Abbott's (ABT) FreeStyle Libre 3 Integrates With AID System
Abbott Laboratories ABT recently announced that its FreeStyle Libre 3 sensor integrated with the mylife Loop solution — building a smart, automated process to deliver insulin based on real-time glucose data. This automated insulin delivery system (AID) solution is now available in Germany and will be accessible in other European countries starting in 2023.
It is worth mentioning that the mylife Loop solution is the first automated insulin delivery system in the world to work with Abbott's FreeStyle Libre 3 sensor.
With the latest development, Abbott is expected to bolster its diabetes care segment.
More on the News
Abbott’s FreeStyle Libre portfolio is already supporting to better 4.5 million diabetes patients’ lives globally. Advanced diabetes technologies, such as AID systems, are intended to aid people living with diabetes by improving their glucose control and minimizing the burden of daily diabetes management.
For investors’ note, the hybrid closed-loop system mylife Loop combines technology from two partners, Ypsomed and CamDiab. CamDiab's algorithm automatically adjusts insulin dosage on Ypsomed's insulin pump, while the mylife YpsoPump is based on accurate, real-time glucose information from FreeStyle Libre 3 sensor.
Furthermore, Abbott is working to make the FreeStyle Libre platform interoperable with other leading insulin delivery systems in addition to associating with Ypsomed and CamDiab. At present, the mylife Loop AID solution is not available in the United States.
Significance of the Integration
By Integrating CamDiab's CamAPS FX mobile app and Ypsomed's mylife YpsoPump with accurate, real-time data from Abbott's FreeStyle Libre 3 sensor, the connected solution continuously tracks a person's glucose levels, adjusts and delivers the coorect amount of insulin at the right time, reduces diabetes complications and helps diabetes patients reach better treatment targets.
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Per Abbott’s management, partnering with diabetes and digital health technology providers like Ypsomed and CamDiab will help the company to provide new advanced solutions that make diabetes care more simple.
Industry Prospects
Per a report published in Allied Market research, the global continuous glucose monitoring systems’ market size is expected to see a CAGR of 22% by 2027. Factors, including a surge in the geriatric population and the increasing prevalence of diabetes, are expected to fuel market growth.
Recent Developments
During the third quarter, Abbott diabetes business achieved organic sales growth of 12.9% in the third quarter of 2022, led by strong growth in FreeStyle Libre. In the quarter, sales of FreeStyle Libre exceeded $1 billion. Abbott’s user base expanded to approximately 4.5 million users globally. In the United States, where sales grew more than 40%, the company initiated the full launch of Libre 3. This latest device can automatically deliver up-to-the-minute glucose readings with more accuracy in the world’s smallest and thinnest wearable sensor.
In September 2022, Abbott presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. According to the latest findings, Type 2 diabetes patients receiving once-daily (basal) insulin therapy experienced a significantly lower rate of hospitalizations from acute diabetes events (ADEs) when using the FreeStyle Libre, a continuous glucose monitoring system (CGM).
Price Performance
Shares of the company have lost 22.3% in a year compared with the industry’s fall of 45%.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Few other better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. SWAV, Orthofix Medical Inc. OFIX and Merit Medical System MMSI.
ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by a stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.
Orthofix Medical has an estimated next-year growth rate of 58.97%. MMSI’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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