Meanwhile, Abbott, of Abbott Park, Ill., will continue producing the company's medical products, including branded generic drugs, devices and its diagnostic and nutritional business lines, a news release from the company said. Abbott will have $22 billion in revenue from its existing diversified medical products division.
The news release said Abbott will look at “opportunities for geographic expansion, particularly in high-growth emerging markets,” with an expectation that 40% of its growth will come from emerging markets.
Miles White will remain chairman and CEO of Abbott, overseeing the medical products company, while Richard Gonzalez will become chairman and CEO of the new research-based drug drug firm. Gonzalez, who has been with the company for more than 30 years, is currently executive vice president of global pharmaceuticals for Abbott and formerly served as president and chief operating officer.
Shareholders would receive a tax-free distribution of stock for the new company, though company officials have not yet set a date. The transaction is not expected to affect 2011 earnings guidance. The spin-off is expected to be complete by the end of next year, pending approvals from company directors, pending a ruling from the IRS about the tax-free stock distribution.