Abbott to split its med device, pharma businesses
Abbott will separate into two different publicly traded companies: the medical product manufacturer will split into a diversified medical products company and the other company will be focused on research-based pharmaceuticals.
The medical product company will retain the name Abbott, and consist of the company’s existing medical products portfolio. The pharmaceutical arm has not yet been named, but will contain Abbott’s current portfolio of proprietary pharmaceuticals and biologics.
The pharmaceutical company has nearly $18 billion in annual revenue, according to Abbott, and will have a portfolio that includes Humair, Lupron, Synagis, Kaletra, Creon and Synthroid. A number of research and development assets will be belong to the company as well, including therapeutic areas such as Hepatitis C, immunology, chronic kidney disease, women’s health, oncology and neuroscience.
On the diversified products side, the company retains approximately $22 billion in annual revenue and a mix of products across four businesses. In a statement, Abbott predicted that it will generate 40 percent of its sales from high-growth emergence markets.
Miles D. White, chairman and CEO of Abbott will retain the position in the diversified products company. Richard A. Gonzalez, current executive vice president of global pharmacueticals, will become chairman and CEO of the pharmaceutical company. Gonzalez was previously president and chief operating officer of Abbott.
The transaction is intended to take the form of a tax-free distribution to Abbott shareholders of new publicly traded stock for the new pharmaceutical company. The two companies will each pay a dividend that, combined, will equal the current Abbott dividend at the time of separation. The transaction is expected to be completed by the end of next year, but is subject to final approval by the company’s board of directors, as well as rulings and approvals from the Internal Revenue Service and the Securities and Exchange Commission.
The medical product company will retain the name Abbott, and consist of the company’s existing medical products portfolio. The pharmaceutical arm has not yet been named, but will contain Abbott’s current portfolio of proprietary pharmaceuticals and biologics.
The pharmaceutical company has nearly $18 billion in annual revenue, according to Abbott, and will have a portfolio that includes Humair, Lupron, Synagis, Kaletra, Creon and Synthroid. A number of research and development assets will be belong to the company as well, including therapeutic areas such as Hepatitis C, immunology, chronic kidney disease, women’s health, oncology and neuroscience.
On the diversified products side, the company retains approximately $22 billion in annual revenue and a mix of products across four businesses. In a statement, Abbott predicted that it will generate 40 percent of its sales from high-growth emergence markets.
Miles D. White, chairman and CEO of Abbott will retain the position in the diversified products company. Richard A. Gonzalez, current executive vice president of global pharmacueticals, will become chairman and CEO of the pharmaceutical company. Gonzalez was previously president and chief operating officer of Abbott.
The transaction is intended to take the form of a tax-free distribution to Abbott shareholders of new publicly traded stock for the new pharmaceutical company. The two companies will each pay a dividend that, combined, will equal the current Abbott dividend at the time of separation. The transaction is expected to be completed by the end of next year, but is subject to final approval by the company’s board of directors, as well as rulings and approvals from the Internal Revenue Service and the Securities and Exchange Commission.