Baxter International (BAX) is splitting into two companies, with one focused on biopharmaceuticals and the other on medical products.
Baxter will make a tax-free distribution of shares in the biopharmaceuticals business to its shareholders. The company expects to complete the transaction by mid-2015.
The biopharmaceuticals business generated 2013 annual revenues of $6B and develops treatments for hemophilia and other bleeding disorders, immune deficiencies, burns and shock.
The medical-products business earned annual sales of over $9B and provides intravenous (IV) solutions and nutritional therapies, drug-delivery systems and administration sets, and premixed and other injectable drugs, as well as inhalation anesthetics and hospital-based biosurgery products.
Baxter CEO Robert Parkinson will head the medical-products company, which will retain the Baxter International name.
Ludwig Hantson, who is president of BioScience, will run the biopharmaceuticals firm. (PR)
Shares are +12.5%.