Baxter Completes Acquisition of Claris Injectables, Expanding Generic Injectable Medicines Portfolio

Baxter acquires Claris Injectables Limited

• Increases Patient Access to Medicines
• Provides Platform for Accelerated Growth
• Expected to be Modestly Accretive to Adjusted Earnings for 2017

Baxter International, which acquired three plants in the recent purchase of Claris Injectables, intends to start investing in the facilities to expand capacity and add new capabilities. The new facilities will enable the development of a new portfolio of approved drugs and allow for an increased pipeline of potential new products.

The Deerfield, Illinois-based specialist in sterile injectable drugs last week declared it had completed its $625 million deal for the Indian company, which includes three manufacturing facilities—one of which FDA approved—a portfolio of approved drugs and a bright future of potential new products.

Baxter will begin adding both capacity and new technologies to the plants, including new aseptic manufacturing and lyophilization and new technology platforms in areas like cytotoxics, aseptic development and complex formulations. It also will add to Claris’ R&D capabilities to increase and accelerate its pipeline output.

“This acquisition reinforces our commitment to establishing Baxter as a global leader in generic injectable medicines,” said José (Joe) E. Almeida, chairman and chief executive officer, Baxter. “The combination of Baxter and Claris Injectables will allow us to increase access to lower-cost generic injectables and strengthen our ability to meet the needs of healthcare providers and patients around the world.”

The addition of Claris is expected to add 50 products to Baxter’s portfolio in 2017, almost 20 more in 2018 and 2019 combined, and a stream of 10-15 new products per year beginning in 2020.

The expanded capabilities and facilities gained in the acquisition will provide a foundational growth platform for Baxter to help accelerate the number of products it launches in both the near- and long-term. The acquisition is anticipated to add more than 50 products to Baxter’s portfolio in 2017, almost 20 new products in the aggregate in 2018 and 2019, and 10-15 products per year beginning in 2020.

The total consideration for the transaction was approximately $625 million. The transaction was financed through a combination of cash on hand and debt. Annual sales for Claris Injectables were approximately $112 million in 2016, and Baxter expects the growth of this business to be modestly accretive to adjusted earnings for 2017 and increasingly accretive thereafter. Baxter updated its full-year 2017 guidance in conjunction with its second-quarter 2017 earnings results (issued 7/26/17) to account for the anticipated completion of the Claris Injectables acquisition.

The company said it will now discuss with its advisors and identify the most efficient method of transferring a significant majority of the net proceeds to its shareholders.

The drug firm expects to communicate the process before October 15, 2017, Claris Lifesciences said in a statement today.