Baxter International Inc. (NYSE:BAX) announced today a definitive
agreement with Edwards Lifesciences Corporation (NYSE:EW) under which
Baxter will acquire certain assets related to Edwards’ hemofiltration
product line, also known as Continuous Renal Replacement Therapy (CRRT).
The transaction is expected to close in the third quarter of 2009,
pending regulatory approvals.
Under the terms of the agreement, Baxter will provide Edwards an initial
cash payment of approximately $56 million upon the close of the
transaction. Additionally, Baxter will receive transition services from
Edwards and is expected to pay Edwards up to an additional $9 million
based on revenue objectives expected to be achieved over the next two
years. The impact of this transaction is immaterial to Baxter’s
financial results for 2009.
Hemofiltration, or CRRT, mimics the function of the kidneys 24 hours a
day for patients with life-threatening kidney injuries or edema (fluid
overload). CRRT provides a method of continuous yet adjustable fluid
removal that can gradually remove excess fluid and waste products that
build up with the acute impairment of kidney function, and is usually
administered in an intensive care setting in the hospital. Baxter
currently supplies solutions used in CRRT treatment globally, and is the
exclusive distributor of Edwards’ product in China, Latin America and
the United States. Approximately 60 employees will be joining Baxter
from Edwards as part of this transaction.
“As an experienced leader in dialysis therapies including CRRT, this
acquisition represents an extension of our existing Renal business, and
demonstrates our commitment to save and sustain the lives of patients
with acute kidney injuries,” said Bruce McGillivray, corporate vice
president and president of Baxter’s Renal business. “This acquisition
expands Baxter’s existing CRRT business, which is predominantly in the
United States and China, into new markets such as Europe and Australia.”
Baxter International Inc., through its subsidiaries, develops,
manufactures and markets products that save and sustain the lives of
people with hemophilia, immune disorders, 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 Baxter's
acquisition of Edwards' CRRT business. 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: timely receipt of required approvals,
including those of relevant governmental authorities; the absence of
certain material changes in the business; and other risks identified in
the company’s most recent filing on Form 10-Q and other SEC filings, all
of which are available on Baxter’s website. The company does not
undertake to update the forward-looking statements.
Baxter International Inc.
Media Contacts:
Jaclyn
Mitchell, (847) 948-3377
Deborah Spak, (847) 948-2349
or
Investor
Contacts:
Mary Kay Ladone, (847) 948-3371
Clare Trachtman,
(847) 948-3085
