Abbott and AbbVie- Spinoff Complete, Companies Begin To Walk Their Own Paths

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On Wednesday, Abbott Laboratories(ABT) completed its spinoff of AbbVie(ABBV), and the two firms began their new, independent lives. As is often the case, as their first acts, each company issued a press release noting the occasion.

Abbott’s release was relatively brief, wished AbbVie well, and gave a short picture of the new Abbott, focusing on the company’s many product lines and international growth potential

Abbott Completes Separation of Research-Based Pharmaceuticals Business

– Major Milestone Marks 125th Anniversary of Company’s Founding
– Continues Diverse Healthcare Leadership in Diagnostics, Medical Devices, Nutrition and Branded Generic Pharmaceuticals
– Set to Deliver Industry-Leading Growth, Expanding Margins and Strong Cash Flow
– Businesses Aligned With Long-Term Healthcare and Patient Trends, Particularly in Fastest-Growing Economies

ABBOTT PARK, Ill., Jan. 2, 2013 /PRNewswire/ — Abbott (ABT) today announced it has completed the separation of its research-based pharmaceuticals business, which became AbbVie, a new independent biopharmaceutical company. AbbVie will begin trading independently on the New York Stock Exchange today under the symbol “ABBV.”

On Nov. 28, 2012, Abbott’s board of directors declared a special dividend distribution of all outstanding shares of AbbVie common stock. For every 1 share of Abbott common shares held as of close of business on Dec. 12, 2012, Abbott shareholders received 1 share of AbbVie common stock on Jan. 1, 2013.

Abbott announced in October 2011 that it was separating into two independent companies, as its businesses evolved into two different investment identities. AbbVie is a research-based specialty biopharmaceuticals company with a broad portfolio of medicines, including leadership in immunology and virology, and a pipeline of breakthrough therapies. Abbott is one of the largest science-based, diversified healthcare companies, with market-leading offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals.

“We wish our colleagues at AbbVie continued success as they become part of a new, independent company that is already making a significant difference, focusing on highly specialized, market-leading therapies for some of the world’s most difficult-to-treat diseases,” said Miles D. White, chairman and chief executive officer, Abbott.

“Abbott has taken the most transformative action in its 125-year history,” said Mr. White. “We have had enduring success precisely because of what we’re doing now – reinventing ourselves for changing times and creating new ways to serve the millions of patients, customers, communities and shareholders who depend on us.”

Strength Through Diversity
Abbott begins its 125th year with approximately $22 billion in revenues generated throughout 150 countries and remains one of the largest and most far-reaching global healthcare companies, with diversity across technologies, businesses and geographies.

The company is comprised of four businesses of roughly equal size – diagnostics, medical devices, nutritionals and branded generic pharmaceuticals. Abbott’s businesses are all leaders in their respective fields and hold the top market positions across numerous categories. These businesses develop leading, science-based products that are meeting the needs of patients and consumers in the evolving global healthcare environment.

Abbott is well positioned to deliver reliable performance with industry-leading growth, expanding margins and strong cash flow. The company’s businesses are aligned with long-term health trends, including the world’s aging population, increasing prevalence of chronic disease, and improving access to care in fast-growing economies. Continued investment in new technologies is advancing Abbott’s offerings in vascular health, diabetes care, diagnostic screening and detection, vision correction and nutrition science.

Revenue among Abbott’s businesses is well balanced geographically, with 30 percent generated in the United States, 30 percent from Western Europe, Canada, Japan and Australia, and 40 percent from the fastest-growing economies, including India, China, Russia and Brazil. The company’s presence in these high-growth markets is among the most expansive of any diversified healthcare company and is expected to reach nearly 50 percent of sales by 2015.

AbbVie’s release was more about emphasizing the great girth of the nascent enterprise, and the strength of the pipeline, addressing concerns about the company’s dependence on Humira

AbbVie Celebrates Launch as New Biopharmaceutical Company with Employees, Patients

NEW YORK, Jan. 2, 2013 /PRNewswire/ — AbbVie (ABBV) today marks its launch as an independent biopharmaceutical company, with employees from more than 40 countries and patients joining AbbVie leaders as they ring the first opening bell of 2013 at the New York Stock Exchange.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/59757-abbvie-celebrates-launch-as-new-biopharmaceutical-company

With a rich, 125-year heritage of developing pharmaceuticals, AbbVie combines the focus and passion of a leading-edge biotech with the expertise and structure of a long-established pharmaceutical leader. A global enterprise that serves patients in more than 170 countries, AbbVie launches with an estimated $18 billion in annual revenues and a strong commitment to creating shareholder value through long-term growth potential and the continuation of the company’s history of shareholder dividends.

“Today AbbVie launches with an outstanding portfolio, a solid pipeline and enthusiastic people who will serve patients and deliver growth,” said Richard A. Gonzalez, Chairman of the Board and Chief Executive Officer, AbbVie. “With those assets and a relentless focus on innovation we intend to create significant value for our shareholders.”

Strong, Well-Managed Business and Product Portfolio
AbbVie launches with a team of experienced senior leaders who understand how to manage AbbVie for long-term, profitable growth and who have the proven ability to commercialize scientific discoveries for patients. As a biopharmaceutical company, AbbVie has adopted a streamlined and focused business model built on a broad portfolio of market leading medicines that will enable AbbVie to invest in tomorrow’s therapies.

The portfolio includes both growth brands and durable performers, including HUMIRA, AndroGel, Lupron, Synagis[1], Creon, Synthroid, Kaletra, Norvir and Zemplar.

Related information:www.abbvieinvestor.com

AbbVie’s long-term growth will be fueled by a compelling pipeline of more than 20 mid- to late-stage clinical programs – as well as new discoveries to address diseases including Hepatitis C, rheumatoid arthritis, psoriasis, multiple sclerosis, Alzheimer’s disease, Parkinson’s disease, spondyloarthropathies, multiple myeloma and endometriosis. AbbVie has tripled the number of new molecular entities in its pipeline over the last several years.

With these and other compounds in its pipeline, AbbVie is rapidly developing therapies that have strong clinical performance, patient benefit and health economic value.

Related information:www.abbvie.com/research-innovation/pipeline.html

AbbVie’s Approach to Innovation
Making new discoveries and developing them into effective medicines is the foundation of the company’s mission and business. To accomplish those goals, AbbVie’s research is guided by a patient-driven research and development (R&D) approach that begins with a deep understanding of the serious diseases that are the company’s focus, as well as careful evaluation of the current needs of patients, payers and regulators worldwide. The company’s scientists and physicians focus their work on targets that have the best potential to fundamentally transform the way diseases are treated in the future.

AbbVie is committed to an agile and collaborative approach to innovation, across its global R&D and manufacturing sites. The company’s scientists rely on proprietary technologies and methods to help them more quickly advance the most promising compounds from laboratory to clinical trials. AbbVie’s research operates with a collaborative model that seeks to build the pipeline of discoveries from inside and outside the company’s own walls.

Related information:www.abbvie.com/research-innovation/focus-areas.html

A Focus on Patients
AbbVie is focused on developing specialty pharmaceuticals that address complex, unsolved health problems, particularly chronic diseases, that now account for 75 percent of all healthcare costs. By developing new specialty treatments that improve patient outcomes, AbbVie and its people are helping to reduce the long-term health and economic impact of these conditions.

Related information:www.abbvie.com/responsibility/patients-first/home.html

Dedicated Employees to Build the Future
AbbVie’s 21,000 employees around the world are dedicated to meeting the needs of patients. They have the freedom, expertise, and ability to innovate and discover solutions to the world’s most pressing health needs.

“Our commitment at AbbVie is to build on Abbott’s 125-year heritage and address some of the world’s most serious health issues,” Gonzalez said. “We intend AbbVie’s enduring legacy to be one of finding treatments for patients with serious health care needs.”

AbbVie will be listed on the NYSE and NYSE Euronext Paris beginning today under the ticker symbol “ABBV”. A live webcast of the Opening Bell, beginning today at 9:29 a.m. EST, will be available on the NYSE website.  Photos and an archived video of the bell ringing will be available on Facebook (NYSE Euronext-Official Site), YouTube (nysetv1), and Twitter (@NYSEEuronext), #NYSEBell.

AbbVie Facts

  • Corporate Headquarters: North Chicago, Illinois, USA
  • Executive Leadership Team:
    • Richard A. Gonzalez, Chairman of the Board and Chief Executive Officer
    • Laura J. Schumacher, Executive Vice President, Business Development, External Affairs and General Counsel
    • William J. Chase, Executive Vice President, Chief Financial Officer
    • Carlos Alban, Executive Vice President, Commercial Operations
    • John M. Leonard, M.D., Senior Vice President, Chief Scientific Officer
    • Timothy J. Richmond, Senior Vice President, Human Resources

Becoming AbbVie
AbbVie (ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott. AbbVie combines the focus and passion of a leading-edge biotech with the expertise and structure of a long-established pharmaceutical leader. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases.

AbbVie aims to help patients live healthier lives and collaborate on sustainable healthcare solutions. In 2013, AbbVie will employ approximately 21,000 people worldwide and market medicines in more than 170 countries. For further information on the company and its people, portfolio and commitments, please visit www.abbvie.com. Follow @abbvie on Twitter or view careers on our Facebook or LinkedIn page.

Each firm has a clear tone and message it wants to send to investors scrambling to analyze these newly distinct firms. It will be interesting to watch the evolution of the messaging as these companies continue down their new paths.

Disclosure: The author holds no position in any stock mentioned

 

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