Medical devices made in Minnesota helped fuel second quarter sales gains for Abbott Laboratories, the Fortune 500 health care company that has a significant footprint in the state.
Minnesota-made medical devices help drive Abbott sales growth
Cardiovascular businesses have a strong base in the state.
July 20, 2023 at 7:45PM
Medical device sales were the company's strongest business unit with overall sales up 13.5% for the second quarter.
Abbott's cardiovascular products posted organic growth of more than 10% for the quarter, led by double-digit growth in the electrophysiology and structural heart divisions.
The electrophysiology business, and the bulk of manufacturing, is based in Minnesota. The TactiFlex ablation catheter, approved by the U.S. Food and Drug Administration in May, is made in both Minnesota and Costa Rica. Ablation is a procedure done to address heart rhythm problems.
The structural heart business is based in California but has a large number of employees and manufacturing operations in Minnesota.
"Several recently launched products and new indications contributed to the strong performance, including Amplatzer Amulet, Navitor, TriClip and Aveir," said the company in a statement summarizing the second quarter financial results.
Amplatzer Amulet, which closes the left atrial appendage to help reduce stroke risk, is manufactured in Minnesota where Abbott has 5,000 employees and seven facilities. Abbott has employees in Minnesota working in R&D, operations and marketing that support the Navitor and TriClip devices. Navitor helps open a narrowed aortic valve and TriClip repairs a leaky mitral valve.
The TriClip device has seen good growth internationally but is not yet approved for use in the U.S.
"TriClip is currently being reviewed by the FDA. I'm excited to bring it here to the U.S.," said Robert Ford, Abbott's CEO, on an earnings call with analysts.
Looking ahead, Ford sees TriClip as a driver of sales growth.
"I think it's a great contributor for us next year," said Ford.
Abbott's revenue fell more than 10% year-over-year to $10 billion based on declines in COVID-related sales, but still topped Wall Street expectations of $9.7 billion. Net income dropped over 30% to $1.38 billion. The company reported adjusted earnings per share of $1.08, beating the consensus forecast by 3 cents a share.
Also this quarter, Abbott closed on its $850 million acquisition of New Brighton-based Cardiovascular Systems Inc. in late April.
Health care spending rose by 15%, driven by higher prices. Officials say solutions are needed to prevent Minnesotans from being priced out or delaying care they need.
