Updates: More comments from our experts came in over the weekend—they discuss an increased focus, how the investment market drove the decision, and also ask key questions about combination devices and how Abbott will divvy its talent.
Abbott's decision to split up is purely financial (increase shareholders value), of course that is part of doing business. Moreover, there diversified medical products focus is emerging markets vs Pharmaceuticals Research unit is more for developed nations. The two units have different focus, and both are huge to sustain by themselves, so it makes good business sense to split the two so that they both can flourish in the desired environment.
I think this is investor driven. What I mean is that investors place a different market value on device firms (which bear a 3.8% ...