FOR IMMEDIATE RELEASE - Baxter
FOR IMMEDIATE RELEASE - Baxter
FOR IMMEDIATE RELEASE - Baxter
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<strong>FOR</strong> <strong>IMMEDIATE</strong> <strong>RELEASE</strong><br />
Media Contacts<br />
Erin Gardiner, (847) 948-4210<br />
John O’Malley, (847) 948-3206<br />
Investor Contacts<br />
Mary Kay Ladone, (847) 948-3371<br />
Clare Trachtman, (847) 948-3085<br />
BAXTER ANNOUNCES DIVESTITURE OF U.S. GENERIC INJECTABLES<br />
BUSINESS TO HIKMA PHARMACEUTICALS<br />
DEERFIELD, Ill., October 29, 2010 – <strong>Baxter</strong> International Inc. (NYSE:BAX)<br />
announced today that it has entered into a definitive agreement to divest its U.S.<br />
generic injectables business to Hikma Pharmaceuticals PLC (LSE:HIK). The<br />
consideration for the divestiture arrangement totals approximately $112 million, subject<br />
to closing adjustments. The sale of this business will allow <strong>Baxter</strong> to redirect resources<br />
toward its proprietary, enhanced packaging offerings and formulation technologies,<br />
consistent with the company’s focus on product differentiation. <strong>Baxter</strong> expects to record<br />
an after-tax special charge in the third quarter of approximately $70 million (or $0.12 per<br />
diluted share), principally to write down the assets of the business.<br />
Hikma will acquire <strong>Baxter</strong>’s high-volume, generic injectable products in vials and<br />
ampoules, which are sold primarily in the United States including chronic pain, anti-<br />
infective and anti-emetic products, along with the Cherry Hill, N.J., manufacturing<br />
facility, and Memphis (Southpoint), Tenn., warehouse and distribution center.<br />
Approximately 750 employees who support the business will also transfer as part of the<br />
arrangement.<br />
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BAXTER ANNOUNCES DIVESTITURE OF U.S. GENERIC<br />
INJECTABLES BUSINESS TO HIKMA PHARMACEUTICALS – Page 2<br />
“The divestiture of this business is driven by <strong>Baxter</strong>’s continued focus on<br />
differentiated product offerings derived from the company’s formulation technologies<br />
and enhanced packaging expertise,” said Camille Farhat, general manager of <strong>Baxter</strong>’s<br />
Pharmaceuticals and Technologies business.<br />
<strong>Baxter</strong>’s U.S. “multi-source” generic injectables business will be integrated into<br />
West-Ward Pharmaceuticals Corp., the U.S. agent for, and wholly-owned subsidiary of,<br />
Hikma Pharmaceuticals PLC. Customers can expect continued product supply and<br />
service during the West-Ward transition.<br />
West-Ward has a growing portfolio of generic products in the U.S., including<br />
dozens of products commercially available and under development. Hikma<br />
Pharmaceuticals is a fast-growing multinational group focused on developing,<br />
manufacturing and marketing a broad range of both branded and non-branded generic<br />
and in-licensed products. Subject to regulatory approvals and other conditions, the<br />
companies expect to complete the transaction within the next three months.<br />
<strong>Baxter</strong> purchased the Cherry Hill manufacturing facility in 2002, when it acquired<br />
the business from ESI Lederle, a division of Wyeth. Sales of this business totaled<br />
approximately $170 million in 2009. The company does not expect this transaction to<br />
impact its previously-issued earnings guidance.<br />
About <strong>Baxter</strong><br />
<strong>Baxter</strong> International Inc., through its subsidiaries, develops, manufactures and<br />
markets products that save and sustain the lives of people with hemophilia, immune<br />
disorders, infectious diseases, kidney disease, trauma, and other chronic and acute<br />
medical conditions. As a global, diversified healthcare company, <strong>Baxter</strong> applies a<br />
unique combination of expertise in medical devices, pharmaceuticals and biotechnology<br />
to create products that advance patient care worldwide.<br />
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BAXTER ANNOUNCES DIVESTITURE OF U.S. GENERIC<br />
INJECTABLES BUSINESS TO HIKMA PHARMACEUTICALS – Page 3<br />
This release includes forward-looking statements concerning the divestiture of the<br />
company's U.S. generic injectables business. The statements are based on<br />
assumptions about many important factors, including the following, which could cause<br />
actual results to differ materially from those in the forward-looking statements: actions of<br />
regulatory bodies and other governmental authorities; changes in laws and regulations;<br />
failure to obtain the necessary consents or to satisfy other closing conditions; a material<br />
adverse change in the multi-source business; product quality or patient safety concerns;<br />
and other risks identified in the company's most recent filing on Form 10-K and other<br />
SEC filings, all of which are available on the company's website. The company does not<br />
undertake to update its forward-looking statements.<br />
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