Global drug major Abbott on Wednesday said it plans to separate into two publicly traded companies following which its Indian operations will come under the diversified medical products division.
In a statement, the US-based firm said it plans to separate itself into two publicly traded companies - one in diversified medical products and the other in research-based pharmaceuticals.
The diversified medical products company will consist of Abbott's existing diversified medical products portfolio, including its branded generic pharmaceutical, devices, diagnostic and nutritional businesses, and will retain the Abbott name, it said.
In May 2010, Abbott acquired the domestic formulation business of India's Piramal Healthcare for $3.72 billion (about Rs 17,484 crore) to become one of the leading drug firms in the country.
On the other hand, Abbott said the research-based pharma company will include its current portfolio of proprietary pharmaceuticals and biologics, and will be named later.
Commenting on the development, Abbott chairman and chief executive officer Miles D White said: "Today's news is a significant event for Abbott, and reflects another dynamic change in our company's 123-year history, strengthening our outlook for strong and sustainable growth and shareholder returns."
With an estimated revenues of $22 billion, the diversified medical products company will have a global presence.
Abbott is a leading pharmaceutical company in India and has a significant and growing presence in many other emerging markets.
"It (diversified medical products company) will generate nearly 40% of its sales in high-growth emerging markets, with further expansion expected in the coming years," the company said.
While Miles D White would be chairman and CEO of Abbott, the diversified medical products company, Richard A Gonzalez, currently executive vice-president, Global Pharmaceuticals, will become chairman and CEO of the research-based pharmaceutical company, it said.