Abbott Laboratories’ sales of COVID-19 tests fell by a whopping 89% during the second quarter of this year compared with the same time last year — a drop that comes as the world attempts to move on from the pandemic.
North suburban-based Abbott makes the once popular rapid, at-home COVID-19 test BinaxNOW. From April through June, Abbott sold $263 million worth of COVID-19 tests, compared with $2.3 billion during the same time last year.
Abbott leaders said during an earnings call Thursday morning that the decrease was expected. Federal and state public health emergencies over COVID-19 ended May 11. With the end of those emergencies, the federal government dropped requirements that health insurance companies cover at-home COVID-19 tests. Many people had stocked up on the tests when they were available at no cost to them.
Abbott leaders, however, said the overall business, excluding COVID-19 sales, is strong. Abbott makes many other types of tests, medical devices and infant formula, among other products. Overall sales fell by 9.2% on an organic basis during the second quarter when including COVID-19 testing sales. Excluding COVID-19 testing, overall sales grew by 11.5% percent in the quarter.
The company had an overall $10 billion in sales during the quarter.
“We always said … when COVID would subside we would have a strong base business … and I think that’s what you’re seeing right now play out these last couple of quarters and what we think is going to continue to play out throughout the rest of the year and going into 2024,” said Robert Ford, chairman and CEO of Abbott, during the earnings call.
Abbott’s stock price was up by more than 4% late Thursday morning.
The company saw growth in sales of medical devices, pharmaceuticals and nutrition products. The company has recovered about 75% of the market share in infant formula that it lost last year after it recalled formulas made at its Michigan plant. Abbott temporarily closed the facility last year and recalled formulas produced there, as the U.S. Food and Drug Administration announced that it was investigating complaints of Cronobacter sakazakii infections among babies who reportedly consumed formula from the plant. The FDA has said that, after extensive investigation, it could not rule in or rule out a link between infant deaths and Abbott’s formula.
Abbott leaders have apologized for the company’s role in what became a national shortage of infant formula. The Wall Street Journal reported earlier this year that the Justice Department was conducting a criminal investigation into conduct at the plant.
