Abbott Laboratories gained U.S. clearance Monday for a pair of new continuous glucose monitors. But Abbott stock slipped a fraction at the close.
The Food and Drug Administration signed off on Lingo and Libre Rio — vastly expanding Abbott's market in the U.S. Both are continuous glucose monitors, or CGMs, that aim to keep tabs on blood sugar in real time.
Libre Rio is designed for people with type 2 diabetes who don't use insulin. But investors are likely to applaud the clearance for Lingo, a CGM designed for people without diabetes. The biowearable has been available in the U.K. since last year, gaining a following among people tracking their metabolism or trying to lose weight.
The former will closely rival Dexcom's Stelo, which won its clearance two months ago for people who don't use insulin. Though Stelo is designed for people with diabetes, the over-the-counter availability almost guarantees people without diabetes will use it. Similarly, both of Abbott's new CGMs will be available over the counter.
"There is no one-size-fits all approach for glucose monitoring, which is why we've designed different products for different people — all based on the same world-leading biowearable technology," Lisa Earnhardt said in a statement. Earnhardt is the group president of Abbott's medical devices business.
Abbott stock closed down a fraction at 107.49 on today's stock market. Shares leapt over their 50-day and 200-day moving averages on Friday. The giant medical stock is consolidating with a buy point at 121.64, according to MarketSurge.
Abbott Stock: Big Market Expansion
The market for continuous glucose monitors is expected to expand rapidly, from $4.6 billion in 2023 to an estimated $7.51 billion in 2030, market researcher Grand View Research said in a recent report.
Some of that will undoubtedly come amid growing rates of obesity. But experts say CGMs will also play a big part in monitoring glucose for people taking GLP-1 drugs for weight loss. Those include, currently, Novo Nordisk's Wegovy and Eli Lilly's Zepbound.
Dexcom stock broke out on March 6 after the FDA cleared its Stelo CGM.
At the time, William Blair analyst Margaret Kaczor Andrew said "the broad approval — as well as the (over-the-counter) indication, which eliminates the need for a prescription — increases the (total addressable market) by many multiples."
The same will likely hold true for Abbott, which is already a big name among CGM companies. Its bread-and-butter CGM, Freestyle Libre, is currently used by 6 million people worldwide. But Abbott stock has a middling Relative Strength Rating of 36 out of a best-possible 99, according to IBD Digital. This puts shares in the lowest 36% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
