Baxter to buy dialysis product line

Baxter to buy dialysis product line

By Bruce Japsen | Tribune staff reporter
7:36 AM CDT, June 23, 2009

Baxter International Inc. said this morning it will buy a dialysis product line for trauma patients and other victims of severe illnesses for $55 million from California-based-Edwards Lifesciences Corp.

The Deerfield-based medical product giant said the aquisition of Edwards' hemofiltration product line, also known as "continuous renal replacement therapy," will close in the third quarter of this year, pending regulatory approvals.

Under terms of the deal, Baxter will provide Edwards an initial cash payment of about $56 million upon the transaction's closing. In addition, Edwards could receive up to $9 million "based on revenue objectives expected to be achieved over the next two years." Baxter said the impact of the "transaction is immaterial to Baxter's financial results for 2009."

Hemofiltration mimics the function of the kidneys 24 hours a day for patients with "life-threatening kidney injuries or edema," also known as fluid overload, the companies said in a statement this morning. About 60 employees will be joining Baxter from Edwards as part of the transaction.

The deal comes a decade after Edwards spun off from Baxter. Edwards primary business is in heart devices such as replacement tissue valves. Baxter, a maker of blood therapies and medication delivery devices, also has a large renal business that includes filters and drugs to treat kidney disease.

"As an experienced leader in dialysis therapies including (continuous renal replacement therapy), this acquisition represents an extension of our existing renal business, and demonstrates our commitment to save and sustain the lives of patients with acute kidney injuries," said Bruce McGillivray, corporate vice president and president of Baxter's Renal business. "This acquisition expands Baxter's existing continuous renal replacement therapy business, which is predominantly in the United States and China, into new markets such as Europe and Australia."

bjapsen@tribune.com

http://www.chicagotribune.com/business/chi-biz-baxter-dialysis-june23,0,7304774.story