Abbott directors approve forthcoming AbbVie separation

Abbott has announced that its board of directors have officially approved the company's forthcoming separation into two distinct business units.

The board has ratified the splitting of the company's research-based pharmaceuticals business into a separate organisation called AbbVie, while declaring a special dividend distribution of all of the outstanding shares of AbbVie common stock.

For every common share of Abbott owned, shareholders will receive one share of AbbVie common stock, with the distribution set to be paid out on January 1st 2013.

AbbVie common stock is expected to begin trading the day after this, while the Abbott brand name will continue to be applied to the organisation's ongoing diagnostics, medical devices, nutritionals and branded generics operations.

Miles White, chairman and chief executive officer at Abbott, said: "Today's announcement marks another important milestone toward the completion of our business separation. Abbott and AbbVie are well-positioned to begin 2013 as leaders in their respective markets."

Richard Gonzalez has already been named as the new head of AbbVie, while Mr White will continue as the leader of Abbott.