Q1 2026 Abbott Laboratories Earnings Call

Speaker #1: Spencer 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 11 keys on your touchstone phone.

Speaker #1: This call is being recorded by Abbott. With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott.

Speaker #1: It cannot be recorded or reproadcast without Abbott's expressed written permission. I would now like to introduce Mr. Mike Comilla, Vice President, Investor Relations.

Speaker #2: Good morning, and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer; and Phil Boudreau, Executive Vice President, Finance and Chief Financial Officer.

Speaker #2: Robert and Phil will provide opening remarks. Following their comments, we'll take your questions. Before we get started, some statements made today may be forward-looking for purposes of the private securities litigation reform act of 1995.

Speaker #2: Including the expected financial results for 2026. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actuarial results to differ materially from those indicated in the forward-looking statements.

Speaker #2: Economic competitive governmental technological and other factors that may affect Abbott's operations are discussed in item 1A, risk factors to our annual report on Form 10-K for the year ended December 31st, 2025.

Speaker #2: Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments except as required by law.

Speaker #2: On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com.

Speaker #2: Note that Abbott has not provided the related GAAP financial measures on a forward-looking basis for the non-GAAP financial measures for which it is providing, guidance because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items, which could significantly impact Abbott's results in accordance with GAAP.

Speaker #2: Unless otherwise noted, our commentary on sales growth refers to comparable sales growth, which includes the prior and current-year sales of the exact sciences. A cancer diagnostics company that Abbott acquired on March 23rd, 2026.

Speaker #2: Our definition of comparable sales growth can be found on page 2 of our press release issued earlier today, and a reconciliation table that contains data needed to calculate comparable sales growth can be found on page 13.

Speaker #2: With that, I will now turn the call over to Robert.

Speaker #3: Thanks, Mike. Good morning, everyone, and thank you for joining us. Our results in the first quarter were aligned with our expectations for the start of the year.

Speaker #3: That included delivering adjusted earnings per share of $1.15 consistent with our guidance, despite absorbing the impact of earlier-than-planned financing costs related to our acquisition of Exact Sciences, and a weaker-than-expected respiratory season.

Speaker #3: This quarter also marked an important strategic milestone for Abbott with the completion of our acquisition of Exact Sciences. This acquisition adds a new, high-growth business to the Abbott portfolio.

Speaker #3: For the strengthening our leadership position in diagnostics, an expanding our presence into one of the fastest-growing areas of healthcare, cancer diagnostics. As we communicated at the time of the acquisition announcement, we forecast the addition of Exact Sciences to add approximately $3 billion of incremental sales in 2026, and accelerate Abbott's long-term sales growth rate.

Speaker #3: Before I summarize our first quarter results, I wanted to highlight a few pipeline achievements in our medical device business, and those include an earlier-than-planned approval and launch of two new PFA catheters, completion of patient enrollment in our catalyst left atrial appendage device trial, initiation of development activities to bring an implantable extravascular ICD product to market, and the announcement of positive results from our randomized control trial, which demonstrated that people with type 2 diabetes on basal insulin therapy benefited from using Libre, including seeing reductions in HbA1c and increased time spent in healthy glucose range.

Robert B. Ford: Expectations for the start of the year. That included delivering adjusted earnings per share of $1.15, consistent with our guidance, despite absorbing the impact of earlier than planned financing costs related to our acquisition of Exact Sciences in a weaker than expected respiratory season. This quarter also marked an important strategic milestone for Abbott with the completion of our acquisition of Exact Sciences. This acquisition adds a new high growth business to the Abbott portfolio, further strengthening our leadership position in diagnostics and expanding our presence into one of the fastest growing areas of healthcare, cancer diagnostics. As we communicated at the time of the acquisition announcement, we forecast the addition of Exact Sciences to add approximately $3 billion of incremental sales in 2026 and accelerate Abbott's long-term sales growth rate.

Robert Ford: Expectations for the start of the year. That included delivering adjusted earnings per share of $1.15, consistent with our guidance, despite absorbing the impact of earlier than planned financing costs related to our acquisition of Exact Sciences in a weaker than expected respiratory season. This quarter also marked an important strategic milestone for Abbott with the completion of our acquisition of Exact Sciences. This acquisition adds a new high growth business to the Abbott portfolio, further strengthening our leadership position in diagnostics and expanding our presence into one of the fastest growing areas of healthcare, cancer diagnostics. As we communicated at the time of the acquisition announcement, we forecast the addition of Exact Sciences to add approximately $3 billion of incremental sales in 2026 and accelerate Abbott's long-term sales growth rate.

Per share of $1 15, consistent with our guidance despite absorbing the impact of earlier than planned financing costs related to our acquisition of exact sciences, and a weaker than expected respiratory season.

This quarter also marked an important strategic milestone for Abbott with the completion of our acquisition of exact Sciences. This acquisition adds a new high growth business to the Abbott portfolio for the strengthening our leadership position in diagnostics and expanding our presence into one of the fastest growing areas of healthcare cancer.

Speaker #3: In addition to these achievements, our teams are preparing to initiate patient enrollment in several important clinical trials in the second half of this year.

Diagnostics.

As we communicated at the time of the acquisition announcement, we forecast. The addition of exact sciences to add approximately $3 billion of incremental sales in 2026, and accelerate abbott's long term sales growth rate.

Speaker #3: These trials represent a unique opportunity in the position Abbott to bring a new wave of highly differentiated technologies to the market. This pipeline of new technologies includes a balloon expandable TAVR valve, a bleedless conduction system pacing device that utilizes our revolutionary AVAIR bleedless pacemaker, a mitral replacement valve developed following our acquisition of Cefia valve technologies, a peripheral IVL device developed following our acquisition of CSI, and a wearable continuous lactate monitoring sensor that will monitor for sepsis following discharge from a hospital.

Robert B. Ford: Before I summarize our Q1 results, I wanted to highlight a few pipeline achievements in our medical device business, and those include an earlier than planned approval and launch of two new PFA catheters, completion of patient enrollment in our CATALYST left atrial appendage device trial, initiation of development activities to bring an implantable extravascular ICD product to market, and the announcement of positive results from our randomized controlled trial, which demonstrated that people with type 2 diabetes on basal insulin therapy benefited from using Libre, including seeing reductions in HbA1c and increased time spent in healthy glucose range. In addition to these achievements, our teams are preparing to initiate patient enrollment in several important clinical trials in the H2 of this year. These trials represent a unique opportunity that could position Abbott to bring a new wave of highly differentiated technologies to the market.

Robert Ford: Before I summarize our Q1 results, I wanted to highlight a few pipeline achievements in our medical device business, and those include an earlier than planned approval and launch of two new PFA catheters, completion of patient enrollment in our CATALYST left atrial appendage device trial, initiation of development activities to bring an implantable extravascular ICD product to market, and the announcement of positive results from our randomized controlled trial, which demonstrated that people with type 2 diabetes on basal insulin therapy benefited from using Libre, including seeing reductions in HbA1c and increased time spent in healthy glucose range. In addition to these achievements, our teams are preparing to initiate patient enrollment in several important clinical trials in the H2 of this year. These trials represent a unique opportunity that could position Abbott to bring a new wave of highly differentiated technologies to the market.

Before I summarize our first quarter results I wanted to highlight a few pipeline achievements in our medical device business and those include an earlier than planned approval and launch of two new PFA catheters completion of patient enrollment in our catalyst left atrial appendage device trial.

Initiation of development activities to bring an implantable extravascular ICD product to market.

And the announcement of positive results from our randomized controlled trial, which demonstrated that people with type two diabetes on basal insulin therapy benefited from using libre, including seeing reductions in HBA when see an increased time spent and healthy glucose range.

Speaker #3: I'll now summarize our first quarter results before I turn the call over to Phil, and I'll start with diagnostics, where sales increased 2% on comparable basis in core lab diagnostics, growth of 3% was driven by growth in the US, Europe, and Latin America, sales of core lab diagnostic tests which exclude capital equipment and digital health solutions increased on both a year-over-year and sequential basis, and this is a trend that we expect to continue and drive higher growth in the second half of the year compared to the first half.

In addition to these achievements our teams are preparing to initiate patient enrollment in several important clinical trials in the second half of this year.

These trials represent a unique opportunity to position Abbott to bring a new wave of highly differentiated technologies to the market.

Robert B. Ford: This pipeline of new technologies includes a balloon expandable TAVR valve, a leadless conduction system pacing device that utilizes our revolutionary Aveir leadless pacemaker, a mitral replacement valve developed following our acquisition of Cephea Valve Technologies, a peripheral IVL device developed following our acquisition of CSI, and a wearable continuous lactate monitoring sensor that will monitor sepsis following discharge from a hospital. I'll now summarize our Q1 results before I turn the call over to Phil. I'll start with diagnostics, where sales increased 2% on a comparable basis in Core Lab Diagnostics. Growth of 3% was driven by growth in the US, Europe, and Latin America.

Robert Ford: This pipeline of new technologies includes a balloon expandable TAVR valve, a leadless conduction system pacing device that utilizes our revolutionary Aveir leadless pacemaker, a mitral replacement valve developed following our acquisition of Cephea Valve Technologies, a peripheral IVL device developed following our acquisition of CSI, and a wearable continuous lactate monitoring sensor that will monitor sepsis following discharge from a hospital. I'll now summarize our Q1 results before I turn the call over to Phil. I'll start with diagnostics, where sales increased 2% on a comparable basis in Core Lab Diagnostics. Growth of 3% was driven by growth in the US, Europe, and Latin America.

This pipeline of new technologies includes a balloon expandable <unk> valve.

Speaker #3: In our rapid and molecular diagnostic business, sales declined 10%, reflecting lower demand for respiratory virus testing due to a much weaker respiratory season compared to last year.

It leaves us conduction system pacing device that utilizes our revolutionary leaderless pacemaker.

Speaker #3: And in cancer diagnostics, sales grew 13% on a comparable basis driven by mid-teens growth of Cologuard and high-teens growth in international markets. Moving to nutrition, where sales finished slightly ahead of our expectations for the quarter.

A mitral replacement valve developed following our acquisition of Cepheid valve technologies.

A peripheral IV all device developed following our acquisition of CSI and.

In a wearable continuous lactate monitoring sensor that will monitor for sepsis following discharge from hospital.

Speaker #3: As discussed on our January earnings call, results in the quarter reflect the impact of lower sales volumes compared to the prior year, and the effect of strategic pricing actions implemented in the fourth quarter of 2025 with an objective of re-accelerating volume growth.

I will now summarize our first quarter results before I turn the call over to Phil and I'll start with diagnostics, where sales increased 2% on comparable basis and core lab diagnostics growth of 3% was driven by growth in the U S Europe and Latin America.

Robert B. Ford: Sales of core lab diagnostic tests, which exclude capital equipment and digital health solutions, increased on both a year-over-year and sequential basis, and this is a trend that we expect to continue and drive higher growth in H2 of the year compared to H1. In our rapid and molecular diagnostic business, sales declined 10%, reflecting lower demand for respiratory virus testing due to a much weaker respiratory season compared to last year. In cancer diagnostics, sales grew 13% on a comparable basis, driven by mid-teens growth of Cologuard and high teens growth in international markets. Moving to nutrition, where sales finished slightly ahead of our expectations for the quarter.

Robert Ford: Sales of core lab diagnostic tests, which exclude capital equipment and digital health solutions, increased on both a year-over-year and sequential basis, and this is a trend that we expect to continue and drive higher growth in H2 of the year compared to H1. In our rapid and molecular diagnostic business, sales declined 10%, reflecting lower demand for respiratory virus testing due to a much weaker respiratory season compared to last year. In cancer diagnostics, sales grew 13% on a comparable basis, driven by mid-teens growth of Cologuard and high teens growth in international markets. Moving to nutrition, where sales finished slightly ahead of our expectations for the quarter.

Speaker #3: While we are still early in the transition back toward a more sustainable, balanced-between-price and volume-driven growth, I'm encouraged by the progress we're making. Early data indicates we are seeing the intended effect, with volume growth beginning to follow our pricing actions.

Sales of core lab diagnostic tests, which exclude capital equipment and digital health solutions increased on both a year over year and sequential basis and this is a trend that we expect to continue and drive higher growth in the second half of the year compared with the first half.

Speaker #3: We continue to expect that these pricing actions, combined with the launch of several new products, will result in growth improving over the course of the year.

And our rapid molecular diagnostic business sales declined 10%, reflecting lower demand for respiratory virus testing due to a much weaker respiratory season compared to last year.

Speaker #3: Turning to EPD, our pharmaceutical business, where sales increased 9% in the quarter. Growth was broad-based across the markets we serve, which included double-digit growth in several countries across Latin America and Asia-Pacific regions.

And in cancer diagnostics sales grew 13% on a comparable basis, driven by mid teens growth of Cologuard and high teens growth in international markets.

Moving to nutrition, where sales finished slightly ahead of our expectations for the quarter.

Speaker #3: Demand in these markets continues to be supported by favorable long-term healthcare economic and demographic trends. With a broad product offering across five therapeutic areas and an expanding biosimilars portfolio which includes several market-leading oncology therapies, we are well positioned to serve the growing customer base in these markets.

Robert B. Ford: As discussed on our January earnings call, results in the quarter reflect the impact of lower sales volumes compared to the prior year and the effect of strategic pricing actions implemented in Q4 2025, with an objective of re-accelerating volume growth. While we are still early in the transition back toward a more sustainable balance between price and volume driven growth, I'm encouraged by the progress we're making. Early data indicates we are seeing the intended effect, with volume growth beginning to follow our pricing actions. We continue to expect that these pricing actions, combined with the launch of several new products, will result in growth improving over the course of the year. Turning to EPD, our pharmaceutical business, where sales increased 9% in the quarter.

Robert Ford: As discussed on our January earnings call, results in the quarter reflect the impact of lower sales volumes compared to the prior year and the effect of strategic pricing actions implemented in Q4 2025, with an objective of re-accelerating volume growth. While we are still early in the transition back toward a more sustainable balance between price and volume driven growth, I'm encouraged by the progress we're making. Early data indicates we are seeing the intended effect, with volume growth beginning to follow our pricing actions. We continue to expect that these pricing actions, combined with the launch of several new products, will result in growth improving over the course of the year. Turning to EPD, our pharmaceutical business, where sales increased 9% in the quarter.

As discussed on our January earnings call results in the quarter reflect the impact of lower sales volumes compared to the prior year and the effect of strategic pricing actions implemented in the fourth quarter of 2025 with an objective of re accelerating volume growth.

While we are still early in the transition back toward a more sustainable balance between price and volume driven growth I'm encouraged by the progress we're making early data indicates we are seeing the intended effect with volume growth beginning to follow our pricing actions.

Speaker #3: And I'll wrap up with medical devices, where sales grew 8.5%, growth was led by strong performance in our cardiovascular device businesses. This included double-digit growth in electrophysiology, heart failure, and rhythm management.

Speaker #3: In electrophysiology, growth of 13% included contributions from two pulse-fueled ablation catheter launches in the quarter. The launch of our VOLT PFA catheter contributed to a growth of 14% in the US, and the launch of our TactiFlex dual catheter helped drive mid-teens growth in Europe.

We continue to expect that these pricing actions combined with the launch of several new products will result in growth improving over the course of the year.

Turning to <unk>, our pharmaceutical business, where sales increased 9% in the quarter.

Robert B. Ford: Growth was broad-based across the markets we serve, which included double-digit growth in several countries across Latin America and Asia Pacific regions. Demand in these markets continues to be supported by favorable long-term healthcare, economic, and demographic trends. With a broad product offering across five therapeutic areas and an expanding biosimilars portfolio, which includes several market leading oncology therapies, we are well positioned to serve the growing customer base in these markets. I'll wrap up with medical devices, where sales grew 8.5%. Growth was led by strong performance in our cardiovascular device businesses. This included double-digit growth in electrophysiology, heart failure, and rhythm management. In electrophysiology, growth of 13% included contributions from two pulsed field ablation catheter launches in the quarter.

Robert Ford: Growth was broad-based across the markets we serve, which included double-digit growth in several countries across Latin America and Asia Pacific regions. Demand in these markets continues to be supported by favorable long-term healthcare, economic, and demographic trends. With a broad product offering across five therapeutic areas and an expanding biosimilars portfolio, which includes several market leading oncology therapies, we are well positioned to serve the growing customer base in these markets. I'll wrap up with medical devices, where sales grew 8.5%. Growth was led by strong performance in our cardiovascular device businesses. This included double-digit growth in electrophysiology, heart failure, and rhythm management. In electrophysiology, growth of 13% included contributions from two pulsed field ablation catheter launches in the quarter.

Growth was broad based across the markets, we serve which include a double digit growth in several countries across Latin America, and Asia Pacific regions.

Speaker #3: As we broaden the launch of both catheters, we expect growth in our electrophysiology business to accelerate. In rhythm management, sales grew 13%, making third consecutive quarter that we have delivered double-digit growth and continued our track record of significantly outperforming the market.

Demand in these markets continues to be supported by favorable long term healthcare economic and demographic trends with a broad product offering across five therapeutic areas and expanding biosimilars portfolio, which includes several market leading oncology therapies, we are well positioned to serve the growing customer base in these <unk>.

Speaker #3: In heart failure, growth of 12% was driven by our market-leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions. And in diabetes care, continuous glucose monitoring sales were $2 billion, and grew 7.5%.

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And I'll wrap up with medical devices, where sales grew eight 5% growth was led by strong performance in our cardiovascular device businesses.

Speaker #3: Growth in the quarter reflects an impact from a delay in the renewal process related to an international tender. We also saw the expected impact from a challenging comparison to last year.

This included double digit growth in electrophysiology heart failure and rhythm management.

In electrophysiology growth of 13% included contributions from two pulse fueled ablation catheter launches in the quarter.

Speaker #3: This comparison relates to shelf restocking dynamics that occurred in the first half of 2025, a topic that we discussed on an earnings call last year.

Robert B. Ford: The launch of our Volt PFA catheter contributed to a growth of 14% in the US, and the launch of our TactiFlex Duo catheter helped drive mid-teens growth in Europe. As we broaden the launch of both catheters, we expect growth in our electrophysiology business to accelerate. In rhythm management, sales grew 13%, making the third consecutive quarter that we have delivered double-digit growth, and continued our track record of significantly outperforming the market. In heart failure, growth of 12% was driven by our market leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions. In diabetes care, continuous glucose monitoring sales were $2 billion and grew 7.5%. Growth in the quarter reflects an impact from a delay in the renewal process related to an international tender. We also saw the expected impact from a challenging comparison to last year.

Robert Ford: The launch of our Volt PFA catheter contributed to a growth of 14% in the US, and the launch of our TactiFlex Duo catheter helped drive mid-teens growth in Europe. As we broaden the launch of both catheters, we expect growth in our electrophysiology business to accelerate. In rhythm management, sales grew 13%, making the third consecutive quarter that we have delivered double-digit growth, and continued our track record of significantly outperforming the market. In heart failure, growth of 12% was driven by our market leading portfolio of heart assist devices, which offer treatment for chronic and temporary conditions. In diabetes care, continuous glucose monitoring sales were $2 billion and grew 7.5%. Growth in the quarter reflects an impact from a delay in the renewal process related to an international tender. We also saw the expected impact from a challenging comparison to last year.

The launch of our volt PFA catheter contributed to a growth of 14% in the U S and the launch of our tact of flex dual catheter helped drive mid teens growth in Europe.

Speaker #3: As we look forward to the second quarter, we expect CGM to return to double-digit growth. So in summary, our results in the quarter were in line with our expectations to start the year.

As we broaden the launch of both catheters, we expect growth in our electrophysiology business to accelerate.

Speaker #3: We remain confident in our expectation for an acceleration in growth in the second half of the year, and we had clear visibility to the key drivers of that acceleration on our highly focused on executing on them.

And rhythm management sales grew 13%, making third consecutive quarter that we have delivered double digit growth and continued our track record of significantly outperforming the market.

Speaker #3: Those drivers include first, executing our growth strategy in nutrition, which is underway, and on track with our expectations. Second, we see a clear path to accelerating growth in both electrophysiology and core lab diagnostics, supported by best-in-class portfolios, new product launches, and improving market conditions.

In heart failure growth of 12% was driven by our market leading portfolio of parts as devices, which offered treatment for chronic and temporary conditions.

And in diabetes care continuous glucose monitoring sales were $2 billion and grew seven 5% growth in the quarter reflects an impact from a delay in the renewal process related to an international tender. We also saw the expected impact from a challenging comparison to last year. This comparison relates to shelf restocking dynamic.

Speaker #3: Third, we will continue our proven track record of delivering strong, sustainable performance in EPD and across our medical devices portfolio. And finally, we are successfully integrating Exact Sciences, which adds a compelling high-growth business to the Abbott portfolio for the strengthening our ability to deliver long-term sustainable growth.

Robert B. Ford: This comparison relates to shelf restocking dynamics that occurred in H1 2025, a topic that we discussed on an earnings call last year. As we look forward to Q2, we expect CGM to return to double-digit growth. In summary, our results in the quarter were in line with our expectations to start the year. We remain confident in our expectation for an acceleration in growth in H2, and we have clear visibility to the key drivers of that acceleration and are highly focused on executing on them. Those drivers include, first, executing our growth strategy in Nutrition, which is underway and on track with our expectations. Second, we see a clear path to accelerating growth in both Electrophysiology and Core Lab Diagnostics, supported by best-in-class portfolios, new product launches, and improving market conditions.

Robert Ford: This comparison relates to shelf restocking dynamics that occurred in H1 2025, a topic that we discussed on an earnings call last year. As we look forward to Q2, we expect CGM to return to double-digit growth. In summary, our results in the quarter were in line with our expectations to start the year. We remain confident in our expectation for an acceleration in growth in H2, and we have clear visibility to the key drivers of that acceleration and are highly focused on executing on them. Those drivers include, first, executing our growth strategy in Nutrition, which is underway and on track with our expectations. Second, we see a clear path to accelerating growth in both Electrophysiology and Core Lab Diagnostics, supported by best-in-class portfolios, new product launches, and improving market conditions.

That occurred in the first half of 2025, a topic that we discussed on an earnings call last year as we look forward for the second quarter, we expect CGM to return to double digit growth.

Speaker #3: I'll now turn over the call to Phil.

Speaker #2: Thanks, Robert. As a result of the March 23rd close of our acquisition of Exact Sciences, our first quarter financial results include the results of the Exact Sciences business from the close date through the end of the quarter.

So in summary, our results in the quarter really in line with our expectations to start the year, we remain confident in our expectation for an acceleration in growth in the second half of the year and we had clear visibility to the key drivers of that acceleration on our highly focused on executing on them. Those drivers include first execute.

Speaker #2: As Mike mentioned, our press release issued this morning provides sales growth in the quarter on a comparable basis, which includes the full quarter sales of Exact Sciences in both the prior and current year.

Our growth strategy, and nutrition, which is underway and on track with our expectations.

Speaker #2: To align with our reporting of comparable sales growth, our full year 2026 sales growth outlook of 6.5 to 7.5 percent is now on a comparable basis as well.

Second we see a clear path to accelerating growth in both electrophysiology and core lab diagnostics supported by best in class portfolios, new product launches and improving market conditions.

Speaker #2: The sales growth outlook includes the full year sales of Exact Sciences in both the prior and current year. Compared to our previous full year adjusted earnings per share guidance range midpoint of $5.68, our new guidance range midpoint of $5.48 reflects 20 cents of dilution related to the Exact Sciences acquisition, consistent with our assumption that the time of the announced transaction.

Robert B. Ford: Third, we will continue our proven track record of delivering strong, sustainable performance in EPD and across our medical devices portfolio. Finally, we are successfully integrating Exact Sciences, which adds a compelling high-growth business to the Abbott portfolio for the strengthening our ability to deliver long-term sustainable growth. Now I'll turn over the call to Phil.

Robert Ford: Third, we will continue our proven track record of delivering strong, sustainable performance in EPD and across our medical devices portfolio. Finally, we are successfully integrating Exact Sciences, which adds a compelling high-growth business to the Abbott portfolio for the strengthening our ability to deliver long-term sustainable growth. Now I'll turn over the call to Phil.

Third we will continue our proven track record of delivering strong sustainable performance in EP and across our medical devices portfolio and finally, we are successfully integrating exact sciences, which adds a compelling high growth business through the Abbott portfolio for the strengthening our ability to deliver long term sustainable growth I'll now turn.

On the call fulfill.

Phil Boudreau: Thanks, Robert. As a result of the 23 March close of our acquisition of Exact Sciences, our Q1 financial results include the results of the Exact Sciences business from the close date through the end of the quarter. As Mike mentioned, our press release issued this morning provides sales growth in the quarter on a comparable basis, which includes the full quarter sales of Exact Sciences in both the prior and current year. To align with our reporting of comparable sales growth, our full year 2026 sales growth outlook of 6.5% to 7.5% is now on a comparable basis as well. The sales growth outlook includes the full year sales of Exact Sciences in both the prior and current year.

Phil Boudreau: Thanks, Robert. As a result of the 23 March close of our acquisition of Exact Sciences, our Q1 financial results include the results of the Exact Sciences business from the close date through the end of the quarter. As Mike mentioned, our press release issued this morning provides sales growth in the quarter on a comparable basis, which includes the full quarter sales of Exact Sciences in both the prior and current year. To align with our reporting of comparable sales growth, our full year 2026 sales growth outlook of 6.5% to 7.5% is now on a comparable basis as well. The sales growth outlook includes the full year sales of Exact Sciences in both the prior and current year.

Thanks Robert.

As a result of the March 23rd close of our acquisition of exact Sciences. Our first quarter financial results include the results of the exact sciences business from the close date through the end of the quarter.

Speaker #2: Turning to our first quarter results, sales increased 3.7% on a comparable basis and adjusted earnings per share of $1.15 grew 6% compared to the prior year.

As Mike mentioned, our press release issued this morning provide sales growth in the quarter on a comparable basis, which includes the full quarter sales of exact sciences in both the prior and current year.

Speaker #2: Foreign exchange had a favorable year-over-year impact of 4% on first quarter sales. Earlier quarter, we saw the US dollar weaken, which resulted in a favorable impact on sales compared to exchange rates at the time of our earnings call in January.

To align with our reporting of comparable sales growth our full year 2026 sales growth outlook of six 5% to seven 5% is now on a comparable basis as well.

Speaker #2: Regarding other aspects of the P&L, the adjusted gross margin profile was 56.3% of sales, adjusted R&D was 6.7% of sales, and adjusted SG&A was 29.3% of sales.

The sales growth outlook includes the full year sales of exact sciences in both the prior and current year.

Phil Boudreau: Compared to our previous full year adjusted earnings per share guidance range midpoint of $5.68, our new guidance range midpoint of $5.48 reflects $0.20 of dilution related to the Exact Sciences acquisition, consistent with our assumption at the time of the announced transaction. Turning to our Q1 results, sales increased 3.7% on a comparable basis, and adjusted earnings per share of $1.15 grew 6% compared to the prior year. Foreign exchange had a favorable year-over-year impact of 4% on Q1 sales. Earlier this quarter, we saw the US dollar weaken, which resulted in a favorable impact on sales compared to exchange rates at the time of our earnings call in January. Regarding other aspects of the P&L, the adjusted gross margin profile was 56.3% of sales. Adjusted R&D was 6.7% of sales, and adjusted SG&A was 29.3% of sales.

Phil Boudreau: Compared to our previous full year adjusted earnings per share guidance range midpoint of $5.68, our new guidance range midpoint of $5.48 reflects $0.20 of dilution related to the Exact Sciences acquisition, consistent with our assumption at the time of the announced transaction. Turning to our Q1 results, sales increased 3.7% on a comparable basis, and adjusted earnings per share of $1.15 grew 6% compared to the prior year. Foreign exchange had a favorable year-over-year impact of 4% on Q1 sales. Earlier this quarter, we saw the US dollar weaken, which resulted in a favorable impact on sales compared to exchange rates at the time of our earnings call in January. Regarding other aspects of the P&L, the adjusted gross margin profile was 56.3% of sales. Adjusted R&D was 6.7% of sales, and adjusted SG&A was 29.3% of sales.

Compared to our previous full year adjusted earnings per share guidance range midpoint of $5 68.

Speaker #2: Based on current rates, we expect exchange to have a favorable impact of approximately 1% on full year reported sales. For the second quarter, we expect exchange to have relatively neutral impact on sales.

Our new guidance range midpoint of $5 48 reflects 20 of dilution related to the exact sciences acquisition consistent with our assumptions at the time of the announced transaction.

Speaker #2: And for the second quarter, we forecast adjusted earnings per share of $1.25 to $1.31. With that, we'll now open the call for questions.

Turning to our first quarter results sales increased three 7% on a comparable basis and adjusted earnings per share of $1 <unk> grew 6% compared to the prior year.

Speaker #3: Thank you. At this time, we will conduct the question-and-answer session. As a reminder to ask a question, you will need to press star when one on your telephone.

Foreign exchange had a favorable year over year impact of 4% on first quarter sales.

Speaker #3: You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star when one again. For optimal sound quality, we kindly ask that you use your handset instead of your speakerphone when asking your question.

Earlier this quarter, we saw the U S dollar weakened which resulted in a favorable impact on sales compared to exchange rates at the time of our earnings call in January.

Regarding other aspects of the P&L. The adjusted gross margin profile was 56, 3% of sales adjust.

Speaker #3: Again, that's star when one to ask a question, and please stand by. We compile our Q&A roster. In our first question, we'll come from David Roman from Goldman Sachs.

Adjusted R&D was six 7% of sales and adjusted SG&A was 29, 3% of sales.

Phil Boudreau: Based on current rates, we expect exchange to have a favorable impact of approximately 1% on full year reported sales. For the second quarter, we expect exchange to have relatively neutral impact on sales. For Q2, we forecast adjusted earnings per share of $1.25 to $1.31. With that, we'll now open the call for questions.

Phil Boudreau: Based on current rates, we expect exchange to have a favorable impact of approximately 1% on full year reported sales. For the second quarter, we expect exchange to have relatively neutral impact on sales. For Q2, we forecast adjusted earnings per share of $1.25 to $1.31. With that, we'll now open the call for questions.

Speaker #3: Your line is open.

Based on current rates, we expect exchange to have a favorable impact of approximately 1% on full year reported sales.

Speaker #4: Thank you. And good morning, everyone. Thanks for taking the question. Maybe I'll start with just the updated guidance. And I know you touched on some of this during the call, but maybe you could just go into some further detail on, firstly, maybe your guidance philosophy and just thought process in establishing the revised outlook and then secondly, just the extent to which the outlook is, in your mind, sort of fully de-risked and captures upside potential but also contemplates any downside, unforeseen risks here.

For the second quarter, we expect exchange to have relatively neutral impact on sales.

For the second quarter, we forecast adjusted earnings per share of $1 25 to $1 31.

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

Operator: 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 one on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star one one again. For optimal sound quality, we kindly ask that you use your handset instead of your speakerphone when asking your question. Again, that's star one one to ask a question, and please stand by. We compile our Q&A roster. Our first question will come from David Roman from Goldman Sachs. Your line is open.

Operator: 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 one on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star one one again. For optimal sound quality, we kindly ask that you use your handset instead of your speakerphone when asking your question. Again, that's star one one to ask a question, and please stand by. We compile our Q&A roster. Our first question will come from David Roman from Goldman Sachs. Your line is open.

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 one on your telephone you will then herein automated message advising you that your hand is race.

Speaker #5: Yeah, sure. I mean, I think the philosophy here, David, is I think that maybe there's a portion there that is we've included Exact Sciences into the history and our philosophy there has always been to ensure that our investors have clear transparent detailed kind of breakdown of our performance.

To withdraw your question. Please press star one again optimal sound.

Sound quality, we kindly ask that you use.

Your handset and steadier speaker phone when asking your question.

Again, Thats star one to ask a question and please standby we compile the Q&A roster.

Speaker #5: We did that during COVID, if you remember. We always split out the COVID sales. We got feedback that they really wanted to understand the underlying part of the business and the COVID part of the business.

And our first question will come from David Roman from Goldman Sachs. Your line is open.

Speaker #5: When we did the acquisition of St. Jude, the acquisition closed in the first quarter, and so we did the same approach there to fold in St.

David Roman: Hi. Thank you, and good morning, everyone. Thanks for taking the question. Maybe I'll start with just the updated guidance, and I know you touched on some of this during the call. Maybe you could just go into some further detail on, firstly, maybe your guidance philosophy and your just thought process in establishing the revised outlook. Then secondly, just the extent to which the outlook is, in your mind, sort of fully de-risks and captures upside potential, but also contemplates any downside unforeseen risks here.

David Roman: Hi. Thank you, and good morning, everyone. Thanks for taking the question. Maybe I'll start with just the updated guidance, and I know you touched on some of this during the call. Maybe you could just go into some further detail on, firstly, maybe your guidance philosophy and your just thought process in establishing the revised outlook. Then secondly, just the extent to which the outlook is, in your mind, sort of fully de-risks and captures upside potential, but also contemplates any downside unforeseen risks here.

Alright, Thank you and good morning, everyone. Thanks for taking the question.

Maybe I'll start with the updated guidance and I know you touched on some of this during the call, but maybe you could just go into some further detail on first thing maybe you adjusted your guidance philosophy and your thought process in establishing the revised outlook and then secondly, just the extent to which the outlook is in your mind sort of fully de risks and captures.

Speaker #5: Jude into a kind of more comparable basis. And we just think it provides the investors really the most relevant growth rate, a growth rate that is of the new Abbott portfolio on a very kind of clean apples-to-apples basis.

Speaker #5: So I think that's the philosophy there. As it relates to the guidance, I think maybe the view there was just maybe a little bit of a take a little bit of a conservative side here on some aspects that we felt in the first quarter for example, if you look at the respiratory season, we forecasted Q1 to be a relatively weak season, compared to other seasons that we had seen in the past.

Upside potential, but also contemplates any downside unforeseen risks here.

Yeah.

Robert B. Ford: Yeah, sure. I think the philosophy here, David, is I think that maybe there's a portion there that is we've included Exact Sciences into the history. Our philosophy there has always been to ensure that our investors have clear, transparent, detailed kind of breakdown of our performance. We did that during COVID. If you remember, we always split out the COVID sales. We got feedback that they really wanted to understand the underlying part of the business and the COVID part of the business. When we did the acquisition of St. Jude, the acquisition closed in Q1, and so we did the same approach there, to fold in St. Jude into a kind of more comparable basis.

Robert Ford: Yeah, sure. I think the philosophy here, David, is I think that maybe there's a portion there that is we've included Exact Sciences into the history. Our philosophy there has always been to ensure that our investors have clear, transparent, detailed kind of breakdown of our performance. We did that during COVID. If you remember, we always split out the COVID sales. We got feedback that they really wanted to understand the underlying part of the business and the COVID part of the business. When we did the acquisition of St. Jude, the acquisition closed in Q1, and so we did the same approach there, to fold in St. Jude into a kind of more comparable basis.

Yes, sure I mean, I think the philosophy here David is I think maybe there is a portion there that is we've included exact sciences into the history.

And our philosophy, there has always been to ensure that our investors have a clear.

Transparent detailed breakdown of our performance we did that during Covid. If you remember we always split out the Covid sales, we got feedback that they really wanted to understand the underlying part of the business and the cobalt part of the business.

Speaker #5: And then that was even weaker than what we had forecasted. And I think as we've looked at other comparable healthcare businesses, that we look at, for example, OTC meds, which is a very good kind of triangulation there.

When we did the acquisition of St. Jude.

The acquisition closed in the first quarter and so we did the same approach there to fold in St. Jude into a kind of more comparable basis and we just think it provides the investors really are the most relevant growth rate a growth rate that is of the new asset portfolio on a very kind of clean apples to apples.

Speaker #5: We're seeing also those types of businesses have kind of this year-over-year effect there. So one of the ways to think about it is like, "Okay, you have two parts in the year where you're going to have this effect.

Robert B. Ford: We just think it provides the investors really the most relevant growth rate, a growth rate that is of the new Abbott portfolio on a very kind of clean apples-to-apples basis. I think that's the philosophy there. As it relates to the guidance, I think maybe the view there was just maybe a little bit of a conservative side here on some aspects that we felt in the first quarter. For example, if you look at the respiratory season, we forecasted Q1 to be a relatively weak season compared to other seasons that we had seen in the past. That was even weaker than what we had forecasted. I think as we've looked at other comparable healthcare businesses that we look at, like for example, OTC meds, which is a very good kind of triangulation there.

Robert Ford: We just think it provides the investors really the most relevant growth rate, a growth rate that is of the new Abbott portfolio on a very kind of clean apples-to-apples basis. I think that's the philosophy there. As it relates to the guidance, I think maybe the view there was just maybe a little bit of a conservative side here on some aspects that we felt in the first quarter. For example, if you look at the respiratory season, we forecasted Q1 to be a relatively weak season compared to other seasons that we had seen in the past. That was even weaker than what we had forecasted. I think as we've looked at other comparable healthcare businesses that we look at, like for example, OTC meds, which is a very good kind of triangulation there.

Speaker #5: You have it at the beginning of the year, and you have it at the end of the year." So one of the ways to think about it is, "Okay, we're going to make that lower respiratory season at the back end of the year, and then we would have to assume that you would have a above-average respiratory season, at least from a testing perspective, but I'm only going to find that out just before Thanksgiving." So I just thought it was prudent to say, "You know what?

Basis.

So I think thats the philosophy, there as it relates to.

The guidance.

I think maybe maybe the view there was just maybe a little bit of a.

Take a little bit of a conservative side here on some some aspects that we felt in the first quarter. For example, if you look at the respiratory season, and we forecasted Q1 to be a relatively weak season.

Speaker #5: We're not going to be able to make up or I'll put it this way. I'm not going to forecast that we're going to make it up in Q4 this respiratory aspect." That doesn't mean we won't be ready.

To other seasons that we had seen in the past.

And then that was even weaker than that.

Speaker #5: Obviously, you know our portfolio, and we know we've got the manufacturing capabilities and the distribution to be able to do that. I just decided that I didn't think it was prudent to bake that into the forecast.

And what we had forecasted and I think as we've looked at other comparable.

Healthcare businesses that we look at like for example, like OTC Meds.

Speaker #5: The rest of the rest of the areas of the business, the sales growth out is very much in line with our January outlook. And if I go back to the way I described our year and the year progression, there's a couple of key kind of blocks that really drive our growth throughout the year.

Which is a very good kind of triangulation. There. We're seeing also those those types of businesses have.

Robert B. Ford: We're seeing also those types of businesses have kind of this year-over-year effect there. One of the ways to think about it is like, okay, you have two parts in the year where you're going to have this effect. You have it at the beginning of the year, and you have it at the end of the year. One of the ways to think about it is, okay, we're going to make that lower respiratory season at the back end of the year, and then we would have to assume that you would have an above average respiratory season, at least from a testing perspective, but I'm only going to find that out just before Thanksgiving.

Robert Ford: We're seeing also those types of businesses have kind of this year-over-year effect there. One of the ways to think about it is like, okay, you have two parts in the year where you're going to have this effect. You have it at the beginning of the year, and you have it at the end of the year. One of the ways to think about it is, okay, we're going to make that lower respiratory season at the back end of the year, and then we would have to assume that you would have an above average respiratory season, at least from a testing perspective, but I'm only going to find that out just before Thanksgiving.

This year over year effect there so.

One of them one of them one of the ways to think about it is like Okay. You have two parts in the year, where you're going to have this effect you have at.

Speaker #5: I'd say the first block here is just, as I said in my comments, sustaining the growth of our medtech business and our pharma business.

Beginning of the year and they have it at the end of the year. So.

One of the ways to think about it is okay. We're going to we're going to make that lower respiratory season at the back end of the year and then we would have to assume that you would have a.

Speaker #5: Medtech business, low double digits. Our pharma business, above 7%. These are businesses that have consistently and reliably delivered this type of performance. And whether it's market conditions or new product launches in these businesses, we feel very good about our ability to be able to sustain that kind of performance.

And above average respiratory season at least from a testing perspective, but I'm only going to find that out just before Thanksgiving. So I just thought it was prudent to say, we're not going to be able to make up.

Robert B. Ford: I just thought it was prudent to say, you know what, we're not going to be able to make up, or I'll put it this way, I'm not going to forecast that we're going to make it up in Q4, this respiratory aspect. That doesn't mean we won't be ready. Obviously, you know our portfolio, and we know we've got the manufacturing capabilities and the distribution to be able to do that. I just decided that I didn't think it was prudent to bake that into the forecast. The rest of the areas of the business, the sales growth outlook was very much in line with our January outlook.

Robert Ford: I just thought it was prudent to say, you know what, we're not going to be able to make up, or I'll put it this way, I'm not going to forecast that we're going to make it up in Q4, this respiratory aspect. That doesn't mean we won't be ready. Obviously, you know our portfolio, and we know we've got the manufacturing capabilities and the distribution to be able to do that. I just decided that I didn't think it was prudent to bake that into the forecast. The rest of the areas of the business, the sales growth outlook was very much in line with our January outlook.

I'm not going to forecast that we're going to make it up in Q4.

Speaker #5: The other bucket I would say, the second bucket would probably be more, "Okay, trajectory changing businesses." And I would put diagnostics, especially our core lab business and nutrition into those buckets.

This respiratory aspect.

That doesn't mean, we won't be ready, obviously, you know our portfolio and we know we've got the manufacturing capabilities and the distribution to be able to do that I just decided that I didn't think it was prudent to.

Speaker #5: I think they're a little bit different, though, David. I would say on our core lab business, and we talked about this last year, the impacts of China and the VBP, and obviously COVID, that was about a billion dollar headwind that we faced last year.

To bake that into the forecast.

The rest of the the rest of the areas of the business.

Sales growth out of it very much in line with our January with our January outlook, and if I go back to the way I described our year end of the year progression with a couple of key kind of blocks that really drive our growth throughout the year I'd say the first block here is just as I said in my comments sustaining the growth of our of our Med Tech.

Robert B. Ford: If I go back to the way I described our year and the year progression, the couple of key kind of blocks that really drive our growth throughout the year, I'd say the first block here is just, as I said in my comments, sustaining the growth of our med tech business and our pharma business. Med tech business, low double digits. Our pharma business above 7%. These are businesses that have consistently and reliably delivered this type of performance. Whether it's market conditions or new product launches in these businesses, we feel very good about our ability to be able to sustain that kind of performance. The other bucket, I would say, the second bucket would probably be more, okay, trajectory-changing businesses. I would put Diagnostics, especially our core lab business, and Nutrition into those buckets. I think they're a little bit different, though, David.

Robert Ford: If I go back to the way I described our year and the year progression, the couple of key kind of blocks that really drive our growth throughout the year, I'd say the first block here is just, as I said in my comments, sustaining the growth of our med tech business and our pharma business. Med tech business, low double digits. Our pharma business above 7%. These are businesses that have consistently and reliably delivered this type of performance. Whether it's market conditions or new product launches in these businesses, we feel very good about our ability to be able to sustain that kind of performance. The other bucket, I would say, the second bucket would probably be more, okay, trajectory-changing businesses. I would put Diagnostics, especially our core lab business, and Nutrition into those buckets. I think they're a little bit different, though, David.

Speaker #5: Other parts of the business, geography, other parts of the platforms doing very well growth, and we continue to see that. So what I see over the last six months really gives me confidence that we're actually on very much either on track or slightly ahead of that recovery in our diagnostics and that growth trajectory change.

<unk> and our pharma business Med tech business low double digits, our pharma business above 7%. These are businesses that have consistently and reliably deliver this type of performance and whether it's market conditions, our new product launches in these businesses, we feel very good about our ability to be able to sustain that kind of <unk>.

Speaker #5: And I think the teams there have done an incredible job in China. And especially here in the US too, I think the teams have done really good in terms of being able to capture market share.

Speaker #5: The nutrition transition, I think, is a little bit earlier on in that stage. But I still feel that what we're seeing right now, the decisions that we took, the timely decisions that we took in the middle of Q4, I think we're starting to see some of that activity right now in terms of being able to drive volume growth.

Performance the other bucket I would say the second bucket would probably be more okay trajectory trained.

<unk> changing businesses put diagnostics, especially our core lab business.

Speaker #5: It's still early. I can't declare like, "Yes, it's done." But we're starting to see really good indications that the actions that we took and then combined with the new product launches that we're going to see that recovery.

And nutrition into those buckets, I think they're a little bit different though David I would say on our core lab business and we've talked about this last year the impacts of China in the BBB.

Robert B. Ford: I would say on our core lab business, and we talked about this last year, the impacts of China and the VBP, and obviously COVID. That was about a billion-dollar headwind that we faced last year. Other parts of the business, geography, other parts of the platforms, doing very well, growth, and we continue to see that. What I've seen over the last six months really gives me confidence that we're actually on very much either on track or slightly ahead of that recovery in our Diagnostics and that growth trajectory change. I think the teams there have done an incredible job in China, and especially here in the US too. I think the teams have done really good in terms of being able to capture market share.

Robert Ford: I would say on our core lab business, and we talked about this last year, the impacts of China and the VBP, and obviously COVID. That was about a billion-dollar headwind that we faced last year. Other parts of the business, geography, other parts of the platforms, doing very well, growth, and we continue to see that. What I've seen over the last six months really gives me confidence that we're actually on very much either on track or slightly ahead of that recovery in our Diagnostics and that growth trajectory change. I think the teams there have done an incredible job in China, and especially here in the US too. I think the teams have done really good in terms of being able to capture market share.

Speaker #5: And then the third bucket I would put on that list is just the integration of the Exact Sciences, which adds a high-growth business to the portfolio.

And obviously COVID-19 that was about $1 billion headwind that we faced last year.

The other part of the business geography other parts of the platforms are doing very well our growth and we continue to see that so what I've seen over the last six months.

Speaker #5: It's been performing very well. I'm sure we'll talk about that also. But I'd say those are the three kind of big drivers of our sales forecast.

It really gives me confidence that we're actually on very much.

Speaker #5: And those really haven't changed. So the real thing here was just I'm not going to try and call what type of flu season we're going to have starting before Thanksgiving.

Either on track or slightly ahead of that recovery in our diagnostics and that growth trajectory change and I think the teams there have done an incredible job in China.

Speaker #5: So but if the flu season is as aggressive as we see in other years, then we have the manufacturing, we have the distribution, we have the sales force, all of that in place to be able to do that.

And especially here in the U S to I think the teams have done a really good in terms of be able to capture market share. The nutrition transition I think is a little bit earlier on in that stage, but I still feel that what we're seeing right now the decisions that we took the timely decisions that we took in.

Robert B. Ford: The nutrition transition, I think, is a little bit earlier on in that stage, but I still feel that what we're seeing right now, the decisions that we took, the timely decisions that we took in the middle of Q4, I think we're starting to see some of that activity right now in terms of being able to drive volume growth. It's still early. I can't declare like, "Yes, it's done." We're starting to see really good indications that the actions that we took and then combined with the new product launches, that we're going to see that recovery. The third bucket I would put on that list is just the integration of Exact Sciences, which adds a high growth business to the portfolio. It's been performing very well.

Robert Ford: The nutrition transition, I think, is a little bit earlier on in that stage, but I still feel that what we're seeing right now, the decisions that we took, the timely decisions that we took in the middle of Q4, I think we're starting to see some of that activity right now in terms of being able to drive volume growth. It's still early. I can't declare like, "Yes, it's done." We're starting to see really good indications that the actions that we took and then combined with the new product launches, that we're going to see that recovery. The third bucket I would put on that list is just the integration of Exact Sciences, which adds a high growth business to the portfolio. It's been performing very well.

Speaker #5: So hopefully that answers your question.

Speaker #1: Yeah. Thanks so much.

Middle of Q4.

Speaker #3: Thank you. Our next question will come from Robbie Marcus from JPMorgan. Your line is open.

I think we're starting to see some of that activity right now in terms to be able to drive volume growth. It's still early I can't declare like yes, it's done.

Speaker #1: Oh, great. Good morning and thanks for taking the question. Robert, maybe to follow up on David's question, I appreciate that comparable growth is a much more helpful metric, especially if we're looking out to the future and what the new Abbott will be doing on an underlying basis.

But we're starting to see really good indications that the actions that we took and then combined with the new product launches that we're going to see that recovery and then the third bucket I would put on that list is just the integration of exact sciences, which adds.

A high growth business through the portfolio.

Ben.

Performing very well I'm sure we'll talk about that also but I would say those are the three kind of big drivers of our sales forecast.

Robert B. Ford: I'm sure we'll talk about that also, but I'd say those are the three kind of big drivers of our sales forecast. Those really haven't changed. The real thing here was just, I'm not going to try and call what type of flu season we're going to have starting before Thanksgiving. If the flu season is as aggressive as we've seen in other years, then we have the manufacturing, we have the distribution, we have the sales force, all of that in place to be able to do that. Hopefully that answers your question.

Robert Ford: I'm sure we'll talk about that also, but I'd say those are the three kind of big drivers of our sales forecast. Those really haven't changed. The real thing here was just, I'm not going to try and call what type of flu season we're going to have starting before Thanksgiving. If the flu season is as aggressive as we've seen in other years, then we have the manufacturing, we have the distribution, we have the sales force, all of that in place to be able to do that. Hopefully that answers your question.

Speaker #1: But when I look at organic growth, which I think is what a lot of people pay attention to in the health of the Abbott business coming into the year before the acquisition, it looks to me like growth is moving from the six-and-a-half to seven-and-a-half guide on the fourth quarter call to something more like five, seven, five to six, seven, five if we adjust out Exact Sciences and the lost royalty revenue.

And those really Havent changed.

The real thing here was just I'm not going to try and call what type of flu season, we're going to have starting before Thanksgiving, so, but if it if the flu season is as aggressive as we've seen in other years. Then we have the manufacturing we have the distribution. We have the sales force all of that in place to be able to do that so hopefully that answers your question.

Speaker #1: So it does look like there's a bit of deceleration in the prior organic Abbott business. How are you thinking about managing that? How much is one-time versus sustainable?

<unk>.

Phil Boudreau: Yeah. Thanks so much.

David Roman: Yeah. Thanks so much.

Yes, thanks, so much.

Operator: Thank you. Our next question will come from Robbie Marcus from JPMorgan. Your line is open.

Operator: Thank you. Our next question will come from Robbie Marcus from JPMorgan. Your line is open.

Thank you. Our next question will come from Robbie Marcus from Jpmorgan. Your line is open.

Speaker #1: And where do you see sort of the biggest pressure points and how you're addressing it? Appreciate it.

Robbie Marcus: Oh, great. Good morning, and thanks for taking the question. Robert, maybe to follow up on David's question. I appreciate that comparable growth is a much more helpful metric, especially if we're looking out to the future and what the new Abbott will be doing on an underlying basis. When I look at organic growth, which I think is what a lot of people pay attention to in the health of the Abbott business coming into the year before the acquisition, it looks to me like growth is moving from the 6.5 to 7.5 guide on the Q4 call, something more like 5.75 to 6.75 if we adjust out Exact Sciences and the lost royalty revenue. It does look like there's a bit of deceleration in the prior organic Abbott business. How are you thinking about managing that?

Robbie Marcus: Oh, great. Good morning, and thanks for taking the question. Robert, maybe to follow up on David's question. I appreciate that comparable growth is a much more helpful metric, especially if we're looking out to the future and what the new Abbott will be doing on an underlying basis. When I look at organic growth, which I think is what a lot of people pay attention to in the health of the Abbott business coming into the year before the acquisition, it looks to me like growth is moving from the 6.5 to 7.5 guide on the Q4 call, something more like 5.75 to 6.75 if we adjust out Exact Sciences and the lost royalty revenue. It does look like there's a bit of deceleration in the prior organic Abbott business. How are you thinking about managing that?

Okay. Good morning, and thanks for taking the question Rob.

Robert maybe to follow up on David's question.

Speaker #4: Yeah, I'm not sure I follow those numbers, though, Robbie. But I think what you're trying to get to is, "Hey, by putting Exact Sciences into a comparable basis, are there parts on the non-Exact business that are underperforming?" I'm around.

I appreciate that comparable growth is much more helpful metric, especially if we're looking out to the future and what the.

The new Abbott.

We'll be doing on an underlying basis, but when I look at organic growth, which I think is what a lot of people pay attention to and the health of the Abbott business coming into the year before the acquisition. It looks to me like growth is moving from the six 5% to seven and a half guide on the fourth.

Speaker #4: I would say, as I said to David, I think that if I'll put it this way. If the business acquisition had closed after this call, let's call it Q2, sometime in Q2, I think we probably would have done, I think, what you in the medtech space would usually expect is that you kind of keep it separate and then you kind of lap it to ear.

Call it something more like $5, 75% to 675%, if we adjust out exact sciences and the lost royalty revenue.

Speaker #4: But then what you'll then ask me to do is to always, every quarter, reconcile between what the acquisition did to the organic growth rate.

So it does look like Theres a bit of deceleration in the.

The prior or organic Abbott business, how are you thinking about managing that how much is one time versus sustainable and where do you see sort of the biggest pressure point and how youre addressing it I appreciate it.

Speaker #4: So I just felt that because it was early in the Q1 before this call, that we could roll it in on a comparable basis and that would give our investors full visibility to the new Abbott with this addition of Exact Sciences.

Robert B. Ford: How much is one time versus sustainable? And where do you see sort of the biggest pressure points and how you're addressing it? Appreciate it. Yeah, I'm not sure I follow those numbers, though, Robbie. I think what you're trying to get to is, hey, by putting Exact Sciences into a comparable basis. Are there parts of the non-Exact business that are underperforming? I'm assuming that's what you're trying to hint around. I would say, as I said to David, I'll put it this way, if the business acquisition had closed after this call, let's call it Q2, sometime in Q2, I think we probably would have done, I think what you in the med tech space would usually expect is that you kind of keep it separate and then you kind of lap it a year.

Robbie Marcus: How much is one time versus sustainable? And where do you see sort of the biggest pressure points and how you're addressing it? Appreciate it.

Robert Ford: Yeah, I'm not sure I follow those numbers, though, Robbie. I think what you're trying to get to is, hey, by putting Exact Sciences into a comparable basis. Are there parts of the non-Exact business that are underperforming? I'm assuming that's what you're trying to hint around. I would say, as I said to David, I'll put it this way, if the business acquisition had closed after this call, let's call it Q2, sometime in Q2, I think we probably would have done, I think what you in the med tech space would usually expect is that you kind of keep it separate and then you kind of lap it a year.

Yes, Im not sure I, followed those numbers they'll Ravi, but I think what youre, what youre trying to get to is hey.

Speaker #4: And so I don't think that I know that might involve a little bit more work for some of you guys in terms of your modeling, all of that.

Bye bye, putting exact sciences into comparable basis are there parts on the non exact business that are underperforming im assuming thats, what youre trying to hinge around.

Speaker #4: But I think we try to make it very easy for you as part of our as part of our disclosures. Parts of the business that we were focusing on, I think I went through that in a fair amount of detail here.

I would say.

Speaker #4: I mean, if you want to go to specific kind of parts of the portfolio, we could do. But I think I described that to David pretty clear here.

As I said to David I think that.

I'll put it this way if the business acquisition had closed after this call let's call. It Q2 sometime in Q2, I think we probably would have done I think what you in the med Tech space would usually expect is that you kind of keep it separate and then you kind of lap of the year, but then what you'll then asked me to do is to always every quarter reconcile between what.

Speaker #4: I think the but I'll repeat it if necessary. The device portfolio, the pharma portfolio, we still feel very strong about those growth rates. We're not backing off of those.

Speaker #4: Obviously, there's opportunities to outperform in some of them. There are some more kind of challenging areas than others, whether it's market, whether it's competition.

Robert B. Ford: What you'll then ask me to do is to always every quarter reconcile between what the acquisition did to the organic growth rate. I just felt that because it was early in the Q1 before this call, that we could roll it in on a comparable basis, and that would give our investors full visibility to the new Abbott with this addition of Exact Sciences. I know that might involve a little bit more work for some of you guys in terms of your modeling and all of that, but I think we try to make it very easy for you as part of our disclosures. Parts of the business that we're focusing on, I think I went through that in a fair amount of detail here.

Robert Ford: What you'll then ask me to do is to always every quarter reconcile between what the acquisition did to the organic growth rate. I just felt that because it was early in the Q1 before this call, that we could roll it in on a comparable basis, and that would give our investors full visibility to the new Abbott with this addition of Exact Sciences. I know that might involve a little bit more work for some of you guys in terms of your modeling and all of that, but I think we try to make it very easy for you as part of our disclosures. Parts of the business that we're focusing on, I think I went through that in a fair amount of detail here.

The acquisition did to the organic growth rate. So I just felt that because it was early in the Q1 before this call that we could roll it in on a comparable basis.

Speaker #4: But overall, that combination we feel very good about sustaining that. And then these trajectory-changing businesses, like we've discussed in diagnostics and core nutrition, I think we know what the issues were.

That would give our investors full visibility too to the new to the new Abbott with this with this addition of exact sciences.

Speaker #4: We know what we're working on and we're really focused on executing that. But if I take a step back here, I mean, I think ultimately the way our business is, we're very diversified company.

So I.

I don't think that I know that might involve a little bit more work for some of you guys in terms of your modeling all of that but I think we try to make it very easy for you.

Speaker #4: We lay out all of the different businesses. We break out even within sectors, we break them out and be able to show the performance in that.

As part of our part of our disclosures.

Parts of the business that.

We're focusing on I think I went through that in fair amount of detail here I mean, if you want to go to specific kind of parts of the portfolio. We could do but I think I think I described that to David pretty clear here I think the the.

Speaker #4: My view here is that, yeah, it would be great to have every single business beating all of the street expectations unfortunately, sometimes you're not going to have that.

Robert B. Ford: If you want to go to specific parts of the portfolio, we could do, but I think I described that to David pretty clear here. I'll repeat it if necessary. The device portfolio, the pharma portfolio, we still feel very strong about those growth rates. We're not backing off of those. Obviously, there's opportunities to outperform in some of them. There are some more kind of challenging areas in others, whether it's market, whether it's competition. Overall, that combination, we feel very good about sustaining that. Then these trajectory-changing businesses like we've discussed in diagnostics and core nutrition, I think we know what the issues were. We know what we're working on, and we're really focused on executing that. If I take a step back here, I think ultimately, the way our business is, we're a very diversified company.

Robert Ford: If you want to go to specific parts of the portfolio, we could do, but I think I described that to David pretty clear here. I'll repeat it if necessary. The device portfolio, the pharma portfolio, we still feel very strong about those growth rates. We're not backing off of those. Obviously, there's opportunities to outperform in some of them. There are some more kind of challenging areas in others, whether it's market, whether it's competition. Overall, that combination, we feel very good about sustaining that. Then these trajectory-changing businesses like we've discussed in diagnostics and core nutrition, I think we know what the issues were. We know what we're working on, and we're really focused on executing that. If I take a step back here, I think ultimately, the way our business is, we're a very diversified company.

Speaker #4: I'm not going to say that never happens because it's happened before. But sometimes it doesn't happen. And I think the important thing there is that you have a collection of businesses that we feel are very attractive and that the combination, the sum of them are able to hit our commitments and deliver on our financial commitments.

But I'll repeat it if.

As necessary.

Device portfolio of the pharma portfolio, we still feel very strong about those growth rates were not backing off those obviously theres opportunities to outperform and some of them. There are some more kind of challenging areas and others, whether its market whether its competition.

But overall that combination we feel very good about sustaining that and then these these trajectory changing businesses like we discussed in diagnostics and core nutrition I think we know what the issues where.

Speaker #4: So I take a view of I look at each business individually, but we also look at it as a whole. And I think as a whole, the company's well set up for this year.

Speaker #1: Thanks, Robert. Appreciate it.

We know what we're working on and we're really focused on executing that but if I take a step back here I mean, I think ultimately the way our business is we're very diversified company.

Speaker #4: Sure.

Speaker #3: Thank you. And our next question will come from Larry Biegelson from Wells Fargo. Your line is open.

Speaker #5: Good morning. Thanks for taking the question. So Robert, I wanted to ask about CGM. We heard your comments about the CGM market or your business in Q1 and the expected acceleration in Q2.

Robert B. Ford: We lay out all of the different businesses. We break out even within sectors, we break them out and be able to show the performance in that. My view here is that, yeah, it would be great to have every single business beating all of the street expectations. Unfortunately, sometimes you're not going to have that. I'm not going to say that never happens because it's happened before, but sometimes it doesn't happen. I think the important thing there, Robbie, is that you have a collection of businesses that we feel are very attractive and that the combination, the sum of them are able to hit our commitments and deliver on our financial commitments. I take a view of, I look at each business individually, but we also look at it as a whole.

Robert Ford: We lay out all of the different businesses. We break out even within sectors, we break them out and be able to show the performance in that. My view here is that, yeah, it would be great to have every single business beating all of the street expectations. Unfortunately, sometimes you're not going to have that. I'm not going to say that never happens because it's happened before, but sometimes it doesn't happen. I think the important thing there, Robbie, is that you have a collection of businesses that we feel are very attractive and that the combination, the sum of them are able to hit our commitments and deliver on our financial commitments. I take a view of, I look at each business individually, but we also look at it as a whole.

We lay out all of the different businesses.

Breakout even within sectors, we break them out and be able to show the performance in that in my view here is that yes. It would be great to have every single business.

Speaker #5: But the CGM prescription trends in the US look weak. Can you talk about what's happening in the CGM market? There's a concern that the current indications are saturated and how are you thinking about Libre growth?

<unk> all have all of the street expectations.

Unfortunately, sometimes youre not going to have that I'm not going to say that never happens because it's happened before but sometimes it doesn't happen and I think the important thing there Rob.

Speaker #5: The rest of the year and longer term and just lastly remind us of the timing for type 2 non-insulin and the dual ketone sensor and the lactate sensor you mentioned.

Ravi is that you have a collection of businesses that we feel are very attractive and that the combination of some of them are able to hit our commitments and deliver on our financial commitments. So I take a view of I look at each business individually, but we also look at it as a whole and I think as a whole.

Speaker #5: Thank you.

Speaker #4: Sure. Listen, I think it's always important to look at weekly prescription data in one country. It's an important country. And the weekly prescription data is obviously great early indicators for the market, even though that auditing channel that you guys rely on to look at weekly prescription data doesn't capture the entire market.

Robert B. Ford: I think as a whole, the company is well set up for this year.

Robert Ford: I think as a whole, the company is well set up for this year.

The company is well set up for this year.

Robbie Marcus: Thanks, Robert. Appreciate it.

Robbie Marcus: Thanks, Robert. Appreciate it.

Thanks, Rob Barry I appreciate it.

Robert B. Ford: Sure.

Robert Ford: Sure.

Sure.

Operator: Thank you. Our next question will come from Larry Biegelsen from Wells Fargo. Your line is open.

Operator: Thank you. Our next question will come from Larry Biegelsen from Wells Fargo. Your line is open.

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

Larry Biegelsen: Good morning. Thanks for taking the question. Robert, I wanted to ask about CGM. We heard your comments about the CGM market or your business in Q1 and the expected acceleration in Q2. The CGM prescription trends in the US look weak. Can you talk about what's happening in the CGM market? There's a concern that the current indications are saturated, and how are you thinking about Libre growth the rest of the year and longer term? Just lastly, remind us of the timing for type 2 non-insulin, the dual ketone sensor, and the lactate sensor you mentioned. Thank you.

Larry Biegelsen: Good morning. Thanks for taking the question. Robert, I wanted to ask about CGM. We heard your comments about the CGM market or your business in Q1 and the expected acceleration in Q2. The CGM prescription trends in the US look weak. Can you talk about what's happening in the CGM market? There's a concern that the current indications are saturated, and how are you thinking about Libre growth the rest of the year and longer term? Just lastly, remind us of the timing for type 2 non-insulin, the dual ketone sensor, and the lactate sensor you mentioned. Thank you.

Good morning, Thanks for taking the question so Robert I wanted to ask about CGM, we heard your comments about the CGM market.

Speaker #4: It's very different from pharma where you've got a lot of other segments of the market that are performing. So I think using TRX data to ultimately look at how the market is evolving and only using that as I think I would say I'd caution.

Our Europe business in Q1, and the expected acceleration in Q2.

But the CGM prescription trends in the U S look weak.

Could you talk about what's happening in the CGM market there is a concern.

Speaker #4: I think it's a little bit myopic. So let me take a kind of a bigger view here, okay, Larry, in terms of how I think about the market, what's going on in the market, and the opportunities we have there.

Current indications are SaaS related and how are you thinking about libre growth the rest of the year and longer term and just just lastly remind us of the timing for type two non insulin and the dual ketone sensor in the lactate sensor you mentioned thank you.

Speaker #4: I'm very bullish on this market. If I look at the big picture here, I'm very bullish on the CGM market as you know, Larry.

Speaker #4: I've always been, and I continue to be. If I look at our assessment of the amount of people that should be on a CGM on a global basis, we estimate between 70 to 80 million people on CGMs.

Robert B. Ford: Sure. Listen, I think it's always important to look at weekly prescription data in one country. It's an important country. The weekly prescription data is obviously great early indicators for the market. Even though that auditing channel that you guys rely on to look at weekly prescription data doesn't capture the entire market. It's very different from pharma where you've got a lot of other segments of the market that are performing. I think using TRX data to ultimately look at how the market is evolving and only using that is, I would say, I'd caution, I think it's a little bit myopic. Let me take a kind of a bigger view here, okay, Larry, in terms of how I think about the market, what's going on in the market, and the opportunities we have there. I'm very bullish on this market.

Robert Ford: Sure. Listen, I think it's always important to look at weekly prescription data in one country. It's an important country. The weekly prescription data is obviously great early indicators for the market. Even though that auditing channel that you guys rely on to look at weekly prescription data doesn't capture the entire market. It's very different from pharma where you've got a lot of other segments of the market that are performing. I think using TRX data to ultimately look at how the market is evolving and only using that is, I would say, I'd caution, I think it's a little bit myopic. Let me take a kind of a bigger view here, okay, Larry, in terms of how I think about the market, what's going on in the market, and the opportunities we have there. I'm very bullish on this market.

Sure.

Listen I think it's always important to look at weekly prescription data in one country. It is an important country.

The weekly prescription data is obviously, great early indicators for for the market.

Even though that.

Speaker #4: Should be. And obviously, there are different types of patients in that number. But overall, 70 to 80 million people. I think the market today is around 10 to 12.

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That audit a channel that you guys rely on to look at weekly prescription data doesn't capture the entire market. It's very different from pharma, where you've got a lot of other segments of the market that are performing so I think using.

Speaker #4: So 10 to 12 million people. And again, you might think 78 is a lot, but there's about half a billion people with diabetes. So I felt that I've kind of narrowed it down quite a bit already.

Using T Rx data to ultimately.

Look at how the market is evolving.

Speaker #4: And even in that narrowed down world, we're still very underpenetrated. And I think if you look back to I'll speak for our growth trajectory because we've looked at this.

And only using that as I think I would say I would caution I think it's a little bit myopic. So let me let me take a kind of a bigger view here okay. Larry in terms of how I think about the market, what's going on in the market and the opportunities we have there.

Speaker #4: We continue to look at it. I go back like 15 years. I look at quarterly revenue over 15 years. So let's call it whatever, 60 data points there.

I am very bullish on this if I look at the Big picture here I'm very bullish on the CGM market as you know Larry I have always been and I continue to be.

Robert B. Ford: If I look at the big picture here, I'm very bullish on the CGM market. As you know, Larry, I've always been, and I continue to be. If I look at our assessment of the amount of people that should be on a CGM on a global basis, we estimate between 70 to 80 million people on CGMs should be. Obviously there are different types of patients in that number, but overall, 70 to 80 million people. I think the market today is around 10 to 12 million people. Again, you might think 70, 80 is a lot, but there's about 500 million people with diabetes. I felt that I've kind of narrowed it down quite a bit already. Even in that narrowed down world, we're still very under-penetrated.

Robert Ford: If I look at the big picture here, I'm very bullish on the CGM market. As you know, Larry, I've always been, and I continue to be. If I look at our assessment of the amount of people that should be on a CGM on a global basis, we estimate between 70 to 80 million people on CGMs should be. Obviously there are different types of patients in that number, but overall, 70 to 80 million people. I think the market today is around 10 to 12 million people. Again, you might think 70, 80 is a lot, but there's about 500 million people with diabetes. I felt that I've kind of narrowed it down quite a bit already. Even in that narrowed down world, we're still very under-penetrated.

Speaker #4: It's never always up to the right on a perfect 45-degree, okay? I know we love businesses that are like that, but it never is.

If I if I look at our assessment of the amount of people that should be on CGM on a global basis.

Speaker #4: There are periods, if you look, at least for us, there are periods where there's a little bit of modest growth and modest growth, I'd call like whatever, 8 to 10 percent.

We estimate between 70 to 80 million people on CGM.

Speaker #4: And then it's followed by very long periods of strong, strong acceleration, teens, 20% kind of growth. And if you look at those acceleration periods, they're typically driven by different types of callus, either a reimbursement callus, a geographic expansion callus, a new product launch callus.

Should be and obviously there are different types of patients in that number but overall 70 to 80 million people I think the market today is around 10% to 12, so 10 to 12 million people.

And again you might think 78 is a lot, but there is about half half a billion people with diabetes. So I felt that I have kind of narrowed it down quite a bit already and even in that narrow down world, we're still very underpenetrated.

Speaker #4: And as I look at this market and I look at our position, I feel a lot of catalysts still ahead of us in this market.

Robert B. Ford: I think if you look back to, I'll speak for our growth trajectory, because we've looked at this and we continue to look at it. I go back like 15 years. I look at quarterly revenue over 15 years. Let's call it, whatever, 60 data points there. It's never always up to the right on a perfect 45 degree, okay? I know we love businesses that are like that, but it never is. There are periods, if you look, at least for us, there are periods where there's a little bit of modest growth. Modest growth, I'd call like 8% to 10%. Then it's followed by very long periods of strong acceleration, teens, 20% kind of growth. If you look at those acceleration periods, they're typically driven by different types of catalysts, either a reimbursement catalyst, a geographic expansion catalyst, or a new product launch catalyst.

Robert Ford: I think if you look back to, I'll speak for our growth trajectory, because we've looked at this and we continue to look at it. I go back like 15 years. I look at quarterly revenue over 15 years. Let's call it, whatever, 60 data points there. It's never always up to the right on a perfect 45 degree, okay? I know we love businesses that are like that, but it never is. There are periods, if you look, at least for us, there are periods where there's a little bit of modest growth. Modest growth, I'd call like 8% to 10%. Then it's followed by very long periods of strong acceleration, teens, 20% kind of growth. If you look at those acceleration periods, they're typically driven by different types of catalysts, either a reimbursement catalyst, a geographic expansion catalyst, or a new product launch catalyst.

And I think if you look back to I'll speak for our growth trajectory because we've looked at this we continue to look at it I go back like 15 years I look at quarterly revenue over 15 years, So let's call it whatever 60 data points there.

Speaker #4: If I think about reimbursement as a strong catalyst, you just mentioned one. CSM type 2 non-insulin coverage I expect proposed language of that coming soon.

Speaker #4: I can't tell you the exact. Month, Larry. And I'm not going to try and forecast what it is, when it is. But I know it's going to happen.

It's never always up to the right on a perfect 45 degree okay.

Speaker #4: And I know that it's going to add close to 10 million people that don't have coverage now that now will be able to have coverage.

No we love businesses that are like that but it never is.

There are periods. If you look at least for US there are periods, where there is a little bit of modest growth modest growth I'd call. It whatever eight.

Speaker #4: And that's obviously going to accelerate commercial coverage too. So I think that's one that we've talked about. I have not included in my guidance.

<unk>, 8% to 10%.

And then it's followed by very long periods of strong strong acceleration teens, 20% kind of growth and if you look at those acceleration periods. They are typically driven by different types of catalysts, either a reimbursement catalyst.

Speaker #4: But it is a sweet spot for us in terms of our the channel strength, our promotional strength, our reimbursement coverage there. So I think that's a catalyst that's on the horizon here for us.

Geographic expansion catalyst, our new product launch catalysts and as I look at this market and I look at our position I feel a lot of catalysts still ahead of us.

Speaker #4: Internationally, I know we like to focus a lot on the US, but internationally, out of the top 10 markets in the world, only 4 have actually gone full-blown basal coverage.

Robert B. Ford: As I look at this market, and I look at our position, I see a lot of catalysts still ahead of us in this market. If I think about reimbursement as a strong catalyst, you just mentioned one, CMS type 2 non-insulin coverage. I expect proposed language of that coming soon. I can't tell you the exact month, Larry, and I'm not going to try and forecast what it is, when it is, but I know it's going to happen. I know that it's going to add close to 10 million people that don't have coverage now that now will be able to have coverage. That's obviously going to accelerate commercial coverage too. I think that's one that we've talked about.

Robert Ford: As I look at this market, and I look at our position, I see a lot of catalysts still ahead of us in this market. If I think about reimbursement as a strong catalyst, you just mentioned one, CMS type 2 non-insulin coverage. I expect proposed language of that coming soon. I can't tell you the exact month, Larry, and I'm not going to try and forecast what it is, when it is, but I know it's going to happen. I know that it's going to add close to 10 million people that don't have coverage now that now will be able to have coverage. That's obviously going to accelerate commercial coverage too. I think that's one that we've talked about.

In this market.

Speaker #4: So there are another 6 very large markets that are still in the process of not evaluating, but going through the budget process, the criteria process, etc.

I think about reimbursement as a as a strong catalyst you just mentioned one.

Type two non insulin.

Non insulin coverage I expect proposed language that coming soon I can tell you the exact month, Larry and I am not going to try and forecast what it is when it is but I know, what's going to happen and I know that it's going to add close to 10 million people that don't have coverage now that now will be able to have coverage.

Speaker #4: And what we've tried to do is obviously build evidence to be able to support that movement, not only from a physician side, but also from a patient advocacy.

Speaker #4: We showed an RCT. I talked about him open comments at ATDD conference later this year, which showed, again, in a randomized control trial, not just using real-world evidence, but randomized control trial that patients on basal do better with Libre.

And that's obviously going to accelerate commercial coverage too so so.

So I think thats.

It's one that we've talked about I have not included in my guidance, but it is a sweet spot for us in terms of our.

Robert B. Ford: I have not included in my guidance, but it is a sweet spot for us in terms of our channel strength, our promotional strength, our reimbursement coverage there. I think that's a catalyst that's on the horizon here for us. Internationally, I know we like to focus a lot on the US, but internationally, out of the top 10 markets in the world, only four have actually gone full-blown basal coverage. There are another six very large markets that are still in the process of not evaluating, but going through the budget process, the criteria process, et cetera. What we've tried to do is obviously build evidence to be able to support that movement, not only from a physician side, but also from a patient advocacy.

Robert Ford: I have not included in my guidance, but it is a sweet spot for us in terms of our channel strength, our promotional strength, our reimbursement coverage there. I think that's a catalyst that's on the horizon here for us. Internationally, I know we like to focus a lot on the US, but internationally, out of the top 10 markets in the world, only four have actually gone full-blown basal coverage. There are another six very large markets that are still in the process of not evaluating, but going through the budget process, the criteria process, et cetera. What we've tried to do is obviously build evidence to be able to support that movement, not only from a physician side, but also from a patient advocacy.

The channel our channel strength, our promotional strength, our reimbursement coverage there. So so so I think that's a catalyst that's on the horizon here for us.

Speaker #4: So I look at those and there is so much opportunity still internationally and even in the US. So I don't think that the patient TAM is tapped or anything like that.

Internationally I know, we like to focus a lot on the U S. But internationally out of the top 10 markets in the world only four have actually gone full blown basal coverage.

Speaker #4: You're just going to have these little moments where growth modulates a little bit and then these next catalysts come in and they continue to drop.

Speaker #4: You have to look at the bigger picture, which is you've got 70 to 80 million people that can be on this product. And even if you look at a yearly revenue number that's lower than what we're seeing today because you've got different types of patient groups in that number, you're looking at 30, 35 billion dollar TAM here.

So there are another six very large markets.

That are still in the process of evaluating but going through the budget process.

The.

The criteria processes et cetera.

Speaker #4: That's available to us. And we're focused on that, Larry. We're focused on building competitive advantage to be able to be a leader in that space, whether it's product technology advantage, cost advantage, skill advantage.

And what we've tried to do is obviously.

Build evidence to be able to support that movement not only from a physician side, but also from a patient advocacy.

Robert B. Ford: We showed an RCT, I talked about in my opening comments, at ATTD conference later this year, which showed, again, in a randomized control trial, not just using real world evidence, but randomized control trial, that patients on basal do better with Libre. I look at those, and there is so much opportunity still internationally and even in the US. I don't think that the patient TAM is capped or anything like that. You're just going to have these little moments where growth modulates a little bit, and then these next catalysts come in, and they continue to drop. You have to look at the bigger picture, which is you've got 70 to 80 million people that can be on this product.

Robert Ford: We showed an RCT, I talked about in my opening comments, at ATTD conference later this year, which showed, again, in a randomized control trial, not just using real world evidence, but randomized control trial, that patients on basal do better with Libre. I look at those, and there is so much opportunity still internationally and even in the US. I don't think that the patient TAM is capped or anything like that. You're just going to have these little moments where growth modulates a little bit, and then these next catalysts come in, and they continue to drop. You have to look at the bigger picture, which is you've got 70 to 80 million people that can be on this product.

We showed an RCT I talked about in my opening comments.

At <unk> Conference later, this year, which showed again in a randomized controlled trial not just using.

Speaker #4: And we do very well there. And then if you think about kind of innovation as another catalyst, we have a couple that are on our way also for us too.

Speaker #4: We've got still committed to an expected approval of our dual analytes es system in the second half of this year. That's going to open up about a million patients that we previously had very little access to on the pump side.

Real world evidence, but randomized controlled trial that.

Patients on basal do better with do better with Libre. So so I look at those and there is so much opportunity still internationally and and even in the U S. So I don't think that the patient.

Speaker #4: You're going to have about 5 million SGLT2 users that aren't using the product, which will now have the benefit of having continuous ketone monitoring.

Pam is as tax or anything like that you are just going to have these little moments where growth modulates a little bit and then these next catalyst come in and they continue to drill you have to look at the bigger picture, which is you've got 70 to 80 million people that can be on this product and even if you look at a yearly revenue number that's lower than what we're seeing today.

Speaker #4: We're working on a Libre 5. I'm not going to get ahead of myself here. But our view here is always okay, how do we continue to sustain our competitive advantage?

Robert B. Ford: Even if you look at a yearly revenue number that's lower than what we're seeing today, because you've got different types of patient groups in that number, you're looking at a $30 to $35 billion TAM here that's available to us. We're focused on that, Larry. We're focused on building competitive advantage to be able to be a leader in that space, whether it's product technology advantage, cost advantage, scale advantage, and we do very well there. If you think about innovation as another catalyst, we have a couple that are on our way also for us too. We're still committed to an expected approval of our dual analyte system in H2 of this year. That's going to open up about a million patients that we previously had very little access to on the pump side.

Robert Ford: Even if you look at a yearly revenue number that's lower than what we're seeing today, because you've got different types of patient groups in that number, you're looking at a $30 to $35 billion TAM here that's available to us. We're focused on that, Larry. We're focused on building competitive advantage to be able to be a leader in that space, whether it's product technology advantage, cost advantage, scale advantage, and we do very well there. If you think about innovation as another catalyst, we have a couple that are on our way also for us too. We're still committed to an expected approval of our dual analyte system in H2 of this year. That's going to open up about a million patients that we previously had very little access to on the pump side.

Speaker #4: And you do that through cost advantage and you do that through product innovation. So I still feel very good about this market. And I'm looking at it from a much bigger picture than just weekly TRXs, which don't get me wrong.

You've got different types of patient groups and that number youre looking at 30% to $35 billion Tam here, that's available to us and we're focused on that area. We're focused on building competitive advantage to be able to be a leader in that in that space, whether it's product technology advantage cost advantage scale advantage and we do very well there.

Speaker #4: We look at it also. And we can see the trends too. And there are obviously areas that we can do better and we're working on that too.

Speaker #4: But the bigger picture here is that we're very well positioned for what I believe is a very, very large kind of market.

And then if you think about kind of innovation is another catalyst we have a couple that that R&R way also for us too we've got.

Speaker #5: All right. Thanks so much.

Speaker #6: Thank you. Our next question. We'll come from Vijay Kumar from Evercore ISI, your line is open.

Still committed to unexpected approval of our dual analyte system in the second half of this year, that's going to open up about 1 million patients that we previously had very little access to on the pump side Youre.

Speaker #5: Hi, Robert. Good morning. And thank you for taking my question. I guess maybe I'll stick to exact given that the deal is closed. This is an asset which is done phenomenally well over the years.

Robert B. Ford: You're going to have about 5 million SGLT2 users that aren't using the product, which will now have the benefit of having continuous ketone monitoring. We're working on a Libre 5. I'm not going to get ahead of myself here, but our view here is always, okay, how do we continue to sustain our competitive advantage? You do that through cost advantage, and you do that through product innovation. I still feel very good about this market, and I'm looking at it from a much bigger picture than just weekly TRXs. Which don't get me wrong, we look at it also, and we can see the trends too, and there are obviously areas that we can do better, and we're working on that too. The bigger picture here is that we're very well positioned for what I believe is a very large kind of market.

Robert Ford: You're going to have about 5 million SGLT2 users that aren't using the product, which will now have the benefit of having continuous ketone monitoring. We're working on a Libre 5. I'm not going to get ahead of myself here, but our view here is always, okay, how do we continue to sustain our competitive advantage? You do that through cost advantage, and you do that through product innovation. I still feel very good about this market, and I'm looking at it from a much bigger picture than just weekly TRXs. Which don't get me wrong, we look at it also, and we can see the trends too, and there are obviously areas that we can do better, and we're working on that too. The bigger picture here is that we're very well positioned for what I believe is a very large kind of market.

Youre going to have about 5 million <unk> users that aren't using the product, which will now have the benefit of <unk>.

Having continuous keto monitoring.

Speaker #5: During mid-teens kind of growth, just talk about your plans for sustaining strong growth of Cologuard? Is there an international angle here for Cologuard? And sort of related to that, right, when I look at guidance, comparable growth is now 6.5 to 7.5.

We're working on a libre five I'm not going to get ahead of myself here.

But our view here is always okay. How do we continue to sustain our competitive advantage and you do that through cost advantage. When you do that through through product innovation. So I still feel very good about this market.

And I am looking at it from a much bigger picture than just weekly TR axis, which don't get me wrong. We look at it also and we can see the trends to and there are obviously areas that we can do better and we're working on that too, but the bigger picture here is that we're very well positioned for what I believe is a very very large kind of market.

Speaker #5: And we know exact is growing faster. Is there some conservatism that's being perhaps being baked in the guidance? Could there be upside given exact is growing faster?

Speaker #5: Thank you.

Speaker #7: Sure. Listen, I think the integration is going very well. So I think it starts with that, right? We've named Jake Orville as our new leader.

Larry Biegelsen: All right. Thanks so much.

Larry Biegelsen: All right. Thanks so much.

Alright, thanks, so much.

Operator: Thank you. Our next question will come from Vijay Kumar from Evercore ISI. Your line is open.

Operator: Thank you. Our next question will come from Vijay Kumar from Evercore ISI. Your line is open.

Thank you.

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

Speaker #7: And that business, he previously led the screening business of the Cologuard business. And he's reporting directly to me. It's reported in our diagnostics kind of queue, but it's operating standalone and it reports straight to me.

Vijay Kumar: Hi, Robert. Good morning, and thank you for taking my question. I guess maybe I'll stick to exact, given that the deal is closed. This is an asset which has done phenomenally well over the years, doing mid-teens kind of growth. Just talk about your plans for sustaining strong growth of Cologuard. Is there an international angle here for Cologuard? Sort of related to that, Phil, when I look at the guidance, comparable growth is now 6.5 to 7.5, and we know exact is growing faster. Is there some conservatism that's perhaps being baked in the guidance? Could there be upside given exact is growing faster? Thank you.

Vijay Kumar: Hi, Robert. Good morning, and thank you for taking my question. I guess maybe I'll stick to exact, given that the deal is closed. This is an asset which has done phenomenally well over the years, doing mid-teens kind of growth. Just talk about your plans for sustaining strong growth of Cologuard. Is there an international angle here for Cologuard? Sort of related to that, Phil, when I look at the guidance, comparable growth is now 6.5 to 7.5, and we know exact is growing faster. Is there some conservatism that's perhaps being baked in the guidance? Could there be upside given exact is growing faster? Thank you.

Hi, Robert Good morning, and thank you for taking my question I guess, maybe I'll stick to inks.

Okay.

Speaker #7: I think right now, we're very excited. And I know that the team is also very excited. I've had opportunities to field travel with reps.

Given that the deal is closed.

It's an asset which has done phenomenally well over the years.

Mid teens kind of growth.

Just talk about your plans for sustaining strong growth of Cologuard.

Speaker #7: I've had opportunities to talk to physicians. And I'd say I'm very bullish about the ability to really accelerate this business. Sustaining Cologuard growth, I'll answer that, but let me just say when we looked at this strategically Vijay, we really wanted to think about this not as a one product kind of deal, but more as an opportunity to enter a space that is extremely exciting and very high growth.

Is there an international angle here for Cologuard.

And sort of related to that when I look at.

The guidance comparable growth is now six 5% to seven happen exactly as growing faster.

Is there some contemplated some that's being perhaps being baked in the guidance.

Could there be upside given exact is growing faster. Thank you.

Robert B. Ford: Sure. Listen, I think the integration is going very well. I think it starts with that, right? We've named Jake Orville as our new leader in that business. He previously led the screening business with the Cologuard business, and he's reporting directly to me. It's reported in our diagnostics kind of Q, but it's operating standalone and it reports straight to me. I think right now, we're very excited, and I know that the team is also very excited. I've had opportunities to field travel with reps. I've had opportunities to talk to physicians. I'd say I'm very bullish about the ability to really accelerate this business. Sustaining Cologuard growth.

Robert Ford: Sure. Listen, I think the integration is going very well. I think it starts with that, right? We've named Jake Orville as our new leader in that business. He previously led the screening business with the Cologuard business, and he's reporting directly to me. It's reported in our diagnostics kind of Q, but it's operating standalone and it reports straight to me. I think right now, we're very excited, and I know that the team is also very excited. I've had opportunities to field travel with reps. I've had opportunities to talk to physicians. I'd say I'm very bullish about the ability to really accelerate this business. Sustaining Cologuard growth.

Sure.

Listen I think the integration is going very well so I think it starts starts with that right.

Speaker #7: So not just screening with Cologuard, but therapy selection and MRD testing. These are obviously areas that I know you know very well. And they have great opportunities here.

<unk> named <unk> as our new leader in that business.

He previously led the screening business with the Cologuard business and he is reporting directly to me.

Speaker #7: So our goal in doing this is to actually be a leader across the entire cancer diagnostic span and we believe that exact was definitely kind of a beachhead building block for us to do that.

It's reported in our diagnostics.

Q, but it's operating stand alone in our report straight to me.

Right now.

We're very excited and I know that the the <unk>.

Speaker #7: And within that, obviously, Cologuard is the key growth driver there. And I would say I think it's a very sustainable growth here for us for a couple of reasons.

<unk>.

It's also very excited about opportunities to the field traveled retrofit opportunities to talk to physicians.

And I would say I'm very I'm very bullish about the ability to to really accelerate this business.

Speaker #7: One, the demand is still going to is high and it's continuing to increase, right? So right now, if you look at it's a very underpenetrated right now.

<unk>.

Sustaining cologuard growth I'll answer that but let me just let me just say when we when we when we looked at this strategically.

Robert B. Ford: I'll answer that, but let me just say, when we looked at this strategically, Vijay, we really wanted to think about this not as a one product kind of deal, but more as an opportunity to enter a space that is extremely exciting and very high growth. Not just screening with Cologuard, but therapy selection and MRD testing. These are obviously areas that I know you know very well, and they have great opportunities here. Our goal in doing this is to actually be a leader across the entire cancer diagnostic span, and we believe that Exact was definitely a kind of a beachhead building block for us to do that. Within that, obviously, Cologuard is the key growth driver there. I would say, I think it's a very sustainable growth here for us, for a couple reasons.

Robert Ford: I'll answer that, but let me just say, when we looked at this strategically, Vijay, we really wanted to think about this not as a one product kind of deal, but more as an opportunity to enter a space that is extremely exciting and very high growth. Not just screening with Cologuard, but therapy selection and MRD testing. These are obviously areas that I know you know very well, and they have great opportunities here. Our goal in doing this is to actually be a leader across the entire cancer diagnostic span, and we believe that Exact was definitely a kind of a beachhead building block for us to do that. Within that, obviously, Cologuard is the key growth driver there. I would say, I think it's a very sustainable growth here for us, for a couple reasons.

Speaker #7: You've got 50 million Americans that are not up to date with their CRC screening. So there's an opportunity here in the US. But internationally also, this is very, very underpenetrated, Vijay.

Strategically Vijay we really wanted to think about this not as a.

As of one product kind of deal, but more as an opportunity to enter a space that is extremely exciting and very high growth. So not just screening with cologuard, but therapy selection and MRV testing. These are obviously areas that I know you know very well and they have great opportunities here.

Speaker #7: And one of the things that we bring is established regulatory KOL healthcare system distribution relationships across a lot of markets. So we've already set aside a group that's really going to focus on how do we develop the screening and the cancer testing market in these international markets.

So our goal in doing this is to actually deal with.

Across the entire cancer diagnostic span and we believe that.

Speaker #7: And then if you look at guiding screening guidelines, I mean, the age in 20 I think it was 2021 was lowered from 50 to 45.

Exactly.

Yeah.

Kind of a beachhead building block for us to do that and within that obviously cologuard as the as.

As the key growth driver, there and I would say I think its a very sustainable growth year for us.

Speaker #7: That added a lot of new patients what I'm seeing. And I think it's more than anecdotal. I've seen studies now that we're seeing people at 30 and 35 be diagnosed with stage three.

For a couple of reasons one the demand is still going to is high and it has continued to increase right. So right now if you look at it.

Robert B. Ford: One, the demand is high, and it's continuing to increase, right? Right now, if you look at it's very under-penetrated right now. You've got 50 million Americans that are not up to date with their CRC screening. There's an opportunity here in the US, but internationally also, this is very under-penetrated, Vijay. One of the things that we bring is established regulatory, KOL, and healthcare system distribution relationships across a lot of markets. We've already set aside a group that's really going to focus on how do we develop the screening and the cancer testing market in these international markets. Then if you look at screening guidelines, the age in 2021, I think, was lowered from 50 to 45. That added a lot of new patients.

Robert Ford: One, the demand is high, and it's continuing to increase, right? Right now, if you look at it's very under-penetrated right now. You've got 50 million Americans that are not up to date with their CRC screening. There's an opportunity here in the US, but internationally also, this is very under-penetrated, Vijay. One of the things that we bring is established regulatory, KOL, and healthcare system distribution relationships across a lot of markets. We've already set aside a group that's really going to focus on how do we develop the screening and the cancer testing market in these international markets. Then if you look at screening guidelines, the age in 2021, I think, was lowered from 50 to 45. That added a lot of new patients.

Speaker #7: And so that's not good, obviously. So could I eventually see that being lowered from 45 down to 40? I think I can see that happening.

It's a very underpenetrated right now you've got 50 million Americans that are not up to date with their with our CRC screening. So theres an opportunity here in the U S. But internationally also this is very very very.

Speaker #7: Because there is a medical need for that. And that would add another 20 million people just in the US. So I think the demand is there.

Very underpenetrated Vijay and one of the things that we bring.

Speaker #7: The piece of the Cologuard, which is an incredible value proposition, is that with this increasing demand for screening, there's only a certain there's a fixed amount of colonoscopy capacity, at least in this country.

<unk> established regulatory.

Coal healthcare system distribution relationships across a lot of markets.

We've already set aside a group that's really going to focus on how do we develop.

Speaker #7: It really hasn't changed. It's been 6 million per year, pretty consistently. And if you factor in that there if you look at gastroenterologist and look at the enrollment rates in medical schools that are coming down, so you can see a world where you're going to have increased demand for screening.

The screening and the cancer testing market in these international markets.

Then if you look at guiding screening guidelines.

Age in 'twenty I think it's 2021 was lowered from 50 to 45 that added a lot of new patients.

Speaker #7: And less supply to be able to do that from a colonoscopy perspective. And Cologuard does really well here, not only is it convenient at home but it's sensitivity at 95% is equivalent to colonoscopy.

Robert B. Ford: What I'm seeing, and I think it's more than anecdotal, I've seen studies now that we're seeing people at 30 and 35 be diagnosed with stage 3. That's not good, obviously. Could I eventually see that being lowered from 45 down to 40? I think I can see that happening because there is a medical need for that, and that would add another 20 million people just in the US. I think the demand is there. The piece of the Cologuard, which is an incredible value proposition, is that with this increasing demand for screening, there's a fixed amount of colonoscopy capacity, at least in this country. It really hasn't changed. It's been 6 million per year pretty consistently. If you factor in that there, if you look at gastroenterologists, and look at the enrollment rates in medical schools, they're coming down.

Robert Ford: What I'm seeing, and I think it's more than anecdotal, I've seen studies now that we're seeing people at 30 and 35 be diagnosed with stage 3. That's not good, obviously. Could I eventually see that being lowered from 45 down to 40? I think I can see that happening because there is a medical need for that, and that would add another 20 million people just in the US. I think the demand is there. The piece of the Cologuard, which is an incredible value proposition, is that with this increasing demand for screening, there's a fixed amount of colonoscopy capacity, at least in this country. It really hasn't changed. It's been 6 million per year pretty consistently. If you factor in that there, if you look at gastroenterologists, and look at the enrollment rates in medical schools, they're coming down.

What I'm seeing and I think it's more than anecdotal I've seen studies now that we're seeing.

People like at 30% and 35 be diagnosed with stage III.

Speaker #7: So I think the combination of the increased demand followed by this bottleneck, if you look right now, I think in the US, I was talking to the team average wait time for colonoscopy is between three to nine months.

So that's not good obviously.

So could I eventually see that being lowered from 45 down to <unk> 40.

I think I can see that happening because there isn't a medical need for that and that would add another 20 million people just in the U S. So so I think the demand is there.

Speaker #7: Depending on the state. So it's already there's already a backlog. So I think the demand and the value proposition of Cologuard is very strong.

The piece of the Cologuard, which is an incredible value proposition is that.

Speaker #7: And if I had a third part there, I think what the team at Exact Sciences has built is pretty unique. So you've got 1,000-person sales force calling on primary care reps and it takes time to build that.

With this increasing demand for screening there's only a certain.

On a colonoscopy capacity at least in this country. It really hasnt changed its been $6 million per year pretty consistently and and if you factor in that there. If you look at gastric gastroenterologist and look at the enrollment rates and medical schools are coming down. So you can see a world where youre going to have increased demand for scrap.

Speaker #7: It's not an easy thing. And you've got 200,000 healthcare professionals prescribing every quarter Cologuard. And they have this incredible system where everything is integrated.

Robert B. Ford: You can see a world where you're going to have increased demand for screening and less supply to be able to do that from a colonoscopy perspective. Cologuard does really well here. Not only is it convenient at home, but its sensitivity at 95% is equivalent to colonoscopy. I think the combination of the increased demand followed by this bottleneck if you look right now, I think in the US, I was talking to the team, average wait time for colonoscopy is between three to nine months, depending on the state. There's already a backlog. I think the demand and the value proposition of Cologuard is very strong. If I add a third part there, I think what the team at Exact Sciences has built is pretty unique.

Robert Ford: You can see a world where you're going to have increased demand for screening and less supply to be able to do that from a colonoscopy perspective. Cologuard does really well here. Not only is it convenient at home, but its sensitivity at 95% is equivalent to colonoscopy. I think the combination of the increased demand followed by this bottleneck if you look right now, I think in the US, I was talking to the team, average wait time for colonoscopy is between three to nine months, depending on the state. There's already a backlog. I think the demand and the value proposition of Cologuard is very strong. If I add a third part there, I think what the team at Exact Sciences has built is pretty unique.

Inc, and less supply to be able to do that from a colonoscopy prospective and cologuard is really well here not only is it convenient at home, but its sensitivity at 95% is equivalent to the colonoscopy. So so I think the combination of the increased demand followed by.

Speaker #7: It's integrated into the healthcare records. It's integrated into your phone. I mean, it's a very seamless experience. And I think that's pretty unique. I think the other part that is unique to us is that re-screens are becoming a very strong growth contributor 25% of our tests today are re-screens.

This bottleneck if you look right now I think in the U S. I was talking to the team average wait time for colonoscopy is between three to nine months, depending on the state.

Speaker #7: And you're eligible for a re-screen every three years. When you've got all the data, you can obviously interact with your customers to remind them.

So it's already there is already a backlog so I think.

Speaker #7: And what I saw in the data was that you've got a very high re-screen rate. And it gets even higher as the re-screens kind of progress.

The demand and the value proposition of Cologuard is very strong and if I add a third part there I think what the team at exact sciences has built is pretty unique.

Speaker #7: So I think right now we're seeing about 500,000 patients per year of just for re-screens. So I think that that's something that's very unique to this business for us.

Robert B. Ford: You've got 1,000-person sales force calling on primary care reps, and it takes time to build that. It's not an easy thing. You've got 200,000 healthcare professionals prescribing every quarter Cologuard, and they have this incredible system where everything is integrated. It's integrated into the healthcare records. It's integrated into your phone. It's a very seamless experience. I think that's pretty unique. I think the other part that is unique to us is that rescreens are becoming a very strong growth contributor. 25% of our tests today are rescreens, and you're eligible for a rescreen every three years. When you've got all the data, you can obviously interact with your customers to remind them. What I saw in the data was that you've got a very high rescreen rate, and it gets even higher as the rescreens kind of progress.

Robert Ford: You've got 1,000-person sales force calling on primary care reps, and it takes time to build that. It's not an easy thing. You've got 200,000 healthcare professionals prescribing every quarter Cologuard, and they have this incredible system where everything is integrated. It's integrated into the healthcare records. It's integrated into your phone. It's a very seamless experience. I think that's pretty unique. I think the other part that is unique to us is that rescreens are becoming a very strong growth contributor. 25% of our tests today are rescreens, and you're eligible for a rescreen every three years. When you've got all the data, you can obviously interact with your customers to remind them. What I saw in the data was that you've got a very high rescreen rate, and it gets even higher as the rescreens kind of progress.

So you've got a 1000 person sales force, calling on primary care reps and it takes time to build that.

Not an easy thing and and you've got 200000 healthcare professionals prescribing every quarter Cologuard and they have this incredible system, where everything is.

Speaker #7: Because they've been doing it for 10 years. So you've got this re-screen business that keeps on growing. And then the third thing, which I think is also very unique, to us and what's been built is these Caregap programs, which I know you know very well also, CRC screening is one of the quality metrics that CMS uses for star ratings.

Everything is integrated.

Integrated into the health care Records, it's integrated into.

Your phone I mean, it's a very seamless experience and I think that's pretty unique I think the other part that is unique to <unk>.

Speaker #7: And payers and providers, they get three times as quality score for Cologuard versus a fit test. So we're seeing a lot of interest from healthcare systems and providers to stay ahead and ensure that their scoring, their quality metric points.

Two.

To us.

Is that re screens are becoming.

A very strong growth contributor 25% of our test today are re screens and you're eligible for a re screened every three years.

When <unk> got all the data you can obviously interact with your customers to remind them all on the data was.

Speaker #7: So I think those three things are pretty unique. And I add that with a combination of the demand, the opportunity international. So I feel very good about our ability to kind of sustain this growth.

You have got a very high re screen right and it gets even higher as the re screens kind of progressed so.

Speaker #7: Now, internationally, is it going to be Cologuard? It could be in some markets. It could be other tests for other markets. But there's clearly a need here.

Robert B. Ford: I think right now we're seeing about 500,000 patients per year just for rescreens. I think that that's something that's very unique to this business for us because they've been doing it for 10 years, so you've got this rescreen business that keeps on growing. Then the third thing, which I think is also very unique to us and what's been built is these care gap programs, which I know you know very well also. CRC screening is one of the quality metrics that CMS uses for star ratings. Payers and providers, they get three times this quality score for Cologuard versus a FIT test. We're seeing a lot of interest from healthcare systems and providers to stay ahead, and ensure that they're scoring their quality metric points.

Robert Ford: I think right now we're seeing about 500,000 patients per year just for rescreens. I think that that's something that's very unique to this business for us because they've been doing it for 10 years, so you've got this rescreen business that keeps on growing. Then the third thing, which I think is also very unique to us and what's been built is these care gap programs, which I know you know very well also. CRC screening is one of the quality metrics that CMS uses for star ratings. Payers and providers, they get three times this quality score for Cologuard versus a FIT test. We're seeing a lot of interest from healthcare systems and providers to stay ahead, and ensure that they're scoring their quality metric points.

I think right now we're seeing about 500000 patients per year of just just for re screen. So I think that thats.

Speaker #7: I've traveled to Asia. I traveled to Europe. In this first quarter. And I spoke to health ministers. And top three things that we walked away from was they want to get cancer screening up and going in their countries.

Thats something thats very unique.

To do this business for us because they've been doing it for 10 years. So you've got this.

Re screen business that keeps on growing and then the third thing, which I think is also very unique to us and what's been built as these care got programs, which I know you know very well also CRC screening is one of the quality metrics that CMS uses for star ratings and.

Speaker #7: They see it as a problem. And they see Abbott as one of those solutions. So I feel very good about this business. And the integrations going very well.

Speaker #7: I couldn't have asked for a better integration culturally. I think both companies are very compatible. Very focused on the patient. And on innovation and driving growth.

And payers and providers they get three times its quality score for cologuard versus versus a fit test so.

Speaker #7: So I feel good about it.

We're seeing.

A lot of interest from.

Healthcare systems and providers to stay ahead.

Speaker #1: Thank you. And our next question will come from Matthew Taylor from Jefferies. Your line is open.

And ensure that their scoring their quality metric points.

Robert B. Ford: I think those three things are pretty unique, and I add that with a combination of the demand, the opportunity international. I feel very good about our ability to kind of sustain this growth. Now, internationally, is it going to be Cologuard? It could be in some markets. It could be other tests for other markets. But there's clearly a need here. I traveled to Asia, I traveled to Europe this Q1, and I spoke to health ministers, and top three things that we walked away from was they want to get cancer screening up and going in their countries. They see it as a problem, and they see Abbott as one of those solutions. I feel very good about this business. The integration's going very well. I couldn't have asked for a better integration.

Robert Ford: I think those three things are pretty unique, and I add that with a combination of the demand, the opportunity international. I feel very good about our ability to kind of sustain this growth. Now, internationally, is it going to be Cologuard? It could be in some markets. It could be other tests for other markets. But there's clearly a need here. I traveled to Asia, I traveled to Europe this Q1, and I spoke to health ministers, and top three things that we walked away from was they want to get cancer screening up and going in their countries. They see it as a problem, and they see Abbott as one of those solutions. I feel very good about this business. The integration's going very well. I couldn't have asked for a better integration.

So I think those three things are pretty unique and I add that with the combination of.

Speaker #5: Good morning. Thanks for taking my question. I was hoping that you could talk a little bit about the trends in structural heart and maybe within that, just address what's going on in left atrial appendage closure.

The demand the opportunity international so I feel very good about our ability to kind of sustain this growth internationally is it going to be cologuard. It could be in some markets. It could be other tests for other markets, but there's clearly a need here.

Speaker #5: Not only do you have programs including the NextGen 360, which I think people are excited about, but I was hoping you could comment on what you think the impact could be from the Champion study from your competitor.

<unk> to Asia, I travel to Europe. This first quarter and I spoke to health ministers and top three things that we walked away from was they want to get.

Speaker #5: And you have a similar study, Catalyst, that I'll read out here in a year or two. But would love kind of an overview of structural heart and LAAC.

Cancer screening up and going in their countries. They see it as a problem and they see Abbott is one of those solutions. So I feel very good about this business and the integration is going very well I Couldnt I Couldnt have asked for a better integration culturally I think both companies are very compatible.

Speaker #6: Yeah. So I think that's an interesting question. Because I think historically, what we've done is we've had left atrial appendage closure device within our structural heart business.

Robert B. Ford: Culturally, I think both companies are very compatible, very focused on the patient, and on innovation and driving growth. I feel good about it.

Robert Ford: Culturally, I think both companies are very compatible, very focused on the patient, and on innovation and driving growth. I feel good about it.

Very focused on the patient.

And on innovation and driving growth. So so I feel good about it.

Speaker #6: And what we decided to do is to move it outside of our structural heart business and put it into our electrophysiology business. And we did that in end of last year and beginning starting in January 1st.

Operator: Thank you. Our next question will come from Matthew Taylor from Jefferies. Your line is open.

Operator: Thank you. Our next question will come from Matthew Taylor from Jefferies. Your line is open.

Thank you.

And our next question will come from Matthew Taylor from Jefferies. Your line is open.

Speaker #6: Where we moved the sales force, clinical teams, and eventually moved manufacturing, etc., over. And we did that just because we felt that this would be beneficial for our electrophysiology business.

Matthew Taylor: Good morning. Thanks for taking my question. I was hoping that you could talk a little bit about the trends in structural heart and maybe within that, just address what's going on in left atrial appendage closure. Not only do you have programs including the NextGen 360, which I think people are excited about, but I was hoping you could comment on what you think the impact could be from the CHAMPION study from your competitor, and you have a similar study, CATALYST, that'll read out here in a year or two. Would love kind of an overview of structural heart and LAAC.

Matthew Taylor: Good morning. Thanks for taking my question. I was hoping that you could talk a little bit about the trends in structural heart and maybe within that, just address what's going on in left atrial appendage closure. Not only do you have programs including the NextGen 360, which I think people are excited about, but I was hoping you could comment on what you think the impact could be from the CHAMPION study from your competitor, and you have a similar study, CATALYST, that'll read out here in a year or two. Would love kind of an overview of structural heart and LAAC.

Hi, good morning, Thanks for taking my question.

I was hoping that you could talk a little bit about the trends in structural heart and maybe within that just address what's going on in the left atrial appendage closure and not only do you have programs, including the next Gen $3 60, which I think people are excited about but I was hoping you could comment on what you think the impact could be from.

Speaker #6: But quite frankly, it would be more beneficial for our structural heart business. So I'll focus on the structural heart business and the trends there.

Speaker #6: Listen, I think we've been

Speaker #1: Doing pretty well with this business So when you look at the the , I think in our in our queue , we've got a reconciliation of , of , of the impact of moving those sales out of structural heart into , into EP .

The champions study from your competitor and you have a similar study catalyst that'll read out here.

Year or two.

We love kind of an overview of structural heart.

Speaker #1: So that's a big contributor to the , to the disconnection between the street model and what we delivered . But on top of that , you know , we have seen some competitive intensity increase here in the , in the mitral space as one of our main competitors here is kind of expanded their portfolio .

The AC.

Robert B. Ford: Yeah. I think that's an interesting question because, I think historically what we've done is we've had a left atrial appendage closure device within our Structural Heart business. What we decided to do is to move it outside of our Structural Heart business and put it into our Electrophysiology business. We did that in end of last year and starting in January 1, where we moved the sales force, clinical teams, and eventually moved manufacturing, et cetera, over. We did that just because we felt that this would be beneficial for our Electrophysiology business, but quite frankly, it would be more beneficial for our Structural Heart business. I'll focus on the Structural Heart business and the trends there. Listen, I think we've been doing pretty well with this business. When you look at the...

Robert Ford: Yeah. I think that's an interesting question because, I think historically what we've done is we've had a left atrial appendage closure device within our Structural Heart business. What we decided to do is to move it outside of our Structural Heart business and put it into our Electrophysiology business. We did that in end of last year and starting in January 1, where we moved the sales force, clinical teams, and eventually moved manufacturing, et cetera, over. We did that just because we felt that this would be beneficial for our Electrophysiology business, but quite frankly, it would be more beneficial for our Structural Heart business. I'll focus on the Structural Heart business and the trends there. Listen, I think we've been doing pretty well with this business. When you look at the...

Yes.

I think that that's an interesting question because I think historically, what we've done is we've had left atrial appendage closure device within our structural heart business and what we decided to do is to move it outside of our structural heart business and put it into our electrophysiology business and we did that.

Speaker #1: So yeah , I think my team can do a better job there . They know that also , we need to improve our execution in the US .

End of last year and beginning starting on January one.

Speaker #1: We've we've done some some changes to leadership . And I'm expecting our US commercial team here to respond to respond to the challenge internationally , growth continues to be very , very strong across the entire portfolio .

Where we move the sales force clinical teams.

And eventually move manufacturing et cetera over.

And we did that just because we felt that.

<unk>.

This would be beneficial for our electrophysiology business, but quite frankly, it would be more beneficial for our structural heart business. So I'll focus on the structural heart business and the trends there listen I think we've been doing.

Speaker #1: And To my competitors trial , I'm going to let them as I'm assuming they probably have done talked about it . So I'm going to wait until ours comes out and then and then I'll comment on ours .

Pretty well with this business.

So when you look at the I think in our in our Q. We've got a reconciliation of the impact of moving those sales out of structural heart into into EEP. So.

Robert B. Ford: I think in our Q, we've got a reconciliation of the impact of moving those sales out of Structural Heart into EP. That's a big contributor to the disconnection between the street model and what we delivered. On top of that, we have seen some competitive intensity increase here in the mitral space as one of our main competitors kind of expanded their portfolio. Yeah, I think my team can do a better job there. They know that also. We need to improve our execution in the US. We've done some changes to leadership. I'm expecting our US commercial team here to respond to the challenge. Internationally, growth continues to be very, very strong across the entire portfolio. We're delivering double-digit growth in mitral, TriClip, and in our structural interventions business. I think that's going very well.

Robert Ford: I think in our Q, we've got a reconciliation of the impact of moving those sales out of Structural Heart into EP. That's a big contributor to the disconnection between the street model and what we delivered. On top of that, we have seen some competitive intensity increase here in the mitral space as one of our main competitors kind of expanded their portfolio. Yeah, I think my team can do a better job there. They know that also. We need to improve our execution in the US. We've done some changes to leadership. I'm expecting our US commercial team here to respond to the challenge. Internationally, growth continues to be very, very strong across the entire portfolio. We're delivering double-digit growth in mitral, TriClip, and in our structural interventions business. I think that's going very well.

So thats a big contributor to the to the disconnection between the Street model and what we delivered but on top of that we have seen some competitive intensity increase here in the in the mitral space as one of our main competitor curious kind of expanded their portfolio.

So yes, I think my team can do a better job there. They know that also we need to improve our execution in the U S. We've done some some changes to leadership.

And I am expecting our U S commercial team here to respond to respond to the challenge internationally growth continues to be very very strong across the entire portfolio.

And we are delivering double digit growth in it.

Mitra and try clip.

Speaker #1: But I think it's a it's a high growth and attractive business . I think you , you mentioned our next generation product . I think it is very , very exciting product for us .

And our structural interventions business so.

So I think thats going thats going very well and while theres going to be some geographic differences there Matt.

Robert B. Ford: While there's going to be some geographic differences there, Matt, and I think that geographic difference might persist for a little bit, I continue to expect our Structural Heart growth here to be high single digit for the full year. I feel good about the Structural Heart portfolio. There are areas that we got to do better in. I kind of highlighted the product and the geography. I'm expecting the team to really respond here. I think the business is doing very well. Then, as I said in my opening comments, we've got a couple trial readouts, as you mentioned, we've completed enrollment in our Catalyst. I don't have a big reaction to my competitor's trial. I'm going to let them, as I'm assuming they probably have done, talk about it.

Robert Ford: While there's going to be some geographic differences there, Matt, and I think that geographic difference might persist for a little bit, I continue to expect our Structural Heart growth here to be high single digit for the full year. I feel good about the Structural Heart portfolio. There are areas that we got to do better in. I kind of highlighted the product and the geography. I'm expecting the team to really respond here. I think the business is doing very well. Then, as I said in my opening comments, we've got a couple trial readouts, as you mentioned, we've completed enrollment in our Catalyst. I don't have a big reaction to my competitor's trial. I'm going to let them, as I'm assuming they probably have done, talk about it.

Speaker #1: And that's why we thought that moving it over to our EP business would actually provide a better acceleration for that product per se .

And I think that geographic difference might persist for a little bit I continue to expect our structural heart growth year to be a high single digit for the full year. So so I feel good about the structural heart portfolio. There are areas that we've got to do better.

Speaker #1: And then actually allow our , our structural heart team to be more focused on kind of valvular , valvular products and selling and , and keep them more focused .

I kind of highlighted the product and the geography so.

Speaker #1: So great .

And I'm expecting the team too.

Speaker #2: Thank you very much

To really respond here. So I think I think the business is doing very well and then as I said in my opening comments, we've got a couple of we've got a couple of.

Speaker #3: Thank you . Our next question will come from Travis Steed from B of a securities . Your line is open .

Trial Readouts as you mentioned, we completed enrollment in our catalyst.

Speaker #4: Hey everybody . I wanted to ask on the nutrition business and I heard you mentioned that volume is starting to recover a bit .

I don't have a big.

Reaction to to my competitors trial, I'm going to let them.

Speaker #4: Any other color you can give on getting confidence in that business , returning to growth in the back half and volume picking up .

As I am assuming they probably have done talked about it.

Robert B. Ford: I'm going to wait until ours comes out and then I'll comment on ours. I think it's a high growth, attractive business. I think you mentioned our next generation product. I think it is very exciting product for us, and that's why we thought that moving it over to our EP business would actually provide a better acceleration for that product per se, and then actually allow our Structural Heart team to be more focused on valvular products and selling, and keep them more focused.

Robert Ford: I'm going to wait until ours comes out and then I'll comment on ours. I think it's a high growth, attractive business. I think you mentioned our next generation product. I think it is very exciting product for us, and that's why we thought that moving it over to our EP business would actually provide a better acceleration for that product per se, and then actually allow our Structural Heart team to be more focused on valvular products and selling, and keep them more focused.

Speaker #4: And then how are you thinking about ongoing portfolio management and value creation and how nutrition fits into that strategic thinking

So I'm going to wait until <unk> comes out and then I'll and then I'll comment on ours, but I think it is it's a high growth attractive business I think.

You mentioned, our next generation product I think it is very very exciting product for us.

Speaker #1: Yeah , sure . Like I said in my comments and a couple of the early questions , I think we're starting to see we're starting to see that impact .

That's why we thought that moving it over to our EP business.

Speaker #1: We did a pretty comprehensive price assessment , not not just at a product level , but a geographic level . We , we evaluated our gaps versus our competition .

Good.

<unk> provide a better acceleration for that product per se and then actually allow our our structural heart team to be more focused on kind of valvular.

Speaker #1: So we didn't we didn't reduce prices , just basically uniformly across the portfolio . Travis . We kept it very focused on the products that we believed .

Valvular products and selling.

And keep them more focused itself.

Matthew Taylor: Great. Thank you very much.

Matthew Taylor: Great. Thank you very much.

Great. Thank you very much.

Speaker #1: And based on our experience with demonstrate this positive volume response to , to a reduced price . So when , when the price is passed on to the consumer , we , we're seeing this kind of immediate effect .

Operator: Thank you. Our next question will come from Travis Steed from BofA Securities. Your line is open.

Operator: Thank you. Our next question will come from Travis Steed from BofA Securities. Your line is open.

Thank you. Our next question will come from Travis Steed from Bofa Securities. Your line is open.

Travis Steed: Hey, everybody. I wanted to ask on the Nutrition business, and I heard you mention that volume is starting to recover, but any other color you can give on getting confidence in that business returning to growth in the back half and volume picking up? How you're thinking about ongoing portfolio management and value creation and how Nutrition fits in that strategic thinking.

Travis Steed: Hey, everybody. I wanted to ask on the Nutrition business, and I heard you mention that volume is starting to recover, but any other color you can give on getting confidence in that business returning to growth in the back half and volume picking up? How you're thinking about ongoing portfolio management and value creation and how Nutrition fits in that strategic thinking.

Everybody wanted to ask on the nutrition.

Speaker #1: But but it takes time for some of that price to get passed on to the consumer , right ? Because you've got , you've got inventory in the channel , etc.

Business.

I heard you mentioned that volume is starting to recover but any other color you can give on getting confidence and that business returning to growth in the back half on volume.

Speaker #1: . So it doesn't . So that price reset to the consumer doesn't happen overnight , which is why , because we know that we wanted to get ahead of it as quickly as possible , which is why we did it in Q4 of last year .

Picking up and then how youre thinking about ongoing portfolio management and value creation in our nutrition, but then that strategic thinking.

Speaker #1: But when you when we've lowered , when you see the lower prices get passed through the consumer , you're seeing the intended effect .

Robert B. Ford: Yeah, sure. Like I said in my comments and in a couple of the early questions, I think we're starting to see that impact. We did a pretty comprehensive price assessment, not just at a product level, but a geographic level. We evaluated our gaps versus our competition. We didn't reduce prices just basically uniformly across the portfolio, Travis. We kept it very focused on the products that we believed, and based on our experience, would demonstrate this positive volume response to a reduced price. When the price is passed on to the consumer, we're seeing this kind of immediate effect. It takes time for some of that price to get passed on to the consumer, right? Because you've got inventory in the channel, et cetera.

Robert Ford: Yeah, sure. Like I said in my comments and in a couple of the early questions, I think we're starting to see that impact. We did a pretty comprehensive price assessment, not just at a product level, but a geographic level. We evaluated our gaps versus our competition. We didn't reduce prices just basically uniformly across the portfolio, Travis. We kept it very focused on the products that we believed, and based on our experience, would demonstrate this positive volume response to a reduced price. When the price is passed on to the consumer, we're seeing this kind of immediate effect. It takes time for some of that price to get passed on to the consumer, right? Because you've got inventory in the channel, et cetera.

Yes, sure like I said in my comments and then couple of the early questions I think we're starting to see.

Speaker #1: So if you look at , for example , at our US adult nutrition business , specifically on ensuring that was a product that we knew , you know , had some had some elasticity and its price just based on our experience , we've seen volume grow across all the retailers that have actually passed that on here in the US .

We're starting to see that impact we did a pretty comprehensive price assessment.

Not just at a product level, but at a geographic level, we have we evaluated our gaps versus our competition.

So we didn't we didn't reduce prices just basically uniform across the portfolio Travis we kept it very focused on the products that we believed and based on our experience would demonstrate this positive volume response to reduce price. So when when the price is passed onto the consumer.

Speaker #1: Pass that on to pass that on to the consumer . So you're seeing that increase in volume . And we kind of use the 2025 as kind of the baseline .

Speaker #1: Obviously not Q4 , but but but the at least the first half of the year is the baseline . So we're tracking this on a monthly basis .

We're seeing this kind of immediate effect, but it takes time for some of that price to get passed onto the consumer right because you've got you've got inventory in the channel et cetera.

Speaker #1: I know my team looks at this on a weekly basis with the data that's available . So I feel good about where we are right now .

Robert B. Ford: That price reset to the consumer doesn't happen overnight, which is why, because we know that we wanted to get ahead of it as quickly as possible, which is why we did it in Q4 of last year. When you see the lower prices get passed through to the consumer, you're seeing the intended effect. If you look, for example, at our US adult nutrition business, specifically on Ensure. That was a product that we knew had some elasticity in its price, just based on our experience. We've seen volume grow across all the retailers that have actually passed that on, here in the US, passed that on to the consumer. You're seeing that increase in volume, and we use 2025 as the baseline. Obviously not Q4, but at least H1 is the baseline.

So it doesn't so that price reset to the consumer doesn't happen overnight, which is why because we know that we wanted to get ahead of it as quickly as possible, which is why we did it in Q4.

Robert Ford: That price reset to the consumer doesn't happen overnight, which is why, because we know that we wanted to get ahead of it as quickly as possible, which is why we did it in Q4 of last year. When you see the lower prices get passed through to the consumer, you're seeing the intended effect. If you look, for example, at our US adult nutrition business, specifically on Ensure. That was a product that we knew had some elasticity in its price, just based on our experience. We've seen volume grow across all the retailers that have actually passed that on, here in the US, passed that on to the consumer. You're seeing that increase in volume, and we use 2025 as the baseline. Obviously not Q4, but at least H1 is the baseline.

Speaker #1: I mean , I'm not going to say right now that it's all done . And let's just let time pass and it'll all come through .

Speaker #1: There's work we've got to do . There are product launches that also allow us to . Gain distribution . There's work that we need to do in terms of expanding distribution into into the distribution channel .

Of last year.

But when you when we have lower when you see the lower prices get pass through to the consumer Youre seeing the intended effects. So if you look at for example that our U S adult nutrition business.

Speaker #1: So there's a lot of work going on right now , but the team is incredibly focused . And I think , you know , this is a this is a team that's been pretty resilient .

Specifically on insured.

That was a product that we knew.

<unk> had some had some elasticity and its price just based on our experience.

Speaker #1: Travis . And does pretty well . You know , at least has shown to do pretty well when it when it encountered some of these challenges , they're able to bounce back pretty quickly .

We've seen volume grow across all the retailers that have actually passed that on here in the U S pass it onto pass that on.

Speaker #1: So , so right now , I'd say on track Encouraging early signs , but still , still still work to do as it relates to the portfolio .

To the consumer so youre seeing that increase in volume and we kind of use the 2025 is kind of the baseline.

Speaker #1: Listen , I like the , I like the diversity of , of our business model and the diversity is not just across business segments , it's across products .

Obviously, not Q4, but.

At least the first half of the year as the baseline. So we're tracking this on a monthly basis I know my team looked at this on a weekly basis with the.

Robert B. Ford: We're tracking this on a monthly basis. I know my team looks at this on a weekly basis with the data that's available. I feel good about where we are right now. I'm not going to say right now that it's all done and let's just let time pass, and it'll all come through. There's work we've got to do. There are product launches that also allow us to gain distribution. There's work that we need to do in terms of expanding distribution into the distribution channel. There's a lot of work going on right now, but the team is incredibly focused, and I think this is a team that's been pretty resilient, Travis, and does pretty well, at least has shown to do pretty well when it encounters some of these challenges, they're able to bounce back pretty quickly.

Robert Ford: We're tracking this on a monthly basis. I know my team looks at this on a weekly basis with the data that's available. I feel good about where we are right now. I'm not going to say right now that it's all done and let's just let time pass, and it'll all come through. There's work we've got to do. There are product launches that also allow us to gain distribution. There's work that we need to do in terms of expanding distribution into the distribution channel. There's a lot of work going on right now, but the team is incredibly focused, and I think this is a team that's been pretty resilient, Travis, and does pretty well, at least has shown to do pretty well when it encounters some of these challenges, they're able to bounce back pretty quickly.

Speaker #1: It's diversity in our geography , it's diversity in our customer base and different payer types and different innovation cycles . You know , we don't want to be so heavily weighted on 1 or 2 products that , you know , that the company's kind of driven there .

The data that's available so.

I feel good about where we are right now I mean, I'm not going to say right now that it's all done and let's just let time pass and then it will all come through this work we've got to do their product launches that also allow us to gain distribution.

Speaker #1: And I think that that diversity really provides us a pretty unique perspective on the global healthcare system . That being said , Travis , we're constantly looking at our portfolio .

There is work that we need to do in terms of expanding distribution.

Speaker #1: We're constantly looking at are there , you know , are the is the market still attractive ? How's our competitive position ? You know , so that we can determine , do we expand ?

<unk>.

Into the distribution channel.

So theres a lot of work going on right now, but the team is incredibly focused and I think this is a team that's been pretty resilient Travis and does pretty well.

Speaker #1: Do we maintain , do we potentially reduce and we do this on an ongoing basis with management . And we do it with our board at least once a year , sometimes twice a year .

At least as shown to do pretty well when he kind of some of these challenges able to bounce back pretty quickly so.

Speaker #1: So so this is evaluating our portfolio for value creation is not like a once every five year exercise . We're constantly doing it .

Robert B. Ford: Right now, I'd say on track, encouraging early signs, but still work to do. As it relates to the portfolio, listen, I like the diversity of our business model, and diversity is not just across business segments, it's across products. It's the diversity in our geography, it's diversity in our customer base, different payer types, and different innovation cycles. We don't want to be so heavily weighted on one or two products that the company's kind of driven there. I think that diversity really provides us a pretty unique perspective on the global healthcare system. That being said, Travis, we're constantly looking at our portfolio. We're constantly looking at, is the market still attractive? How's our competitive position? That we can determine, do we expand? Do we maintain? Do we potentially reduce?

Robert Ford: Right now, I'd say on track, encouraging early signs, but still work to do. As it relates to the portfolio, listen, I like the diversity of our business model, and diversity is not just across business segments, it's across products. It's the diversity in our geography, it's diversity in our customer base, different payer types, and different innovation cycles. We don't want to be so heavily weighted on one or two products that the company's kind of driven there. I think that diversity really provides us a pretty unique perspective on the global healthcare system. That being said, Travis, we're constantly looking at our portfolio. We're constantly looking at, is the market still attractive? How's our competitive position? That we can determine, do we expand? Do we maintain? Do we potentially reduce?

So right now I'd say on track encouraging early signs, but still still still work to do.

As it relates to the portfolio.

Speaker #1: And I think I tell you , if we see an opportunity , we've demonstrated that we can act upon it . So right now , my focus here is I'm never going to make a long term strategic decision based on kind of near-term challenges .

Listen I like the I like the diversity of.

Our business model and the diversity not just across business segments across products. It's the diversity in our geographies diversity in our customer base and different payer types and different innovation cycles, we don't want it be so heavily weighted on one or two products.

Speaker #1: Obviously , nutrition is going through some near-term challenges and going through some transition and recovery phase . And that's what my focus is on , is on is on getting our business back to growth rate that we had seen , you know , you know , over the last kind of 4 or 5 years .

That.

The company has kind of driven there and I think that that diversity really provides us a pretty unique perspective on our global health care system.

That being said Travis we're constantly looking at our portfolio we're constantly looking at.

Speaker #1: But the idea of constantly evaluating the portfolio that that is something that we do for all businesses in the company . And we do it on a on a pretty disciplined basis .

Are there.

Or is the market still attractive how's our competitive position.

Speaker #4: Great . Thanks a lot

So that we can determine do we expand and we maintained a potentially reduce.

Robert B. Ford: We do this on an ongoing basis with management, and we do it with our board, at least once a year, sometimes twice a year. Evaluating our portfolio for value creation is not like a once every five-year exercise. We're constantly doing it. I think I'd tell you, if we see an opportunity, we've demonstrated that we can act upon it. Right now my focus here is, I'm never going to make a long-term strategic decision based on near-term challenges. Obviously, Nutrition's going through some near-term challenges and going through some transition and recovery phase, and that's what my focus is on, getting our business back to a growth rate that we had seen over the last four or five years.

Robert Ford: We do this on an ongoing basis with management, and we do it with our board, at least once a year, sometimes twice a year. Evaluating our portfolio for value creation is not like a once every five-year exercise. We're constantly doing it. I think I'd tell you, if we see an opportunity, we've demonstrated that we can act upon it. Right now my focus here is, I'm never going to make a long-term strategic decision based on near-term challenges. Obviously, Nutrition's going through some near-term challenges and going through some transition and recovery phase, and that's what my focus is on, getting our business back to a growth rate that we had seen over the last four or five years.

Speaker #3: Thank you . And our next question will come from Joanne Wuensch from city . Your line is open

And we do this on ongoing basis with management and we do it with our board at least once a year, sometimes twice a year. So so this is it.

Speaker #5: Good morning , and thank you for taking the question . I'm sort of surprised for 50 minutes into this . And no one's asked about macro issues .

We in our portfolio for value creation is not like a once every five year exercise we are constantly doing it.

Speaker #5: So I'm going to go there . I'm curious what you're seeing in terms of the potential impacts for the conflict in the Middle East on your business , on oil and resin costs , but also just big picture what you're seeing in terms of patient volumes and reimbursement and , you know , outside of your comments on respiratory snow days and things like that .

And.

I think.

Tell you if we see an opportunity.

We've demonstrated that we can act upon it.

Right now my focus here is never going to make a long term strategic decision.

Based on kind of near term challenges, obviously nutrition is going through some near term challenges in going through some transition and recovery phase and that's what my focus is on.

Speaker #5: Thank you .

Is on getting our business back to a.

Speaker #1: Sure Listen , we're the way Abbott has been built . It's been built to , to , to withstand , you know , withstand these kind of events and our discipline here is to ensure that we try and get ahead of it .

Growth rate that we had seen.

Over the last kind of four or five years, but the idea of constantly evaluating the portfolio that is something that we do for all businesses in the company and we do it on a pretty disciplined basis.

Robert B. Ford: The idea of constantly evaluating the portfolio, that is something that we do for all businesses in the company, and we do it on a pretty disciplined basis.

Robert Ford: The idea of constantly evaluating the portfolio, that is something that we do for all businesses in the company, and we do it on a pretty disciplined basis.

Speaker #1: You know , as it relates to oil costs . I mean , I think that's that's an impact that it's too early to tell .

Travis Steed: Great. Thanks a lot.

Travis Steed: Great. Thanks a lot.

Great. Thanks, a lot.

Speaker #1: We're not seeing any of that in , in our costs right now . We're not seeing freight rates increase from our suppliers right now , but we're monitoring it .

Operator: Thank you. Our next question will come from Joanne Wuensch from Citi. Your line is open.

Operator: Thank you. Our next question will come from Joanne Wuensch from Citi. Your line is open.

Thank you.

And our next question will come from Julien <unk> from Citi. Your line is open.

Speaker #1: And we have a whole team that monitors and stays close to it . You know , I think one of the things that we do to stay ahead of this , Joanne , is that each one of our business has dedicated teams .

Joanne Wuensch: Good morning, and thank you for taking the question. I'm sort of surprised we're 50 minutes into this and no one's asked about macro issues. I'm going to go there. I'm curious what you're seeing in terms of the potential impacts for the conflict in the Middle East, on your business, on oil and resin costs, but also just big picture, what you're seeing in terms of patient volumes, reimbursement, and outside of your comments on respiratory, snow days, and things like that? Thank you.

Joanne Wuensch: Good morning, and thank you for taking the question. I'm sort of surprised we're 50 minutes into this and no one's asked about macro issues. I'm going to go there. I'm curious what you're seeing in terms of the potential impacts for the conflict in the Middle East, on your business, on oil and resin costs, but also just big picture, what you're seeing in terms of patient volumes, reimbursement, and outside of your comments on respiratory, snow days, and things like that? Thank you.

Good morning, and thank you for taking the question.

And sort of surprise for 15 minutes into this and no one's asked about macro issues. So I'm going to go there.

Im curious what youre seeing in terms of the potential impacts for the conflict in the middle East.

Speaker #1: Monday through Friday , 8 a.m. to 6 p.m. what they do is they work on gross margin improvement . What are ways that we can do to be able to anticipate cost shocks , to look at ways that we can be more efficient , more effective , look at ways that how we can negotiate with our suppliers and , and so , so I don't , I look at the cost element of , of , of the conflict , you know , right now it's too early to tell , but I'm not saying that I think that there is a big impact because I think that we've got teams in place that are working hard to kind of mitigate the impact that we saw in Q1 was very minimal , but I wouldn't call it a demand impact .

On your business on oil and rosin costs, but also just big picture, what youre seeing in terms of.

Patient volumes and reimbursement.

Outside of your comments on the respiratory snow days and things like that thank you.

Robert B. Ford: Sure. Listen, the way Abbott has been built, it's been built to withstand these kind of events. Our discipline here is to ensure that we try and get ahead of it. As it relates to oil costs, I think that's an impact that it's too early to tell. We're not seeing any of that in our costs right now. We're not seeing freight rates increase from our suppliers right now. But we're monitoring it, and we have a whole team that monitors and stays close to it. I think one of the things that we do to stay ahead of this, Joanne, is that each one of our business has dedicated teams, Monday through Friday, 8:00AM-6:00PM. What they do is they work on gross margin improvement.

Robert Ford: Sure. Listen, the way Abbott has been built, it's been built to withstand these kind of events. Our discipline here is to ensure that we try and get ahead of it. As it relates to oil costs, I think that's an impact that it's too early to tell. We're not seeing any of that in our costs right now. We're not seeing freight rates increase from our suppliers right now. But we're monitoring it, and we have a whole team that monitors and stays close to it. I think one of the things that we do to stay ahead of this, Joanne, is that each one of our business has dedicated teams, Monday through Friday, 8:00AM-6:00PM. What they do is they work on gross margin improvement.

Sure.

Listen.

The way Abbott has been built that's been built to withstand.

And these kind of events.

And our disciplined here is to ensure that we try and get ahead of it.

As it relates to oil costs I mean, I think that's an impact that it's too early to tell we're not see any of that in our cost right. Now we're not seeing freight rates increase from our suppliers right now, but we're monitoring it and we have a whole team that monitors and stay as close to it.

Speaker #1: I would call it more of a getting product into the region kind of impact . As you can imagine , shipping lanes became , you know , everybody , everybody wanted kind of spots on planes and , and all different types of , of , of supply and transport methodologies .

I think one of the things that we do to stay ahead of this Joanne is that each one of our business has dedicated teams Monday through Friday eight a M to <unk> what they do is they work on gross margin improvement what are ways that we can do to.

Speaker #1: So that's just something that we got to kind of stay , stay ahead of , you know , one of , one of the things , the reason we felt a little bit of impact is we run pretty , pretty efficiently with our inventory .

Robert B. Ford: What are ways that we can do to be able to anticipate cost shocks, to look at ways that we can be more efficient, more effective, look at ways at how we can negotiate with our suppliers. I look at the cost element of the conflict. Right now it's too early to tell, but I'm not saying that I think that there's a big impact because I think that we've got teams in place that are working hard to mitigate. The impact that we saw in Q1 was very minimal, Joanne, but I wouldn't call it a demand impact. I would call it more of a getting product into the region kind of impact. As you can imagine, shipping lanes became, everybody wanted spots on planes and all different types of supply and transport methodology. That's just something that we've got to stay ahead of.

Robert Ford: What are ways that we can do to be able to anticipate cost shocks, to look at ways that we can be more efficient, more effective, look at ways at how we can negotiate with our suppliers. I look at the cost element of the conflict. Right now it's too early to tell, but I'm not saying that I think that there's a big impact because I think that we've got teams in place that are working hard to mitigate. The impact that we saw in Q1 was very minimal, Joanne, but I wouldn't call it a demand impact. I would call it more of a getting product into the region kind of impact. As you can imagine, shipping lanes became, everybody wanted spots on planes and all different types of supply and transport methodology. That's just something that we've got to stay ahead of.

To be able to anticipate cost shocks to look at ways that we can be more efficient more effective.

Speaker #1: So now we need to make sure that we got more inventory , at least in our affiliates , that we have warehouses in the areas .

Look at ways of how we can negotiate with our suppliers.

And.

Speaker #1: So we so that we have enough product so that we don't have . So we don't have any kind of backorders . But I didn't see a drop off or demand or reimbursement challenges or issues as a result of , as a result of the conflict .

And so I look at the cost element of Av.

The conflict.

Right now it's too early to tell but im not saying that I think that there is a big impact because I think that we've got teams in place that are.

We are working hard to kind of mitigate.

Speaker #1: For us , it was more just ensuring that we could get product , you know , in into the area . So , and you know , we're , we're highly focused on that .

The impact that we saw in Q1 was very minimal.

But I wouldn't call it a demand impact I would call it more of a <unk>.

Speaker #1: And , but as you can imagine , the teams that Abbott has in this region , Joanne . I mean , they've unfortunately , they have been through a lot and seen a lot .

Getting product into the region kind of impact as you can imagine shipping lanes became.

Speaker #1: And I give them a lot of credit because , you know , while we focus on on , on kind of growing the business and driving the business , they've got to do that under some very , very tough challenges .

Everybody everybody wanted kind of spots on claims.

All different types of.

Supply and transport methodologies so.

Speaker #1: So I give a lot of kudos to to the work that they've been doing

That's just something that we got to kind of stay stay ahead of one of the one of the things. The reason, we felt a little bit of impact as what we run pretty pretty efficiently with our inventory.

Robert B. Ford: The reason we felt a little bit of impact is we run pretty efficiently with our inventory. Now we need to make sure that we got a little bit more inventory, at least in our affiliates that we have warehouses in the areas so that we have enough product, so we don't have any kind of back orders. I didn't see a drop-off in demand or reimbursement challenges or issues as a result of the conflict. For us, it was more just ensuring that we could get product into the area. We're highly focused on that. As you can imagine, the teams that Abbott has in this region, Joanne, unfortunately, they have been through a lot and seen a lot.

Robert Ford: The reason we felt a little bit of impact is we run pretty efficiently with our inventory. Now we need to make sure that we got a little bit more inventory, at least in our affiliates that we have warehouses in the areas so that we have enough product, so we don't have any kind of back orders. I didn't see a drop-off in demand or reimbursement challenges or issues as a result of the conflict. For us, it was more just ensuring that we could get product into the area. We're highly focused on that. As you can imagine, the teams that Abbott has in this region, Joanne, unfortunately, they have been through a lot and seen a lot.

So now we need to make sure that we've got.

Speaker #3: Thank you . And our next question will come from Josh Jennings , from TD Cowan . Your line is open .

Our inventory at least in our affiliates.

That we have warehouses in the areas that we have enough product that we don't have.

Speaker #6: Hi . Good morning . Thanks for taking the questions , Robert . I hope hoping to get some more details on the EP franchise and the volt launch in internationally .

We don't have any big kind of back orders, but I didn't see it.

Drop off where demand or reimbursement challenges or issues as a result of as a result of the conflict.

Speaker #6: And now in the US internationally . Any quantification of how Volt is impacting , you know , share recapture in the ablation catheter segment for the US just with the early approval , I guess volt 2.0 , any updates ?

For us it was more just ensuring that we could get product in.

Into the area so.

And we're highly focused on that.

Speaker #6: Just in terms of the timing or just how your team is going to move forward with into a full launch this year ? And then overall can maybe just help us think about Abbott's updated views on on just EP market growth volumes , pricing .

But as you can imagine the teams that Abbott has in this region.

I mean, they've unfortunately, they have been through a lot and seen a lot and.

Robert B. Ford: I give them a lot of credit because while we focus on growing the business and driving the business, they've got to do that under some very tough challenges. I give a lot of kudos to the work that they've been doing.

Robert Ford: I give them a lot of credit because while we focus on growing the business and driving the business, they've got to do that under some very tough challenges. I give a lot of kudos to the work that they've been doing.

I give them a lot of credit because while we focus on.

I'm kind of growing the business and driving the business they've got to do that under some very very tough challenges. So I give a lot of kudos to the work that they've been doing.

Speaker #6: If you would . Thanks so much .

Speaker #1: Yeah , sure . Well , it's 55 minutes without , you know , with the first EP question . So listen , I think I think the team has done an incredible job over these past years here of driving double digit growth during a window where we didn't have PFA .

Operator: Thank you. Our next question will come from Joshua Jennings from TD Cowen. Your line is open.

Operator: Thank you. Our next question will come from Joshua Jennings from TD Cowen. Your line is open.

Thank you.

Speaker #1: That window is now closed . So obviously we naturally have expectations and outlooks here that are on the rise . The US launch of volt and the internet and the European launch of Tactical are on the way , and both these launches are in what we call like a limited .

And our next question will come from Josh Jennings from TD Cowen Your line is open.

Joshua Jennings: Hi. Good morning. Thanks for taking the questions. Robert, hoping to get some more details on the EP franchise and the Volt launch internationally and now in the US. Internationally, any quantification of how Volt is impacting its share recapture in the ablation catheter segment for the US just with the early approval of, I guess, Volt 2.0? Any updates just in terms of the timing or just how your team is going to move forward with it into a full launch this year? Overall, can you maybe just help us think about Abbott's updated views on just EP market growth, volumes, pricing, if you would. Thanks so much.

Joshua Jennings: Hi. Good morning. Thanks for taking the questions. Robert, hoping to get some more details on the EP franchise and the Volt launch internationally and now in the US. Internationally, any quantification of how Volt is impacting its share recapture in the ablation catheter segment for the US just with the early approval of, I guess, Volt 2.0? Any updates just in terms of the timing or just how your team is going to move forward with it into a full launch this year? Overall, can you maybe just help us think about Abbott's updated views on just EP market growth, volumes, pricing, if you would. Thanks so much.

Hi, good morning, Thanks for taking the questions Robert So hoping to get some more details on the EP franchise and the volt launch in <unk>.

Speaker #1: Limited market release phase . We do that with all of our products . It's just part of our it's part of our process , whether it's in devices , whether it's in diagnostics , what we want to do is before we go to full blown , we believe there's an intermediate step between what I would believe to be a little bit more of a controlled environment or a clinical trial before going full blown .

A nationally and now in the U S internationally any quantification of how vault is impacting.

Share recapture and ablation catheter segment for the U S. Just with the early approval I guess full two point, though.

Any updates just in terms of the timing or just how your team is going to.

Speaker #1: So , and that helps us , it helps us understand resourcing . It helps us understand positioning . It helps us , quite frankly , uncover , uncover insights that you might not get during a clinical trial .

Move forward into a full launch this year.

And then overall can you maybe just help us think about abbott's updated views on.

Just EP market growth.

Volumes pricing if he would thanks so much.

Speaker #1: The , the , the feedback we're getting from both these products is extremely favorable . And positive . And very much aligns to at least our expectation that we did when we were building this portfolio .

Robert B. Ford: Yeah, sure. Well, that's 55 minutes with the first EP question. Listen, I think the team has done an incredible job over these past years here of driving double-digit growth during a window where we didn't have PFA, and that window is now closed. Obviously, we naturally have expectations and outlooks here that are on the rise. The US launch of Volt and the European launch of TactiFlex Duo are on the way, and both these launches are in what we call a limited market release phase. We do that with all of our products. It's part of our process, whether it's in devices, whether it's in diagnostics. What we want to do is, before we go to full-blown, we believe there's an intermediate step between what I would believe to be a little bit more of a controlled environment during a clinical trial before going full-blown.

Robert Ford: Yeah, sure. Well, that's 55 minutes with the first EP question. Listen, I think the team has done an incredible job over these past years here of driving double-digit growth during a window where we didn't have PFA, and that window is now closed. Obviously, we naturally have expectations and outlooks here that are on the rise. The US launch of Volt and the European launch of TactiFlex Duo are on the way, and both these launches are in what we call a limited market release phase. We do that with all of our products. It's part of our process, whether it's in devices, whether it's in diagnostics. What we want to do is, before we go to full-blown, we believe there's an intermediate step between what I would believe to be a little bit more of a controlled environment during a clinical trial before going full-blown.

Yes, sure will add 65 minutes without with the first question. So.

Let's see.

I think the team has done an incredible job over these past years here of driving double digit growth.

Speaker #1: Two years ago . Remember , a lot of questions of , hey , we were , we were late and we said , okay , we realize we're not first , but we want to take advantage of we want to take advantage of our mapping systems and , and develop what we believe was going to be an upgrade to the , to the first generations .

During a window, where we didn't have PFA that window is now closed. So obviously, we naturally of expectations and outlooks here that are on the rise the U S launch of volt and the internal and the European launch effective flex doer are underway and both these launches are in what we call like limited limited market release phase, we do that with all of our.

Speaker #1: I think we're seeing that with volt . I think like the conscious sedation aspect of volt is extremely valuable , more so now as in the US .

Our products, it's just part of our it's part of our process whether it is in devices, whether it's in diagnostics. What we want to do is before we go to full blown. We believe there is an intermediate step between what I would believe to be a little bit more of a controlled environment or a clinical trial before going full blown.

Speaker #1: But even even internationally . And that's something that's specific to volt in terms of how we design that . And I think if you if you paid attention to the European heart rhythm meeting that occurred last week , I think you saw also , albeit preliminary and maybe small , but this idea that the lesions that volt creates are , are more durable .

Robert B. Ford: That helps us. It helps us understand resourcing. It helps us understand positioning. It helps us, quite frankly, uncover insights that you might not get during a clinical trial. The feedback we're getting from both these products is extremely favorable and positive and very much aligns to at least our expectation that we did when we were building this portfolio two years ago. Remember a lot of questions of, hey, we were late, and we said, okay, we realize we're not first, but we want to take advantage of our mapping systems and develop what we believe was going to be an upgrade to the first generations. I think we're seeing that with Volt. I think the conscious sedation aspect of Volt is extremely valuable, more so now in the US, but even internationally. That's something that's specific to Volt in terms of how we design that.

Robert Ford: That helps us. It helps us understand resourcing. It helps us understand positioning. It helps us, quite frankly, uncover insights that you might not get during a clinical trial. The feedback we're getting from both these products is extremely favorable and positive and very much aligns to at least our expectation that we did when we were building this portfolio two years ago. Remember a lot of questions of, hey, we were late, and we said, okay, we realize we're not first, but we want to take advantage of our mapping systems and develop what we believe was going to be an upgrade to the first generations. I think we're seeing that with Volt. I think the conscious sedation aspect of Volt is extremely valuable, more so now in the US, but even internationally. That's something that's specific to Volt in terms of how we design that.

And that helps us it helps us understand.

Resourcing it helps us understand positioning it helps us quite frankly and cover.

Cover insights that you might not get during a clinical trial.

The.

Speaker #1: And I think ultimately that repositions . I think , or at least balances the discussion on the EP market to be . Yeah , we want more efficiency .

The feedback we're getting from brokers products is extremely favorable and positive and very much aligns to at least our expectation that we did when we were building. This portfolio two years ago I remember a lot of questions of Hey, we were late and we said okay. We realized we're not first but we want to take advantage of we want to take advantage of our map.

Speaker #1: We want more speed in these procedures because you've got so many patients that you can treat . But we want to also figure out how to how to do better outcomes and how to improve patient outcomes .

Speaker #1: And I think that that's what we're believe that volt can do is to actually deliver on the promise of speed , efficiency , but also an ability to , to , to deliver better outcomes .

<unk> systems and develop what we believe was going to be an upgrade to the first generations. I think we're seeing that with volt I think like the conscious sedation aspect of volt is extremely valuable more so now as.

Speaker #1: I think the tactic feedback that we're seeing , Josh , is very positive , also easy to use , very fast lesion creations .

Speaker #1: This is on the tactical chassis . So there's a lot of experience with that with that catheter . Pretty seamless switch between RF to PFA .

In the U S, but even even internationally.

And Thats something thats specific to volt.

In terms of how we design that and I think if you if you paid attention to the European Heart rhythm meeting.

Robert B. Ford: I think if you paid attention to the European heart rhythm meeting that occurred last week, I think you saw also, albeit preliminary and maybe small, but this idea that the lesions that Volt creates are more durable. I think ultimately that repositions or at least balances the discussion on the EP market to be, yeah, we want more efficiency, we want more speed in these procedures because you've got so many patients that you can treat. We want to also figure out how to do better outcomes and how to improve patients' outcomes. I think that's what we believe that Volt can do, is to actually deliver on the promise of speed, efficiency, but also an ability to deliver better outcomes. I think the TactiFlex feedback that we're seeing, Josh, is very positive also, easy to use, very fast lesion creations.

Robert Ford: I think if you paid attention to the European heart rhythm meeting that occurred last week, I think you saw also, albeit preliminary and maybe small, but this idea that the lesions that Volt creates are more durable. I think ultimately that repositions or at least balances the discussion on the EP market to be, yeah, we want more efficiency, we want more speed in these procedures because you've got so many patients that you can treat. We want to also figure out how to do better outcomes and how to improve patients' outcomes. I think that's what we believe that Volt can do, is to actually deliver on the promise of speed, efficiency, but also an ability to deliver better outcomes. I think the TactiFlex feedback that we're seeing, Josh, is very positive also, easy to use, very fast lesion creations.

Speaker #1: So all all very positive . So I think the combination of that great feedback and now us starting to move to broaden the launch is going to give us a lot of confidence here in the growth rate to to accelerate .

That occurred.

Last week I think you saw also.

Preliminary and may be small, but this idea that the lesions that volt creates R.

Speaker #1: And I think that includes growing faster , growing faster than the market by , by by the exit of this year . It's your comment .

Our more durable.

And I think ultimately that Repositions, I think or at least balances the discussion on the EP market to be yes, we want more efficiency, we want more speed in these procedures because you've got so many patients that you can treat but we want to also figure out how to do better outcomes and how to improve patient outcomes and I think that's what we are.

Speaker #1: I mean , I know there's a lot of debate about , you know , what is it ? Is it 15 ? Is it 20 ?

Speaker #1: We think the market is going to be in the mid to high teens . We shooting to do better than that . So so I think there's an acceleration here .

Speaker #1: So the near-term outlook I think for the business looks really really strong . But I think more importantly here Josh is I like how position long term .

I believe that bull can do is to actually deliver on the promise of speed efficiency, but also an ability to deliver better outcomes I think the tact of flex feedback that we're seeing.

Speaker #1: Also you got two new PFA catheters . You got a new ice catheter , you got a new introducer . We're constantly making upgrades , annual upgrades to our mapping system .

Josh is very positive also easy to use very fast lesion creations. This is on the <unk> chassis.

Robert B. Ford: This is on the TactiFlex chassis so there's a lot of experience with that catheter. Pretty seamless switch between RF to PFA, so all very positive. I think the combination of that great feedback and now us starting to move to broaden the launch is going to give us a lot of confidence here in the growth rate to accelerate. I think that includes growing faster than the market by the exit of this year. To your comment, I know there's a lot of debate about what is it? Is it 15%? Is it 20%? We think the market is going to be in the mid to high teens. We're shooting to do better than that. I think there's an acceleration here. The near term outlook, I think for the business, looks really strong.

Robert Ford: This is on the TactiFlex chassis so there's a lot of experience with that catheter. Pretty seamless switch between RF to PFA, so all very positive. I think the combination of that great feedback and now us starting to move to broaden the launch is going to give us a lot of confidence here in the growth rate to accelerate. I think that includes growing faster than the market by the exit of this year. To your comment, I know there's a lot of debate about what is it? Is it 15%? Is it 20%? We think the market is going to be in the mid to high teens. We're shooting to do better than that. I think there's an acceleration here. The near term outlook, I think for the business, looks really strong.

Speaker #1: You have the mapping infrastructure in place with clinical specialists . Highly , you know , highly valuable asset to our customers to that .

So theres a lot of experience with that with that catheter.

Pretty seamless switch between RF. The PFA. So all very positive. So I think the combination of that great feedback and now are starting to move to broaden the launch is going to give us a lot of confidence here in the growth rate to accelerate and I think that includes growing faster.

Speaker #1: And then on top of that , we're now going to be adding second generation LA device to this group . I think that no company in this space has got the kind of portfolio that we have , and the completeness of the portfolio that we have and the experience and the and the field teams , etc.

Growing faster than the market by the exit of this year to your comment I mean, I know, there's a lot of debate about.

Speaker #1: . So , and I know this is not a product that specifically falls into EP as a reportable segment , but we have a lot of EPs that are also using devices , pacemakers , ICDs , and then you add on our Leadless technology , which is , you know , very fast growing .

What is it at 15 is it 'twenty.

We think the market is going to be in the mid to high teens.

We're shooting to do better than that so.

So I think there is an acceleration here so the near term outlook I think for the business looks really really strong, but I think more importantly here.

Speaker #1: I think we have a very , very differentiated EP product portfolio . And so I think there are a lot of exciting times in the horizon here for , for our EP business Crystal .

Robert B. Ford: I think more importantly here, Josh, is I like our position long-term also. You got two new PFA catheters, you got a new ICE catheter, you got a new introducer. We're constantly making annual upgrades to our mapping system. You have the mapping infrastructure in place with the clinical specialists. A highly valuable asset to our customers to have that. And then on top of that, we're now going to be adding a second generation LAA device to this group. I think that no company in this space has got the kind of portfolio that we have and the completeness of the portfolio that we have, and the experience and the field teams, et cetera.

Robert Ford: I think more importantly here, Josh, is I like our position long-term also. You got two new PFA catheters, you got a new ICE catheter, you got a new introducer. We're constantly making annual upgrades to our mapping system. You have the mapping infrastructure in place with the clinical specialists. A highly valuable asset to our customers to have that. And then on top of that, we're now going to be adding a second generation LAA device to this group. I think that no company in this space has got the kind of portfolio that we have and the completeness of the portfolio that we have, and the experience and the field teams, et cetera.

Josh is unlike our position long term also you've got two new PFA catheter. So you've got a new ice catheter you got a new introduce her.

Speaker #1: We'll take one more question , please .

We're constantly making upgrades.

Speaker #3: Thank you . And our final question will come from Marie Thibault from Btig . Your line is open

Annual upgrades to our mapping system you have the mapping infrastructure in place with the clinical specialists highly.

Haile.

Speaker #7: Good morning . Thanks for squeezing me in . I just want to get a little bit closer to understanding what's going on in the core lab business .

A highly valuable asset to our customers to have that.

And then on top of that we're now going to be adding.

Speaker #7: I think you've called out strength in the US , Europe and Latin America . I think we're moving past some of the China BP headwinds .

Generation device of this group.

I think that no company in this space, it's got the kind of portfolio that we have and the completeness of the portfolio that we have and the experience in the field teams et cetera, So and I know this is not a product that specifically falls into EEP as a reportable segment, but we have a lot of <unk> are also using devices.

Speaker #7: So wondering if you can just characterize the core lab trajectory by geography during Q1 . Any share gains , any notable product launches , things like that to call out .

Robert B. Ford: I know this is not a product that specifically falls into EP as a reportable segment, but we have a lot of EPs that are also using devices, pacemakers, ICDs, and then you add on our leadless technology, which is very fast-growing. I think we have a very differentiated EP product portfolio. I think there are a lot of exciting times in the horizon here for our EP business.

Robert Ford: I know this is not a product that specifically falls into EP as a reportable segment, but we have a lot of EPs that are also using devices, pacemakers, ICDs, and then you add on our leadless technology, which is very fast-growing. I think we have a very differentiated EP product portfolio. I think there are a lot of exciting times in the horizon here for our EP business.

Speaker #7: Thanks for taking the questions .

Speaker #1: Yeah , sure . I think you I think you kind of characterize it well , I mean , I think our sales in China for core lab were flat in Q1 .

Makers ICD and then you add on our <unk> technology, which is.

Speaker #1: If you think about what , what they were in , in last year , we were , you know , between 15 and 30% down every quarter .

Very fast growing I think we have a very very differentiated EP product.

Product portfolio.

And so I think there are a lot of exciting times in the horizon for our EP business.

Speaker #1: So , so I think the team here are making good progress . We're lapping obviously some of the price and the volume headwinds .

Speaker #1: So that's also a contributor there . So I think the market dynamics that we faced you know kind of has kind of China .

Michael Comilla: Crystal, we'll take one more question, please.

Michael Comilla: Crystal, we'll take one more question, please.

Crystal we'll take one more question please.

Operator: Thank you. Our final question will come from Marie Thibault from BTIG. Your line is open.

Operator: Thank you. Our final question will come from Marie Thibault from BTIG. Your line is open.

Thank you.

And our final question will come from Marie Thibault from <unk>. Your line is open.

Speaker #1: I'm cautious to say , you know , like it's all lap because as we know in these EPs , you've got different kind of phases .

Marie Thibault: Good morning. Thanks for squeezing me in. I just want to get a little bit closer to understanding what's going on in the Core Lab business. I think you've called out strengths in the US, Europe and Latin America. I think we're moving past some of the China VBP headwinds. Wondering if you can just characterize the Core Lab trajectory by geography during Q1. Any share gains, any notable product launches, things like that to call out. Thanks for taking the questions.

Marie Thibault: Good morning. Thanks for squeezing me in. I just want to get a little bit closer to understanding what's going on in the Core Lab business. I think you've called out strengths in the US, Europe and Latin America. I think we're moving past some of the China VBP headwinds. Wondering if you can just characterize the Core Lab trajectory by geography during Q1. Any share gains, any notable product launches, things like that to call out. Thanks for taking the questions.

Morning, Thanks for squeezing me in I, just wanted to get a little bit closer to understanding what's going on in the core lab business I think you've called out strength in the U S Europe and Latin America, I think we're moving past some of the China of Edp.

Speaker #1: You've got regionals , you've got nationals and , and all of that . But but I think the impact here is , is , you know , we've got China modeled in at a single digit decline for the year .

Headwinds. So wondering if you can just characterize the core lab trajectory by geography during Q1 any share gains any notable product launches things like that to call out thanks for taking the questions.

Speaker #1: You know , could we do better than that ? Seems like the team has done better than that in the first quarter . And I'm hoping they'll be able to do that .

Speaker #1: I think if I move to the US , I think , as I said in the previous question , I think the US team has done a fantastic job and the growth rates , they're all in the high single digits and they've been there and they've been like that for for some time .

Robert B. Ford: Yeah, sure. I think you kind of characterized it well. I think our sales in China for Core Lab were flat in Q1. If you think about what they were in last year, we were between 15% and 30% down every quarter. I think the teams here are making good progress. We're lapping, obviously, some of the price and the volume headwinds. That's also a contributor there. I think the market dynamics that we faced, I'm cautious to say it's all lapped because as we know in these VBPs, you've got different kind of phases. You've got regionals, you've got nationals, and all of that. I think the impact here is we've got China modeled in at a single-digit decline for the year. Could we do better than that?

Robert Ford: Yeah, sure. I think you kind of characterized it well. I think our sales in China for Core Lab were flat in Q1. If you think about what they were in last year, we were between 15% and 30% down every quarter. I think the teams here are making good progress. We're lapping, obviously, some of the price and the volume headwinds. That's also a contributor there. I think the market dynamics that we faced, I'm cautious to say it's all lapped because as we know in these VBPs, you've got different kind of phases. You've got regionals, you've got nationals, and all of that. I think the impact here is we've got China modeled in at a single-digit decline for the year. Could we do better than that?

Yes sure.

I think you've kind of characterized it well I mean, I think our sales in China for core lab were flat in Q1.

If you think about what they were in.

Speaker #1: So we're clearly having an ability to to to renew our contracts at a very high renewal rate . So call it 90 plus and share gains are now accelerating , you know , so our win rates , I would call , you know , 55 plus .

Last year, we were.

Between 15% and 30% down.

Every quarter. So so I think the team here is making good progress we are lapping obviously some of the price and the volume headwinds. So that's also a contributor there.

Speaker #1: So every business that we're up in new business , we're able to , you know , win one out of two . So that's , that's a , that's a good , that's a good trajectory over here .

So I think the market dynamics that we faced.

Kind of.

Has kind of China and cautious to say.

Speaker #1: You know , Europe , Europe , it's difficult to characterize as one big Europe because as you probably know , you got different .

It's all lap because as we know.

So you've got different kind of phases, you've got regionals, you've got nationals, and all of that but I think the impact here is as we got China modeled in at a single digit decline for the year.

Speaker #1: You got different situations between north and south . But in general , that , that , that business has been doing , you know , mid to high single digits , pretty , pretty reliably .

Speaker #1: So we feel very good about , very good about the diagnostic business . It has been performing well all but you know , the impact of BP and China .

Could we do better than that seems like the team has done better that in the first quarter and hoping they will be able to do that I think if I move to the U S. I think as I said in previous question I think the U S team has done a fantastic job.

Robert B. Ford: Seems like the team has done better than that in Q1, and I'm hoping they'll be able to do that. I think if I move to the US, I think as I said in the previous question, I think the US team has done a fantastic job. The growth rates there are all in the high single digits, and they've been there, and they've been like that for some time. We're clearly having an ability to renew our contracts at a very high renewal rate. Call it 90+. Share gains are now accelerating. Our win rates, I would call, 55+. Every business that we're up in, new business, we're able to win 1 out of 2. That's a good trajectory over here.

Robert Ford: Seems like the team has done better than that in Q1, and I'm hoping they'll be able to do that. I think if I move to the US, I think as I said in the previous question, I think the US team has done a fantastic job. The growth rates there are all in the high single digits, and they've been there, and they've been like that for some time. We're clearly having an ability to renew our contracts at a very high renewal rate. Call it 90+. Share gains are now accelerating. Our win rates, I would call, 55+. Every business that we're up in, new business, we're able to win 1 out of 2. That's a good trajectory over here.

Speaker #1: And that seems to be that seems to be lapping . So I expect to be getting the full year for our core lab business is , is kind of in that mid-single digit growth rate .

Speaker #1: I was talking to the , the leader of that business yesterday . You know , they've got a plan and or some strategies of how they could do better than that .

And the growth rates, they're all in the high single digits and they've been there and they've been like that for some time. So we're clearly.

Speaker #1: But obviously the second half is higher than that . And it falls into what we've historically been doing . And I like I said , I think the team has done a very good job there at navigating BP in China and continuing to drive growth in any other parts of the business .

Having an ability to take to renew our contracts at a very high renewal rates. So call. It 90, plus and share gains are now accelerating so our win rates I recall.

55, plus.

Speaker #1: So so I think that's gone . I think that's gone very well . Paying attention for us in China , about 80% of our of our of our portfolio has gone through BP .

So every business that we're up in new business, we were able to win one attitude.

That's a good that's a good trajectory over here.

Robert B. Ford: Europe, it's difficult to characterize as one big Europe, because as you probably know, you got different situations between north and south. In general, that business has been doing mid to high single digits pretty reliably. We feel very good about the diagnostic business. It has been performing well, all but the impact of VBP in China, and that seems to be lapping. I expect to be getting the full year for our Core Lab business is kind of in that mid-single digit growth rate. I was talking to the leader of that business yesterday. They've got a plan, and there are some strategies of how they could do better than that. Obviously H2 is higher than that, and it falls into what we've historically been doing.

Robert Ford: Europe, it's difficult to characterize as one big Europe, because as you probably know, you got different situations between north and south. In general, that business has been doing mid to high single digits pretty reliably. We feel very good about the diagnostic business. It has been performing well, all but the impact of VBP in China, and that seems to be lapping. I expect to be getting the full year for our Core Lab business is kind of in that mid-single digit growth rate. I was talking to the leader of that business yesterday. They've got a plan, and there are some strategies of how they could do better than that. Obviously H2 is higher than that, and it falls into what we've historically been doing.

Europe Europe, it's difficult to characterize as one big Europe, because as you probably know <unk> got different you've got different situations between north and south but in general that that business has been doing mid to high single digits pretty reliably. So we feel very good about very good about the diagnostic business. It has been performing well.

Speaker #1: I probably hear about new ways of EVP like fertility VP , a cancer VP . And so we have very little share in those segments .

Speaker #1: So I think I don't want to say we're past the , you know , the eye of the hurricane here , but it seems like the teams have been able to kind of stabilize China .

But the impact of GBP in China, and that seems to be that seems to be lapping. So I expect to be getting the full year for our core lab businesses is kind of in that mid single digit growth rate I was talking to the leader of that business yesterday, they've got a plan in or some strategies of how they could do better than that.

Speaker #1: And then the other businesses continue to perform the way they've historically been performing . So Excuse me . So just before we end the call , I just to reiterate my comments that I made You know , at the end of my prepared remarks , I remain very confident in in our expectation here for an acceleration in growth in the second half .

But obviously the second half is higher than that and it falls into what we have historically been doing.

Robert B. Ford: Like I said, I think the team has done a very good job there at navigating VBP in China and continuing to drive growth in the other parts of the business. I think that's gone very well. Pay attention. For us in China, about 80% of our portfolio has gone through VBP. I think you'll probably hear about new waves of VBP, like a fertility VBP, a cancer VBP, and so we have very little share in those segments. I think, I don't want to say we're past the eye of the hurricane here, but it seems like the teams have been able to kind of stabilize China, and then the other businesses continue to perform the way they've historically been performing. Excuse me.

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Robert Ford: Like I said, I think the team has done a very good job there at navigating VBP in China and continuing to drive growth in the other parts of the business. I think that's gone very well. Pay attention. For us in China, about 80% of our portfolio has gone through VBP. I think you'll probably hear about new waves of VBP, like a fertility VBP, a cancer VBP, and so we have very little share in those segments. I think, I don't want to say we're past the eye of the hurricane here, but it seems like the teams have been able to kind of stabilize China, and then the other businesses continue to perform the way they've historically been performing. Excuse me.

Like I said I think the team has done a very good job there at navigating Pvp in China, and continuing to drive growth in the other parts of the business. So.

Speaker #1: Like I said earlier , we know what the drivers are . We know where the accelerations are . We know where areas that we need to improve our execution on .

So I think that's gone I think that's gone very well.

Pay attention for us in China.

Speaker #1: And we are just laser highly focused on executing on them . So with that , I'm going to wrap up and thank you all for joining us today .

About 80% of our of our of our portfolio has gone through <unk>.

Speaker #1: Thank you . Operator . Thank you all for your questions . This now concludes Abbott's conference call , a webcast replay of this call will be available after 11 a.m.

I think youll, probably hear about new ways of Edp.

Fertility Pvp a cancer of Edp.

Speaker #1: central time today on our website at com . Thank you for joining us today .

And so we have very little share in those segments.

So I think.

I don't want to say we're past.

The eye of the hurricane here, but it seems like the teams have been able to kind of stabilized China and then the other businesses continue to perform the way they have historically been performing so.

Excuse me.

Robert B. Ford: Just before we end the call, I'd like just to reiterate my comments that I made at the end of my prepared remarks. I remain very confident in our expectation here for an acceleration in growth in H2. Like I said earlier, we know what the drivers are. We know where the accelerations are. We know where the areas that we need to improve our execution on, and we are just laser-focused on executing on them. With that, I'm going to wrap up and thank you all for joining us today.

So.

Robert Ford: Just before we end the call, I'd like just to reiterate my comments that I made at the end of my prepared remarks. I remain very confident in our expectation here for an acceleration in growth in H2. Like I said earlier, we know what the drivers are. We know where the accelerations are. We know where the areas that we need to improve our execution on, and we are just laser-focused on executing on them. With that, I'm going to wrap up and thank you all for joining us today.

Just before we end the call I'd like to reiterate my comments that I've made.

At the end of my prepared remarks, I remain very confident in our expectation here for an acceleration in growth in the second half.

Like I said earlier, we know what the drivers are.

We know where the acceleration is are we know where areas that we need to improve our execution on and we are just laser highly focused on executing on them. So with that I'm going to wrap up and thank you all for joining us today. Thank.

Michael Comilla: Thank you, operator. Thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11:00AM Central Time today on our website at abbott.com. Thank you for joining us today.

Michael Comilla: Thank you, operator. Thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11:00AM Central Time today on our website at abbott.com. Thank you for joining us today.

Thank you operator, thank you all for your questions. This now concludes Abbott's conference call a webcast replay of this call will be available. After 11, a M. Central time today website at Abbott Dot com. Thank you for joining us today.

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

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

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