CLAIM #2963 · Abbott Laboratories (ABT) · 2022Q3 earnings call · Oct 18, 2022 · due Dec 31, 2023
“It is going to be a little bit of a headwind. You can think about it as either currency and VBP. We've gone through this in some other parts of our business. So we do expect this value-based procurement or pricing here to play out.”
Robert Ford · CEO
In context
“portunity of building this kind of business, a wellness subscription-like model with the platform that we've built and the scale that we have, I think, is a great growth opportunity for us. We do have it factored in into next year probably launching in the beginning of the year and then building from there. But we'll be launching, like I said, in a challenging environment, but I still think it's the right thing to do from a long-term perspective. Scott Leinenweber: Operator, we'll take one more question. Operator: And we'll take our last question from Travis Steed from Bank of America. Travis Steed: I did want to ask on China, how do you see the recovery shaping up there. There's going to be another headwind next year and any new VBPs that you see coming up in China? Robert Ford: Yes. It is going to be a little bit of a headwind. You can think about it as either currency and VBP. We've gone through this in some other parts of our business. So we do expect this value-based procurement or pricing here to play out. I think the next area that we're looking at. We've gone through it with stents last year or 1.5 years ago, and the next area that we're looking at is probably on the electrophysiology side. That's probably the next category that's up. It's interesting, as we've been looking at this, there's definitely interesting impacts in terms of ranges of these pricing. We've actually gone through some of it in pharmaceuticals also. It will range from 30% to 80% in terms of pricing. And really, the magnitude here depends on whether it's a national or regional process. Some of the categories have been more regional. And they tend to be a little bit lower. And it also depends on the number of participants that exist in that category. So as I look at -- on the EP side, we've also seen that when there”
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SEC filings for ABT ↗ · Claim quote is verbatim from the 2022Q3 earnings call.