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Abbott Separates Nutrition Business for Growth
Abbott plans to spin off its nutrition division as an independent company by end of 2027 to boost growth and focus.
In brief
Abbott plans to spin off its nutrition division as an independent company by end of 2027 to boost growth and focus. Abbott will separate its nutrition business into an independent company by end of 2027 to accelerate growth and improve margins. Originally reported by The Motley Fool.
Abbott Announces Nutrition Spinoff
Abbott plans to separate its nutrition business into an independent, publicly traded company by end of 2027.
Nutrition Business Details
The nutrition division has $8.5 billion in annual sales, 16,000 employees, and 14 manufacturing sites globally.
Daniel Salvadori Named CEO
Daniel Salvadori, Executive Vice President of Established Pharmaceuticals and Nutrition, will lead the new company.
Q3 2026 Financial Results
Total reported sales increased 14.5% to $13.013 billion, with adjusted diluted EPS at $1.42.
Nutrition Segment Growth
U.S. pediatric nutrition grew 11.0% year over year following WIC contract wins and regained market leadership.
Diagnostics Revenue Surge
Diagnostics revenue increased 46.7% on a reported basis, driven by cancer diagnostics and precision oncology.
Medical Devices Growth
Medical devices revenue grew 7.8% on a comparable basis, led by electrophysiology and rhythm management.
Electrophysiology Performance
Electrophysiology revenue grew 15.0% on a reported basis with full U.S. launch of Volt PFA catheter.
Diabetes Care Progress
Diabetes care revenue grew 6.7% as Libre adoption continues globally.
Full-Year Guidance
Full-year comparable sales growth expected at 6.0%, with adjusted EPS guidance of $5.50 to $5.55.
Separation Benefits
The separation is expected to improve Abbott's portfolio growth by 50 to 100 basis points.
Rhythm Management Growth
Rhythm management grew 9.7% reported growth driven by increased adoption of AVEIR leadless pacemaker.
R&D Investment
Adjusted R&D investment at $892 million, representing 6.9% of sales for innovation pipeline.
EPD Growth in Emerging Markets
Key emerging markets EPD growth at 10.9% on a comparable basis, led by India and Latin America.
EP Headwinds
EP faces short-term headwinds from LAA market dynamics, with orders slowing as accounts await new Amulet 360 device.
Diabetes Pricing Pressure
International diabetes markets face pricing pressure that may mute volume growth in the near term.
What to remember
Abbott will separate its nutrition business into an independent company by end of 2027 to accelerate growth and improve margins.
