Venture Capital firm Rock Health announced today that it is adding 8 digital health companies to its portfolio and partnering with three industry bigwigs, including Abbott.
Abbott secured Medicare coverage for its MitraClip System to reduce the backward flow of blood through the heart's mitral valve (mitral regurgitation), the company announced Aug. 12. Earlier this month the federal Centers for Medicare and Medicaid services also approved the device for additional reimbursement in the form of new technology add-on payments due to its innovative nature.
Most devices are launched in Europe before arriving in the U.S., and cardiology devices are certainly no exception to the rule. Tough FDA premarket review standards, and the novelty of the technology, have turned the race to sell the first bioresorbable stent in the U.S. into a marathon.
Data from a European postmarket registry show that Abbott's Absorb BVS bioresorbable stent performs at a level similar to today's conventional drug-eluting stents on several measures, but not stent thrombosis. The risk of the stent being blocked by a blood clot was 3.4% after one year, a level of performance similar to prior generation drug-eluting stents, according to a recent EuroIntervention study.
Abbott's medical device revenue was $1.37 billion in the second quarter, an increase of 1.2% year over year. Meanwhile, the diagnostics division reported quarter sales of $1.19 billion, a 4.8% increase, the company revealed July 16.
Wall Street analysts took advantage of a conference call on Abbott's just-announced sale of its developed market generics business to ask about some of their favorite topics, future M&A and the recent onset of tax inversion mania among life science companies.
Following the $5.3 billion sale of Abbott Laboratories' developed market generic drugs business to Mylan, diagnostics and devices will account for the majority of the company's sales, while pharmaceuticals' contribution to company-wide sales will stand at about 15%, based on 2013 earnings.
Mylan has been hunting for a buy. Now, it's found one. The Pittsburgh-based generics specialist is buying a big chunk of Abbott Laboratories' drug business, in a stock swap worth $5.3 billion. With $2 billion in annual sales, the products would jack up Mylan's top line by almost 30%.
Cataracts are big business for Abbott. It's ready to roll out the latest in its line of implantable Tecnis lenses in Europe after recently receiving a CE Mark for the product, which will be used to treat cataract patients who may also have a diminished ability, due to aging, to focus on near objects (presbyopia).
Abbott Laboratories has said it plans to focus its branded generics business on a select group of rapidly expanding emerging markets. It appears Russia is one of them. The Illinois-based drugmaker will shell out up to $495 million to buy the fast-growing Russian generics maker VeroPharm from local billionaire Roman Avdeev.