Baxter to sell vaccine business to Pfizer

Healthcare company Baxter International has entered into a definitive agreement to sell its two commercially marketed vaccines and related production facilities to pharmaceutical company Pfizer for a total cash consideration of $635 million, subject to certain adjustments.

The sale includes the company’s commercial vaccines business, which comprises NeisVac-C, a vaccine which helps protect against meningitis caused by group C meningococcal meningitis (MenC); and FSME-IMMUN, which helps protect against tick-borne encephalitis (TBE), an infection of the brain transmitted by the bite of ticks infected with the TBE-virus. Pfizer will also acquire a portion of Baxter’s facility in Orth, Austria, where the vaccines are manufactured.

“This action reflects our strategic priority to optimise the portfolio and enhance focus in specific disease areas as Baxter’s BioScience organisation prepares to become a separate, independent global biopharmaceutical company,” said Dr Ludwig Hantson, president of Baxter BioScience.

“We are redirecting resources and investing in our robust pipeline centred on core areas of expertise - haematology and immunology - and through technology platforms like gene therapy and biosimilars.

“We are confident that Pfizer, with its recognised global leadership in vaccines, will provide the dedicated, ongoing investments necessary to support and advance the availability of these important vaccines.”

Subject to regulatory approvals and other customary closing conditions, the companies expect to close the transaction by the end of 2014. Baxter expects 2014 vaccines revenues to total approximately $300 million and adjusted earnings of approximately $0.25 per diluted share, including approximately $50 million of one-time milestone payments related to the ongoing government collaborations for development of influenza vaccines. Pfizer does not expect the transaction to have an impact on its 2014 financial guidance issued on 29 July.