Baxter International Inc. said Friday it plans to embark on a tax-free spin off to shareholders of its Renal Care and Acute Therapies unit into a public company within the next 12-18 months. The company also warned it would unveil a restructuring plan on Feb. 9 when it reports its fourth-quarter results. The details of its strategic moves were explained during a Friday investor call.
The hospital products company stock
fell 3.4% in premarket trades The Renal Care unit reported a 4% drop in third-quarter revenue to $942 million, while Acute Therapies unit reported revenue of $158 million, down 15%, Baxter said on Oct. 27. For the nine months ended Sept. 30, Baxter’s Renal Care revenue fell 3% to $2.77 billion, while Acute Therapies revenue decreased by 11% to $519 million. Baxter’s other significant moves included “simplifying” its operating model and manufacturing footprint and exploring the sale or other actions for its biopharma solutions contract manufacturing unit “to further enhance focus and improve capital structure.” Baxter International stock has fallen 39.9% in the past 12 months, compared to an 18.9% loss by the S&P 500
over the same time period.