Sam Brusco, Associate Editor01.09.23
Baxter has announced plans to spin off its renal care and acute therapies businesses into an independent, publicly traded company as part of strategic operational changes.
The company will also review strategic alternatives for its BioPharma Solutions business.
“We are at a major inflection point in Baxter’s ongoing transformation journey,” José (Joe) E. Almeida, Baxter’s chairman, president, and CEO told the press. “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.”
Almeida continued, “We are confident that the strategic actions we are announcing today will help ensure that each of these entities, and the incredibly strong and dedicated group of colleagues that comprise them, are on the best possible trajectory moving forward. Realizing the full impact of these decisions will take time, but we believe they are essential to enhance our focus, fuel our innovative spirit, and, most crucially, deliver optimal results for the patients, clinicians, shareholders, and other stakeholder communities that depend on us.”
The new kidney care business leverages Baxter’s nearly 70-year legacy as a pioneer of kidney disease strategies. It serves over a million patients annually in more than 70 countries. As a standalone entity, according to Baxter, with its own investment priorities and enhanced management focus, the new kidney care company will be better positioned to pursue growth and invest in innovation.
The business will play in market segments totaling about $15 billion and are estimated to grow 3-4% annually over the next three years. In 2021 sales for the businesses totaled about $5 billion.
The company will pursue a new operating model for its remaining businesses—after the spinoff and model redesign, the company aims to emerge as a stronger hospital solutions and connected care company.
Baxter expects to complete the proposed spinoff in 12-18 months.
The company will also review strategic alternatives for its BioPharma Solutions business.
“We are at a major inflection point in Baxter’s ongoing transformation journey,” José (Joe) E. Almeida, Baxter’s chairman, president, and CEO told the press. “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.”
Almeida continued, “We are confident that the strategic actions we are announcing today will help ensure that each of these entities, and the incredibly strong and dedicated group of colleagues that comprise them, are on the best possible trajectory moving forward. Realizing the full impact of these decisions will take time, but we believe they are essential to enhance our focus, fuel our innovative spirit, and, most crucially, deliver optimal results for the patients, clinicians, shareholders, and other stakeholder communities that depend on us.”
The new kidney care business leverages Baxter’s nearly 70-year legacy as a pioneer of kidney disease strategies. It serves over a million patients annually in more than 70 countries. As a standalone entity, according to Baxter, with its own investment priorities and enhanced management focus, the new kidney care company will be better positioned to pursue growth and invest in innovation.
The business will play in market segments totaling about $15 billion and are estimated to grow 3-4% annually over the next three years. In 2021 sales for the businesses totaled about $5 billion.
The company will pursue a new operating model for its remaining businesses—after the spinoff and model redesign, the company aims to emerge as a stronger hospital solutions and connected care company.
Baxter expects to complete the proposed spinoff in 12-18 months.
