{"id":13569,"date":"2011-10-19T15:09:00","date_gmt":"2011-10-19T15:09:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/abbott-labs-announces-split\/13569\/"},"modified":"2011-10-19T15:09:00","modified_gmt":"2011-10-19T15:09:00","slug":"abbott-labs-announces-split","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/abbott-labs-announces-split\/13569\/","title":{"rendered":"Abbott Labs Announces Split"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><br \/>\n<!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><br \/>\n<!--\/mfunc--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-3583\" title=\"abbott\" src=\"https:\/\/storage.googleapis.com\/smw-news-wp\/2010\/12\/44.jpg\" alt=\"Abbott\" width=\"140\" height=\"140\">The leading drug maker Abbott Laboratories (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=ABT\">NYSE:ABT<\/a>) is planning to divide into two separate entities by spinning off its branded drug business said the company in a statement earlier today.<\/p>\n<p><span id=\"more-13569\"><\/span>The proposed split comes as a major deviation from the company\u2019s strategy since its inception some 123 years ago. Abbott is well known for its wide range of medical equipments and pharmaceutical products and it has continued to grow strong as compared to other pure pharmaceutical companies who had experienced losses now and then as the patents for their best selling drugs expired. Abbott\u2019s structure has allowed the company to continually post double digit growth every quarter enabling the company to maintain their position in the market.<\/p>\n<p>Today\u2019s announcement shows that the company\u2019s management considers the company\u2019s operations as two separate businesses and this viewpoint is also welcome to the stockholders and investors as it will create two separate risk profiles and propositions for investments.<\/p>\n<p><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p>The drug discovery and related operations fall under high risk profiles where as generics and nutritional supplements fall under low risk and by making two separate businesses, the investors will be able to choose any one of their liking or on both as it was with the old Abbott.<\/p>\n<p>Abbott recently released the report for the third quarter. According to the report, the North Chicago, Illinois based company\u2019s net income has declined by 66 percent as it has allocated $ 1.5 billion to the legal reserve in relation to the investigation into the marketing of its drug Depakote.<\/p>\n<p>The spin off of Abbott Laboratories will see the new division selling branded pharmaceutical s like Humira, the arthritis and immune disorder drug and Niapan, the cholesterol drug. The new company will be headed by the current head of Abbott\u2019s Pharmaceutical business, Richard Gonzalez. The company estimates the new, yet to be named company\u2019s annual revenue to be somewhere around $ 18 billion as per the estimates they have for the current year.<\/p>\n<p>The remaining part of the company will be headed by the present chief executive officer, Miles White and the company\u2019s businesses will include generics, diagnostic test drugs, medical implants, baby formula and other nutritional products. It will continue with the Abbott name and will have annual revenue of about $ 22 billion. The spinoff will allow the investors to value both the companies according to its distinctive characteristics and the new company\u2019s shares will be distributed tot eh shareholders in tax free transactions.<\/p>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The leading drug maker Abbott Laboratories (NYSE:ABT) is planning to divide into two separate entities by spinning off its branded 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