On Tuesday, Baxter International Inc (NYSE:BAX) announced that it had entered into a contract to buy the Oncaspar portfolio from Sigma-Taufor a hefty consideration of $900 million.
The new acquisition will give the company a more established presence in the Oncology markets particularly with regards to rare conditions. Oncaspar is a component of the multiple stage chemotherapy process used to treat Severe Lymphoblastic leukemia or ALL. Its average sales amount to about $100 million every year.
David Meek who is the head of the Oncology department at Baxter Bioscience spoke with high regards for Oncaspar. He claimed that it is one of the centers that will best integrate with the fast growing oncology business. Meek explained that it is such a good it because it complements their research and development processes for Hematologic cancer.
Meek also said the acquisition would give the company an opportunity to bring in significant impact and revenues in the American and European markets. Along with this ambition the company has plans to make sure it creates a good name for itself which will be key in boosting its appeal.
In addition to the acquisition of Oncaspar which is currently circulating some of the major regions, Baxter has plans to include more focus on the development of biologic therapy. This will involve focus on expansion of the Lyophilized version. The company also has plans to surveyOncaspar to establish whether it can be optimized to deal with broader conditions.
As part of the contract, the company will also include deeper research for ALL treatment drugs. One of the company’s aims is to come up with medication that will not require frequent dosages. If it succeeds, clients or patients might benefit from less spending due to reduced prices and less frequent visits to the chemists.
Additionally, Baxter International Inc (NYSE:BAX) plans on improving the quality and effectiveness of the new drugs. This resolution will go a long way in adjusting the quality of care therapy or most patients. The acquisition process is expected to come to an end towards the end of the year.
