Brian Yoor – SVP and CFO
By 2050, 17% of the global population will be over 65
All of our businesses are well-positioned to address the most relevant needs and to build on attractive healthcare and demographic trends such as improving social economic conditions in emerging markets, in a rapidly aging global population that are driving increasing demand for healthcare. In 2015 people above the age of 65 comprise 8.5% of the global population. In just 15 years this will increase to 12% and by 2050 is projected that people over the age of 65 will comprise nearly 17% of the global population.
Expanding middle-class in emerging markets is a significant long-term growth opportunity
In emerging markets, rapid growth in healthcare is being driven by an expanding middle-class and improved access to care. Healthcare spending as a percentage of GDP remains low in these geographies compared to the developed world representing a significant long-term growth opportunity as emerging markets continue investing to modernize their healthcare systems.
60% of sales are international
In addition to this unique product balance, our nutrition business is also geographically well-balanced with roughly 40% of our sales occurring in the United States and 60% outside of the United States including nearly 50% of our total nutrition sales in emerging markets… We have also built a world-class global supply chain and development organization that spans both the developed and emerging markets including state-of-the-art manufacturing facilities and localized R&D efforts in China and India in order to develop innovative products designed to meet the local adult and pediatric nutritional needs.
Diagnostics testing influences up to 70% of healthcare decisions
Moving to our diagnostics business, which remains a reliable growth business consistently achieving above market growth in both developed and emerging markets. Diagnostics testing influences up to 70% of healthcare decisions and lab professionals are under constant pressure to deliver test results of quality, speed and efficiency.
ABT enters the arena of med tech with the acquisition of St. Jude
With the recent acquisition of St. Jude represents a major strategic move that establish Abbott with a premier medical device business with leading positions in cardiovascular, neuromodulation and diabetes care markets. Together the combined medical device portfolio will have annual sales of approximately $10 billion… With the acquisition of St. Jude, Abbott will now compete in nearly every area of the $30 billion cardiovascular device market and hold number one or number two positions across several large and high-growth markets
New facility in India will act as a hub, shipping products to over 30 countries
Additionally in the fourth quarter of last year, we announced our new Established Pharmaceuticals innovation and development center in India. This center will develop new drug formulations indications, dosing, packaging and other differentiated offerings and will act as a hub shipping products to over 30 countries that will further develop the products to suit their local needs.