Healthcare giant Abbott plans to split into two companies: one in diversified medical products and the other in research-based pharmaceuticals.
The diversified medical products company will include medical devices, diagnostics, nutrition and generic drugs, and will retain the Abbott name.
The research-based drug company will cover Abbott’s existing portfolio of proprietary pharmaceuticals and biologics.
Abbott’s cardiac stents and other vascular devices have made the company a global leader in interventional cardiology.
Miles D. White, Chairman and CEO of Abbott, will remain Chairman and CEO of the diversified medical products company, which aims to be one of the largest and fastest-growing investment opportunities in this area.
The Abbott medical products company, whose current annual revenue is estimated at $22 billion, will continue to aim for double-digit growth and geographic expansion, particularly in emerging high-growth markets.
Its existing portfolio includes laboratory, point of care and molecular diagnostics and medical devices for cardiovascular, diabetes and vision care. It will develop an extensive and broad-based pipeline of medtech.
“Today’s news reflects another dynamic change in our company’s 123-year history, strengthening our outlook for strong and sustainable growth and shareholder returns,” said Miles D. White.
“Abbott will be one of the largest and fastest-growing global diversified medical products companies, with a compelling portfolio of durable growth businesses in medical technology, branded generic pharmaceuticals and nutritionals. We will continue to grow our product lines, market share and global presence, especially in emerging markets.”
The transaction will take the form of a tax-free distribution to Abbott shareholders of a new publicly traded stock for the new drug company.
Abbott currently employs nearly 90,000 people and sells a wide range of products in more than 130 countries.
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