Baxter International Inc. (NYSE:BAX) to Split into Two Parts

Boston, MA, 03/28/2014  (usastockreports)- Baxter International Inc. (NYSE:BAX) made an announcement that it will be splitting into two companies. One company will be dealing biopharmaceuticals and another one to medical equipments. Both companies will be world leaders in their own areas.

Spilt in two parts

Baxter has planned in such a way that both companies will be profit making, long lasting and independent. Baxter has known for its innovations and this move can this split can be termed as an innovation. Baxter recently acquired Gambro AB, a worldwide leader and provider of dialysis products. Robert L. Parkinson, Jr., chairman and chief executive officer said that Baxter is known for the implementing successful spinoffs. It has done keeping in view the ever changing macro-environment. He further said that it will be beneficial to all the people who are associated with the company.

Key Benefits

Baxter International Inc. (NYSE:BAX) expects that both companies operate in different segment so their need is also different be it investment, risk or growth. The spinoff will give following benefits:

Management will be able focus more in these two businesses.

There will be better commercialization of new and existing products.

More innovation and greater emphasis to areas which shows high potential growth

Flexibility in pursuing planning and strategy envised for these companies.

Business Heads

Ludwig Hantson, President, BioScience will be the head of $6 billion/year annual sales biopharmaceuticals business (name still not decided yet). The company will provide plasma-based therapies for hemophilia, bleeding disorders and various immune disorders. Hanston is very optimistic about this new opening and expects that it will be a premier biopharmaceuticals company.

Robert L. Parkinson, Jr. will be the head of the medical products business, which has a annual sales of more than $9 billion. It mostly provides IV (Intra venious) solutions and many other hospital based products. It will also integrate the recently acquired Gambro AB acquisition and this business will retain the name Baxter International.

Future Outlook:

This split will help Baxter International Inc. (NYSE:BAX) in many ways and there is recent trend of spin off is going on. Earlier Pfizer Inc. (NYSE:PFE), Abott and Bristol-Myers Squibb Co (NYSE:BMY) have followed the same path. In a way it’s good as more centralized focus will be given to the specific field resulting in more profit. Above all in smaller segments even small points will be looked after better than the bigger entity which has more big points to attend.

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