Baxter Announces Divestiture of Commercial Vaccines Business to Pfizer
DEERFIELD, Ill. -- July 30, 2014
Baxter International Inc. (NYSE:BAX) today announced that it has entered into
a definitive agreement to sell its two commercially marketed vaccines and
related production facilities to Pfizer Inc. for a total cash consideration of
$635 million, subject to certain adjustments.
The sale includes the company’s commercial vaccines business, which is
comprised of NeisVac-C, a vaccine which helps protect against meningitis
caused by group C meningococcal meningitis (MenC), and FSME-IMMUN, which helps
protect against tick-borne encephalitis (TBE), an infection of the brain
transmitted by the bite of ticks infected with the TBE-virus. Both vaccines
are currently available outside the United States, primarily in a number of
European markets. Baxter continues to explore strategic options, including the
potential for partnering or divesting its R&D development programs focused on
influenza and Lyme disease.
''This action reflects our strategic priority to optimize the portfolio and
enhance focus in specific disease areas as Baxter’s BioScience organization
prepares to become a separate, independent global biopharmaceutical company.
We are redirecting resources and investing in our robust pipeline centered on
core areas of expertise – hematology and immunology – and through technology
platforms like gene therapy and biosimilars,'' said Ludwig Hantson, Ph.D.,
president of Baxter BioScience. ''We are confident that Pfizer, with its
recognized global leadership in vaccines, will provide the dedicated, ongoing
investments necessary to support and advance the availability of these
Subject to regulatory approvals and other customary closing conditions, the
companies expect to close the transaction by the end of 2014. Baxter expects
2014 vaccines revenues to total approximately $300 million and adjusted
earnings of approximately $0.25 per diluted share, including approximately $50
million of one-time milestone payments related to the ongoing government
collaborations for development of influenza vaccines. Baxter expects the
transaction to be modestly dilutive to fourth quarter 2014 adjusted earnings
and dilutive to 2015 adjusted earnings by approximately $0.15 per diluted
About Baxter BioScience
Baxter BioScience, one of the largest biotechnology organizations in the
world, is a leading provider of therapeutic treatments that save, sustain and
improve the lives of people with rare conditions, chronic diseases or limited
treatment options. Supported by advanced technical and manufacturing
expertise, Baxter BioScience has a broad pipeline built on a legacy of
innovation in bleeding disorders and immunology and is expanding to address
emerging opportunities in niche areas of oncology as well as technology
platforms such as biosimilars.
About Baxter International Inc.
Baxter International Inc., through its subsidiaries, develops, manufactures
and markets products that save and sustain the lives of people with
hemophilia, immune disorders, cancer, infectious diseases, kidney disease,
trauma and other chronic and acute medical conditions. As a global,
diversified healthcare company, Baxter applies a unique combination of
expertise in medical devices, pharmaceuticals and biotechnology to create
products that advance patient care worldwide.
This release includes forward-looking statements concerning the divestiture of
Baxter’s vaccines business, including with respect to the closing of the
transaction and its financial impact on the company. The statements are based
on assumptions about many important factors, including the following, which
could cause actual results to differ materially from those in the
forward-looking statements: failure to obtain the necessary approvals and
consents or to satisfy other closing conditions; a material adverse change in
the vaccines business; actions of regulatory bodies and other governmental
authorities; changes in laws and regulations; product quality or patient
safety concerns; and other risks identified in Baxter’s most recent filing on
Form 10-K and other SEC filings, all of which are available on Baxter’s
website. Baxter does not undertake to update its forward-looking statements.
Baxter International Inc.
Deborah Spak, 224-948-5353
Mary Kay Ladone, 224-948-3371
Clare Trachtman, 224-948-3085
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