Baxter to split into two companies, spin off biotech
Healthcare company Baxter International said on Thursday it would separate into two companies, one that focuses on biotechnology and the other devoted to medical equipment.
The Deerfield company said its biotech business had 2013 revenue of $6 billion while medical products and equipment sales were $9 billion.
Ludwig Hantson, president of its BioScience group, will head the new biopharmaceuticals company. That company will be named at a later date.
Baxter said the headquarters of both companies will remain in northern Illinois.The deal is expected to be completed by the middle of next year, depending on regulatory and other approvals, including the final OK from Baxter's board of directors.Baxter said it will take charges related to the split but that the separation won't otherwise impact its financial guidance this year.
Baxter shares jumped more than 10 percent in premarket trading.
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