Abott to split into two
19 Oct 2011
Drug maker Abbott today said that it plans to split itself into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.
The diversified medical products company will consist of Abbott's existing diversified medical products portfolio, including its branded generic pharmaceutical, devices, diagnostic and nutritional businesses, and will retain the Abbott name.
The research-based pharmaceutical company will include Abbott's current portfolio of proprietary pharmaceuticals and biologics and will be named later.
Abbott expects both companies to become global leaders in their respective industries.
The transaction is intended to take the form of a tax-free distribution to Abbott shareholders of a new publicly traded stock for the new pharmaceutical company. The expected stock distribution ratio will be determined at a future date.
This announcement will not impact Abbott's ongoing earnings-per-share guidance for 2011, Abott said.
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