Baxter Joins Spinoff Revolution with Separation of Kidney Units
Baxter International has announced plans to spin off its renal care and acute therapies businesses […]
The Baxter spinoff should be complete in 12 to 18 months, according to Baxter, and will continue with its existing product portfolio. As a standalone company, it will have its own investment priorities and management focus, putting the company in a better position to pursue growth opportunities and investments.
In 2021, the kidney units saw sales totaling approximately $5 billion globally. Additionally, for the nine months ending Sept. 20, 2022, the renal care and acute therapies units reported sales of $2.77 billion and $519 million, respectively. Going forward as a spinoff, “the business will operate in market segments totaling approximately $15 billion that collectively are estimated to grow between 3% to 4% on a compound annual basis over the next three years,” according to Baxter.
Along with the spinoff news, the company reported it is finalizing a new operating model to be implemented in parallel with the business separation. The model includes the initiation of a restructuring plan which will optimize its manufacturing footprint. Baxter plans to provide more information about these efforts in the company’s fourth-quarter earnings conference call on Feb. 9.
“We are at a major inflection point in Baxter’s ongoing transformation journey,” said José E. Almeida, Baxter chairman, president, and CEO. “The healthcare landscape has never been more dynamic. Our learnings over the past year and beyond require a fundamental rethinking of our profile and operating model. These decisive actions are necessary to help deliver future performance and innovation at the levels we demand of ourselves in pursuit of our mission to save and sustain lives.”
Original Article: (https://www.mddionline.com/business/baxter-joins-spinoff-revolution-separation-kidney-units)
