Abbott and AbbVie Split Explained

Abbott and AbbVie are two separate companies that were once a single entity. Abbott Laboratories was founded in 1888 by Wallace Abbott, and it remained a single company for over 100 years.

AbbVie was spun off from Abbott Laboratories in 2013, creating two distinct companies. This split was a result of Abbott's decision to separate its pharmaceuticals business from its medical devices and research business.

The split was a strategic move to allow each company to focus on its respective area of expertise. Abbott could concentrate on its medical devices and research, while AbbVie could focus on developing and marketing pharmaceuticals.

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Abbott Laboratories split into two publicly-traded companies in 2011, creating AbbVie, Inc.

The new entity, AbbVie, would specialize in diversified products including medical devices, diagnostic equipment, and nutrition products.

AbbVie was officially listed on the New York Stock Exchange on January 2, 2013.

The company employed more than 28,000 people around the world as of December 2015.

AbbVie recorded sales of $18.8 billion in its first year, growing to $20 billion in 2014.

AbbVie's top-selling drugs include Humira, an anti-inflammatory used to treat arthritis.

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Abbott and AbbVie both have growth potential, but AbbVie looks like a better bet for now.

AbbVie is significantly cheaper than Abbott in relation to forward earnings estimates. This makes it a more attractive option for investors looking for value.

AbbVie has surpassed Abbott in revenue growth over time, thanks in part to the success of Humira.

The Abbott Laboratories/AbbVie HSA is a great option for those looking to lower their federal income taxes. Contributions can be deducted pre-tax from payroll or deducted from your income on your tax return.

You can make contributions to the HSA yourself or have your employer contribute on your behalf. If your employer invests in an HSA for you, the money is not taxed as income for the employee.

The tax benefits of an HSA depend on your income and financial situation. This means that not everyone will see the same level of tax savings.

AbbVie was officially listed on the New York Stock Exchange on January 2, 2013.

The company employed more than 28,000 people around the world as of December 2015.

AbbVie recorded sales of $18.8 billion in its first year.

The company's top-selling drugs include Humira, an anti-inflammatory used to treat arthritis.

AndroGel was originally developed by Abbott Laboratories.

Abbott spent some $80 million marketing the prescription testosterone treatment in 2012.

AndroGel generated $1.6 billion in sales in 2013.

By 2015, AndroGel held 60% of the low-T therapy market.

Expand your knowledge: Abbvie Company Profile

As an Abbott Laboratories/AbbVie employee, you're likely aware of the company's comprehensive benefits package. The Abbott Laboratories/AbbVie 401(k) plan can make up a large portion of your eventual wealth, especially if you've worked at the company for several years.

One of the most common reasons employers match 401(k) contributions is to attract and retain talent, with 81% of employees saying that retirement benefits make up a major portion of a job search. You can make the most of the Abbott Laboratories/AbbVie 401(k) matching benefit by contributing to the plan and taking advantage of the match.

In addition to retirement savings, Abbott Laboratories/AbbVie offers an excellent health insurance plan to meet the needs of you and your family.

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The 401(k) plan offered by Abbott Laboratories/AbbVie can make up a large portion of your eventual wealth, especially if you've worked at the company for several years.

81% of employees say that retirement benefits make up a major portion of a job search, highlighting the importance of this benefit.

A 401(k) match is one of the most common reasons employers match contributions, and it's a highly valued benefit among respondents, with 80% of workers saying they'd keep a job with benefits rather than take one that offered more pay and no benefits.

To make the most of the Abbott Laboratories/AbbVie 401(k) matching benefit, you should take advantage of it to boost your retirement savings and reduce taxes.

The best way to manage your 401(k) is to work with a financial professional to map out various retirement scenarios and ensure your savings can handle the expenses.

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When choosing a health insurance plan, it's essential to understand the different options available. Abbott Laboratories/AbbVie offers an excellent health insurance plan that meets the needs of you and your family.

If this caught your attention, see: Abbvie Health Equity

The plan is designed to fit within your budget, taking into account your medical needs and preferred care providers. We help employees choose a plan that suits their individual circumstances.

Selecting a plan that fits your budget is crucial, as it ensures you can afford the care you need. Abbott Laboratories/AbbVie's health insurance plan is designed to provide peace of mind.

You can choose a plan that applies toward your preferred care providers, giving you more control over your healthcare.

Life insurance protects your dependents in the event of your death, so it’s crucial to carry life insurance if you have children or others who rely on you financially.

It’s wise to make a habit of updating your coverage at least once per year as your life situation and needs change.

Taking advantage of the Abbott Laboratories/AbbVie life insurance offering is a no-brainer for most Abbott Laboratories/AbbVie employees.

You have to go a step further to make sure you have enough total coverage.

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Abbott and AbbVie are two separate companies with distinct business focuses, despite sharing a common heritage.

Abbott has a diverse portfolio of products, including medical devices, nutritionals, and branded generic medicines.

AbbVie is facing its biggest challenge yet, with its top blockbuster Humira losing exclusivity. This immunology drug brought in over $21 billion in annual revenue at its peak in 2022.

AbbVie has been preparing for this moment by grooming two newer immunology drugs, Rinvoq and Skyrizi, to take over where Humira leaves off. These two drugs are expected to together top Humira's peak revenue in 2027.

Rinvoq and Skyrizi are on the right track, delivering sales growth of more than 50% in the most recent quarter. They're set to bring in over $11 billion combined for full year 2023.

AbbVie's current portfolio includes other top-selling drugs, such as Vraylar and Botox, which delivered double-digit revenue growth in the most recent quarter. This momentum is expected to continue.

The company has several near-term potential catalysts ahead, including seven regulatory decisions this year and six regulatory submissions.

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Abbott Laboratories has a rich history, and one notable event was the spin-off of its pharmaceuticals business to create AbbVie about a decade ago.

Both Abbott Laboratories and AbbVie have been growing their revenue and net income in the triple digits since the spin-off.

Abbott Laboratories and AbbVie have been steadily increasing their dividends year after year, offering shareholders passive income growth.

Abbott Laboratories and AbbVie have both grown revenue and net income significantly, but only one can be chosen as the better growth stock to buy now.

Take a look at this: Abbvie Annual Revenue

Working with a financial professional to map out retirement scenarios can be incredibly empowering, especially when you're dealing with complex situations like the Abbott Laboratories/AbbVie spinoff.

Taking advantage of the Abbott Laboratories/AbbVie retirement benefits can help manage your retirement savings and mitigate taxes. This can give you peace of mind and a sense of control over your financial future.

Knowledge is key to making informed decisions about your retirement, and working with a financial professional can provide you with the insights you need to make the most of your savings.