Abbott announces plans to split, form two companies
Abbott Laboratories has announced that it will be separating into two publicly traded companies, one specializing in diversified medical products and the other in research-based pharmaceuticals.
The article below is based on as news release from Abbott. For an updated and more complete story, click here.
ABBOTT PARK, Ill.—Abbott Laboratories has announced that itwill be separating into two publicly traded companies, one specializing indiversified medical products and the other in research-based pharmaceuticals.The diversified medical products company will retain the Abbott name and willbe made up of Abbott's existing diversified medical products portfolio,including its branded generic pharmaceutical, devices, diagnostic andnutritional businesses. The research-based pharmaceutical company will consistof Abbott's current portfolio of proprietary pharmaceuticals and biologics andwill be named at a later date.
"Today's news is a significant event for Abbott, andreflects another dynamic change in our company's 123-year history,strengthening our outlook for strong and sustainable growth and shareholderreturns," Miles D. White, chairman and chief executive officer at Abbott,said in a press release.
White will remain chairman and CEO of the diversifiedmedical products company, and Richard A. Gonzalez, who is currently executivevice president of Global Pharmaceuticals and used to be president and chiefoperating officer of Abbott, will become the chairman and CEO of theresearch-based pharmaceutical company.
"The research-based pharmaceutical company will be aleader in its industry with a strong and sustainable portfolio of specialtymedicines and a promising pipeline of future products," Gonzalez said in apress release. "This business has been delivering market-leadingperformance and is well positioned for future success."
The research-based pharmaceutical company currently boastsannual sales of almost $18 billion, based on 2011 estimates, with a portfolioof leading medicines such as Humira, Synagis, Lupron, Zemplar and Androgel,among others. The pipeline consists of a wide variety of medicines andformulations, among which are more than 20 compounds or indications in eitherPhase II or Phase III development as treatments for diseases such as HepatitisC, chronic kidney disease, immunology, women's health, oncology andneuroscience, including Parkinson's disease, Alzheimer's disease and multiplesclerosis.
Abbott's diversified medical products company weighs in withannual sales of approximately $22 billion, based on 2011 estimates, andmaintains market-leading positions in adult and pediatric nutritionals, corelaboratory diagnostics, point of care and molecular diagnostics and establishedpharmaceuticals, as well as medical devices that include vascular devices,diabetes care and vision care. The company is the leading pharmaceuticalcompany in India and has products in more than 130 countries, with nearly 40percent of its sales coming from emerging markets.
"Abbott will be one of the largest and fastest-growingglobal diversified medical products companies, with a compelling portfolio ofdurable growth businesses in medical technology, branded genericpharmaceuticals and nutritionals," said White. "We will continue togrow our product lines, market share and global presence, especially in emergingmarkets."
The announced separation will not impact Abbott'searnings-per-share guidance for 2011. It is expected to be completed by the endof 2012, but is subject to final approval from the Abbott board of directors, afavorable ruling from the IRS on the transaction's tax-free nature and theeffectiveness of a Form 10 registration statement to be filed with theSecurities and Exchange Commission. The company expects to incur one-timecharges related to the transaction in the periods leading up to the separation.
SOURCE: Abbott press release