The company reported its first-quarter earnings today, which included $2 billion in FreeStyle Libre CGM sales, growing 7.5%. Abbott noted a delay in the renewal process related to an international tender, as well as an expected impact from a challenging comparison to last year related to shelf restocking dynamics. However, the company expects CGM to return to double-digit growth in the second quarter.
On the company’s first-quarter earnings call today, Ford addressed concerns over CGMs in a potentially saturated market.
“Let me take a bigger view,” Ford said in response to a question from Wells Fargo analyst Larry Biegelsen. “I am very bullish on the CGM market — I always have been and I continue to be.”
Biegelsen asked Ford about the market in response to Abbott’s expectations for acceleration in the coming quarter. He pointed to concern that current indications for CGM are saturated as prescription trends in the U.S. “look weak.” Meanwhile, Abbott remains in competition with CGM makers like Dexcom, Senseonics and more.
Ford said the company maintains its expectation for more expansion in CGM, estimating that the “number of people who should be on a CGM” ranges between 70 million and 80 million people globally. Its current market sits at around 10 million to 12 million. This underpenetration means opportunity remains for Abbott, Ford explained.
“There is so much opportunity still internationally and in the U.S.,” Ford said. “I do not think the patient [total addressable market] is tapped.”
Ford expects acceleration periods driven by catalysts like reimbursement, geographic expansion and new product launches. He sees “a lot of catalysts ahead” for CGM. Those include Medicare coverage for people with type 2 diabetes not on insulin, for which Ford expects proposed language soon.
“It is going to add close to 10 million people that do not have coverage now and will be able to have coverage, which will accelerate commercial coverage, too,” Ford explained.
Other catalysts include full coverage for basal insulin users, which Ford expects in several international markets. He pointed to a recent clinical trial that demonstrated better outcomes for Libre users on basal insulin.
The company also has plans for future innovations, including its dual-analyte sensor under development and next-generation sensors.
“[We are] focused on building competitive advantage, whether product technology advantage, cost advantage, or scale advantage,” Ford said. “On the pump side, you have about 1 million patients that previously had very little access. You are going to have about 5 million SGLT2 users that are not using the product who will now benefit from having continuous ketone monitoring.
“We are working on Libre 5. Our view is always about sustaining our competitive advantage through cost advantage and product innovation. I still feel very good about this market. … There are areas we can do better, and we are working on that, but the bigger picture is that we are very well positioned for a very large market.”
