4. Baxter International
Robert L. Parkinson Jr., Chairman & CEO
James K. Saccaro, Corp. VP and Chief Financial Officer
Jill M. Schaaf, Corp. VP and President, Renal
Marcus Schabacker, Corp. VP and Chief Scientific Officer
Paul Vibert, Corp. VP and President, International
Brik V. Eyre, Corp. VP and President, Hospital Products
Robert Felicelli, Corp. VP, Quality
Timothy P. Lawrence, Corp. VP, Operations
NO. OF EMPLOYEES: 50,000
glObAl;HeAdquArters: Deerfield, Ill.
For Baxter International Inc., the 2014 fiscal year began with a split. No, the company’s not going anywhere; it’s sepa- rating into two distinct firms. In March, the Deerfield, Ill.-based healthcare company unveiled plans to create two separate,
independent life-science firms—one focused on biopharmaceuticals and the other on medical products.
“Baxter has an established history of executing successful spi-
noffs, and we have continued to evaluate the separation of these
two businesses in response to diverging business dynamics and
the rapidly changing macro-environment,” said Robert L. Parkin-
son Jr., chairman and CEO. “This decision underscores Baxter’s
commitment to ensuring its long-term strategic priorities remain
aligned with shareholders’ best interests, while improving our
competitive position and performance, enhancing operational,
commercial and scientific effectiveness and creating value for pa-
tients, healthcare providers, and other key stakeholders.”
According to company officials, the spinoff would create two,
“well-capitalized independent companies with strong balance
sheets, investment grade profiles, and disciplined approaches to
Baxter’s brass said the separation would result in other ben-
biopharmaceuticals and medical products;
allocate necessary resources to the areas presenting the
highest growth potential; and
strategies resulting in revenue acceleration, improved
profitability and enhanced returns.
In 2014, the company reported two product categories—
BioScience and Medical Products. That changed after the split.
Baxter’s BioScience division consisted of a portfolio of recom-binant and plasma-based proteins to treat hemophilia and other
bleeding disorders, and plasma-based therapies to treat immune
deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and
other chronic and acute blood-related conditions.
“We are confident that this decision not only strengthens our
outlook, it positions us well to execute on our future growth prospects, new product pipeline and other opportunities as we enter a
new era in the journey to achieve our aspiration as a premier biopharmaceuticals company,” said Ludwig N. Hantson, Ph.D., who
was president of Baxter’s BioScience division before the spinoff.
The Medical Products business consisted of a portfolio of intravenous (IV) solutions and nutritional therapies, drug delivery
systems and administration sets, premixed and other injectable
drugs, as well as inhalation anesthetics and hospital-based biosurgery products. This business also integrated the Swedish firm
largest acquisition in Baxter’s more than 80-year history) and
complemented the company’s existing renal therapies franchise.
The corporate headquarters of both companies will be located
in northern Illinois.
Parkinson will serve as chairman and CEO of the medical
products company, which will retain the Baxter International
name. Hantson is CEO of the new biopharmaceuticals company, which was dubbed Baxalta (a combination of the Baxter
name and a derivative of“altus,” which is Latin for“high” or“pro-found”). The division became official on July 1 of this year when
Baxalta began trading as an independent company on the New
York Stock Exchange under the ticker symbol “BXLT.” The split
came via a tax-free distribution to Baxter shareholders of the new
publicly traded stock.
Hantson joined Baxter in 2010 from Novartis Pharmaceuticals Corporation, where he served in a number of roles of
increasing responsibility, the most recent of which was CEO,
Pharma North America. Prior to Novartis, Hantson spent 13
years at Johnson & Johnson.
Wayne T. Hockmeyer, Ph.D., who joined Baxter’s board in
2007, serves as non-executive chairman of the board of Baxalta.
Hockmeyer founded MedImmune Inc., and served as its chairman and chief executive officer.
This wasn’t the first time Baxter has spun off parts of itself.
Other companies that Baxter has spun off in the past three decades include Edwards Lifesciences Corp., Caremark Corp., and
Allegiance Healthcare Corp. It’s also part of a larger industry
trend of refocusing on core businesses. Baxter’s Illinois neighbor,
Abbott Laboratories, spun off its pharmaceutical arm to create a
new firm—AbbVie Inc.
Once the split took place, Baxter separated into two new global
business units: Hospital Products and Renal. The Hospital Products business manufactures products used in the delivery of fluids and drugs to patients across the continuum of care, including
IV and other sterile solutions and administration sets, premixed
drugs and drug-reconstitution systems, IV nutrition products, in-