Summary
Abbott Laboratories (ABT) filed an 8-K on January 24, 2017, to report on the significant acquisition of St. Jude Medical, Inc., which closed on January 4, 2017. This acquisition substantially reshapes Abbott's cardiovascular and neuromodulation (ACN) business segment. Starting in the first quarter of 2017, the ACN segment will be reported across three new, detailed product categories: Rhythm Management and Heart Failure, Cardiovascular and Structural Heart, and Neuromodulation. The filing also notes that comparable revenue for the first nine months of 2016 across these new categories is available in Exhibit 99.1. Investors should pay close attention to how these new reporting segments perform as they integrate the St. Jude Medical products and operations.
Key Highlights
- 1Abbott Laboratories completed the acquisition of St. Jude Medical, Inc. on January 4, 2017.
- 2The St. Jude Medical acquisition significantly expands Abbott's cardiovascular and neuromodulation (ACN) business.
- 3Starting Q1 2017, the ACN business will be reported in three new categories: Rhythm Management and Heart Failure, Cardiovascular and Structural Heart, and Neuromodulation.
- 4The filing provides context for how St. Jude's product lines will be integrated into these new reporting segments.
- 5Exhibit 99.1 contains comparable revenue data for the first nine months of 2016, broken down by the new product categories.
- 6This report serves to inform investors of the post-acquisition reporting structure and the financial data related to this integration.