November 29, 2012
Abbott Laboratories (NYSE: ABT ) , one of today's most diversified health care companies, is set to spin off its pharmaceutical division into a new company called AbbVie. AbbVie's biggest asset will be Humira, a blockbuster drug used primarily for the treatment of rheumatoid arthritis. AbbVie, however, won't be without risks as Humira's patent expires in 2016, and rival drugs start entering the market.
In this video, health care analysts Max Macaluso and Brenton Flynn discuss how Abbott is set to change at the start of next year because of this spin-out and several topics investors need to watch in the coming months.
With the impending spinoff of its branded-drug business, Abbott is losing a massive blockbuster drug in Humira. It's a confusing event to understand, with many investors left wondering what to do with these two stocks once they're separated. To help investors better understand the upcoming event, the Fool has created a brand new premium report outlining both Abbott Labs and its spinoff, AbbVie. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this 2-for-1 report by clicking here now.
Editor's note: At 2:00, Max meant to say "ulcerative colitis and pediatric Crohn's disease."