Abbott’s ($ABT) medical device revenue was $1.37 billion in the second quarter, an increase of 1.2% year over year. Meanwhile, the diagnostics division reported quarter sales of $1.19 billion, a 4.8% increase, the company revealed July 16.
The vascular division has been singled out by Wall Street for pulling down company-wide growth, and CEO Miles White didn’t disagree in a July 14 conference call with analysts that was supposed to focus on the transaction with Mylan, saying, “It’s no secret there are some areas of the business we’ve got to pay more attention to strategically, not so much because they’re weak, but because they need new shots of life, and I’d say vascular has been identified that way.” The division’s sales grew by 1.9% in Q2 to $765 million, but fell by 1.9% in the U.S. to $281 million. Due to its just-announced plan to sell its developed markets generic pharma unit, Abbott’s growth in med tech will continue to increase in the future. Following the close of the transaction in 2015, devices and diagnostics will provide half or more of the company’s revenues, with pharma contributing about 15% and nutritionals and animal health accounting for the rest.
Meanwhile the diabetes care unit saw its second straight significant decline; sales were down 9.8% in the quarter to $294 million. The decline was concentrated in the U.S., where sales fell 27.3% to $98 million. That’s because Medicare’s National Mail-Order Program for diabetic supplies is hammering the prices of diabetes care products. Diabetes care product sales fell 14.3% in Q2 at competitor Johnson & Johnson ($JNJ) as well.
Finally, medical optics sales rose 12.2% to $314 million, including $203 million internationally. The company is preparing to roll out the latest in its line of implantable Tecnis lenses in Europe after recently receiving a CE mark for the product, which will be used to treat cataract patients who may also have a diminished ability, due to aging, to focus on near objects (presbyopia).
Overall, the company reported earnings of $466 million, down 2.2%, on revenues of $5.55 billion, up by 1.9%.
– read the earnings release