Abbott Capitalizes on Structural Heart Opportunities Amid Industry Shifts

Abbott Laboratories is poised for significant growth in the structural heart market following Boston Scientific's exit from the transcatheter aortic valve replacement (TAVR) sector. The company's second-quarter earnings call revealed strategic moves to capitalize on this opportunity, alongside advancements in diabetes care and other medical device segments.

Structural Heart Market Dynamics

Abbott's CEO Robert Ford reported that sales of the company's Navitor TAVR implant have doubled over the past two years, driven by increases in Europe and worldwide. With Boston Scientific's recent withdrawal of its Acurate family of TAVR valves from the global market, Abbott sees a clear path to accelerate growth internationally.

The structural heart space, dominated by Edwards Lifesciences and Medtronic, is now more accessible to Abbott. The company plans to expand its presence in the U.S. market by doubling its sales force by the end of the year, aiming to increase its footprint from the current 20% of centers to a more competitive level.

Abbott is also developing a new balloon-expandable TAVR implant, with first-in-human procedures completed late last year. This product will complement the self-expandable Navitor, potentially positioning Abbott for a full launch towards the end of the decade.

Diabetes Care and Device Innovation

Abbott's diabetes care segment showed remarkable growth, with sales reaching $1.98 billion, a 20% increase year-over-year. The company is preparing to launch a dual-sensor wearable based on its FreeStyle Libre continuous glucose monitoring (CGM) platform, which will track both glucose and ketone levels.

Ford emphasized the significance of this innovation, stating, "I think this is going to be a real, next-level, significant change in the CGM market, specifically for insulin intensive users." The company has completed approximately five different trials to support regulatory applications and is collaborating with insulin pump developers to ensure compatibility upon approval.

Financial Performance and Outlook

Abbott reported total sales of $11.14 billion for the second quarter, representing a 7.4% year-over-year growth. Medical device revenue reached $5.37 billion, with structural heart contributing $636 million, both categories growing about 13%.

For the remainder of 2025, Abbott projects full-year organic sales growth, excluding COVID tests, to be between 7.5% and 8%. The company also anticipates approximately $200 million in costs due to new U.S. tariffs.