Abbott Cuts Its 2026 Full Year Sales Growth View
The new company is expected to have $8.5 billion in annual sales, while Abbott keeps diagnostics, devices and established medicines.
- On Wednesday, Abbott Laboratories announced plans to spin off its nutrition business into a separate publicly traded company by the end of 2027, while cutting its 2026 sales growth forecast to about 6%.
- Years of tumult for the nutrition division, including a 2022 recall of infant formula that triggered nationwide shortages, prompted the separation. The unit also lost a major government supply contract last year, facing higher manufacturing costs.
- The new nutrition company is expected to generate $8.5 billion in annual sales, employing 16,000 people across 14 manufacturing sites. Abbott CEO Robert Ford said, "This separation will benefit both companies," positioning the core business for higher-growth focus.
- Following the announcement, Abbott shares fell about 2% in premarket trading. JP Morgan analyst Robbie Marcus said, "We think the stock trading lower is appropriate," citing nutrition value-creation offsetting moderated business fundamentals.
- The company joins Johnson & Johnson and Medtronic in separating business units to sharpen focus on high-growth segments. Completion is expected by end of 2027, pending regulatory approvals, while Abbott manages outstanding litigation matters.
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No change to CG operations as Abbott announces plans to separate nutrition business
CASA GRANDE — Abbott Laboratories has announced plans to separate its global nutrition business into an independent, publicly traded company in a major corporate restructuring that will establish a standalone firm responsible for some of the world’s most recognizable nutritional…
Abbott cuts 2026 sales growth view, plans to spin off nutrition business
Abbott Spins Off Embattled Business That Sells Baby Formula
Abbott Laboratories said it plans to spin off its nutrition unit after a series of missteps with its iconic brands including the infant formula Similac, narrowing its remaining business to focus on core healthcare products.
Abbott plans to split its nutrition division into an independent company until the end of next year, distancing the group from a unit under pressure that had been weighing on its results and being the target of years of judicial disputes. Exclusive material for subscribers. To have full access, access the link of the matter and register.
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