think this is a 1 billion dollar business for us here over time.

Phil Boudreau: But you're going to have to make the investments on the clinical side to be able to kind of support the adoption of it. So very excited about structural heart overall. And ultimately excited about the entire company and business.

Speaker Change #145: But youre going to have to we're going to have to make the investments on the clinical side too.

Speaker Change #145: To be able to kind of support the adoption of it. So so so very excited about structural heart overall.

Speaker Change #145: And ultimately excited about the entire company and business we've had.

Phil Boudreau: We've had a really pleased with the performance of the first three-quarters. We're on track to finish the year at the high end of the initial guidance that we've provided back in January. Sales growth has been strong. Growth's margin profile continues to expand. EPS growth is now accelerating throughout the year as we, as we're lapping some of those COVID comps. The pipeline is richer than ever. So I think we've got great momentum heading into next year.

Speaker Change #145: Pleased with the performance in the first three quarters were on track to finish the year at the high end of.

Speaker Change #145: The initial guidance that we provided back in January sales growth has been strong gross margin profile continues to expand.

Speaker Change #145: EPS growth is now accelerating.

Speaker Change #145: Throughout the year as we as we were lapping some of those those COVID-19 comps the pipeline is richer than ever so.

Speaker Change #145: I think we've got great momentum heading into next year and with that I'm going to I'm going to wrap up and thank all of you for joining us.

Phil Boudreau: And with that, I'm going to wrap up and thank you all of you for joining us. Thank you, operator, and thank you all for your questions.

Speaker Change #146: 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's Investor Relations website at Abbott Investor Dotcom.

Operator: 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's Investor Relations website at abbottinvestor.com. Thank you for joining us today. Thank you.

Speaker Change #146: Thank you for joining us today.

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

Speaker Change #147: Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.

Speaker Change #147: Yeah.

Q3 2024 Abbott Laboratories Earnings Call

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