Abbott Laboratories announced on Tuesday that it will spin off its nutrition business into an independent, publicly traded company. The decision follows a strategic review of the division, which has faced significant regulatory and legal challenges in recent years, particularly regarding its baby formula operations.
The nutrition division has been a point of volatility for Abbott, marked by supply chain disruptions and high-profile product recalls that led to prolonged factory shutdowns. By carving out this segment, Abbott aims to streamline its portfolio and focus on its core medical device and diagnostics businesses. Following the news, Abbott shares saw a decline of approximately 4% in market trading.
The separation is expected to be completed through a tax-free distribution to shareholders, though the company has not yet provided a definitive timeline for the finalization of the spinoff.
