Seeking Alpha

Baxter to split into two; shares soar

  • 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%.
Comments (15)
  • Willow Street Investments
    , contributor
    Comments (829) | Send Message
     
    Bought BAX just 3 months ago at 66. There are still values in this overpriced market if you know where to look.
    27 Mar, 08:11 AM Reply Like
  • PACKER man
    , contributor
    Comments (102) | Send Message
     
    Like you, choiminshik, I bought @ $66.50 on 2/4/14 and am so happy with getting a bonus i.e. two great quality companies for one (effective mid 2015); I note with great joy that today (3/27/2014) BAX is +$8.50 and climbing on the news of this split into two separate quality companies.

     

    On weakness, I shall be adding...what not to like? Great dividend, great management, great business/products which I have noted that every Hospital bed had around each patient; the best companies are those which I have noted provide needed and visible quality products.
    27 Mar, 08:21 AM Reply Like
  • db313706
    , contributor
    Comments (207) | Send Message
     
    Just bought 2 dozen shares on Monday... This makes my day.
    27 Mar, 08:34 AM Reply Like
  • BidAskDividends
    , contributor
    Comments (24) | Send Message
     
    Be interesting to see if/how the dividend arrangement changes. Anyone find any information regarding that?
    27 Mar, 09:01 AM Reply Like
  • scubastevo80
    , contributor
    Comments (203) | Send Message
     
    Was waiting for another dip to pickup this company at a 3% yield. I missed out and will continue to watch...
    27 Mar, 09:15 AM Reply Like
  • maybenot
    , contributor
    Comments (3378) | Send Message
     
    Gawd it's good to be lucky.

     

    Bought BAX awhile back in the mid-60's. Just for it's growth & divvy.

     

    Now this. It's good to be lucky.
    27 Mar, 09:34 AM Reply Like
  • tomlos
    , contributor
    Comments (1099) | Send Message
     
    I've been looking at BAX for a while, but never pulled the trigger unfortunately. This will be another great story like ABT\ABBV was. This is more of a reason to pick up BAX now.
    27 Mar, 10:05 AM Reply Like
  • maybenot
    , contributor
    Comments (3378) | Send Message
     
    tomlos -- ABT/ABBV comparison? -- ye gods! that would be nice if BAX was similar.

     

    We shall see.
    27 Mar, 02:19 PM Reply Like
  • tomlos
    , contributor
    Comments (1099) | Send Message
     
    I'm not saying 100% on the spot, but roughly same idea.. We will see if the two companies perform in the same way. I think BAX has a bright future and will probably look for a good entry point before the split.
    27 Mar, 03:52 PM Reply Like
  • maybenot
    , contributor
    Comments (3378) | Send Message
     
    tomlos -- yeah, didn't figure you were. But thanks for bringing up the comparison. Nice to compare to, even though different.
    28 Mar, 12:13 AM Reply Like
  • Investing Doc
    , contributor
    Comments (301) | Send Message
     
    BAX was my second largest holding, right after BRK.B. Thrilled about the bounce, not so thrilled about not being able to add more at a good price, unsure what this means for the company going forward.
    27 Mar, 10:14 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    It is a bit of a shame. BAX is such a good stock and company as is. I hope the management of both will be equally as good.
    27 Mar, 12:06 PM Reply Like
  • Manifest
    , contributor
    Comments (14) | Send Message
     
    Question for Baxter management: Why?
    28 Mar, 11:07 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (829) | Send Message
     
    Question for you: Why not?
    28 Mar, 11:15 AM Reply Like
  • Manifest
    , contributor
    Comments (14) | Send Message
     
    I asked them first. :)
    29 Mar, 09:14 AM Reply Like
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