A separate path to success  Spinoffs such as the one planned by
Abbott can be the right prescription for improving the well-
being of maturing segments of the health-care industry  August
27, 2003|By Bruce Japsen, Tribune staff reporter.  Abbott
Laboratories' plan to boost profits by spinning off a low-margin
division is actually an old remedy that large drug and medical
product companies have used to nurse maturing businesses.  When
North Chicago-based Abbott announced its plan Friday to separate
from most of its hospital products business, early reports
characterized it as a response to Wall Street pressure to
protect high-margin ventures that develop blockbuster drugs and
lucrative medical devices.  But the move likely also will
benefit the new medical products company as much Abbott itself.
When giant drug and medical product-makers have spun off
underperforming businesses in the past, shareholders have been
winners, and the new companies have done well as independents.
In some cases, the new companies d