Baxter Completes Acquisition of Claris Injectables, Expanding Generic Injectable Medicines Portfolio
Increases Patient Access to Medicines
Provides Platform for Accelerated Growth
Expected to be Modestly Accretive to Adjusted Earnings for 2017
Deerfield, Ill. -
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.
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.