Baxter International Inc. announced the sale of its U.S. generic injectables business to Hikma Pharmaceuticals PLC for approximately $112 million, a move that will require Baxter to take an after-tax third-quarter special charge of $70 million, or 12 cents a share, to write down the assets of the business.
The sale involves Baxter’s high-volume, generic injectable products in vials and ampoules, which are sold primarily in the United States including chronic pain, anti-infective and anti-emetic products, along with the Cherry Hill, N.J., manufacturing facility, and a Memphis-area warehouse and distribution center. Approximately 750 employees who support the business will also transfer as part of the arrangement.
Deerfield-based Baxter said the sale will enable Baxter to focus on product differentiation by diverting resources to its proprietary, enhanced package offerings and formulation technologies.
Sales of the unit totaled approximately $170 million in 2009. The company said the sale shouldn’t affect its previously-issued earnings guidance.
