Abbott's (ABT) FreeStyle Libre Gets UK Reimbursement Nod
Zacks Investment Research | Sep 13, 2017 10:01PM ET
Abbott (NYSE:ABT) recently announced the receipt of national reimbursement for the FreeStyleLibre glucose monitoring system from National Health Service (NHS) Business Services Authority in the U.K. Notably, this was a major breakthrough in its diabetics business.
The development has widened this Illinois-based medical device major’s customer base in diabetes management. Beginning Nov 1, Abbott’s flagship glucose monitoring system will be available for reimbursement through the NHS across England and Wales, NHS Scotland, and the Health and Social Care in Northern Ireland.
Per Abbott, the grant of reimbursement will also make FreeStyleLibre system widely available to around 3.5 million people in the U.K.who are diagnosed with diabetes. Also, management expects that there may be roughly 549,000 people in the U.K.who have diabetes but are yet to be diagnosed.
This reimbursement approval in U.K. marks another milestone where Abbott’s FreeStyle Libre system stands partially or fully covered in 17 countries, including France, Germany and Japan. Notably, FreeStyle Libre system is presently under review by the FDA and awaits approval in the United States.
Meanwhile, Abbott has been moving steadily toward development in its diabetics segment. Recently, the company announced the receipt of national reimbursement for FreeStyle Libre in Japan.
Moreover, the company recently announced receipt of Health Canada License for FreeStyle Libre Flash Glucose Monitoring System. This will further stimulate growth in the Diabetes Care sales segment, which was up 18.7% in second-quarter 2017 on continued consumer acceptance of FreeStyle Libre internationally.
We expect Freestyle Libre to further contribute to Abbott’s top line as along with the U.K., Japanese and Canadian developments, the French Health Ministry recently approved national reimbursement for the device.
This apart, in July, the company partnered with Bigfoot Biomedical to solidify its footprint in the rapidly growing diabetes therapeutics market.
Per a report by Mordor Intelligence, the global market for diabetes care devices is projected to reach a value of $30.25 billion by 2021, at a CAGR of 5.93%.
Considering the market potential and Abbott’s slew of latest developments in the diabetes care segment, the recent national reimbursement grant in U.K. will accelerate the top line.
However, the diabetes market is dominated by many well established players, Johnson & Johnson (NYSE:JNJ) being the most prominent one. In this space, Johnson & Johnson also has a tie-up with U.S.-based Animas Corporation to successfully develop and innovate insulin delivery systems.
Share Price Performance
Abbott has been gaining investor confidence on consistently positive results. Over the last three months, Abbott’s share price has outperformed the broader Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.