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Abbott to split into two companies
October 19th, 2011
ABBOTT PARK, Ill. – Abbott has unveiled plans to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.
Abbott said Wednesday that the diversified medical products company will consist of its current diversified medical products portfolio, including its branded generic pharmaceutical, devices, diagnostic and nutritional businesses, and will retain the Abbott name.
Meanwhile, the research-based pharmaceutical company will include Abbott's current portfolio of proprietary pharmaceuticals and biologics and will be named later.
"Today's news is a significant event for Abbott and reflects another dynamic change in our company's 123-year history, strengthening our outlook for strong and sustainable growth and shareholder returns," stated Miles White, chairman and chief executive officer of Abbott.
According to Abbott, the research-based pharmaceutical company now has nearly $18 billion in annual revenue and will have a sustainable portfolio of market-leading brands, including Humira, Lupron, Synagis, Kaletra, Creon and Synthroid. An attractive pipeline of innovative research-and-development assets — in key specialty therapeutic areas such as hepatitis C, immunology, chronic kidney disease, women's health, oncology and neuroscience — will help drive future growth, the company noted.
Generating about $22 billion in annual revenue, the diversified medical products company brings a durable mix of products balanced across four major businesses, Abbott said. It will continue to target double-digit earnings-per-share growth, with opportunities for geographic expansion, particularly in high-growth emerging markets. The company will have an extensive, broad-based pipeline of new products and technologies as well as opportunities for significant margin expansion, Abbott added.
Plans call for White to remain chairman and CEO of Abbott, the diversified medical products company.
"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," commented White. "We will continue to grow our product lines, market share and global presence, especially in emerging markets."
Richard Gonzalez, currently executive vice president of global pharmaceuticals, will become chairman and CEO of the research-based pharmaceutical company. He is a more than 30-year Abbott veteran and was previously president and chief operating officer of Abbott.
"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," Gonzalez stated. "This business has been delivering market-leading performance and is well-positioned for future success."