Saturday, July 4, 2009

CRRT Business Switching Hands

Baxter to acquire Edward's CRRT business:

"Baxter International Inc announced a definitive agreement with Edwards Lifesciences Corporation under which Baxter will acquire certain assets related to Edwards’ hemofiltration product line, also known as Continuous Renal Replacement Therapy (CRRT). The transaction is expected to close in the third quarter of 2009, pending regulatory approvals.

Under the terms of the agreement, Baxter will provide Edwards an initial cash payment of approximately $56 million upon the close of the transaction. Additionally, Baxter will receive transition services from Edwards and is expected to pay Edwards up to an additional $9 million based on revenue objectives expected to be achieved over the next two years. The impact of this transaction is immaterial to Baxter’s financial results for 2009."

This makes sense, it fits in with Baxter's renal products, CRRT is a small market and the hardware and disposables are probably barely profitable especially with the low volumes Edwards was doing. Edwards never really gave it much attention. Presumably Baxter's solution operation is more profitable and soon they will work exclusively on what were previously Edward's Aquarius and other CRRT machines (Aquarius shown, image from the Aquarius Website).

Uremic Frost: "Fresenius and's your move."

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