360° Coverage : Baxter CEO Says Complex Markets Prompted Split In Two

2 Updates

Baxter CEO Says Complex Markets Prompted Split In Two

Mar 27 2014, 10:18am CDT | by

As the global market for medical products and biopharmaceuticals has become more complex, Baxter International (BAX) said this morning it will split its businesses in two to more effectively compete...

Filed under: news

 
 
 

26 weeks ago

Baxter CEO Says Complex Markets Prompted Split In Two

Mar 27 2014, 10:18am CDT | by

As the global market for medical products and biopharmaceuticals has become more complex, Baxter International (BAX) said this morning it will split its businesses in two to more effectively compete in both fast-growing areas.

The drug and medical product giant, known for its intravenous solutions and medication delivery devices in one half of the company has also had some hits on the drug side such as the blockbuster hemophilia treatment Advate.

“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.

Parkinson, who will lead the medical products business that will retain the Baxter name and its $9 billion in annual sales, told Wall Street analysts and investors on an 80-minute conference call this morning that the companies will be more nimble on their own, developing new products faster from quicker decision-making and more focus.

“The value of the spinoff will only increase over time,” Parkinson told analysts.

The biopharmaceutical business, which generates more than $6 billion in annual sales, will be led by current Baxter bioscience president Ludwig Hantson.  The biopharmaceutical business will take on a new name that has yet to be decided but will remain in the northern Illinois suburbs near Deerfield-based Baxter.

“We are confident that this decision not only strengthens our outlook, it positions us well to execute on our future growth prospects,” Hanston said.

The Baxter move is somewhat similar to that of Abbott Laboratories (ABT), which spun off its drug business into AbbVie (ABBV) a couple of years ago. Abbott even earlier spun off its hospital products business, Hospira (HSP) into a separate company. The Abbott spinoffs have largely won over investors and shareholders with revenue growth.

In Baxter’s case, Parkinson acknowledged he spinoff could reduce the clout the current company has when leveraging its diverse mix of products in selling products to customers and governments around the world.

But he said the medical products and biopharmaceutical products have become more complex and therefore each business needed more attention. Baxter, he said, is more than just a drug business with Advate and plasma products but has grown in the areas of oncology and hematology as well as biosimilars, which are a quickly growing form of cheaper copies to some of today’s blockbuster biotech drugs.

On the medical product side, Parkinson said Baxter will be able to focus more research attention to outpatient dialysis devices which move patients out of dialysis centers where they sometimes have to go three times a week and wait several hours.

Baxter, for example, is working on developing “nocturnal dialysis,” which allows patients to have the therapy at home in the evenings. “That’s a long journey,” Parkinson said of the device’s development.

Source: Forbes Business

 
Update
2

4 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of M ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Unique 'signature' found in ageing brain
London, Sep 30 (IANS) In a discovery that may lead to treatments that can slow or reverse cognitive decline in the elderly, researchers have found evidence of a unique "signature" in the ageing brain.
 
 
Why drinking makes a smile more contagious among men
New York, Sep 30 (IANS) Alcohol induces a sort of "social bravery" among men, disrupting processes that would normally prevent them from responding to another person's smile, says an interesting study.
 
 
Sleep twitches connected to brain development in babies
Sleep twitches activate circuits throughout the developing brain, says the study, suggesting that twitches teach newborns about their limbs and what they can do with them.
 
 
Fiber optic sensors to improve landslide prediction
London, Sep 30 (IANS) Detecting and monitoring both large landslides and slow slope movements could be a lot easier and cheaper with optical fiber sensors, says a study.
 
 
 

Latest from the Network

Venezuela swaps guns for education
Caracas, Sep 30 (IANS/EFE) The Venezuelan government has initiated a voluntary arms exchange programme under which its citizens can surrender their firearms in return for work tools or a scholarship. The plan, which...
Read more on Politics Balla
 
Amanda Bynes arrested for DUI
Los Angeles, Sep 30 (IANS) Actress Amanda Bynes was arrested for driving under the influence (DUI) here, but was released on bail later. The 28-year-old star, who came out of a rehabilitation clinic late last year,...
Read more on Celebrity Balla
 
Asian Games: Indian men face Pakistan in hockey final
Incheon, Sep 30 (IANS) Two-time champions India will be facing arch-rivals and defending champions Pakistan in the mouthwatering title-clash of the Asian Games men's hockey final slated for Thursday. While India edged...
Read more on Sport Balla
 
Afghanistan, NATO sign agreement
Kabul, Sep 30 (IANS) The Afghanistan government and the North Atlantic Treaty Organization (NATO) Tuesday signed the Status of Forces Agreement (SOFA) here. Afghan Presidential Advisor on National Security Mohammad...
Read more on Politics Balla
 
Afghanistan, US sign Bilateral Security Agreement
Kabul, Sep 30 (IANS) Afghanistan and the US Tuesday signed the long-awaited Bilateral Security Agreement (BSA) to allow a limited number of troops to remain in Afghanistan after the drawdown later this year of the NATO...
Read more on Politics Balla
 
Spain's Constitutional Court freezes Catalonian referendum plans
Madrid, Sep 30 (IANS/EFE) Spain's Constitutional Court has suspended the referendum on Catalonian independence set for Nov 9 while justices study arguments from the Spanish government, which strongly opposes the poll,...
Read more on Politics Balla
 
Asiad: Indian women's handball team ends 8th
Incheon, Sep 30 (IANS) The Indian women's handball team ended eighth at the Asian Games after losing their 7th-8th position playoff against Thailand 30-31 in a thrilling penalty shoot-out at the Seonhak Handball...
Read more on Sport Balla
 
Gowda wins Asiad discus throw silver
Incheon, Sep 30 (IANS) Vikas Gowda won India's ninth medal from athletics at the 17th Asian Games claiming the silver in men's discus throw final at the Incheon Asiad Main Stadium here Tuesday. Gowda, who won the...
Read more on Sport Balla
 
Asiad kabaddi: Indian men beat Pakistan to enter semis
Incheon, Sep 30 (IANS) The Indian men's kabaddi team brushed aside arch-rivals Pakistan 23-11 to top Group A and entered the semi-finals of the event at the 17th Asian Games here Tuesday. The Rakesh Kumar-led Indian...
Read more on Sport Balla
 
Asian Games: Indian women win bronze in sailing
Incheon, Sep 30 (IANS) The Indian pair of Varsha Gautham and Aishwarya Nedunchezhiyan finished second in the 12th and the final race to claim the bronze medal in the 29er - women's two person dinghy - at the 17th Asian...
Read more on Sport Balla