Abbott board prepares way for AbbVie split off

US health care giant Abbott Laboratories (NYSE: ABT) says that its board of directors has approved the separation of its research-based pharmaceuticals business, which will be known as AbbVie Inc, and declared a special dividend distribution of all of the outstanding shares of AbbVie common stock.

AbbVie will be a stand-alone company responsible for the research-based drugs in the Abbott portfolio, led by the blockbuster Humira (adalimumab), which is expected to generate over $9 billion in 2012 sales, but which starts losing patent protection from 2016. Longtime Abbott executive Richard Gonzalez was named as chief executive of the new entity (The Pharma Letter March 22). Miles White will remain CEO with the legacy company, which will continue to be called Abbott. It will retain a range of products, from heart stents to nutritional and baby formulations and generic drugs.

For every 1 share of Abbott common shares held, shareholders will receive 1 share of AbbVie common stock. No fractional shares of AbbVie will be issued. Shareholders will receive cash in lieu of fractional shares. The special dividend distribution is expected to be paid on January 1, 2013, to Abbott shareholders of record as of the close of business on December 12, 2012.