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Abbott's (ABT) FreeStyle Libre Study Outcome Favorable
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Abbott (ABT - Free Report) has been hogging the limelight for developments in its flagship, sensor-based continuous glucose monitoring (CGM) system — FreeStyle Libre System. Recently, the company made major progress in expanding the use of this device.
The company has come out with a new favorable study result demonstrating the benefit of the use of FreeStyle Libre. This new late-breaking data (presented at the 80th American Diabetes Association or ADA) shows that the use of this CGM will significantly reduce hemoglobin A1c (HbA1c) levels for type 2 diabetes patients who are on either long-acting insulin or non-insulin therapy.
Abbott is optimistic about this outcome, which is similar to outcomes typically seen when adding insulin therapy to treatment regimens. This indicates that FreeStyle Libre may help patients to control their glucose levels even without insulin.
The Study
This observational, retrospective study (Abstract 84-LB)1 considered people with type 2 diabetes who were either on long-acting insulin or non-insulin therapy. It analyzed HbA1c levels from baseline to six months and baseline to 12 months after initiating use of the FreeStyle Libre system.
The outcome showed a 0.8% drop in HbA1c level after six months (from 8.5% to 7.7%) and 0.6% drop after one year of FreeStyle Libre system use (from 8.5% to 7.9%). According to the company, these are clinically significant reductions of average glucose levels over time. This aligns with the ADA's recommended A1c goal of 7% for adults with diabetes.
Abbott’s Strong Run with CGM
Abbott, a major player in the continuous glucose monitoring (CGM) business, believes that diabetes is an information-rich condition, with various streams of data from various devices. Currently, its FreeStyle Libre System is recognized as the best sensor-based glucose monitoring system in use worldwide.
In the last-reported quarter, this device alone registered global sales of more than $600 million, marking a surge of 62.5% on an organic basis. The company encouragingly noted that in a relatively short span, Libre has achieved global leadership among CGM systems for both Type 1 and Type 2 users. Moreover, we are looking forward to the company’s two back-to-back alliances with Sanofi and Tandem Diabetes Care to integrate glucose sensing and insulin delivery technologies.
Market Potential
An ageing population, unhealthy lifestyle, rising awareness and expenditure in healthcare are likely to drive growth further in the diabetes market. Moreover, per a Mordor Intelligence report, the global market for diabetes care devices is estimated to reach a value of $30.25 billion by 2021 at a CAGR of 5.93%. Given the bullish market sentiments, we believe, the recent favorably study result for FreeStyle Libre has come at an opportune moment.
Share Price Performance
Abbott has been gaining investor confidence from consistently positive results. Over the past six months, the stock has outperformed its industry. It has gained 3.1% as against the industry's 10.7% drop.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the broader medical space are Aphria Inc. , Quest Diagnostics Incorporated (DGX - Free Report) and QIAGEN N.V. (QGEN - Free Report) .
Quest Diagnostics’ long-term earnings growth rate is estimated at 7.6%. The company presently has a Zacks Rank #2.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Abbott's (ABT) FreeStyle Libre Study Outcome Favorable
Abbott (ABT - Free Report) has been hogging the limelight for developments in its flagship, sensor-based continuous glucose monitoring (CGM) system — FreeStyle Libre System. Recently, the company made major progress in expanding the use of this device.
The company has come out with a new favorable study result demonstrating the benefit of the use of FreeStyle Libre. This new late-breaking data (presented at the 80th American Diabetes Association or ADA) shows that the use of this CGM will significantly reduce hemoglobin A1c (HbA1c) levels for type 2 diabetes patients who are on either long-acting insulin or non-insulin therapy.
Abbott is optimistic about this outcome, which is similar to outcomes typically seen when adding insulin therapy to treatment regimens. This indicates that FreeStyle Libre may help patients to control their glucose levels even without insulin.
The Study
This observational, retrospective study (Abstract 84-LB)1 considered people with type 2 diabetes who were either on long-acting insulin or non-insulin therapy. It analyzed HbA1c levels from baseline to six months and baseline to 12 months after initiating use of the FreeStyle Libre system.
The outcome showed a 0.8% drop in HbA1c level after six months (from 8.5% to 7.7%) and 0.6% drop after one year of FreeStyle Libre system use (from 8.5% to 7.9%). According to the company, these are clinically significant reductions of average glucose levels over time. This aligns with the ADA's recommended A1c goal of 7% for adults with diabetes.
Abbott’s Strong Run with CGM
Abbott, a major player in the continuous glucose monitoring (CGM) business, believes that diabetes is an information-rich condition, with various streams of data from various devices. Currently, its FreeStyle Libre System is recognized as the best sensor-based glucose monitoring system in use worldwide.
In the last-reported quarter, this device alone registered global sales of more than $600 million, marking a surge of 62.5% on an organic basis. The company encouragingly noted that in a relatively short span, Libre has achieved global leadership among CGM systems for both Type 1 and Type 2 users. Moreover, we are looking forward to the company’s two back-to-back alliances with Sanofi and Tandem Diabetes Care to integrate glucose sensing and insulin delivery technologies.
Market Potential
An ageing population, unhealthy lifestyle, rising awareness and expenditure in healthcare are likely to drive growth further in the diabetes market. Moreover, per a Mordor Intelligence report, the global market for diabetes care devices is estimated to reach a value of $30.25 billion by 2021 at a CAGR of 5.93%. Given the bullish market sentiments, we believe, the recent favorably study result for FreeStyle Libre has come at an opportune moment.
Share Price Performance
Abbott has been gaining investor confidence from consistently positive results. Over the past six months, the stock has outperformed its industry. It has gained 3.1% as against the industry's 10.7% drop.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the broader medical space are Aphria Inc. , Quest Diagnostics Incorporated (DGX - Free Report) and QIAGEN N.V. (QGEN - Free Report) .
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics’ long-term earnings growth rate is estimated at 7.6%. The company presently has a Zacks Rank #2.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>