Abbott Acquires Cardiovascular Systems: Key Takeaways For Investors

Summary:

  • Abbott Laboratories expands its cardiovascular pipeline with the relatively small acquisition of Cardiovascular Systems, Inc.
  • Cardiovascular Systems investors get a way out of a cash-burning stock at a decent price. The timing of the deal is opportunistic for Abbott.
  • Abbott offers a strong growth path of 8%+ organic growth over the next couple of years. This acquisition doesn’t change that view immediately.

Cardiologist doctor examine patient heart functions and blood vessel on virtual interface. Medical technology and healthcare treatment to diagnose heart disorder and disease of cardiovascular system.

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Abbott Laboratories (NYSE:ABT) is a healthcare growth company with an excellent track record. It showed strong and profitable growth in the past. Cardiovascular Systems, Inc. (NASDAQ:CSII) opens up new growth paths for Abbott.

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Abbott’s shares can

CSII Product Pipeline

Investor Presentation (Cardiovascular Systems)

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Data by YCharts

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Data by YCharts

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Data by YCharts


Disclosure: I/we have a beneficial long position in the shares of ABT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Any investments you would take after a piece or discussions with me are your responsibility. Please do your own due diligence before an investment.


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