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Abbott’s fourth-quarter sales decline as fewer people buy COVID-19 tests

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Abbott Laboratories posted higher sales in 2022, but had a rougher fourth quarter as people bought less COVID-19 tests and dealt with the continued impact of baby formula recalls.

Abbott, which is based in the northern suburbs and makes medical devices, tests and formulas, had sales of $43.7 billion in 2022, up 6.4% from a year earlier, the company said Wednesday morning. said in the report.

However, fourth-quarter revenue of $10.1 billion was down 6.1% from last year’s fourth quarter due to a decline in the number of COVID-19 tests sold. Abbott does his popular BinaxNOW at-home COVID-19 test, as well as several others. Abbott has sold nearly 3 billion of his COVID-19 tests worldwide since the pandemic began, Abbott chairman and CEO Robert Ford said on Wednesday’s earnings call. .

Abbott said the decline in COVID-19 test sales was not unexpected.

“Going forward, we expect COVID-19 to transition to a more epidemic seasonal respiratory virus, which will significantly reduce COVID testing, although it remains important,” Ford said.

Sales of Abbott’s nutrition products were also down about 6% in 2022 and in the fourth quarter. This comes after the company’s plant in Sturgis, Michigan, suspended production of infant formula last year. Abbott temporarily closed the facility last year and recalled formula made there. The U.S. Food and Drug Administration announced it was investigating complaints of Cronobacter sakazakii infection in infants reportedly fed formula from a factory.

Abbott has faced scathing criticism from members of Congress, consumer advocates and others over the conditions found at its plants, but the FDA said: Manufactured at Abbott Nutrition’s Sturgis facility. ”

Abbott management has apologized for its role in the nationwide shortage of infant formula.

of wall street journal reported last week that the Justice Department was conducting a criminal investigation into factory conduct.

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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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