Abbott Laboratories has revealed plans to separate into two companies, one focusing on diversified medical products and the other in research-based pharmaceuticals.
The new medical products company will contain the company’s current portfolio and retain the Abbott name with the unnamed research-based business including its current portfolio of proprietary pharmaceuticals and biologics.
Miles D. White, Chairman and CEO, Abbott, says the split is a “significant event” in the history of the company whilst “strengthening our outlook for strong and sustainable growth”.
Abbott says the research-based company, which raised almost $18bn in annual revenue, and the diversified medical products firm, with approximately $22bn in annual revenue, will become global leaders in their respective industries.
The research-based arm will include all branded generic pharmaceutical, devices, diagnostic and nutritional businesses. Abbott says it will have a sustainable portfolio of brands, including Humira, Lupron, Synagis, Kaletra, Creon and Synthroid, as well as a pipeline of innovative R&D assets.
Developed markets are expected to generate the majority of the company’s revenue with a sustained portfolio and advancing pipeline having the potential to deliver “accelerating revenue” in the future, Abbott says.
Its new diversified business will include established brands from its four main divisions: pharmaceuticals, nutritionals, diagnostics and vascular devices, where it says it is now the global leader in interventional cardiology.
Abbott believes it will be one of the “largest and fastest” investment opportunities with nearly 40% of sales coming from high-growth emerging markets.
Miles D White will continue as Chairman and CEO of Abbott with Richard A Gonzalez, currently the Executive Vice President, Global Pharmaceuticals, taking on the positions of Chairman and CEO of the unnamed company.
“The research-based pharmaceutical company will be a leader in its industry with a strong and sustainable portfolio of specialty medicines and a promising pipeline of future products,” said Mr. Gonzalez. “This business has been delivering market-leading performance and is well positioned for future success.”