Wells Fargo Says Abbott Labs Faces Minimized Risk Surrounding China Formula Worries

Wells Fargo analyst Larry Biegelsen believes Abbott Labs ABT has been a focus of China's latest infant formula concerns, but posits the financial repercussions have been overestimated. Biegelsen said Abbott's China risks have been minimized by its overall lower market share exposure in China compared to competitors. Abbott's diversified business model further reduces the risk, according to the Wells Fargo analyst, as Chinese formula sales account for only 3 percent, or less than $500 million, of Abbott's total sales. Biegelsen still sees opportunity for Abbott to expand in China's pediatric nutrition business. Shares of Abbott are down 1.6 percent to $34.28 at last check.