Abbott sets out AbbVie stall for shareholders
pharmafile | June 12, 2012 | News story | Manufacturing and Production |Â Â AbbVie, Abbott, CRO, Taylor, manufacturingÂ
Abbott Laboratories has issued the prospectus for its planned separation of its pharmaceutical operations into a standalone company called AbbVie later this year, noting this will include a contract manufacturing arm that will benefit from near-term supply revenue with Abbott.
The filing with the Securities & Exchange Commission notes that AbbVie had pro forma pharma sales of around $17.4 billion in 2011, an increase of 11.6% over 2010, with net earnings of $3.4 billion which were down nearly 18% year-on-year.
The group’s total revenues in 2011 were $38.9 billion, with the balance of more than $21 billion coming from the diagnostics, medical devices and nutritionals business that will retain the Abbott name after the spin-out.
“Both companies will have everything needed to be leaders in their respective industries on day one of independent operation,” said Abbott chief executive Miles White in a letter to shareholders accompanying the filing.
From a manufacturing perspective, Abbott underwent a major restructuring of its facilities in 2011 and AbbVie will start operations with five principal plants in North America and four main locations overseas.
The North American plants include two in Illinois, two in Puerto Rico and one in Massachusetts, accompanied by two units in Ireland and one apiece in Germany and Italy, according to the filing.
The size of the contract manufacturing operations is not broken out in the prospectus, although a report on Outsourcing-Pharma estimates it could make around $420 million a year.
AbbVie’s contract manufacturing business will sign “one or more manufacturing and supply agreements with Abbott” as part of the separation process, and will ‘manufacture, label and package’ products for its sibling.
The manufacturing and supply agreements will have a term of up to five years, and payments will be determined on ‘an arm’s length basis’, according to the filing.
Meanwhile, the full management team for AbbVie has also been disclosed. The appointment of Richard Gonzalez as chief executive had previously been announced, and other positions will be filled by familiar faces from Abbott.
Abbott’s head of licensing, William Chase, has been named chief financial officer, while Abbott general counsel Laura Schumacher takes on the same role at AbbVie. Likewise, Abbott’s pharma R&D chief John Leonard becomes senior vice president for R&D at AbbVie, and Carlos Alban moves to the equivalent commercial operations role at the new firm.
Phil Taylor
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