Baxter Completes Acquisition of Claris Injectables, Expanding Generic Injectable Medicines Portfolio
July 27 2017 - 7:00AM
Business Wire
- Increases Patient Access to
Medicines
- Provides Platform for Accelerated
Growth
- Expected to be Modestly Accretive to
Adjusted Earnings for 2017
Baxter International Inc. (NYSE: BAX), a global medical products
company, today announced the completion of the acquisition of
Claris Injectables Limited, a global generic injectables
pharmaceutical company. The transaction broadens Baxter’s presence
in the generic pharmaceuticals space and will help boost the supply
of essential medicines to Baxter customers.
“This acquisition reinforces our commitment to establishing
Baxter as a global leader in generic injectable medicines,” said
José (Joe) E. Almeida, chairman and chief executive officer,
Baxter. “The combination of Baxter and Claris Injectables will
allow us to increase access to lower-cost generic injectables and
strengthen our ability to meet the needs of healthcare providers
and patients around the world.”
With this acquisition, Baxter gains access to the complete
Claris Injectables product portfolio and pipeline as well as three
manufacturing plants. These facilities feature state-of-the-art
technology and are registered with global regulatory agencies,
including one plant registered with the U.S. Food and Drug
Administration. Baxter plans to invest in further increasing Claris
Injectables’ capacity and capabilities, including adding new
aseptic manufacturing and lyophilization; new technology platforms
in areas like cytotoxics, aseptic development and complex
formulations; and an expanded research and development footprint to
accelerate and increase pipeline output and portfolio breadth.
The expanded capabilities and facilities gained in the
acquisition will provide a foundational growth platform for Baxter
to help accelerate the number of products it launches in both the
near- and long-term. The acquisition is anticipated to add more
than 50 products to Baxter’s portfolio in 2017, almost 20 new
products in the aggregate in 2018 and 2019, and 10-15 products per
year beginning in 2020.
The total consideration for the transaction was approximately
$625 million. The transaction was financed through a combination of
cash on hand and debt. Annual sales for Claris Injectables were
approximately $112 million in 2016, and Baxter expects the growth
of this business to be modestly accretive to adjusted earnings for
2017 and increasingly accretive thereafter. Baxter updated its
full-year 2017 guidance in conjunction with its second-quarter 2017
earnings results (issued 7/26/17) to account for the anticipated
completion of the Claris Injectables acquisition.
About Baxter
Baxter provides a broad portfolio of essential renal and
hospital products, including home, acute and in-center dialysis;
sterile IV solutions; infusion systems and devices; parenteral
nutrition; surgery products and anesthetics; and pharmacy
automation, software and services. The company’s global footprint
and the critical nature of its products and services play a key
role in expanding access to healthcare in emerging and developed
countries. Baxter’s employees worldwide are building upon the
company’s rich heritage of medical breakthroughs to advance the
next generation of healthcare innovations that enable patient
care.
This release includes forward-looking statements concerning
Baxter’s acquisition of Claris Injectables, including expectations
regarding the financial impact of such acquisition on the company
(including with respect to adjusted earnings, which excludes
intangible asset amortization expense, inventory step-up and
transaction, integration and restructuring costs) and the
anticipated launch of new products. The statements are based on
assumptions about many important factors, including the following,
which could cause actual results to differ materially from those in
the forward-looking statements: the company’s ability to
successfully integrate Claris Injectables and realize the
anticipated benefits from the acquisition in the amounts and at the
times expected and generate the adjusted earnings included in the
company’s outlook for 2017 and thereafter; demand for and market
acceptance of new and existing products; the ability of Baxter to
develop, manufacture and commercialize, as applicable, new and
existing products; product quality or patient safety concerns;
actions of regulatory bodies and other governmental authorities;
changes in laws and regulations; and other risks identified in
Baxter’s most recent filing on Form 10-K and other SEC filings, all
of which are available on its website. Baxter does not undertake to
update its forward-looking statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170727005663/en/
Baxter International Inc.Media Contacts:Eric Tatro,
224-948-5353media@baxter.comorInvestor Contact:Clare
Trachtman, 224-948-3085
Baxter (NYSE:BAX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Baxter (NYSE:BAX)
Historical Stock Chart
From Apr 2023 to Apr 2024