Abbott Laboratories plans to spin off its pharmaceutical unit in an attempt to command a higher valuation for its remaining businesses.

Under the plans, the company’s proprietary drug unit, responsible for approximately 45% of Abbott’s revenue, will be separated into a new company with publicly traded stock distributed to Abbott shareholders as a tax-fee transaction.

Richard Gonzalez will head the new unit, whereas the rest of Abbott – including diagnostics, devices, nutritional and branded-generic businesses – will retain the Abbott name.

The move comes after Abbott executives became worried that competitive threats for the company’s biggest selling drug, the anti-inflammatory Humira, were overshadowing separate Abbott businesses which were recording strong sales growth.