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ABBOTT
Today at #ABT's investor presentation Rob Ford, CEO, shared the testing outlook for the next two years.
Their analysts spent months with various models to predict testing figures and expected revenues.
#NCYT #ALNOV #NVYTF
Today at #ABT's investor presentation Rob Ford, CEO, shared the testing outlook for the next two years.
Their analysts spent months with various models to predict testing figures and expected revenues.
#NCYT #ALNOV #NVYTF
They sold 100 million covid tests in the first three quarters of 2020.
In Q4 alone however, they sold 300 million covid tests.
Testing for the pandemic only began to ramp up significantly in Q4 2020.
In Q4 alone however, they sold 300 million covid tests.
Testing for the pandemic only began to ramp up significantly in Q4 2020.
But as Ford explained today,
"they haven't begun to see the (covid) testing peak yet".
They're looking to ship more covid tests in 2021, than in 2020, and they're developing more. They did $4bn+ in diagnostics alone in 2020.
"they haven't begun to see the (covid) testing peak yet".
They're looking to ship more covid tests in 2021, than in 2020, and they're developing more. They did $4bn+ in diagnostics alone in 2020.
This is because even going into 2022 they see a,
"significant portion of covid tests that's still sustainable".
And asked about growth dropping off in 2022, Ford explained how that this was a misunderstanding of their strategy.
"significant portion of covid tests that's still sustainable".
And asked about growth dropping off in 2022, Ford explained how that this was a misunderstanding of their strategy.
The strategy was always to push into decentralised testing, this is where the future is, it is simply that,
"the pandemic has accelerated decentralisation of testing by 2 years, and they will continue to grow from that point".
"the pandemic has accelerated decentralisation of testing by 2 years, and they will continue to grow from that point".
When pushed on this, Ford makes it very clear that Abbott do not see testing revenues lose ground in 2022, they're looking to grow them.
2022 covid test levels will remain sustainably high and new organic growth in other areas of decentralised testing will grow in double digits.
2022 covid test levels will remain sustainably high and new organic growth in other areas of decentralised testing will grow in double digits.
Growth, Ford says,
"is best catered to by R&D. R&D is the best spend to maintain the growth rate'
New innovative tests see immediate high revenue streams.
There is a high global need in a wide range of areas, all yet un-catered for.
"is best catered to by R&D. R&D is the best spend to maintain the growth rate'
New innovative tests see immediate high revenue streams.
There is a high global need in a wide range of areas, all yet un-catered for.
When asked about M&A, Ford said,
"we're still looking. It has to be good for us strategically. It would have to generate revenue for our shareholders and augment our existing portfolios. There's a lot of activity in this area now, and a lot of high valuations".
"we're still looking. It has to be good for us strategically. It would have to generate revenue for our shareholders and augment our existing portfolios. There's a lot of activity in this area now, and a lot of high valuations".
Regardless, growth is best served by R&D. Ford repeated this point a number of times and Abbott will now,
"accelerate decentralised testing R&D pipelines"
to deliver that double digit growth.
"accelerate decentralised testing R&D pipelines"
to deliver that double digit growth.
They're looking at pushing earnings per share 50% from 2019 to 2022
50%
Due to the pandemic accelerating decentralised testing as a global priority.
And that's a large cap. Imagine playing out the same game with an undervalued small cap. How many more times EPS would that be..
50%
Due to the pandemic accelerating decentralised testing as a global priority.
And that's a large cap. Imagine playing out the same game with an undervalued small cap. How many more times EPS would that be..
You know what to do.
Change ABBOTT at the top to your favourite diagnostics company, some team really good at putting out quality decentralised testing products.
(Tip: @PrimerdesignLtd )
And change Ford to Mullis.
Change ABBOTT at the top to your favourite diagnostics company, some team really good at putting out quality decentralised testing products.
(Tip: @PrimerdesignLtd )
And change Ford to Mullis.
Now you know how the next 2 to 3 years will play out for their revenues and which way the share price is going to keep going.
Cheers Abbott for the head's up, we're coming for that milkshake, and we got some next-gen firepower to bring to the table, with Much more room to grow.
Cheers Abbott for the head's up, we're coming for that milkshake, and we got some next-gen firepower to bring to the table, with Much more room to grow.
