Abbott Spinning Off Nutrition Business After Formula Crisis, Shortages -- WSJ

By Peter Loftus

Abbott Laboratories said it is spinning off its nutrition business, a division that has been dogged by a baby-formula contamination crisis, shortages and lawsuits in recent years.

Abbott will issue shares to its existing investors for an independent company that will house its Similac baby formula and Pedialyte drinks brands, among other things, and have about $8.5 billion in annual sales.

The nutrition business has had slower growth and lower profit margins than other parts of Abbott's business, analysts said. It has grappled with federal scrutiny and product-liability litigation over the safety of certain infant formula products. Abbott has defended the safety of the products. Abbott didn't make clear Wednesday whether the litigation liability will stay with Abbott or move to the new company.

Abbott also reported third-quarter results that showed signs of sales softness in some businesses including heart and diabetes products that could moderate the outlook for 2027, analysts said. The company's shares were down about 4% Wednesday.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 21, 2026 11:22 ET (15:22 GMT)