Abbott Laboratories first quarter profits eclipsed $2.4 billion thanks to a surge in sales of Covid-19 diagnostic tests as demand grew with the spread of the Omicron variant earlier this year.
Sales of diagnostic tests for Covid-19 have been a huge profit and sales boost to Abbott, which Wednesday reported first quarter earnings that beat Wall Street analysts’ expectations.
Abbott reported first quarter net income jumped 36.5% to $2.44 billion compared to $1.79 billion in the year-ago period thanks in part to a big jump in sales of diagnostic tests. Net sales were up 14% to $11.9 billion in the first quarter compared to the year ago period.
Global Covid-19 testing sales hit $3.3 billion in the first quarter and the bulk of that came from Abbott’s family of rapid tests: BinaxNOW, Panbio and ID NOW. “More than 90% of COVID test sales came from rapid tests — including BinaxNow in the U.S., Panbio internationally and ID NOW globally,” Abbott Chairman and CEO Robert Ford told analysts Wednesday morning on a call to discuss earnings.
Ford also said hospital procedures are increasing, which is boosting Abbott’s other businesses including device sales. During the pandemic, patients have cancelled or deferred care and elective procedures in particular but health insurers and medical providers are seeing a rebound.
In Abbott’s case, that has helped medical device sales, which were up 11.5% in the first quarter.
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