Abbott Laboratories Gaps Up On Plan To Split In Two

Diversified drug giant Abbott Laboratories issued its regularly scheduled earnings report Wednesday morning, and also dropped a bombshell: It's splitting into two companies.

Abbott Labs (ABT) said that by the end of 2012 it will spin off its proprietary drug business into an as-yet-unnamed separate firm. It will keep the 123-year-old Abbott brand for the remainder, which will still be highly diverse: nearly equal parts medical devices, generic drugs, nutritionals and diagnostics.

Morningstar analyst Damien Conover says traditionally Abbott has said its diversified model was one of its great strength. But the growing dominance of its blockbuster anti-inflammatory drug Humira, which provided more than 20% of third-quarter revenue, may have caused a rethink in strategy.

Read Full Article from Investor's Business Daily

- Posted: 2011-10-19 14:19:53

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