The firm aims to simplify its operating model and production footprint to advance strategic clarity, enhance operational efficiencies and accelerate future growth
US-based medtech company Baxter International has unveiled its strategic plans for the future that includes the spin-off of its Renal Care and Acute Therapies global business units (GBUs).
The latest plans will enable Baxter to increase operational efficiency, push for better long-term performance, speed up innovation, and provide more value for all stakeholders.
As part of the plans, the firm will spin off its kidney care units into an independent, publicly traded company in the next 12-18 months. It will also simplify its commercial and production footprint to enhance business performance.
Additionally, the plans include actions to improve Baxter’s capital structure, including a review of strategic alternatives for the BioPharma Solutions (BPS) business.
Baxter president and chief executive officer José (Joe) E. Almeida said: “We are at a major inflection point in Baxter’s ongoing transformation journey. The healthcare landscape has never been more dynamic.
“Our learnings over the past year and beyond require a fundamental rethinking of our profile and operating model. These decisive actions are necessary to help deliver future performance and innovation at the levels we demand of ourselves in pursuit of our Mission to Save and Sustain Lives.”
According to Baxter, the new kidney care business will profit from its capabilities that support therapies provided in the home, clinics, and intensive care unit (ICU), as well as its geographically varied presence and substantial commercial activities and its existing product portfolio.
Upon completion of the proposed operating model change and spinoff, the US-based firm is anticipated to become a more connected organisation with strong hospital solutions.
Baxter will make strategic investments to accelerate its ambition and bring differentiated value to all stakeholders through its combination of products, therapies, and connected care platforms.
The company will encourage innovation to assist accelerate sales growth, better serve patients and customers, and give new opportunities for workers by boosting R&D investments in more strategic prospects.
To enhance its manufacturing network and processes and generate value, the firm will also have the chance to increase investments in marketing, sales, and business growth.