This Groundbreaking Device Just Keeps Winning for Abbott Labs - The Motley Fool

In precocious September, Abbott Laboratories (ABT -0.55%) shared encouraging results from a survey that tracked the efficacy of its FreeStyle Libre continuous glucose show (CGM) instrumentality for benignant 2 diabetes.

What were the results from the survey that amounted to specified large quality for Abbott and benignant 2 diabetes patients? What interaction could this person connected the aboriginal income of the franchise? Let's excavation into the study's findings and the CGM marketplace to reply these questions.

A instrumentality with life-changing results for patients

Abbott retrospectively observed 5,933 patients diagnosed with benignant 2 diabetes via the French nationalist wellness claims database betwixt Aug. 1, 2017, and Dec. 31, 2018. These patients followed a once-daily basal-only insulin attraction program and utilized the FreeStyle Libre strategy to show their humor sweetener (glucose) levels.

A basal-only insulin regimen is often prescribed by a doc erstwhile oral medications are incapable to modulate glucose levels efficiently. The FreeStyle Libre strategy is simply a minimally invasive sensor applied to the backmost of the precocious arm, allowing a diligent to cheque their glucose astatine immoderate time. And that's without the inconvenience oregon finger-prick symptom often associated with glucose meters.

Abbott's survey followed a prime radical of patients 12 months earlier FreeStyle Libre initiation and up to 24 months aft FreeStyle Libre initiation to measure the frequence of acute diabetes-related events (ADEs), which are emergencies warranting hospitalization. These see severely debased glucose levels (hypoglycemia); severely precocious glucose levels (hyperglycemia); a life-threatening information called diabetic ketoacidosis, characterized by precocious glucose levels for prolonged periods; and comas.

The findings of this survey were genuinely remarkable. Patients were 67% little apt wide to beryllium hospitalized owed to an ADE 1 twelvemonth aft initiating the FreeStyle Libre treatment. And this simplification was sustained implicit a two-year period, careless of whether patients received attraction from a wide healthcare practitioner oregon a diabetes specialist.

In diabetes care, much accusation tin springiness patients and their doctors a amended knowing of however their information is trending. This is captious successful helping doctors to counsel patients connected manner and medicine changes indispensable to power their information amended if it is unfavorably progressing. That's the concealed condiment down however the FreeStyle Libre strategy has been truthful miraculous for diabetes patients.

Plenty of country for aboriginal growth

FreeStyle Libre has already established itself arsenic an indispensable instrumentality successful caller years. And the franchise volition lone go much important with each passing year.

Rising planetary obesity rates volition apt propulsion the fig of patients with diabetes higher implicit time. In fact, the International Diabetes Federation anticipates that the prevalence of diabetes volition soar much than 50% from 463 cardinal radical successful 2019 to 700 cardinal by 2045.

As it stands, the planetary CGM marketplace was already worthy $6 cardinal successful 2021. With much patients being diagnosed with diabetes and turning to CGMs, Polaris Market Research expects the planetary CGM marketplace to compound astatine 10.1% annually to scope $14.8 cardinal by 2029.

FreeStyle Libre is connected way to make astir $4 cardinal successful income for Abbott successful 2022. For context, this is astir 10% of the $43.2 cardinal successful full income analysts expect from the institution for the year. Yet, acknowledgment to increasing demand, the revolutionary CGM should person nary occupation continuing to station double-digit yearly income maturation moving forward.

The Dividend King is simply a buy

With 50 years of dividend hikes to its credit, Abbott is simply a Dividend King. And with the company's dividend payout ratio clocking successful astatine 36%, Abbott should person the flexibility to proceed building connected its dividend maturation streak successful the years ahead.

Income investors tin snatch up shares of Abbott and its 1.9% dividend output astatine a guardant price-to-earnings ratio of 21.8, conscionable somewhat beneath the aesculapian devices manufacture mean of 22.6. The banal is simply a bargain for investors seeking a decent starting income with aboriginal maturation potential.