Biotech Values

[DewDiligence]

BAX acquires oncology assets for $900M in cash:

http://finance.yahoo.com/news/baxter-bioscience-expand-global-oncology-130000762.html

Baxter International Inc. announced it has signed a definitive agreement to acquire the Oncaspa (pegaspargase) product portfolio from Sigma-Tau Finanziaria S.p.A. The acquisition further accelerates the innovation capabilities and the commercial presence of Baxter BioScience in growing oncology markets for rare and orphan diseases. The company gains the leading marketed biologic treatment Oncaspar, the investigational biologic calaspargase pegol, and an established oncology infrastructure with clinical and sales resources. The Oncaspar transaction is expected to close in the third quarter.

Oncaspar is a first-line biologic used as part of a multi-agent chemotherapy regimen to treat acute lymphoblastic leukemia (ALL). It is currently marketed in the United States, Germany, Poland and certain other countries and has approximately USD $100 million in annual sales.

…Under the terms of the agreement, Baxter will purchase the portfolio for USD $900 million before working capital and other transaction adjustments. The company expects to finance the transaction through a combination of foreign cash and debt.

By the time the deal closes, the BXLT spin-off (rather than BAX) will be the owner of these assets.