Another Abbott Recall
Diabetic Investor has learned that Abbott (NYSE:ABT) will be an issuing a recall for their Precision Xtra® blood glucose monitoring system. Sources tell Diabetic Investor that the FDA has contacted Abbott regarding the recall and a formal announcement should be made within the next day or two. So far Diabetic Investor has been unable to learn the exact reason or cause for the recall, something that will likely be discussed during this evening’s conference call between executives at Abbott Diabetes Care and the field sale force.
Although the Precision Xtra® is not one of Abbott’s more popular monitors, the monitor is used at Veterans Administration (VA) Hospitals, with the military and is the branded for Wal Mart as the Reli On® Ultima monitor. Diabetic Investor has attempted to contact officials at Wal Mart to see what impact this recall would have on the Reli On product but as of this writing has not received a response.
This news should put to rest previous rumors that the company was about to announce changes to upper level management, additional layoffs or another restructuring. While these issues remain a possibility in the near future, for the moment it appears the reason for the mandatory conference call is the recall.
This recall is just the latest in a series of setbacks for Abbott Diabetes Care and as we outlined yesterday, another reason why the company is looking to restructure the unit so that it can better deal with negative market dynamics. Diabetic Investor also believes that management has not ruled out selling the unit once it has been cleaned up. Given Abbott’s less than impressive track record with two failed acquisitions in the glucose monitoring space, it would surprise no one should the company just throw in the towel and move on.
As Diabetic Investor learns more information we will pass it on.