RNS22 Jun 2022 08:31
time to quit the whinging - are Abbott watching?
Jan 26:
Abbott CEO Robert Ford didn't exactly show all of his cards during the company's latest earnings call, but he did hint that there may be some merger and acquisition (M&A) activity in 2022.
During the question-and-answer portion of the fourth-quarter 2021 earnings call on Wednesday, Vijay Kumar, a medtech analyst at Evercore, estimated that Abbott has somewhere north of $40 billion worth of capacity on the balance sheet, conservatively. Ford agreed that yes, Abbott does have plenty of capacity for M&A.
"We've generated a lot of strong cash flow, and quite frankly, it's been a meaningful step-up in that cash flow over the last 1.5 years or so," Ford said. "...We're in a great position now to be able to look at that."
Kumar noted that liquid biopsy and cancer screening diagnostics represents a massive market opportunity, and he asked Ford if that might be an area of interest, given Abbott's leadership position in other corners of the diagnostics market.
"Devices and diagnostics, I will say, are the areas that we're looking at more carefully," Ford said. "... The areas that you referenced are areas that we would be interested in looking at."