Baxter aims to benefit from the stand-alone companies in the areas of management focus, more effective commercialization of new and existing products, driving innovation across the franchises, and pursuing growth and investment strategies.
The 2013 biopharmaceuticals business revenue was approximately $6 billion, which 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.
The medical products business had annual sales of more than $9 billion in 2013, with 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, as well as a portfolio of products and services to treat end-stage renal disease, which was recently expanded with the Gambro acquisition.
The corporate headquarters for both companies will be located in northern IL. Robert L. Parkinson, Jr., will serve as chairman and chief executive officer of the medical products company, which will retain the Baxter International name, and Ludwig N. Hantson, Ph.D., who currently serves as president, BioScience, will be named chief executive officer of the new biopharmaceuticals company, which will be named at a later date.
''Baxter has an established history of executing successful spinoffs, and we have continued to evaluate the separation of these two businesses in response to diverging business dynamics and the rapidly changing macro-environment,'' said Robert L. Parkinson, Jr., chairman and chief executive officer. ''This decision underscores Baxter’s commitment to ensuring its long-term strategic priorities remain aligned with shareholders’ best interests, while improving our competitive position and performance, enhancing operational, commercial and scientific effectiveness and creating value for patients, healthcare providers, and other key stakeholders.''