Baxter Brings JV In-House

Baxter International (BAX) will take its Shanghai Baxter JV completely in-house by buying the 40% stake in the JV that had been owned by Worldbest Treeful Pharmaceutical. Worldbest is in financial trouble, and the Bank of China ordered the JV stake to be put up for auction.

Shanghai Baxter JV is primarily known for its IV business. At the outset of the JV, Worldbest Treeful invested $4.8 million for a 40% participation in the venture. Baxter paid 180 million RMB, about $24.3 million, to acquire the position.

Beijing Double-Crane Pharmaceutical also participated in the auction, though it was out-bid by Baxter. The company was interested in the JV’s infusion business.

Disclosure: none.