With the impending spinoff of its branded-drug business, Abbott Labs (NYSE:ABT) 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, I've just released a brand new premium report outlining both Abbott Labs and its spinoff, AbbVie. Below is a short sample of what you can find in the full report.

The old Abbott
The four segments remaining with Abbott will be roughly equal-sized businesses. For the most part, Abbott isn't a high-growth story, but new products and further expansion into emerging markets should help revenue grow steadily. Profits should grow even faster if the company can continue to expand margins.

Abbott's nutrition products target both ends of the age spectrum. There's baby formula Similac and PediaSure for slightly older kids. For older adults, there's Ensure that offers a complete meal in a bottle. Abbott also sells Zone sports bars and EAS sports nutrition products. The real growth opportunity for nutrition products is the growing middle class in China and India that can now afford the products.

Abbott is looking to increase the operating margin from the low teens in 2011 to more than 20% by 2015. The company is well on its way to reaching that goal, with operating margins up strongly so far in 2012.

"Established products" is a euphemism for drugs that are so old that they don't have patent protection. The branded generics are sold entirely outside the U.S., where Abbott can charge more in emerging markets because brand name carries weight. The key for this segment is to continue to expand. Once the distribution channels are established, the company can benefit from expanding margins that come as revenue scales up.

Learn more
I hope you enjoyed this preview of our brand new report on Abbott and the future AbbVie. In the full version, I outline the remaining division of Abbott's business, along with all of the must-know opportunities and risks facing both companies. Be sure to claim this 2-for-1 report by clicking here now.


This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.