Baxter to acquire Baxa Corporation for $380 million

Baxter International Inc. has announced the signing of a definitive agreement to acquire privately held Baxa Corporation, an Englewood, Colo.-based company focused on developing pharmacy technology to enhance the safety and efficiency of oral and IV dose preparation and delivery.

Register for free to listen to this article
Listen with Speechify
DEERFIELD, Ill.— Baxter International Inc. has announced thesigning of a definitive agreement to acquire privately held Baxa Corporation,an Englewood, Colo.-based company focused on developing pharmacy technology toenhance the safety and efficiency of oral and IV dose preparation and delivery.Baxter will acquire Baxa for a total upfront cash consideration of $380million, and the closing is subject to customary closing conditions as well asthe expiration of the waiting period under the Hart-Scott-Rodino AntitrustImprovements Act.
"With this agreement, Baxa will be able to play a greaterrole in delivering safe medication practices," Greg Baldwin, Baxa chairman andchief executive officer, said in a press release. "We are very pleased to finda partner that shares our commitment and sees the potential in our products,technology and people."
Baxa's annual sales in 2010 were approximately $150 million,and Baxter expects the acquisition of Baxa to be accretive to its future salesgrowth. The company also expects the acquisitive to be neutral to full-year2012 earnings excluding dilution of approximately $0.03 to $0.05 per dilutedshare related to acquisition accounting and transaction-related expenses, andincreasingly accretive in the following years.
Baxa's website states that its mission is "to be a greatmedical device company that continually improves and maximizes long-term valuethrough lifetime partnerships with customers." The company's pharmacy productsinclude automated compounding devices, dose management, pharmacy admixturetools, oral and enteral systems, automated filling systems and IVadministration. Baxa also has a variety of nursing products, including suppliesfor neonatal feeding, oral and enteral systems and IV administration. Baxa'sproduct line includes the ExactaMix Compounder, devices that work to automatemulti-ingredient nutritional solution compounding, as well as its DoseEdgePharmacy Workflow Manager, which provides an integrated system for managing IVand oral dose preparation activities.
"With these new offerings, Baxter will be able to provide acomprehensive solution to fulfill the majority of patients' nutritionalrequirements and increase efficiency in the pharmacy," said Robert M. Davis,president of Baxter's Medical Products business, in a press release regardingthe acquisition. "Bringing this expertise together with Baxter's commercialcapabilities and global reach will enable us to continue to meet our customers'evolving needs and extend our position in IV nutrition and fluid delivery."
The acquisition is a strong one for Baxter based on theextremely complementary nature of the two companies' businesses. Baxter's areasof expertise include anesthesia, clinical nutrition, infusion systems/IVtubing, and pharmaceuticals, solutions and drug delivery. When combined withthe company's drug delivery systems and nutrition products—such as Baxter'smulti-chamber, prefilled, premixed containers—Baxa's products will boost thecompany's portfolio and its strength in its areas of focus.
Premixed medications and pharmacy automation serve tominimize issues in the medication process, in terms of reducing errors indosage and administration and improving effectiveness. Baxter's premixedmulti-chamber containers include essential nutrients for a range of patients,and Baxa's integration and automation technology give hospital pharmacists theability to customize treatments for specific patient populations.

Subscribe to Newsletter
Subscribe to our eNewsletters

Stay connected with all of the latest from Drug Discovery News.

DDN Magazine May 2024

Latest Issue  

• Volume 20 • Issue 3 • May 2024

May 2024

May 2024 Issue