Oct 21 (Reuters) – Abbott Laboratories said it plans to separate its nutrition business into an independent, publicly traded company and reduced its 2026 sales growth forecast, sending shares down 3.4% in premarket trading.
“This separation will benefit both companies,” CEO Robert Ford said and added that Abbott’s core portfolio of medical devices, diagnostics and established medicines has compelling growth opportunities.
The company’s pediatric nutrition business has been hurt in previous quarters by the loss of a major US government supply contract last year and rising manufacturing costs for consumer packaged goods.
Higher costs forced the company to raise prices — in turn suppressing demand from consumers on a tight budget in an uncertain economy.
The separation is expected to be completed by the end of 2027, the company said.
Third-quarter sales in its medical devices segment grew 6.9% to $5.83 billion, but missed analysts’ average estimate of $5.88 billion, hurt by weaker-than-expected sales for its heart devices.
J.P.Morgan analyst Robbie Marcus had said he expects muted growth in electrophysiology. Weaker demand for Abbott’s Amulet device, which helps lower stroke risk in some heart patients, weighs on sales, while Volt will likely contribute only modestly after a late-August launch, he said in a note.
Abbott now expects 2026 sales growth of about 6%, compared with its prior expectation of between 6.5% and 7.5%.
The company reported quarterly adjusted profit per share of $1.42 — in line with analysts’ average estimate, according to data compiled by LSEG.
Total revenue for the third quarter came in at $13.01 billion, compared with analysts’ estimate of $13 billion.
(Reporting by Padmanabhan Ananthan and Christy Santhosh in Bengaluru; Editing by Joyjeet Das)
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