Baxter Plans To Spin Off Renal Care And Acute Therapies Global Business Units

(RTTNews) - Baxter International Inc. (BAX) said Friday that it plans to spin off the Renal Care and Acute Therapies global business units into an independent, publicly traded company in the next 12-18 months. The company expects to initiate a restructuring plan, including optimization of its manufacturing footprint. The company is exploring strategic alternatives for BioPharma Solutions business. Baxter will continue to be led by chief executive officer Joe Almeida.

The company stated that its board authorized the company to proceed with a plan to spin off the Renal Care and Acute Therapies businesses into an independent, publicly traded company through a distribution to Baxter shareholders of common stock of a newly formed entity holding assets and liabilities comprising the Renal Care and Acute Therapies businesses. Baxter expects to complete the proposed spinoff in 12 to 18 months.

The company expects to initiate a restructuring plan, including optimization of its manufacturing footprint. Baxter plans to provide additional detail on these efforts in the company's fourth-quarter earnings conference call on February 9, 2023.

Baxter noted that it is pursuing strategic alternatives for the BioPharma Solutions business, including a potential sale or other separation options. BioPharma Solutions is a provider of contract manufacturing services to the pharma and biotech industries with an established track record and strong reputation for quality.

The company said it will have the opportunity to expand investments in marketing, sales, and business development, while optimizing its manufacturing network and systems to improve its margin profile and create value.