Biotech Values

[DewDiligence]

Re: Musings on BAX/BXLT

BAX/BXLT post-separation “when issued” shares begin trading 6/15/15; trading in the actual post-separation shares begins 7/1/15:

http://finance.yahoo.com/news/baxter-board-directors-approves-separation-203000338.html

Existing BAX shareholders will receive 1 (tax-free) share of BXLT for each share of BAX; after the separation, BAX will retain a 19.5% stake in BXLT.

I’ve posted a few times about BXLT recently (e.g. the slide set in #msg-113807038 and the quiz in #msg-113974752 [solved by ‘genisi’]). BXLT will be the global leader in the treatment of hemophilia with an established portfolio and two gene-therapy product candidates (one in phase-1 and one preclinical) for hemophilia A and B, respectively.

BXLT will remain one of the top-3 global companies in IVIG and plasma-derived therapeutics. Further, BAX will have two FoB programs: one for Enbrel (partnered with CHRS) and one for Humira (partnered with MNTA).

BXLT will also have an uninspiring (IMO) presence in oncology, derived from two recent acquisitions (#msg-113565100, #msg-111442999). The move into oncology was made to enhance investor interest, but I think it will end up backfiring.

The remaining BAX (after the BXLT spin-off) will be highly leveraged to dialysis, and hence will be a strong play on the diabetes epidemic consequent to ‘The Global Demographic Tailwind’ (#msg-106316378, #msg-82247513).

Disclosure: No current position.