Baxter splitting into 2 separate businesses
DEERFIELD – Baxter International Inc. is splitting itself into two separate businesses – one focusing on biopharmaceuticals and the other on other medical products.
The split mirrors one made last year by Abbott Laboratories, which spun off its branded drug business into the new company AbbVie. Abbott’s remaining business model is built around nutritional formula, generic drugs, medical implants and diagnostics.
Baxter’s biopharmaceuticals business includes treatments for hemophilia and other bleeding disorders and blood plasma therapies used to treat immune deficiencies and other problems. It had 2013 revenue of about $6 billion. The business will receive a name at a later date.
Ludwig N. Hantson, currently president, BioScience, will become CEO of the new biopharmaceuticals company. Baxter director Wayne T. Hockmeyer will serve as nonexecutive chairman of the business.
The medical products business includes a portfolio of intravenous solutions and nutritional therapies, drug delivery systems, anesthetics and surgery products. It had 2013 revenue of more than $9 billion. This business will keep the Baxter International name and include the $2.76 billion acquisition of kidney dialysis product maker Gambro AB.
Robert L. Parkinson, Jr. – chairman and CEO of Baxter International – will serve as chairman and CEO of the medical products company.
Both businesses will be headquartered in northern Illinois.
The separation is expected to be complete by mid-2015. It still needs approval from Baxter’s board.
Investors were pleased. Baxter’s stock closed Thursday at $72.80, up $2.72 or 3.88 percent.