BAXTER INTERNATIONAL INC. (BAX)
Industries: health care, pharmaceuticals
Baxter provides dialysis systems, sterile IV solutions, infusion systems and devices, parenteral nutrition, biosurgery products and anesthetics, and pharmacy automation products. Baxter products are used by hospitals, dialysis centers, nursing homes, clinics and by patients at home under physician supervision.
Book value of equity per share $15.30 -7.9% -0.9% 3.5%
BV including aggregate dividends -3.2% 27.5% 18.9%
EPS $2.95 77.7% -3.6% -1.5%
Annual dividends $0.79 17.9% -16.9% -2.3%
Share price $91.08
Other (Nov. 28, 1995)
On November 28, 1995, the board of directors of Baxter International Inc. approved in principle a plan to distribute to Baxter stockholders all of the outstanding stock of its health-care cost management business in a spin-off transaction (the "Distribution") which is expected to be tax-free. The creation of two independent companies will enable Baxter and the new company to devote management time, attention and investments directly to the core strategies of each business. The new health-care cost management business will consist of Baxter's cost-management services, U.S. distribution, surgical products and respiratory-therapy operations and will operate as a medical supplier focused on helping customers manage the total cost of providing patient care. The Distribution is expected to occur in late 1996 and will result in the health-care cost management business operating as an independent entity with publicly traded common stock. As a result of the board's approval of the plan, the company's financial statements have been adjusted and restated to reflect the results of operations and net assets of the health-care cost management business as a discontinued operation, in accordance with generally accepted accounting principles.
Acquisition (Sept. 6, 2013)
On September 6, 2013, Baxter acquired 100 percent of the voting equity interests in Indap Holding AB, the holding company for Gambro, a privately held dialysis product company based in Lund, Sweden. Gambro is a global medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease. The transaction provides Baxter with a broad and complementary dialysis product portfolio, while further advancing the company's geographic footprint in the dialysis business. In addition, the company has augmented its pipeline with Gambro's next-generation monitors, dialyzers, devices and dialysis solutions. The total cash consideration for the acquisition, as reduced by assumed debt of $221 million, was $3.7 billion.
Spin-off (July 1, 2015)
On July 1, 2015, Baxter completed the distribution of approximately 80.5% of the outstanding common stock of its biopharmaceuticals business, Baxalta Incorporated, to Baxter stockholders. The Distribution was made to Baxter's stockholders of record as of the close of business on June 17, 2015, who received one share of Baxalta common stock for each Baxter common share held as of such date. As a result of the Distribution, Baxalta is now an independent public company whose shares trade on the New York Stock Exchange under the symbol "BXLT." Baxter is accounting for its investment in Baxalta common stock as an available-for-sale equity security with a fair value of approximately $5.1 billion as of December 31, 2015 (prior to giving effect to the disposition of 37,573,040 Baxalta shares of common stock on January 27, 2016 in a related debt for equity exchange).