VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
Abbott Laboratories
ABT · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Abbott Laboratories is a diversified healthcare company spanning medical devices, diagnostics, nutrition, and established pharmaceuticals. Its strongest moats come from consumable-driven installed bases (CGM sensors and diagnostic platforms) and from regulatory and clinical evidence barriers in higher-risk devices. Nutrition benefits from brand and, in U.S. infant formula, government-program (WIC) dynamics and regulatory oversight. Established Pharmaceuticals is more competitive and relies on local brands and commercial execution rather than hard IP. Diversification reduces reliance on any single end-market but leaves Abbott exposed to pricing pressure, quality and recall events, and rapid technology shifts.
Primary segment
Cardiovascular & Electrophysiology Devices
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
7 segments · 5 tags
Updated 2025-12-30
Segments
Established Pharmaceutical Products
Branded generic pharmaceuticals (primarily emerging markets)
Revenue
12.4%
Structure
Competitive
Pricing
weak
Share
—
Peers
Diagnostic Products
In vitro diagnostics (core lab, rapid diagnostics, molecular, point-of-care) systems + assays
Revenue
22.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Pediatric Nutrition
Infant formula and pediatric nutritionals
Revenue
9.6%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Adult Nutrition
Adult nutritional supplements and medical nutrition
Revenue
10.5%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Diabetes Care (CGM & glucose monitoring)
Continuous glucose monitoring (CGM) systems
Revenue
16.2%
Structure
Duopoly
Pricing
moderate
Share
63%-71% (estimated)
Peers
Cardiovascular & Electrophysiology Devices
Cardiovascular, electrophysiology, rhythm management, structural heart and heart failure devices
Revenue
26.7%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Neuromodulation Devices
Neuromodulation devices for chronic pain and movement disorders
Revenue
2.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Moat Claims
Established Pharmaceutical Products
Branded generic pharmaceuticals (primarily emerging markets)
Revenue share computed from FY2024 net sales by category (Key Emerging Markets + Other). Operating profit share based on FY2024 reportable-segment operating earnings (Note 16).
Brand Trust
Demand
Brand Trust
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Commercial strategy emphasizes building brands with pharmacists, physicians, and consumers; this can support repeat prescribing in fragmented markets, but is vulnerable to generic substitution and tender dynamics.
Erosion risks
- Generic substitution
- Government price controls and tendering
- Local competition and parallel imports
Leading indicators
- Key Emerging Markets sales growth
- Price/mix vs volume decomposition in segment
- Gross margin trend in segment
Counterarguments
- Many products face low differentiation and price-led competition
- Government tenders can rapidly shift volume to the lowest bidder
Procurement Inertia
Demand
Procurement Inertia
Strength: 2/5 · Durability: medium · Confidence: 2/5 · 1 evidence
Formulary placement and physician/pharmacy relationships can create short-term inertia, but switching costs are limited in many branded-generic categories.
Erosion risks
- Therapeutic class commoditization
- Aggressive generic entrants
- Regulatory changes impacting promotions
Leading indicators
- Share trends in key molecules/categories
- Tender win rates where applicable
Counterarguments
- Pharmacies and payers can substitute to cheaper alternatives with minimal friction
Diagnostic Products
In vitro diagnostics (core lab, rapid diagnostics, molecular, point-of-care) systems + assays
Revenue and operating profit shares derived from FY2024 reportable segment table (Note 16).
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Installed diagnostic platforms drive recurring test and consumable pull-through; competitive factors explicitly include service, instrument warranty, and long-term supply contracts.
Erosion risks
- Platform displacement by competitors
- Hospital and lab consolidation increasing buyer power
- Regulatory changes (e.g., EU IVDR) raising compliance costs
Leading indicators
- Installed base growth of Alinity and other platforms
- Reagent and test volume per installed instrument
- Contract win and renewal rates
Counterarguments
- Large labs can re-bid platforms and switch with enough incentive
- Commoditized assays can face price compression
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Laboratory informatics and automation tools can deepen integration into lab workflows and raise switching friction beyond the analyzer itself.
Erosion risks
- Hospitals standardizing on vendor-neutral middleware and LIS
- Open interfaces reducing lock-in
Leading indicators
- Attach rate of informatics and automation offerings
- Software and services revenue trajectory (if disclosed)
Counterarguments
- Labs can use third-party middleware; software may be less defensible than the instrument and assay ecosystem
Pediatric Nutrition
Infant formula and pediatric nutritionals
Operating profit share is estimated by allocating FY2024 Nutritionals segment operating earnings proportionally to pediatric vs adult Nutrition sales.
Government Contracting Relationships
Legal
Government Contracting Relationships
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
In U.S. infant formula, participation in state WIC programs can provide volume and visibility and preferred positioning in contracted states (contracts typically multi-year).
Erosion risks
- Loss of WIC contracts at re-bid
- Policy changes to WIC procurement rules
- Reputational damage from quality issues and recalls
Leading indicators
- WIC contract awards and renewals
- Infant formula availability and out-of-stock rates
- Recall and inspection outcomes at pediatric nutrition facilities
Counterarguments
- WIC contracts are periodically re-bid and can shift quickly
- Dependence on government programs can increase volatility
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Infant formula has higher regulatory oversight than many food categories; notification and confirmation requirements raise compliance burden for entrants.
Erosion risks
- Regulatory tightening increasing compliance costs
- Plant disruptions causing supply constraints
Leading indicators
- FDA inspection outcomes and remediation timelines
- Time-to-market for new formulations and pack changes
Counterarguments
- Regulation applies to incumbents too; compliance failures can negate any advantage
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Pediatric nutrition is trust-sensitive; strong brands and clinician-directed marketing support repeat purchase and recommendations.
Erosion risks
- Brand damage from recalls or social media incidents
- Private label and local manufacturers gaining share
Leading indicators
- Brand sentiment and NPS in key markets
- Market share in infant formula and toddler nutrition
Counterarguments
- Trust can be fragile; a single quality event can cause rapid share loss
Adult Nutrition
Adult nutritional supplements and medical nutrition
Operating profit share is estimated by allocating FY2024 Nutritionals segment operating earnings proportionally to pediatric vs adult Nutrition sales.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Adult nutrition brands benefit from consumer familiarity and clinician recommendation in certain use cases, supporting repeat purchase.
Erosion risks
- Consumer trade-down and private label
- Scrutiny of product claims
- Retail shelf-space pressure
Leading indicators
- Organic sales growth in adult nutrition
- Promotional intensity and pricing/mix
- Market share in ONS and disease-specific subcategories
Counterarguments
- Consumers can switch brands quickly based on price and promotions
- Claims-based differentiation can be competed away
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Broad distribution across institutions and retail supports availability and shelf presence; strong channel relationships help maintain placement.
Erosion risks
- Channel consolidation increasing buyer power
- E-commerce disintermediation
Leading indicators
- Retail distribution points and shelf share
- Institutional contract wins
Counterarguments
- Large retailers can shift shelf space to private label; distribution advantage can be rented with spend
Diabetes Care (CGM & glucose monitoring)
Continuous glucose monitoring (CGM) systems
Operating profit share for Diabetes Care is estimated by allocating FY2024 Medical Devices segment operating earnings proportionally to Diabetes Care sales.
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 2 evidence
CGM economics are driven by recurring sensors; once a patient is on a platform, ongoing sensor purchases create a high-LTV installed base.
Erosion risks
- Coverage/reimbursement changes
- Sensor commoditization and price compression
- Rapid innovation cycles reducing differentiation
Leading indicators
- Active users and sensor attachment rate
- Reimbursement expansions or restrictions
- Gross margin trend in Diabetes Care
Counterarguments
- Dexcom and others can win share with superior accuracy/features
- Switching can occur when payers change formularies or new products launch
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 2 evidence
High unit volumes can lower sensor manufacturing and distribution costs, supporting competitive pricing and broader access vs smaller entrants.
Erosion risks
- Manufacturing yield issues
- Aggressive pricing by competitors
- Local low-cost entrants in certain geographies
Leading indicators
- COGS per sensor / gross margin (if disclosed)
- Capacity expansions and yield improvements
- Competitive ASP trends
Counterarguments
- Scale can be matched by the other leader; cost advantage may not translate to pricing power
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Medical-device regulatory approvals and quality systems create barriers to entry for new CGM competitors, especially for broad indications and reimbursement.
Erosion risks
- Regulatory changes increasing post-market requirements
- Adverse events leading to warnings and recalls
Leading indicators
- FDA/EMA approvals for next-gen sensors and indications
- Post-market safety signals and recall rates
Counterarguments
- Regulation raises costs for everyone and can slow innovation; incumbents are not immune to compliance failures
Cardiovascular & Electrophysiology Devices
Cardiovascular, electrophysiology, rhythm management, structural heart and heart failure devices
Operating profit share is estimated by allocating FY2024 Medical Devices segment operating earnings proportionally to cardiovascular/EP-related sales categories.
Compliance Advantage
Legal
Compliance Advantage
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
High-risk cardiovascular devices face rigorous regulatory pathways and clinical evidence requirements, raising barriers to entry and slowing copycats.
Erosion risks
- Adverse trial outcomes or safety signals
- Regulatory tightening raising costs
- Reimbursement cuts reducing ROI for hospitals
Leading indicators
- Major product approvals and label expansions
- Safety communications and recalls
- Reimbursement and procedure volume trends
Counterarguments
- Large peers also navigate regulatory pathways; approval alone does not guarantee share
Training Org Change Costs
Demand
Training Org Change Costs
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Procedure-based therapies require physician training and cath-lab workflow integration; once adopted, switching can be slow absent clear superiority.
Erosion risks
- New best-in-class technologies
- Hospital value-analysis committees prioritizing price
- Standardization across hospital systems
Leading indicators
- Procedure volume growth by therapy
- Competitive displacement events in key accounts
- Clinical guideline updates
Counterarguments
- Hospitals can switch vendors via tenders; training is replicable across incumbents
IP Choke Point
Legal
IP Choke Point
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Broad patent and trademark portfolio can protect specific device designs and brands, but expirations and design-arounds limit permanence.
Erosion risks
- Patent expirations
- Design-arounds by competitors
- Litigation outcomes
Leading indicators
- Patent cliff timing for major franchises
- IP litigation outcomes
- Next-gen product launch cadence
Counterarguments
- Innovation and clinical data often matter more than patents in many device categories
Neuromodulation Devices
Neuromodulation devices for chronic pain and movement disorders
Operating profit share is estimated by allocating FY2024 Medical Devices segment operating earnings proportionally to Neuromodulation sales.
Training Org Change Costs
Demand
Training Org Change Costs
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Implantable neuromodulation requires clinician training and patient follow-up workflows; switching vendors often happens over multi-year adoption cycles.
Erosion risks
- New stimulation modalities from competitors
- Reimbursement pressure
- Adverse outcomes or device issues
Leading indicators
- Procedure volumes and new implant trends
- Competitive win/loss in key accounts
- Clinical evidence releases
Counterarguments
- Competition is intense and surgeons can standardize on other vendors; training is replicable
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Class II/III device regulation and quality-system requirements create meaningful barriers for new entrants and maintain high compliance costs.
Erosion risks
- Regulatory findings or recalls
- Post-market surveillance requirements increasing
Leading indicators
- FDA/EMA approvals for new indications
- Recall rates and adverse event trends
Counterarguments
- Regulatory burden is shared by incumbents; differentiation rests on outcomes and features
Evidence
The Established Pharmaceutical Products segment directs its primary marketing efforts toward building strong brands with key stakeholders, including consumers, pharmacists, physicians, and other healthcare providers.
Primary-source support for brand/relationship-driven positioning in this segment.
Key Emerging Markets$3,858 $3,807 ... Other 1,336 1,259 (dollars in millions, 2024 vs 2023).
FY2024 established pharma sales components used to derive segment revenue share (3,858 + 1,336 = 5,194).
Competition in the Established Pharmaceutical Products segment is generally from other healthcare and pharmaceutical companies.
Supports that competitive intensity is broad; any inertia is limited relative to more regulated and installed-base markets.
Diagnostic Products - Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites.
Defines the instrument-and-test business model consistent with installed-base pull-through.
...competition in technological innovation, price... service, instrument warranty provisions... long-term supply contracts...
Supports that stickiness and multi-year platform dynamics matter in this market.
Showing 5 of 31 sources.
Risks & Indicators
Erosion risks
- Generic substitution
- Government price controls and tendering
- Local competition and parallel imports
- Currency devaluation in key markets
- Therapeutic class commoditization
- Aggressive generic entrants
Leading indicators
- Key Emerging Markets sales growth
- Price/mix vs volume decomposition in segment
- Gross margin trend in segment
- New product registrations/launch cadence
- Share trends in key molecules/categories
- Tender win rates where applicable
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.