The announcement came as the division reported mixed results for the first nine months of 2026, despite stronger sales in the third quarter.
The separation is expected to be completed by the end of 2027. The new company will include nutrition brands such as Ensure, PediaSure, Pedialyte, Glucerna and Similac.
Abbott’s third-quarter earnings report showed worldwide nutrition sales increased 5.1% on a reported basis to $2.26 billion. However, sales for the first nine months of 2026 were down 1.3% compared with the same period last year.
“Our Nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities,” said Robert B. Ford, chairman and CEO of Abbott.
Nutrition sales improve in third quarter
Worldwide nutrition sales increased 4.9% when currency fluctuations were excluded in the third quarter, compared with a 2.1% decline for the first nine months of the year on the same basis.
Growth was driven by performance across the portfolio, particularly pediatric nutrition, where sales rose 8.8% to $1.06 billion. Adult nutrition sales increased 2% to $1.2 billion.
In the U.S., nutrition sales rose 7.9% during the quarter, compared with 3.1% internationally. However, U.S. sales remained down 4.5% for the first nine months of 2026.
Abbott also launched 10 nutrition products in the first half of the year, including an Ensure shake containing 42 g of protein, a ready-to-feed Similac infant formula made with whole milk and dye-free Pedialyte products.
Plans for an independent nutrition company
During Abbott’s third-quarter earnings call, Ford explained how the nutrition market had changed, with consumers increasingly influencing purchasing decisions rather than healthcare professionals.
“What was once predominantly viewed as a healthcare market, almost exclusively shaped by healthcare professionals, has increasingly become a market shaped by changing consumer preferences, wellness trends, and retail execution,” he said.
Ford also discussed the investment the nutrition business would need to make as an independent company, including in sales and marketing and potentially smaller acquisitions.
“We just came to the conclusion that this was too exciting of an opportunity, and we just believe that all the things that they would need to do, they’d probably be able to do it faster and more efficiently and effectively as an independent company,” he said.
According to Abbott’s announcement, the new nutrition company will have approximately 16,000 employees and 14 manufacturing sites, and Daniel Salvadori, currently executive vice president and group president of Established Pharmaceuticals and Nutritional Products at Abbott, will serve as chief executive officer.
Following the separation, Abbott expects its remaining medical devices, diagnostics and established pharmaceuticals businesses to generate approximately $42 billion in annual sales.
