ABBOTT LABORATORIES plans to split off its pharmaceuticals business into a separate publicly traded company to increase Wall Street’s focus on the remaining diversified medical product line, lifting its shares 2 per cent.
The new company will be run by Richard Gonzalez, the top drugs lieutenant to Abbott chief executive Miles White, who will head the diversified products business that includes medical devices, diagnostics and nutritionals.
Mr White said Abbott has always believed in the diversified model, but that many investors now identify it as a pharmaceuticals company.
Abbott, which employs 4,000 people across 14 sites in Ireland, also reported a 66 per cent drop in third-quarter net profit yesterday, due to a $1.4 billion after-tax litigation charge. Excluding the charge, third-quarter results slightly topped Wall Street forecasts.
The new pharmaceutical company would have nearly $18 billion in annual revenue. Aside from Humira, its medicines include HIV treatment Kaletra and prostate cancer drug Lupron.
Mr Gonzalez (57) joined Abbott in 1977, and previously served as the company’s president and chief operating officer.
The diversified products company to be run by Mr White (56) will retain the Abbott name. That company has about $22 billion in annual revenue and includes its market-leading Xience heart stent as well as generic medicines. – (Reuters)
