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Baxter to split

March 28, 2014 12:50 AM UTC

Baxter International Inc. (NYSE:BAX) said it will split its medical products and biopharmaceuticals businesses into two public companies. The pharma said the businesses operate in distinct markets and have different "growth prospects, investment requirements and risk profiles." Baxter shareholders will receive a tax free distribution of stock in the new pharma at a to-be-determined ratio. The split is expected to be completed by mid-2015.

The biopharmaceuticals business, which will be named later, will house Baxter's recombinant and plasma-based proteins to treat hemophilia, immune deficiencies, alpha 1-antitrypsin ( AAT; A1AT; SERPINA1) deficiency, burns, shock and other chronic and acute blood-related conditions, including myelofibrosis. The newco also will house Baxter's biosimilar pipeline; the pharma is separately partnered with Momenta Pharmaceuticals Inc. (NASDAQ:MNTA) and Coherus BioSciences Inc. (Redwood City, Calif.) to develop biosimilars. The biopharmaceuticals business had 2013 revenues of $5.8 billion. Ludwig Hantson, corporate VP and president of Baxter's BioScience business, will be CEO. Wayne Hockmeyer, a Baxter director, will be chairman. ...