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    Home > Medical News > Medical World News > Reduced demand for new crown testing Abbott cut sales expected to be as much as 2 billion US dollars!

    Reduced demand for new crown testing Abbott cut sales expected to be as much as 2 billion US dollars!

    • Last Update: 2021-07-06
    • Source: Internet
    • Author: User
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           Judging from Abbott’s recent cuts in expectations, the peak sales of COVID-19 testing reagents may have completely passed
    .

           A few days ago, the testing giant predicts that as vaccination rates continue to rise and health authorities around the world relax guidelines, sales of COVID-19 testing reagents will fall more than expected
    .
    This also forced the company to cut its sales forecasts by as much as $2 billion and lowered its spending plans for the rest of the year

    .

           Although the demand for laboratory-based PCR testing has steadily declined since the beginning of the year, Abbott expects that its demand for rapid, immediate testing (such as BinaxNow antigen diagnosis) will remain high, thanks to the coronavirus that aims to help people return to work or school The ongoing monitoring and screening plan
    .

           However, as the vaccination rate of today's vaccine continues to increase, many people have completely abandoned the need for COVID-19 testing
    .
    Last week, the Centers for Disease Control and Prevention (CDC) issued the latest guidelines for fully vaccinated people, stating that such people can avoid routine COVID-19 testing or screening before traveling, or even skip swab testing altogether.
    , In some cases, even after contact with an asymptomatic person infected with COVID-19

    .

           In response, Abbott said it will cut some of the budget for the rest of the year to restore it to a level closer to the pre-pandemic level
    .
    In addition, the company also hopes to better invest in research and development programs, and reduce its diagnostic manufacturing base by reducing US production facilities

    .
    In a conference call with investors, Abbott CEO Robert Ford stated that if the company is required to deal with the future surge of COVID-19 diagnostic reagents, the company will maintain the ability to expand again

    .
    However, compared with the high demand in 2020, Abbott is currently uncertain whether it will require the same amount of COVID-19 test reagents

    .

           In an earnings report released in April, Abbott expects COVID-19 testing sales for the full year of 2021 to be at least 6.
    5 billion U.
    S.
    dollars, higher than 2020 revenue of approximately 4 billion U.
    S.
    dollars, when U.
    S.
    and international COVID-19 cases The incidence rate has remained stable

    .
    Also in April, the FDA also approved BinaxNOW, a fast-screening reagent developed by Abbott for new coronary pneumonia, which can be purchased by Americans from the three major supermarket chains CVS, Walgreens, Walmart or online platforms without a prescription.

    .

           But Ford said that in the past few weeks, Abbott has found that the demand for COVID testing has dropped sharply, especially for its rapid diagnosis.
    The specific reason may be that the number of new coronavirus cases in the United States has fallen by more than 60%.

    .
    The company also revised its financial guidance for 2021, with adjusted diluted earnings per share for the whole year, from the minimum earnings per share of US$5.
    00 set earlier this year to US$4.
    30 to US$4.
    50

    .
    Ford said that compared with the level before the 2019 pandemic, the organic sales of Abbott’s basic business have increased by 10%, and new heart products will be launched in the future

    .

           In contrast, other companies that have made substantial gains from COVID-19 testing, such as Roche and Hologic, are also focusing on declining demand and expect a decline in revenue generated from diagnostic sales for the remainder of 2021
    .
    Jefferies analysts predicted in early April that the demand for COVID-19 testing this year will be "precipitously reduced", including a 20% to 30% decline in sales per quarter, and the final market value may be consistent with the $1 billion in seasonal flu diagnosis

    .

           Reference source: Abbott takes an ax to sales forecast as COVID testing dries up faster than expected

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