The drug and medical device company of Abbott plans to spin off its pharmaceutical business into a separate company by the end of 2012. The new company, named AbbVie, will focus solely on branded drugs, including the blockbuster anti-inflammatory drug Humira.
The split is meant to free the North Chicago, Ill., company from the risks and obligations of developing innovative pharmaceutical drugs, leaving it with a more predictable business built around nutritional formula, generic drugs and heart stents.
Holford predicted that AbbVie shares would be worth about $55 after the split, and he valued the remaining Abbott business at $30 per share. The company is his top pick for the rest of the year, and its shares could rise on data from clinical trials and other events, he said.
- Abbott Profit Tops Estimates as Humira Drug Sales Climb – Bloomberg (bloomberg.com)
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- Abbott’s Humira Backed by FDA Advisory Panel for Colitis – Bloomberg (bloomberg.com)
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