Decline in diagnostics sales leads to reduced forecast by Abbott, coupled with US funding reductions
Abbott's Dual Analyte Sensor: A Game-Changer in Diabetes Management
Abbott, a leading healthcare company, is making significant strides in the diabetes market with the development of a new dual analyte sensor. This sensor will provide both glucose and ketone readings, offering a potential solution to the risk of diabetic ketoacidosis.
The company announced its fourth-generation sensor featuring integrated ketone measurement in June 2025, marking advanced progress towards this technology. This sensor platform is expected to be compatible with devices like Tandem’s insulin pumps.
The development of the dual analyte sensor is currently underway, with clinical studies and further timeline disclosures anticipated as Abbott and its partners progress. While a commercial launch date has not been fixed yet, the company is deeply invested in expanding its continuous glucose monitoring (CGM) technology capabilities, focusing on miniaturization, reliability, and adding ketone sensing.
Abbott's market leadership and strategic alliances indicate robust positioning for this next-generation sensor technology. The company is partnering with insulin pump companies, including Tandem, Sequel Med Tech, and Beta Bionics, to support the new sensor. Abbott and Medtronic have a global data-sharing and pump-integration agreement that allows Libre sensors, including upcoming dual analyte versions, to integrate with Medtronic’s closed-loop insulin delivery devices.
Early 2025 also saw a patent détente and cross-licensing arrangement between Abbott and Dexcom to accelerate technology development in miniaturization and sensor wear time.
However, Abbott is facing challenges in China's core laboratory market, which is impacting the company. Additionally, a reduction in U.S. foreign aid funding for HIV testing is affecting Abbott, as well as a drop-off in COVID-19 testing sales. These factors, along with tariffs, are having a combined impact more than $1 billion on Abbott's sales forecast. The company has lowered its sales forecast for the year and now expects "just under $200 million" of impact from tariffs, down from previous estimates of "a few hundred million."
Despite these challenges, Abbott is looking to the future with optimism. The company plans to open a new cardiovascular manufacturing facility in Georgia in 2028. BTIG analyst Marie Thibault expects Abbott to launch the device sometime next year. The new facility is expected to bring hundreds of new jobs to the area.
In terms of pricing, comprehensive market analysis indicates that Abbott and Dexcom dominate the CGM market with premium pricing supported by high gross margins and limited competition due to regulatory and clinical hurdles. Precise pricing details for Abbott’s dual analyte sensor have not been disclosed but will likely align with the premium segment of CGM products.
In conclusion, Abbott's dual analyte sensor is a significant development in the CGM market, specifically for intensive insulin users. The sensor is expected to be a game-changer in diabetes management, offering improved monitoring capabilities and potentially reducing the risk of diabetic ketoacidosis. While Abbott faces challenges in various markets, the company remains focused on innovation and expanding its healthcare solutions.
- Abbott's deep investment in expanding its continuous glucose monitoring (CGM) technology, such as miniaturization and ketone sensing, positions it as a leader in the diagnostics field and the health-and-wellness industry.
- The company's strategic partnering with insulin pump manufacturers, like Tandem, Sequel Med Tech, Beta Bionics, and Medtronic, demonstrates its commitment to advancing its CGM technology and AI capabilities in healthcare.
- The anticipated regulatory approvals and commercial launch of the dual analyte sensor may positively impact Abbott's earnings, despite ongoing challenges facing the company in certain markets, such as China and Taiwan.
- News sources and science magazines may cover the technological advancements and potential impact of Abbott's CGM devices on the medical technology (medtech) industry and patient care in sports, especially among intensive insulin users.
- Analytics from these medical devices may contribute valuable data to various health-and-wellness news platforms, allowing for increased public awareness and understanding of diabetes management.
- In the midst of the challenges faced by Abbott, its focus on the development of the dual analyte sensor, along with decisions like the patent détente with Dexcom, demonstrates the company's commitment to innovation and advancing AI within the healthcare sector.
