Abbott Laboratories (ABT) Stock Slumps Despite FDA Approval
NEW YORK (TheStreet) -- Abbott Laboratories (ABT) - Get Report has won FDA approval for a new stent that can be absorbed into the bloodstream after implantation.
Stents are small devices, traditionally metal, placed inside a patient's artery in order to hold it open to allow blockages to pass and for blood to flow freely.
The Abbott Park, IL-based healthcare company's product, called Absorb, is the first of its kind. It is made of a similar plastic to that found in dissolving sutures.
Unlike metal stents designed to hold open arteries cleared of blockages, Absorb is meant to dissolve entirely within three years of being implanted.
The device will allow blood vessels to return to their natural state without foreign metal implants. It could be especially promising to patients who may require several implants over the years.
Absorb also releases a drug, everolimus, meant to prevent the growth of scar tissue which can narrow an artery again following stent implantation.
Despite the development, shares of Abbott Laboratories are down 0.34% to $39.38 in early afternoon trading.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: ABT
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.