Abbott finalises AbbVie spin-off
Top Story
By: Katie Bell
Ref: Trefis, Bloomberg, MarketWatch, PR Newswire, Barron's, Chicago Tribune, Financial Times, Chicago Sun-Times, NASDAQ
Published: 01/02/2013
Abbott on Wednesday announced that it completed the separation of its research-based pharmaceuticals business, establishing AbbVie as an independent biopharmaceutical company. Abbott CEO Miles White, who described the move as "the most transformative action in [the company's] 125-year history," said AbbVie "is already making a significant difference, focusing on highly specialised, market-leading therapies for some of the world's most difficult-to-treat diseases."
In November, Abbott announced that its board of directors approved the previously announced plan to separate its research-based pharmaceuticals business into the new entity, which will sell Abbott's proprietary drugs, while Abbott's focus will include diagnostic tests. The company stated that for every one share of Abbott common stock held, shareholders will receive one share of AbbVie common stock.
Commenting on the news, Sanford C. Bernstein analyst Derrick Sung said that Abbott could use its cash position to make acquisitions and bolster its medical-devices segment. William Blair's analysts said they expect Abbott to "grow sales over 50-percent faster than many of its large-cap healthcare peers through 2015" due to the company's strong presence in emerging markets. "China and India will remain a focus for many sectors in management presentations, but it is equally important to note that Abbott is well-diversified in other emerging countries," they said. Meanwhile, Abbott indicated that it expects sales in these high-growth markets to reach nearly 50 percent of its total sales by 2015.
In November, Abbott announced that its board of directors approved the previously announced plan to separate its research-based pharmaceuticals business into the new entity, which will sell Abbott's proprietary drugs, while Abbott's focus will include diagnostic tests. The company stated that for every one share of Abbott common stock held, shareholders will receive one share of AbbVie common stock.
Commenting on the news, Sanford C. Bernstein analyst Derrick Sung said that Abbott could use its cash position to make acquisitions and bolster its medical-devices segment. William Blair's analysts said they expect Abbott to "grow sales over 50-percent faster than many of its large-cap healthcare peers through 2015" due to the company's strong presence in emerging markets. "China and India will remain a focus for many sectors in management presentations, but it is equally important to note that Abbott is well-diversified in other emerging countries," they said. Meanwhile, Abbott indicated that it expects sales in these high-growth markets to reach nearly 50 percent of its total sales by 2015.