Baxter to buy Leukemia Treatment Oncaspar for $900 Million
Wednesday, May 13, 2015
Baxter International Inc. on Tuesday said it agreed to buy the Oncaspar leukemia treatment from Italy’s Sigma-Tau Finanziaria S.p.A. for $900 million in a move to capitalize on the fast-growing oncology market.
The acquisition will be a key part of the oncology division of Baxter BioScience, which Baxter plans to establish as a separate, publicly traded company by midyear. The oncology sector has an estimated $10 billion total market potential for Baxter’s pipeline assets, the company said.
Oncaspar is used as part of a chemotherapy regimen to treat acute lymphoblastic leukemia, a cancer of the white blood cells that comprises more than 80% of childhood leukemia cases. With $100 million in annual sales, Oncaspar is marketed in the U.S., Germany, and Poland, among other countries.
“Oncaspar is a strong strategic fit for our rapidly expanding oncology business, as it complements our R&D programs in hematologic cancers,” said David Meek, Baxter’s head of oncology. Baxter also will acquire a related chemical called calaspargase pegol, also used in treating ALL.
It will fund the deal through foreign cash and debt. The deal is expected to close in the third quarter.
Baxter has been aiming to focus it business ahead of the spinoff of its biopharmaceutical division through several deals, including the recent agreement to buy German biopharmaceutical company SuppreMol in a move to improve its portfolio of autoimmune treatments.
Baxter said the spinoff of the biopharmaceutical business, which will be called Baxalta Inc., remains on track for midyear.
Shares of Baxter are down about 6% this year through Monday’s close.
wsj.com
