Due to increased market competition, Baxter International Inc. (NYSE:BAX) has decided to strengthen its portfolio. Reports claim that the company has agreed to purchase the drug portfolio of Italian drugmaker Sigma-Tau Finanziaria SpA. These drugs can be used to treat rare form of blood cancer.
The deal will cost over $900 million before other expenses to Baxter International Inc., but will prove to be a strong addition to its existing portfolio.
What Is Included In Drug Portfolio:
Market experts claim that this drug portfolio can play an important role in the treatment of cancer across the globe. The portfolio comprises of Oncaspar, which is approved in Germany, United States and Poland. Baxter claims that the portfolio makes on an average $100 million in annual sales at present, but it has the potential to increase to a lot higher level than this in the future.
If everything falls in line, the deal will get closed in the third quarter, provides all the terms & conditions are fulfilled. It will start adding the cash in Baxter’s adjusted profit from next year onwards. If taken into consideration the current market situation and the competition in the healthcare industry, Baxter will get an edge over its rivals as soon as this new drug is added to its drug portfolio.
None of the senior management executives from Baxter International Inc. (NYSE:BAX) and Sigma-Tau Finanziaria SpA have come forward and faced the cameras. They are expected to organize a PR in a few days time and share detailed updates with all the stakeholders.
Experts claim that it’s an amazing opportunity for Baxter to make a difference in the market. If it can successfully use its widespread marketing network and promote this drug in an effective manner, the sales figures that revolve around $100 million as of now can touch higher numbers by the next year.
