Abbott has officially announced plans to spin off its massive Nutrition franchise into an independent, publicly traded company, marking a significant strategic pivot for the healthcare giant. The move, expected to be completed by the end of 2027, will separate a nutrition portfolio that generates roughly $8.5 billion in annual sales from Abbott’s core medical device, diagnostics, and biowearable operations.
The nutrition business is a global heavyweight, employing 16,000 people across 14 manufacturing sites. Its lineup includes some of the most recognizable brands in the industry: Ensure, the world’s top-selling adult nutrition supplement; PediaSure, a leader in pediatric nutrition; Glucerna, a dominant brand for diabetes management; and Similac, the leading infant formula in the United States.
Daniel Salvadori, currently serving as Abbott’s executive VP and group president of Established Pharmaceuticals and Nutritional Products, has been tapped to captain the new independent entity.
“This transition allows us to create two highly focused companies, each with the strategic clarity to pursue its own growth opportunities,” said company leadership. Following the separation, the “new” Abbott will remain a formidable industry leader, projecting approximately $42 billion in annual revenue. Its post-spinoff focus will center on high-growth areas, including cardiovascular and neuromodulation devices, biowearables, diagnostic solutions, and established medicines.
Abbott intends to distribute shares of the new nutrition company to existing shareholders as a tax-free distribution. The completion of the transaction remains subject to final board approval, the filing of an effective Form 10 registration statement, and necessary regulatory clearances. Despite the scope of this corporate restructuring, the company confirmed that the spin-off will not impact its current 2026 financial guidance or the 2027 outlook, which is slated for release this coming January.
The announcement coincided with Abbott’s strong third-quarter 2026 earnings report, which highlighted a robust 14.5% year-over-year revenue increase to $13 billion. The company’s Medical Devices division led the charge with $5.8 billion in sales, bolstered by double-digit growth in electrophysiology and rhythm management. Meanwhile, Nutrition sales climbed 4.9% to $2.3 billion.
The company also reported adjusted earnings of $1.42 per share and tightened its full-year 2026 forecast to between $5.50 and $5.55 per share.
This corporate evolution comes on the heels of a successful innovation streak for Abbott, which recently secured FDA approval for several breakthrough products, including the Libre Duo glucose-ketone sensor, the TactiFlex Duo ablation catheter, and the SimpleScreen blood-based colorectal cancer test. By shedding the nutrition business, Abbott appears positioned to double down on these specialized medical technologies, while the new, independent nutrition company gains the agility to navigate the rapidly shifting consumer health and medical nutrition landscape.
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