Abbott Laboratories (ABT, Financial)
Abbott Laboratories has been one of the most high-profile medical companies during 2020 thanks to their research on COVID-19 and their successful diagnostic tests. Abbott has released six different tests for COVID-19; four identify active infections and two are intended to identify past infection. Abbott has now sold over 40 million tests worldwide. The company has announced a new test called BinaxNOW which promises to deliver results in 15 minutes for as little as $5 per test. This test requires no special lab equipment, and its low cost could prove vital to widespread global testing as typical lab tests require special hardware and could cost over $100 per test. Aside from the strong performance of the diagnostics business, the rest of Abbott's segments continue to be impacted by deferred procedures. Even with sales contracting due to the coronavirus, Abbott remains profitable with positive cash flow generation which should help the company remain flexible until the market stabilizes.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2020 market commentary.
