Baxter Cites Macro Demands in Planned Split

Baxter Thursday announced strategic plans to split the company into two new independent global healthcare businesses — one dedicated to developing innovative biopharmaceuticals and the other, medical products.

CEO Robert L. Parkinson, Jr., attributed the decision to “diverging business dynamics and the rapidly changing macro-environment.”

The biopharmaceuticals business will consist of a diverse portfolio of recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders, as well as plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency and other chronic and acute blood-related conditions. The pharma business will be helmed by Ludwig Hantson, currently president of Baxter’s BioScience unit. The name of the new company has not been decided, Baxter said.

The other venture will be headed by Parkinson and retain the Baxter International name. It will focus on a broad portfolio of intravenous solutions, drug delivery systems, and premixed and other injectable drugs, as well as inhalation anesthetics and hospital-based biosurgery products. The devices business will include dialysis product company Gambro AB, which Baxter acquired for $3.9 billion last year.

Both corporate headquarters will be based in northern Illinois. The transaction is expected to be complete by mid-2015. — Nick Otto

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