Abbott prepares to split | MassDevice.com On Call

December 31, 2012 by MassDevice staff

MASSDEVICE ON CALL — Healthcare giant Abbott (NYSE:ABT) will officially split into 2 parts starting tomorrow, essentially separating the proprietary drug division from the rest of the company.

The split, initially announced in October 2011, will spin out the research pharmaceuticals division into a publicly traded firm dubbed AbbVie (NYSE:ABBV), the stock for which hit the market earlier this month.

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Last year Abbott announced its plan to spin out the pharma biz, saying it would keep the Abbott brand for its diversified medical businesses. The board of directors officially signed off on the spin-out just last month, noting that "AbbVie will be an independent, publicly-traded company and Abbott will retain no ownership interest."

Chairman & CEO Miles White later told shareholders in a letter that the split "reflects long-term changes in the healthcare market that have led us over time to create distinctly different business models." Over the summer, the company revealed the new executive roster for AbbVie.

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