Benzinga -
- Baxter International Inc (NYSE: NYSE:BAX) announced spinning off its Renal Care and Acute Therapies global business unit into an independent, publicly traded company.
- The new kidney care company will benefit from its existing product portfolio, diverse footprint, commercial operations, and service capabilities that support its therapies delivered in the home, clinics, and intensive care unit.
- Related: Baxter Q3 Performance underwhelms Investors, FY22 Guidance Lags Consensus.
- The business will operate in market segments totaling approximately $15 billion, estimated to grow between 3% to 4% on a compound annual basis over the next three years.
- In 2021, sales for these businesses totaled approximately $5 billion globally.
- On a pro forma basis, including Hillrom as if it were owned for the entire year, 2021 annual sales across these businesses (excluding Renal Care and Acute Therapies) were approximately $11 billion. Baxter will continue to be led by CEO Joe Almeida.
- Baxter is pursuing strategic alternatives for the BioPharma Solutions (BPS) business, including a potential sale or other separation options. BPS offers contract manufacturing services to the pharma and biotech industries.
- Baxter expects to complete the proposed spinoff in 12 to 18 months.
- Price Action: BAX shares are down 6.49% at $49.15 on the last check Friday.