Baxter International plans to create two separate, independent global healthcare companies, with one focused on biopharmaceuticals and the other on medical products.
The two businesses operate in distinct markets with corresponding underlying fundamentals, and each possesses unique growth prospects, investment requirements, and risk profiles. Baxter believes the separation will result in greater management focus on “the distinct businesses of biopharmaceuticals and medical products, and the ability to drive innovation, pursue growth strategies, and more effectively commercialize new and existing product offerings”.
Baxter’s biopharmaceuticals business, with 2013 annual revenues of approximately $6 billion, consists of a portfolio of recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders and plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions.
Its medical products business, with 2013 annual sales of more than $9 billion, offers a portfolio of intravenous (IV) solutions and nutritional therapies, drug delivery systems and administration sets, premixed and other injectable drugs, as well as inhalation anesthetics and hospital-based biosurgery products.
The corporate headquarters of both companies will be located in northern Illinois. Robert L. Parkinson, Jr., will serve as chairman and CEO of the medical products company, which will retain the Baxter International name. Ludwig N. Hantson, PhD, who currently serves as president, BioScience, will be named CEO of the new biopharmaceuticals company, which will be named at a later date.
Wayne T. Hockmeyer, PhD, who joined Baxter’s board in 2007, has agreed to serve as non-executive chairman of the board of the new biopharmaceuticals company. Dr. Hockmeyer founded MedImmune and served as its chairman and CEO. The transaction is expected to be completed by mid-year 2015, subject to market, regulatory, and certain other conditions.
Source: Baxter International