The company is known for its drugs for hemophilia and other blood diseases. Baxter said the split will form one company focused on the development and commercialization of biopharmaceuticals and another on life saving medical products and drugs.
Robert L. Parkinson, Jr., chairman and chief executive officer, said, “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. 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.”
The biopharmaceutical business will aim primarily at improving diagnosis, treatment, and standards of care across a range of bleeding disorders and chronic diseases. The medical products business will focus on strengthening its position through geographic expansion and increased market penetration. Both companies will be headquartered in Illinois.
Ludwig N. Hantson, Ph.D., president of BioScience, said, “Today's news represents a significant milestone that will result in material benefits for key stakeholders. We are confident that this decision not only strengthens our outlook, it positions us well to execute on our future growth prospects, new product pipeline and other opportunities as we enter a new era in the journey to achieve our aspiration as a premier biopharmaceuticals company.”
The transaction is expected to be completed by mid 2015 subject to regulatory, market, and certain other conditions. The biopharmaceutical firm will be led by Ludwig Hantson, currently president of Baxter’s BioScience unit while current CEO Robert L. Parkinson, Jr. will head the medical devices business.