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.
Editor's note: At 2:00, Max meant to say "ulcerative colitis and pediatric Crohn's disease."
Brenton Flynn has no positions in the stocks mentioned above. Max Macaluso, Ph.D. has no positions in the stocks mentioned above. Motley Fool newsletter services have recommended buying shares of Vertex Pharmaceuticals In and Gilead Sciences. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.