Edwards Lifesciences Corporation, the global leader in the science of heart valves and hemodynamic monitoring, announced that it has entered into a definitive agreement with Baxter International Inc. to sell certain assets related to its hemofiltration product line, also known as continuous renal replacement therapy (CRRT).
Under the terms of the agreement, Edwards will receive an initial cash payment of approximately $56 million from Baxter upon the close of the transaction. Additionally, Edwards will provide transition services to Baxter and expects to receive up to an additional $9 million based on revenue objectives to be achieved over the next two years. Edwards is not revising its previous 2009 earnings guidance as a result of this transaction.
Carlyn D. Solomon, corporate vice president, Critical Care and Vascular at Edwards said that the transaction allows Edwards to better focus on its global strategic priorities. She added that Baxter has been a long-term supplier and partner for the business and it is felt that the product line will thrive under Baxter's ownership.
Hemofiltration, or CRRT, mimics the function of the kidneys 24 hours a day for patients with life-threatening kidney injuries or edema (fluid overload). CRRT provides a method of continuous, yet adjustable, fluid removal that can gradually remove excess fluid and the waste products that build up with the acute impairment of kidney function, and is usually administered in an intensive care setting in the hospital. Baxter currently supplies solutions used in CRRT treatment globally, and is the exclusive distributor of Edwards' product in China, Latin America and the United States. This product line is part of Edwards' Critical Care business and represented approximately $50 million in sales in 2008, primarily in Europe.
About Edwards Lifesciences
Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic monitoring, with more than five decades of experience in partnering with clinicians to develop life-saving innovations. Headquartered in Irvine, Calif., Edwards treats advanced cardiovascular disease with its market-leading heart valve therapies, and critical care and vascular technologies, which are sold in approximately 100 countries. The company's global brands include Carpentier-Edwards, Cosgrove-Edwards, Edwards SAPIEN, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz. Additional company information can be found at http://www.edwards.com. Back to HCB News