Abbott Laboratories

Good morning and thank you for standing by. Welcome to Abbott's third quarter 2025 earnings conference call. All participants will be able to listen only until the question and answer portion of this call. During the question and answer session, you will be able to ask your question by pressing the star 1 1 keys on your touchtone phone. This call is being recorded by Abbott. With the exception of any participants questions asked during the question and answer session, the entire call including the question and answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's express written permission. I would now like to introduce Mr. Mike Camilla, Vice President, Investor Relations.

Good morning and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer, and Phil Boudreau, Executive Vice President, Finance and Chief Financial Officer. Robert and Phil will provide opening remarks. Following their comments, we'll take your questions. Before we get started, some statements made today may be forward looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2025. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological, and other factors that may affect Abbott's operations are discussed in Item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31st, 2024. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law. On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today. which are available on our website at abbott.com. Note that Abbott has not provided the related GAAP financial measures on a forward-looking basis for the non-GAAP financial measures for which it is providing guidance because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items, which could significantly impact Abbott's results in accordance with GAAP. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today. With that, I will now turn the call over to Robert.

Thanks, Mike. Good morning, everyone, and thank you for joining us. Today, we reported organic sales growth of 7.5% excluded COVID test sales. Our growth was led by double-digit growth in medical devices. where several high-growth segments showed an acceleration in growth in the third quarter compared to growth in the first half of this year, and also high single-digit growth in established pharmaceuticals led by double-digit growth in our key 15 markets. Earnings per share rose to $1.30, up high single digits compared to last year and up double digits when excluding the impact of the expected large year-over-year decline in COVID test sales that occurred in the third quarter. Our performance continues to be driven by innovation, positioning Abbott to consistently deliver high-quality results and durable long-term value to our shareholders. Recently launched new products generated nearly half a billion dollars in sales this quarter and added more than 100 basis points to organic sales growth. Looking ahead, we expect increasing contributions from new products across the portfolio with a balanced mix of iterative and transformative innovation. I'll now summarize our third quarter results in more detail before turning the call over to Phil. I'll start with nutrition where sales increased 4% in the quarter led by adult nutrition business and sure remains the cornerstone of our adult nutrition portfolio. trusted by millions of consumers seeking to maintain or improve their health. Strong brand recognition combined with favorable demographic and dietary trends, including an increased focus of protein intake and immune system health, continues to fuel our growth. Growth in adult nutrition was driven by 10% growth in international markets, where we continue to see strong demand for both Ensure and Glucerna. And to support future growth, we continue to invest in these well-known brands to ensure they evolve. along with changing consumer preferences we recently launched a new version of glucerna that contains only one gram of sugar and later this month we'll launch a new version of ensure that contains 42 grams of protein moving to diagnostics where we saw modest sales growth in the quarter excluded covet testing sales as expected challenging market conditions in china impacting both price and volume remain a headwind for our core lab diagnostic business Excluding China, core lab diagnostics grew 7%, with markets such as the U.S. showing an acceleration in growth in the third quarter compared to the growth in the first half of this year. Our strong, consistent performance outside of China reflects durable underlying demand in markets around the world. And growth of 8% in point-of-care diagnostics was driven by growing adoption of two first-of-a-kind tests, our point-of-care concussion test and a high sensitivity troponin test, which allows for earlier and more accurate detection of a heart attack. Turning to EPD, sales increased 7%, led by double-digit growth in our key 15 markets, highlighting broad base demand and strong commercial execution. From a product portfolio perspective, several therapeutic areas delivered strong contributions, including gastroenterology, cardiometabolic, and pain management. These areas continue to benefit from favorable demographic trends and growing demand for high-quality, affordable medicines. We continue to make good progress as it pertains to our biosimilar strategy, a key growth pillar for EPD. During the quarter, we advanced the regulatory approval process for several biosimilars and remain on track with our planned cadence of product and geographic launches that began this year. And I'll wrap up with medical devices. where sales grew 12.5% driven by double-digit growth in diabetes care, in electrophysiology, in cardiac rhythm management, in heart failure, and in structural heart. In diabetes care, sales of continuous glucose monitors were $2 billion in the quarter and grew 17%. In electrophysiology, sales grew double digits in the U.S. and internationally. The launch of our new Volt PFA catheter in Europe continues to go very well and help deliver double-digit growth in ablation catheters and international markets this quarter. Feedback from European physicians who have used Volt continues to be very positive, and we look forward to bringing Volt to the U.S. market next year. In structural heart, growth of 11% was led by share gains in TAVR and growing adoption of Triclip. During the quarter, we achieved important milestones in our structural heart business. We received regulatory approval for Triclip in Japan. Triclip is the first and only minimally invasive treatment option available to patients in Japan to treat tricuspid regurgitation. And in August, we received CE mark for an expanded indication for our TAVR valve Navitor to treat people who are at low or intermediate risk for open heart surgery. This expanded indication was supported by data from our Vantage study, which was presented as a late breaker at the European Society of Cardiology Congress. In cardiac rhythm management, growth of 13% was led by strong uptake of our leadless pacemaker, Avere, which is expanding the market and capturing share in both the single and dual chamber pacing segments. Our vision for Avere was to help change the standard of care for cardiac pacing, and that vision is now becoming a reality with our cardiac rhythm management business outperforming the market for 10 consecutive quarters and driving acceleration and growth from high single digits last year to double digits this quarter. And heart failure growth of 12% was driven by growth across our portfolio of ventricular assist devices and growth of cardiomems, our implantable sensor used for the early detection of heart failure. And vascular growth of 5% was led by continued strong performance in our market-leading portfolio of vessel closure products. And increasing contributions from ESPRIT are below the knee resorbable stent. In August, we received CE mark for ESPRIT And we look forward to offering this innovative technology to people outside the United States who suffer from peripheral artery disease. Lastly, neuromodulation growth of 7% was led by strong performance of our Eterna rechargeable spinal cord stimulation device in international markets, reflecting both continued uptake in existing markets and launches in new markets. So in summary, we delivered another very good quarter. Our pipeline has been highly productive and continues to fuel growth. and we remain on track to deliver high single-digit organic sales growth and double-digit EPS growth. I'll now turn over the call to Phil.