8-KOther Events

ABBOTT LABORATORIES 8-K Report (Apr 6, 2004)

Filed April 6, 2004For Securities:ABT

Summary

This 8-K filing from Abbott Laboratories, dated April 6, 2004, announces a change in its business segment reporting, effective January 1, 2004. These adjustments are primarily driven by shifts in reporting responsibilities for certain products previously under U.S. Hospital Products Sales, anticipating a future spin-off of a significant portion of this business into a new entity, Hospira. The reclassifications aim to better reflect the operational structure and will impact how sales are reported across U.S. Pharmaceutical Sales, U.S. Hospital Products Sales, and a new 'Other Sales' category which will include Abbott Vascular Devices and Spinal Concepts. Investors should note that while the total sales remain consistent, the allocation across segments is changing. Notably, proprietary hospital pharmaceuticals and vitamin D therapy are moving to U.S. Pharmaceutical Sales, while vascular and spinal device businesses are shifting to 'Other Sales.' This restructuring is a precursor to the anticipated spin-off of Hospira, which will house the major operating component of the former U.S. Hospital Products Sales. The company intends to provide a final segment reporting structure update via a future 8-K filing post-spin-off.

Key Highlights

  • 1Abbott Laboratories is adjusting its business segment reporting effective January 1, 2004.
  • 2The reclassification is primarily due to shifts in reporting responsibilities for certain products within U.S. Hospital Products Sales.
  • 3Key product reclassifications include proprietary hospital pharmaceuticals and vitamin D therapy moving from U.S. Hospital Products Sales to U.S. Pharmaceutical Sales.
  • 4Abbott Vascular Devices and Spinal Concepts, previously in U.S. Hospital Products Sales, will now be reported under 'Other Sales'.
  • 5These changes are in anticipation of a spin-off of a significant portion of the U.S. Hospital Products Sales business into a new entity, Hospira.
  • 6The International Division's hospital business is not impacted by these segment reclassifications prior to the expected spin-off.
  • 7Abbott will provide a final update on its segment reporting structure in a future 8-K filing after the Hospira spin-off is complete.

Frequently Asked Questions

The primary reason for the updated segment reporting is to reflect shifts in reporting responsibilities for certain products previously under U.S. Hospital Products Sales. This is also in preparation for the anticipated spin-off of a significant portion of the U.S. Hospital Products business into a new company called Hospira.

Proprietary hospital pharmaceuticals (like Ultane® and Zemplar®) and vitamin D therapy products are being moved from U.S. Hospital Products Sales to U.S. Pharmaceutical Sales. Abbott Vascular Devices and Spinal Concepts are being moved from U.S. Hospital Products Sales to 'Other Sales'.

The U.S. Hospital Products Sales segment will now primarily represent the domestic core hospital businesses that are expected to be spun off to Hospira. Other businesses previously within this segment have been reclassified as noted.

This 8-K filing provides historical segment sales data for 2003 reflecting the reclassifications. Abbott states that it will include these reclassifications in an 8-K that will reflect the company's final segment reporting structure after the Hospira spin-off is completed.