Abbott Plans Spin-Off of Nutrition Unit Into Standalone Company

what happened

Abbott intends to separate its nutrition arm into an independent company with roughly $8.5 billion in yearly revenue, according to Dow Jones Newswires and the publication Update. Daniel Salvadori, who currently holds the post of EVP and group president at the established pharmaceuticals and nutritional products unit, is set to run the new business. Its portfolio will include Pedialyte and Similac.

Update reported that Abbott shares fell 3.9% to $98.44 in premarket trading. The company has long faced litigation over a baby-formula plant where dangerous bacteria were found, and it has agreed to several settlements worth millions of dollars.

The transaction is expected to close by the end of 2027, and Abbott shareholders would hold stakes in both companies afterward. Management said the move will not affect 2026 guidance or the 2027 outlook due in January. One-time charges will be quantified later.

why it matters

For investors, the main point is structural: shareholders would own a piece of two companies, while Abbott keeps its core medical devices, diagnostics and established medicines businesses. The premarket share decline shows how the market initially reacted, though the size of the one-time costs remains undisclosed.

market impact

ABT: shareholders would hold stakes in two companies; one-time costs remain unquantified for now.

tags

instruments