Baxter International Inc. has announced that the medical company will be splitting itself into two separate businesses.
The medical supply company located in Deerfield, Illinois sells products to help treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.
Why Is Baxter Splitting?
The company is splitting so one side can focus on biopharmaceuticals and the other on producing medical products. Both businesses will still be headquartered in northern Illinois.
The separation is expected to be complete by mid-2015. It still needs approval from Baxter’s board.
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 of the BioSciences, will become CEO of the new biopharmaceuticals company. Baxter director Wayne T. Hockmeyer will serve as non-executive chairman of the business.
Baxter’s BioScience business produces recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders, plasma-based therapies to treat immune system deficiencies, blood-related conditions, products for regenerative medicine, and vaccines.
The medical products business produces intravenous solutions and other products used in the delivery of fluids and drugs to patients, inhalation anesthetics, and products to treat irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis.
Why Is Baxter Splitting? Medical Company Separating Itself Into 2 Businesses.
The Associated Press contributed to this story.