Abbott Laboratories (ABT), AbbVie Inc (ABBV): 6-Month Checkup

The medical-device business is key to the operation of Abbott Laboratories (NYSE:ABT). Sales of its drug-eluting stents and related products business were down 15% in the U.S. as the company not only competes against Boston Scientific Corporation (NYSE:BSX) and Medtronic, Inc. (NYSE:MDT), but also against other options that patients have to treat coronary arteries, including doing nothing. Sales of drug-eluting stents at all three medical-device makers have dropped recently as doctors perform fewer procedures. The winner appears to be Johnson & Johnson (NYSE:JNJ), which exited the drug-eluting stent business altogether two years ago.

Growth in the other two divisions — nutrition and established pharmaceuticals — will help boost the revenue line, but don’t be surprised to see the growth not translate to the bottom line, since they’re probably the lower-margin businesses. To get things turned around, the diagnostics and medical-device businesses have to be firing on all cylinders.

The article 6-Month Checkup on the New Abbott Laboratories Stock originally appeared on Fool.com.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and owns shares of Johnson & Johnson and Medtronic.

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