Abbott Laboratories

Abbott’s products generally support healthy margins, reflecting some pricing power. It operates in healthcare areas where differentiated products can command premium prices (e.g. advanced glucose monitors, implantable heart devices). For example, FreeStyle Libre unit growth has been strong without meaningful price cuts.

Abbott’s U.S. pediatric nutrition business has also lifted prices in line with value (U.S. infant formula prices rose as Abbott regained WIC contracts, helping nutrition sales to grow +11.7% in 2024 after share gains ). Gross margins are around 51%, with operating margins above 25% overall (and 32% in devices)), indicating price stability.

Yet, much of Abbott’s revenue comes from margin-constrained areas: generic pharmaceuticals (outside the U.S.) and legacy diagnostics face intense pricing competition. Pricing is further capped by regulation (e.g. government sets maximums for WIC-supplied formula) and safety oversight (infant formula scrutiny, medical reimbursement pressures).

On balance, Abbott can raise prices modestly in innovate products and recoup costs with scale, but it’s not a pure pricing juggernaut. We rate pricing power as moderately above average (score ~65), recognizing room to improve margins via efficiency gains and product mix but no extreme dominance.