Abbott Plans $8.5 Billion Nutrition Business Spinoff

Abbott Laboratories plans to separate its global nutrition business into an independent, publicly traded company by the end of 2027, allowing the remaining company to focus more on medical devices and diagnostics. The nutrition business, which includes brands such as Similac, Ensure and Pedialyte, generates about $8.5 billion in annual sales. Abbott shareholders are expected to receive shares in both companies after the separation, subject to customary approvals. Separately, Abbott lowered its 2026 sales-growth outlook to about 6%, from a previous range of 6.5% to 7.5%; the nutrition business has faced pressure from the loss of a major U.S. government contract and weaker demand following price increases. The company reported adjusted quarterly earnings of $1.42 per share, in line with analysts’ expectations.